Proposal for Food Products for the
Homes for the Aged and Hostels
The Community and Neighbourhood Services Committee recommends the adoption of the following report (March
10, 1998) from the Chief Financial Officer and Treasurer:
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 Community
and Neighbourhood Services - Homes for the Aged and Hostel Services, with the option to extend the contract for two
additional one year periods; and
(2)this report be forwarded to the next meeting of Council.
Council Reference/Background/History:
Nineteen firms were invited to submit proposals: five 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; and
(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 1.5 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
Tel: 392-7312