CleaverBrooks Boilers - Retrofit

Trade Agreement: NAFTA/AIT/Canada FTAs with Peru/Colombia/Panama Tendering Procedures: Generally only one firm has been invited to bid Attachment: None Non-Competitive Procurement Strategy: Exclusive Rights Comprehensive Land Claim Agreement: No Vendor Name and Address: Canadian Engineered Products & Sales Ltd. #6 7449 Hume Avenue Delta British Columbia Canada V4G1C3 Nature of Requirements: CleaverBrooks Boilers - Retrofit

Jodi Nelson Supply Officer Public Works and Government Serivces Canada Pacific Region - Acquisitions 219 - 800 Burrard Street, Vancouver, BC V6Z 0B9 Tel: 604-666-9171 Fax: 604-775-7526 Email: jodi.nelson@pwgsc-tpsgc.gc.ca

The Vancouver PWGSC office provides procurement services to the public in English.

1. Definition of Requirement Public Works and Government Services Canada on behalf of the Department of Correctional Service Canada, has a requirement for the retrofit of two (2) CleaverBrooks, CB200-150, 6.3 mBtu. boilers to upgrade the burners and control systems, located at the Kent Institution in Agassiz. The Contract will include supply, delivery, installation, test and commission of the new parts, and training on the new system.

Department of Correctional Service Canada needs to install "high turndown ratio" burners in order to increase the boiler efficiency especially at part load. CleaverBrook has developed a proprietary modification kit for installing "high turndown ratio" burners for their boilers without altering the boiler front ends. Installing any other "high turndown ratio" burner will require a newly designed boiler front end and would drastically alter the aero-dynamic characteristics of the flue gas flow through the boiler. Optimum combustion efficiency of a fire tube boiler is highly influenced by the aerodynamics of the flue gas flow and hence correctly matched boiler components are essential for proper functioning of the boiler and to prevent thermal and mechanical stresses to the boiler structure and pulsation during operation. Using an Original Equipment Manufacter (OEM) burner and conversion kit is the only solution for this issue.

The installation will include a HAWK 4000 series controller for burner management of small CleaverBrook boilers. One essential function of any burner management controller is to keep the boiler firing at a rate matching the boiler combustion curve, which is unique to a particular type of boiler. These curves are proprietary to the manufacturer. To achieve best combustion efficiency, especially when the burner is upgraded to "high turndown ratio" capability, is to use OEM parts. This will result in efficient combustion in the flanks of the combustion curve.

2. Applicability of Trade Agreement(s) The procurement is subject to the following trade agreements:

- Agreement on Internal Trade (AIT) - North American Free Trade Agreement (NAFTA)

3. Justification for the Pre-Identified Supplier Canadian Engineered Products & Sales Ltd. (CANNEPP) is the sole distributor for CleaverBrooks OEM parts and service in British Columbia (BC).

4. Government Contracts Regulations Exception(s) The following exception to the Government Contracts Regulations is invoked for this procurement under Section 6(d) "only one person is capable of performing the work".

5. Exclusions and/or Limited Tendering Reasons The following exclusion(s) and/or limited tendering reasons are invoked under the section of the trade agreement(s) specified:

Agreement on Internal Trade (AIT) - Article 506 12. (b) where there is an absence of competition for technical reasons and the goods or services can be supplied only by a particular supplier and no alternative or substitute exists;

North American Free Trade Agreement (NAFTA) - Article 1016 2.(b) where, for works of art, or for reasons connected with the protection of patents, copyrights, or other exclusive rights, or proprietary information or where there is an absence of competition for technical reasons, the goods or services can be supplied only by a particular supplier and no reasonable alternative or substitute exists;

6. Delivery Date A start date is requested for December 9, 2013 with a completion date of January 7, 2014.

7. Cost Estimate of the Proposed Contract The estimated value of the contract is between $155,000 to $170,000.

8. Name and Address of pre-identified supplier

Name: Canadian Engineered Products & Sales Ltd. (CANNEPP) Address: #6 - 7449 Hume Avenue, Delta, BC V4G 1C3 Delivery Date: Above-mentioned

You are hereby notified that the government intends to negotiate with one firm only as identified above. Should you have any questions concerning this requirement, contact the contracting officer identified above.

An Advance Contract Award Notice (ACAN) allows departments and agencies to post a notice, for no less than fifteen (15) calendar days, indicating to the supplier community that it intends to award a good, service or construction contract to a pre-identified contractor. If no other supplier submits, on or before the closing date, a Statement of Capabilities that meets the requirements set out in the ACAN, the contracting authority may then proceed with the award. However, should a Statement of Capabilities be found to meet the requirements set out in the ACAN, then the contracting authority will proceed to a full tendering process.

Suppliers who consider themselves fully qualified and available to provide the services/goods described herein, may submit a statement of capabilities in writing to the contact person identified in this Notice on or before the closing date of this Notice. The statement of capabilities must clearly demonstrate how the supplier meets the advertised requirements.

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Documents may be submitted in either official language of Canada.