The Corporation of the
TOWN OF MILTON
Report to:
Mayor G. A. Krantz and Members of Council
From:
Linda Leeds, Director, Corporate Services and Treasurer
Date:
April 23, 2010
Report No.
CORS-042-10
Subject:
Proposal Award – #10-053 (HCPG-2-2010) Exclusive Drink Rights and
the Supply and Delivery of soft drinks.
RECOMMENDATION:
THAT the proposal for Exclusive Corporate Drink Rights
and the supply and delivery of Soft Drinks for the self
operated concession service, be awarded to The Pepsi
Bottling Groups, for a five year period, for the total revenue
package of $149,125 for the drink rights and a total
estimated annual amount for product of $16,150 (inclusive
of non-refundable portion of the HST);
AND THAT The Manager of Purchasing be authorized to
execute contracts and the Mayor and Clerk be authorized
to sign any and all required paperwork.
EXECUTIVE SUMMARY
This report is being submitted to award the Request for Proposal for the supply and delivery of soft
drinks and exclusive drink rights for a five (5) year period, commencing approximately June 1, 2010 to
March 31, 2015.
REPORT
Background
The Town of Oakville, on behalf of the Halton Co-operative Purchasing Group (HCPG), issued a
Request for Proposal for the supply and delivery of soft drinks, juices, water, sports drinks and related
equipment for both self operation and full service vending operations at various facilities. The RFP
stated that the successful vendor will become the exclusive soft drink supplier to the HCPG. An
The Corporation of the
TOWN OF MILTON
Report No.CORS-042-10
Page No. 2
evaluation committee consisting of purchasing and facility staff from participating agencies was
formed to participate in the RFP process.
Discussion
Proposals were received from the following companies:
Coca-Cola Bottling Company
The Pepsi Bottling Group
The proponents were evaluated according to the following evaluation criteria and weighting:
Selection Criteria
Financial Offering:
Signing Bonus
Exclusivity Allowance
Revenue/Commissions Rate
Advertising/Marketing/Sponsorship Allowance
Product Information and Product Pricing “Self Service Vending”
and “Full Service Vending”
Equipment Offered:
Age and efficiency of units offered
Sizing Options
Ability to provide change, including paper currency
Servicing/Delivery:
Ability to provide 24/7 service
Delivery Lead Time
Proposed Delivery Schedule and ability to deliver to Kelso/Glen
Eden location
Experience/Reputation in marketplace for contracts of a similar size
Value Added
TOTAL
Weight
10
10
10
10
10
5
5
5
5
5
5
10
10
100
The Pepsi Bottling Group received the highest score and is therefore recommended by the HCPG as
the successful proponent for the supply and delivery of soft drinks and related supplies for concession
services as well as the exclusive soft drink supplier to the HCPG. The contract term is 5 years with
two additional one-year terms upon the mutual agreement of all parties.
The Corporation of the
TOWN OF MILTON
Report No.CORS-042-10
Page No. 3
Relationship to the Strategic Plan
A responsible, cost effective and accountable local government.
Financial Impact
The current year revenues and expenses resulting from this contract are included in the approved
budget for Concessions. Any variance to budget due to a change in consumption will be included on
the quarterly variance reports. The balance of the contract will be incorporated in future year
budgets.
Respectfully submitted,
Linda Leeds, C.G.A.
Director, Corporate Services and Treasurer
LL/lm/mw
If you have any questions on the content of this report: Lisa Marranca x 2346 and Melanie Wallhouse
x 2216.
CAO Approval: _________________________