District to single source winter road salt following unsatisfactory bids - Huntsville Doppler (doppleronline.ca)

To ensure it is prepared for this winter, the District will stick to the current suppliers of winter road salt despite its procurement policy, which requires that it go out to tender after renewing a contract with an existing supplier a maximum of five times.

Commissioner of Engineering and Public Works James Steele told District Council at its September meeting that a tender had gone out this summer. He said three of the four bids received were non-compliant, while a fourth bid was way over budget.

The District set aside $925,000 for winter control materials in 2024 and again in the 2025 draft budget. “This budget is used for supply of various winter control materials such as sand, pre-treatment liquids, rock salt and pretreated salt. Provision of rock salt and pre-treated salt make up approximately 68% of the budgeted amounts, which is equal to an annual budget of approximately $625,000,” according to Steele’s report to council. He said the bid received exceeded the budgeted amount by 27 per cent or $234,400.

He recommended proceeding with a single-source procurement for another year with the existing suppliers, K+S Windsor and Salt Ltd. and Compass Minerals, and initiating another procurement process in 2025. He said the one-year contract would have the same terms but unit prices will be adjusted based on a Consumer Prince Index (CPI) as of July 2024 estimated at 2.5%. Steele said the cost of the materials procured through the contract extension is estimated at $620,000.

“As you know road salt is a critical component of winter maintenance and we don’t want to be in a situation where we don’t have a bonafide vendor to start stockpiling preparation,” said Steele.