Meeting Date: April 18, 2007

Subject: Procurement Authorization - Supply Of Rubber Encapsulation For Special Trackwork - Proposal No. P31AT07057

Recommendation

It is recommended that the Commission approve the award to Polycorp Ltd. (Polycorp) for the supply of rubber encapsulation for special trackwork in the streetcar network, for the contract period of April 2007 to December 2009, in the amount of $1,655,000.

Funding

Sufficient funds to accommodate this expenditure are included in project 1.2 Surface Special Trackwork Replacement Program, as set out on pages 85 to 87 in the “State of
Good Repair /Safety” category of the TTC 2007-2011 Capital Program, approved by the City of Toronto Council on March 7, 2007.

Background

The work involves the rubber encapsulation of surface special trackwork including: design, manufacture, supply of material, labour, equipment, patterns, formwork, tooling and transportation, and security to manufacture, protect and deliver the encapsulated streetcar special trackwork. The work also includes project scheduling, technical support, quality assurance, transportation and inventory control of Commission supplied products, and packaging. The trackwork is to be picked up and returned to the Commission’s Hillcrest Yard by the supplier. On August, 23, 2004 TTC awarded 23 castings (Oakwood Loop) for rubber sheet encapsulation to Polycorp in the amount of $68,320.00. Then in 2006, TTC tested both rubber sheet encapsulation and urethane encapsulation necessary to determine the technical merit of each method; rubber sheeting encapsulation method has been determined to provide a more uniform finish and has been selected for use.

Accordingly, we propose to use rubber encapsulation technology for all future surface special trackwork projects.

Discussion

Specifications were prepared for the supply of rubber encapsulation of streetcar special trackwork, over the period of April 2007 to December 2009.  A public advertisement was placed on the Commission’s website on February 27, 2007, and a total of five companies were invited to submit proposals, of which two proposals were received. 

Proponents were given the option of providing pricing for the first year that would be subject to adjustment for subsequent years of the contract or providing firm pricing for each year of the contract.

The RFP stipulated qualification criteria and in order to be considered qualified, a proponent required approximately 5 years corporate experience and their Account Representative required approximately 3 years experience with rubber encapsulation work contracts of a similar size and nature. The proponent was requested to submit sample test certificates for chemical analysis of encapsulation work. Proponents were also requested to submit information on their general approach to Quality Assurance and methods for shipping of materials. In addition, the Proponents were also required to submit a detailed Research & Development plan regarding rubber encapsulation technology as may be requested by the Commission throughout the contract term.

Each bid was reviewed by a team comprised of staff from the Materials & Procurement Department, Streetcar Way Section – Streetcar Maintenance Department, and Track & Structure Department; both proponents are considered qualified based on the submission requirements.
 
Polycorp submitted the lowest bid.  Polycorp submitted fixed unit prices to be applied in each year of the 3 year contract.  Polycorp is currently supplying miscellaneous trackwork to the Commission in a satisfactory manner.  Their submission is considered commercially and technically acceptable and is recommended for award.

Performance Polymers Inc. (PPI) submitted the second lowest bid.  PPI also submitted fixed unit prices to be applied in each year of the 3 year contract.  Their submission is considered commercially and technically acceptable.

A price comparison with previous purchases is not available as this is a first time buy for this requirement.

Justification

This contract will ensure that the service life of streetcar special trackwork is extended and will help to mitigate the noise and vibration at intersections.  It will also help to prolong the service life of streetcar vehicles operating throughout the affected areas of the streetcar network.

April 3, 2007
6-205-59

Attachment: Appendix A

Appendix “A”

Procurement Authorization
Supply Of Rubber Encapsulation
For Special Trackwork

Summary Of Proposals

Company / Total Proposal Price (3 YEARS)

Polycorp Ltd. (Recommended for award) / $1,378,882.51

PPI / $1,877,261.83

(Recommended for award)

Upset limit of $ 1,655,000.00 includes an allowance of approximately 20% to cover variances between forecasted and actual usage over the contract period.