Meeting Date: April 18, 2007

Subject: Procurement Authorization - Supply Of Vapor Bus Parts


It is recommended that the Commission authorize the award of a three-year inventory supply contract for the supply of Vapor bus parts for the period July 2007 to July 2010 to Vapor Bus International for an upset limit of $976,000 including applicable taxes.


Sufficient funds have been included in the 2007 TTC Operating Budget and will be included in future Operating Budgets as appropriate. These inventory materials will be charged to the appropriate budget at the time of issuance from Stores.


The subject parts are used to maintain the Commission’s bus door systems.


Vapor Bus International was invited to submit a proposal on February 9, 2007 on the basis of single source as they are the only approved supplier of the subject parts.

The proposal called for 111 pre-approved part types of which all 111 are being recommended for award. Vapor Bus International’s submission included a qualification whereby 5 part types had minimum order quantities. Staff have reviewed these parts and have found this qualification acceptable.

This contract includes approximately 20% contingency for variances between forecasted and actual usage and new parts yet to be identified which may be added to the contract during the contract term.

The original pricing received for this new three-year inventory supply contract was 1.89% lower in the first year based on current pricing with an increase in year two of 3% based on year one pricing and an increase of 3.01% in year three based on year two prices which represents a total proposed value of $817,961.
Staff contacted Vapor Bus Industries to negotiate price reductions and was able to attain pricing that will be approximately 2.5% lower in the first year based on current pricing. The pricing will be 3% higher in year two compared to year one prices and approximately 3% higher in year three compared to year two prices resulting in a reduced proposed value of $813,146 or a savings of approximately $4,800.  Vapor’s proposed pricing included both increases as well as decreases.  Vapor advised increases were attributed to higher raw material (i.e. aluminium & petroleum based components) and labour costs.


These Vapor bus parts are required in order to support the Commission’s bus door system maintenance needs.

March 30, 2007