March 10, 1998
To: Community and Neighbourhood Services Committee
From: Chief Financial Officer & Treasurer, Finance Department
Purchasing and Material Supply
Subject: Proposal for Food Products for Homes for the Aged and Hostels
Purpose:
The purpose of this report is to advise the results of the Request for Proposals issued for the supply and delivery of food products and related computer hardware and software to ten Homes for the Aged and four Hostels as requested by Community and Neighbourhood Services - Homes for the Aged and Hostel Services for the period ending December 31, 1998 with the option to extend the contract for two additional one year periods and to request the authority to issue purchase orders to the recommended proponent.
Source of Funds:
Funds in the estimated amount of $4,927,000.00 including all charges and taxes are provided in the Community and Neighbourhood Services -Homes for the Aged and Hostel Services - Operating Accounts for 1998 and funds will be provided in these accounts for the option years.
Recommendations:
It is recommended that:
(1) the proposal submitted by Gordon Food Services in the estimated amount of $4,927,000.00 including all charges and taxes for the supply and delivery of food products be accepted being the proposal meeting all requirements of the Community and Neighbourhood Services - Homes for the Aged and Hostel Services with the option to extend the contract for two additional one year periods;
(2) this report be forwarded to the next meeting of Council.
Council Reference/Background/History:
Nineteen (19) firms were invited to submit proposals: 5 proposals were received from the following firms for the supply of food products to ten Homes for the Aged and four Hostels.
1. Gordon Food Service
2. Serca Foodservice Inc.
3. Strano Sysco Foodservice
4. Burgess Wholesale
5. Derry Foods Limited.
The Manager, Fair Wage and Labour Trades Office, has reported favourably on the firm recommended.
Comments and/or Discussion and/or Justification:
The Homes for the Aged and Seaton House Hostel are linked with the current food products supplier by an online ordering/inventory management system. The Request for Proposal included a mandatory requirement that the successful proponent provide upgraded computer hardware and software to these locations at no cost to the City to maintain the online ordering/inventory management functions. The proposal submitted by Derry Foods Limited was unacceptable as the company failed to meet this mandatory requirement.
A market basket of food products consisting of the items with the highest volume based on the quantities purchased in 1997 was put together to compare prices of the remaining four companies.
1.Serca Foodservice Inc. $2,433,084.00
2.Gordon Food Service $2,510,743.00
3.Strano Sysco Foodservice $2,770,927.00
4.Burgess Wholesale $2,841,527.00
The proposals submitted by Strano Sysco Foodservice and Burgess Wholesale were unacceptable as both companies failed to meet the requirement of the specifications to guarantee a maximum time of 1 1/2 hours to respond to an emergency repair of any juice dispenser that had malfunctioned and both companies were also higher in pricing on the market basket of food products.
The proposals submitted by Serca Foodservice Inc. and Gordon Food Service were both acceptable pending an inspection report of their distribution facilities. The inspections were conducted by both a Purchasing and Material Supply Inspector and an independent food service laboratory.
The report on the Serca Foodservice Inc. showed that the warehouse did not satisfy all requirements of the Canadian Food Inspection Agency which was not acceptable to Community and Neighbourhood Services - Homes for the Aged and Hostel Services. The report on Gordon Food Service indicated that the warehouse is a first class facility that is acceptable to Community and Neighbourhood Services - Homes for the Aged and Hostels Services and satisfies the requirements of the Canadian Food Inspection Agency.
The Commissioner of Community and Neighbourhood Services concurs in the recommendations made.
Conclusion:
This report requests authority to award the contract for the supply and delivery of food products to the Homes for the Aged and Hostels to the acceptable proponent, Gordon Food Service.
Contact Name:
Mr. L. A. Pagano
Director, Purchasing and Material Supply
Telephone: 392-7312
W. A. Liczyk
Chief Financial Officer and Treasurer
