May 26, 1999
To:Works Committee
From:Chief Financial Officer and Treasurer
Commissioner of Works and Emergency Services
Subject:Quotation for Liquid Chlorine
Purpose:
The purpose of this report is to advise the results of the Request for Quotation for the supply
and delivery of liquid chlorine, used as a disinfecting agent in drinking water and chlorination
of final effluent, by the Water Supply Division at the F.J. Horgan Filtration Plant, the R.C.
Harris Filtration Plant, the Island Filtration Plant, and the R.L. Clark Filtration Plant; and by
the Water Pollution Control Division at the Humber Treatment Plant, the Highland Creek
Treatment Plant and the Main Treatment Plant for the period August 1, 1999 to December 31,
2000 in accordance with specifications as required by the Department of Works and
Emergency Services and to request the authority to award a contract to the recommended
bidders.
Funding Sources:
Funds are available in the appropriate accounts for this requirement.
Recommendations:
It is recommended that :
(1)The quotations as noted below for the supply and delivery of liquid chlorine, used as a
disinfecting agent in drinking water and chlorination of final effluent, by the Water Supply
Division at the F.J. Horgan Filtration Plant, the R.C. Harris Filtration Plant, the Island
Filtration Plant, and the R.L. Clark Filtration Plant; and by the Water Pollution Control
Division at the Humber Treatment Plant, the Highland Creek Treatment Plant and the Main
Treatment Plant for the period August 1, 1999 to December 31, 2000, be accepted, being the
lowest quotations received meeting specifications:
(a) Stanchem Inc. for approximately 3063 tonnes in 907.2 kg containers in the amount of
$1,307,686.59 including Goods and Services Tax and all other charges (Ontario Retail Sales
Tax exempt) and;
(b) Prairiechem Inc. for approximately 780 tonnes in 49.89 tonne rail cars in the amount of
$312,975.00 including Goods and Services Tax and all other charges (Ontario Retail Sales
Tax exempt);
(2)The appropriate officials be authorized to complete the necessary contract documents.
Council Reference/Background/History:
Thirty-seven (37) firms were invited to submit quotations and this requirement was advertised
on the City's Internet website; five bids were received as summarized below for the supply
and delivery of liquid chlorine, used as a disinfecting agent in drinking water and chlorination
of final effluent, by the Water Supply Division at the F.J. Horgan Filtration Plant, the R.C.
Harris Filtration Plant, the Island Filtration Plant, and the R.L. Clark Filtration Plant; and by
the Water Pollution Control Division at the Humber Treatment Plant, the Highland Creek
Treatment Plant and the Main Treatment Plant for the period August 1, 1999 to December 31,
2000 in accordance with specifications as required by the Department of Works and
Emergency Services.
Comments and/or Discussion and/or Justification:
The following is a summary of the prices submitted for the supply and delivery of Liquid
Chlorine,
Quotation No. 6606-99-01590:
(A) approximately 3063 tonnes in 907.2 kg containers
(B) approximately 780 tonnes in 49.89 tonne tank cars
Price Per Tonne, Delivered,
Excluding Taxes *
Firm Name (A)(B)
Stanchem Inc.$ 399.00(i)No Quote
Welland Chemical Ltd.$ 649.00No Quote
Netchem Inc.$ 777.00No Quote
PCI Chemicals Canada Inc.No Quote$ 325.00(ii)
Prairiechem Inc.No Quote$ 375.00
* above prices are subject to 7% Goods and Services Tax, Ontario Retail Sales Tax Exempt
(i)price firm for 12 months, there after during the remaining 5 month period, the total price
increase will not exceed $50.00 per tonne. Price changes will reflect the accumulated cost
increases applicable to bulk chlorine supply during the prior 12 month period.
(ii) price based on 81.65 tonne tank cars
A comparison of the low price for this year's requirements against pricing received last year is
as follows:
19981999$ difference% difference
in 907.2 kg containers895.00399.00$ - 496.00-55.42%
in 49.89 tonne rail cars425.00375.00$ -50.00-11.76%
The decrease in price for this commodity for the 1999/2000 contract compared to the 1998
contract is attributed to competition in the marketplace.
The Commissioner of Works and Emergency Services has examined the quotations and
advises that with respect to the supply of this commodity in tank cars, the lowest bidder, PCI
Chemicals Canada Inc. has offered to supply chlorine in 81.65 tonne tank cars, rather than in
49.89 tonne tank cars, as specified. Tank cars of 49.89 tonne capacity are specified to address
concerns of the community living near the Main Treatment Plant in order to have the lowest
chlorine inventory on site at any one time to minimize the risk relating to the use and storage
of chlorine at this site. Therefore the bid from PCI Chemicals Canada Inc. is not acceptable.
The Manager, Fair Wage and Labour Trades Office has reported favourably on the firms
recommended.
Conclusions:
This report requests authority for the appropriate officials to complete the necessary contract
documents for the supply and delivery of liquid chlorine, used as a disinfecting agent in
drinking water and chlorination of final effluent, by the Water Supply Division at the F.J.
Horgan Filtration Plant, the R.C. Harris Filtration Plant, the Island Filtration Plant, and the
R.L. Clark Filtration Plant; and by the Water Pollution Control Division at the Humber
Treatment Plant, the Highland Creek Treatment Plant and the Main Treatment Plant for the
period August 1, 1999 to December 31, 2000 as required by the Department of Works and
Emergency Services to the lowest bidders, meeting specifications, Stanchem Inc. in 907.2 kg
containers in the amount of $1,307,686.59 including Goods and Services Tax and all other
charges (Ontario Retail Sales Tax exempt) and Prairiechem Inc. in 49.89 tonne rail cars in the
amount of $312,975.00 including Goods and Services Tax and all other charges (Ontario
Retail Sales Tax exempt).
Contact Name:
Hiroshi TaniguchiLou Pagano
DirectorDirector
Water Supply DivisionPurchasing and Materials Management Division
Telephone: 392-8220Telephone: 392-7312
Michael Price
General Manager
Water & Waste Water Services Division
B.H. GutteridgeW.A. Liczyk
Commissioner Works and Emergency ServicesChief Financial Officer and Treasurer
