Staff Report #1
March 6, 2023
To All Commissioners
Re: Contract Award – Leasing of Transit Radial Tires
That the Commission APPROVE the contract award to Bridgestone Canada for the leasing supply of transit radial tires for the five year period of April 1, 2023 to March 31, 2028, noting the bid includes a 3% annual price increase and an additional five year renewal option, based upon mutual agreement of the parties.
A request for tender was issued in accordance with established procedures as the current contract for leased tires with Bridgestone Canada is set to expire March 31, 2023. This expiring contract was the five year extension of an original tendered five year contract. Thus, an updated tender process was deemed the best course of action for renewal.
The tender from Bridgestone Canada was the lone submission, noting a second party showed initial interest but opted out when their tire sizes did not meet the tender’s specifications. Given Bridgestone Canada’s 20 plus year history of supplying tires to London Transit, it was determined that the bid would be evaluated with the lack of other proposals being an indication of current product availability in the market.
The following table illustrates the pricing submitted by Bridgestone Canada and corresponding annual expenditure estimate.
Summary of Pricing per Kilometer
|Bus Size||Tire Size||Current Rate||2023||2024||2025||2026||2027|
|Annual Cost (at Current KM’s)||$503,300||$518,400||$534,000||$549,900||$566,500|
As previously noted, Bridgestone Canada has held the contract for the past 20 years and has provided reliable products and service with fair and reasonable pricing. It is recommended the contract be awarded.
Mike Gregor, Director of Finance
Concurred in by:
Kelly S. Paleczny, General Manager