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REQUEST FOR PROPOSAL (RFP)

07-rfp-CN.618

COFFEE, EQUIPMENT AND SUPPLIES

Issued by Manitoba Lotteries Corporation Purchasing Department

RFP Issue Date: March 24, 2007

Submission Deadline: April 20, 2007


4:00 p.m. local Winnipeg time
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07-rfp-CN.618 – Coffee, Equipment and Supplies March 24, 2007

TABLE OF CONTENTS
1.0 INTRODUCTION
1.1 Manitoba Lotteries Corporation Background 3
1.2 Purpose 3
2.0 INSTRUCTION TO BIDDERS
2.1 Definitions 3
2.2 Target Dates 3
2.3 Site Visit(s) 4
2.4 Request for Clarification, Enquiries, and Additional Information 4
2.5 Response Requirements of Proposal 4
2.6 Format of Proposal 5
2.7 Proposal Certification 5
2.8 Submission of Proposal 5
2.9 Irrevocability of Proposal 5
2.10 Acceptance of Proposal 6
2.11 Preparation Costs of Proposal 6
3.0 PROPOSAL EVALUATION, SELECTION & AWARD
3.1 Basis of Evaluation 6
3.2 Selection Committee 6
3.3 Evaluation Criteria 6
3.4 Notification of Outcome 7
3.5 Issuance of Contract/Agreement 7
4.0 MLC RIGHTS & PRIVILEGES
4.1 RFP Issuance Rights 7
4.2 Waiver of Deficiencies and Rejection of Non-Compliance 7
4.3 Negotiation 7
4.4 Privileges 8
4.5 Awarding Rights 8
4.6 Contract/Agreement Provisions 8
5.0 TERMS AND CONDITIONS
5.1 Assignment 8
5.2 Cancellation 8
5.3 Confidentiality 8
5.4 Conflict of Interest 9
5.5 Manitoba Gaming Control Commission Supplier Registration 9
5.6 News Releases and Advertising 9
5.7 Province of Manitoba Held Harmless 9
5.8 Insurance 9
5.9 Respect of Legislation 9
5.10 Fiscal Funding Out 10
5.11 Severability 10
5.12 Delivery 10
5.13 Risk of Loss 10
5.14 Liens, Claims and Encumbrances 10
5.15 Infringements 10
5.16 Unforeseeable Event 11
6.0 BIDDER INFORMATION AND QUALIFICATIONS
6.1 Bidder Experience & Company Profile 11
6.2 Reference 11
6.3 Bidder’s Sustainable Development Policy 11
7.0 GOODS SPECIFICATION AND REQUIREMENTS
7.1 General Requirements 11
7.2 Products(s) And Product Specifications 11
7.3 Delivery Requirements 13
7.4 Warranties 13
7.5 Alternate / Equivalent Products 14
8.0 COST
8.1 Financial Proposal 14
8.2 Currency & Taxes 14
8.3 Payment Terms 14
APPENDIX A – BIDDER CERTIFICATION FORM
APPENDIX B – BIDDER RESPONSE FORM
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1.0 INTRODUCTION

1.1 Manitoba Lotteries Corporation Background

Manitoba Lotteries Corporation (MLC) is a provincial Crown corporation responsible for conducting and
managing gaming in the province. MLC operates Club Regent and McPhillips Street Station casinos and
the provincial Video Lottery Terminal (VLT) network. MLC is also responsible for the sale of Break open
tickets and bingo paper as well as the distribution of lottery tickets for the Western Canada Lottery
Corporation and the Interprovincial Lottery Corporation. Net revenue from gaming operations goes to the
Province of Manitoba to support government programming in areas such as health, education, social and
community services and economic development.

Manitoba Lotteries Corporation is committed to supporting the principles of sustainable development as


identified in the Province of Manitoba’s Sustainable Development Act (Chapter S270) (See
http://web2gov.mb.ca/laws/statutes/ccsm/s270e.php). MLC recognizes that its development can impact
on, and is dependent upon the well being of the economic, social and environmental structure in which it
operates. As such, with the help of MLC’s stakeholders, Manitoba Lotteries Corporation shall integrate
economic, social and environmental considerations in the decision-making process across all of its
business activities.

1.2 Purpose

The purpose of this Request for Proposal (RFP) is to identify and evaluate Bidders and their proposals
capable of meeting MLC’s requirements for the supply and delivery of coffee, supplies and equipment in a
sustainable, cost effective and timely manner. Requested proposals should be submitted per the outlined
process and requirements and provide MLC with detailed features, costs and delivery capabilities for the
specified goods.

MLC is requesting submissions from interested Bidders in order to establish a Contact/ Agreement
between the successful Bidder and MLC for the supply and delivery of coffee, supplies and equipment for
a 24-month term plus MLC’s option to extend services for one 12-month term subject to a favourable
MLC review.

2.0 INSTRUCTION TO BIDDERS

2.1 Definitions

“SUBMISSION DEADLINE” means the date and time after which the Manitoba Lotteries Corporation
shall no longer accept proposals in response to this RFP
“PROPOSAL” refers to responses to this RFP including all attachments, clarifications, and presentation
materials provided by the Bidder.
“REQUEST FOR PROPOSAL or RFP” refers to this document, and any addenda and clarification that
may be issued in respect of this RFP.
“SHORT LISTED BIDDER” refers to the Bidders identified by the RFP Selection Committee as the most
qualified proposals for the requirements. These Bidders may be contacted for further clarification,
presentation and/or demonstrations in order to provide additional information on which the Selection
Committee can base an award recommendation.

2.2 Target Dates

The Bidder is advised that the target dates for the RFP process are as follows:

• March 24, 2007 MLC Issues RFP


• April 5, 2007 (8:30 / 9:30 a.m.) Site Visit(s)
• April 10, 2007 (4:00 p.m. Winnipeg time) Proponent Questions Due (if any)
• April 13, 2007 MLC Responds to Proponent Questions
• April 20, 2007, (4:00 p.m. Winnipeg time) Submission Deadline
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MLC reserves the right to make revisions dependent upon circumstance.

2.3 Site Visit(s)

Site visits for the following location(s) will be held on April 5, 2007 as follows:
1) 8:30 a.m. at Club Regent Casino
2) 9:30 a.m. at McPhillips Street Station Casino

Bidders are strongly encouraged to attend the scheduled site visits at the designated times in order to
confirm the scope of work and working conditions. It is recommended that all Bidders arrive 15 minutes
early to sign in and co-ordinate with MLC’s purchasing representative at each designated site. Bidders
that arrive late may be disqualified and not allowed to participate in the site visit.

The Bidder is solely responsible for any errors, omissions and misunderstandings resulting from failure to
attend the site visit.

MLC reserves the right to disqualify proposals received from Bidders that did not attend the scheduled
site visit(s) or did not arrive on time.

2.4 Requests for Clarification Enquiries, and Additional Information

The following communication procedures have been established in order to safeguard the integrity of the
competitive bid process, commencing with the RFP issuance date and ending with either the:
a) Award of a Contract or issue of an agreement,
b) Cancellation or withdrawal of the RFP,
c) Lapsing of a Proponent’s proposal

Requests for clarification or additional information on any portion of this RFP shall be submitted in writing
by no later than 4:00 p.m Winnipeg time, April 10, 2007.

Clarification requests received after this deadline may be ineligible for a response. MLC’s responses to
clarifications or additional information will be posted on the MLC Bid Opportunities web page at
www.mlc.mb.ca\bidopps.

All requests for enquiries, clarification and/or additional information regarding any aspect of the RFP may
be sent by either fax or e-mail and are to be directed only to the individual specified below:

Manitoba Lotteries Corporation Roman Korbutiak


830 Empress Street Telephone (204) 957-2500 (ext. 2616)
Winnipeg, Manitoba Facsimile (204) 784-9441
R3G 3H3 E-mail Address: rfprequest@mlc.mb.ca

2.5 Response Requirements of Proposals

The Bidder will examine each clause and specification. The Bidder shall include in their proposal
sufficient information to allow a thorough evaluation of their proposal. Any proposal that is conditional, or
that proposes to impose conditions on MLC that are inconsistent with the requirements of this RFP, may
be rejected at the discretion of MLC.

Submission of a proposal indicates intended compliance with all terms, conditions and requirements
described in this RFP, unless clearly stated otherwise.
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2.6 Format of Proposal

The following format and sequence should be followed in order to provide consistency in Bidder
responses and to ensure each proposal receives full consideration during evaluation. All pages should
be consistently numbered.

• Covering letter
• Bidder Certification Form, completed and signed
• Executive Summary of key features of the proposal (one or two pages)
• Bidder Information and Qualifications
• Description of coffee, equipment and supplies
• Value Added Opportunities
• Bidder Response Form: Financial Proposal, completed

The purpose of this format is to ensure each Bidder responds to the RFP in an identical manner.
Complete responses to each relevant clause are essential as evaluation ratings are based on the content
and information provided by the Bidder. The responses are a major part of the RFP evaluation process
and incomplete responses may result in a loss of points and/or potential disqualification of the proposal.

2.7 Proposal Certification

Each proposal shall include a signed copy of the proposal certification, Appendix A – Bidder Certification
Form. The certification shall be signed by an official having the authority to bind the Bidder. The Bid
proposal shall not be considered valid unless a completed Bidder Certification Form is signed and
attached to proposal.

2.8 Submission of Proposal

Each Bidder is requested to submit one (1) original proposal (identified as “Original”) and two copies
(marked as “Copy”) to MLC by April 20, 2007 no later than 4:00 p.m. local Winnipeg time. Proposals or
partial proposals received after this time shall not be considered. Proposals sent by electronic mail or
facsimile shall not be accepted.

All proposals should be delivered in a sealed envelope or package and addressed as follows:

“RFP #07-rfp-CN.618 – Coffee, Equipment and Supplies”

Roman Korbutiak, Purchasing Agent


Manitoba Lotteries Corporation
830 Empress Street
Winnipeg, Manitoba, Canada
R3G 3H3

Facsimile (204) 784-9441


E-mail Address: rfprequest@mlc.mb.ca

All requested samples should accompany proposal submission. Please ensure samples are identified as
per Bidder.

All handwritten entries made to the Bid documents must be clear and legible to constitute a responsive
bid.

Bidders are responsible for ensuring that MLC has received their Bid and that the Bid has been received
by MLC prior to the Submission Deadline.

2.9 Irrevocability of Proposal

By submission of a clear and detailed written notice, the Bidder may amend or withdraw its proposal
without penalty prior to the closing date and time. Upon closing time, all proposals become irrevocable.
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2.10 Acceptance of Proposal

Bidder’s proposal shall remain firm and open for acceptance for a period of at least three (3) months after
the RFP closing date (from April 20, 2007 to July 19, 2007).

MLC’s acceptance of any proposal shall not release the next three ranking Bidders from their proposal
until:
a) A Contract/Agreement, including any required bonds, insurance and other documents have
been executed,
b) The proposals have lapsed, or
c) The RFP is invalidated

2.11 Preparation Costs of Proposal

Any and all costs incurred in the preparation of the Bidder’s proposal and any other activities related to
said proposal shall be borne by the Bidder. The rejection of any proposal at MLC’s discretion shall not
render MLC liable for incurring any costs or damages.

Any and all Bidder’s Proposals shall become the property of MLC and shall not be returned to the Bidder.

3.0 PROPOSAL EVALUATION, SELECTION & AWARD

3.1 Basis of Evaluation

The primary basis of evaluation of the Bidder’s proposal shall be their written submission to the RFP. The
Bidder shall ensure all components of this RFP are addressed.

3.2 Selection Committee

Evaluation of proposals shall be by a Selection Committee comprised of representatives from the


appropriate internal customer department(s) and the Purchasing Department.

3.3 Evaluation Criteria

MLC shall apply uniform criteria and principals of fairness in the selection of the successful Bidder(s).
MLC shall only select Bidder(s) who have submitted acceptable proposals. Proposals deemed non-
compliant shall not be considered.

Those items identified as “shall have” are mandatory items and items identified as “should have” are
those that MLC feels would improve overall functionality. Bidders are instructed to address each
requirement specifically and any attachments shall reference the applicable numbered selection.
Answers that are more complete will assist MLC in choosing the best solution to meet our needs.

Offers shall be screened by reference to the Mandatory Criteria. Any offer that in MLC’s opinion fails to
meet the Mandatory Criteria requirements shall be deemed non-compliant and shall not be considered
further.

3.3.1 Mandatory Criteria:

The following mandatory criteria need to be met in order for proposals to be deemed acceptable for
evaluation:

• Receipt of proposal on or before Submission Deadline (Section 2.8)


• Appendix A Completed and signed Bidder Certification Form (Section 2.7)
• Appendix B Completed Bidder Response Form (Section 8.1)
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3.3.2 Rated Criteria:

Each proposal will be evaluated on the basis of:

• Price 50 points maximum


• Product Evaluation 50 points maximum
Consisting of:
Bean vs. Ground
Fair Trade
Aroma
Taste
Aftertaste
• Value Added 25 points maximum
Total 125 points maximum

Each acceptable proposal shall be evaluated according to the rated criteria and scored out of a maximum
of 125 points.

3.4 Notification of Outcome

Each Bidder whose proposal is not selected shall be notified in writing at the address given in the
proposal.

3.5 Issuance of Contract/ Agreement

Where a MLC written Contract/ Agreement is not issued, then the undertakings, specifications, terms and
conditions of the RFP, the proposal of the selected Bidder and all correspondence of clarification shall
form part of the Contract/ Agreement, except as negotiated and provided therein.

MLC incurs no obligation towards any Bidder until a Letter of Acceptance/Acknowledgement and a
purchase order issued by MLC forms a Contract/ Agreement.

4.0 MLC RFP RIGHTS & PRIVILEGES

4.1 RFP Issuance Rights

MLC may amend, cancel or withdraw this RFP at any time. MLC may issue another RFP subsequently
for the same or similar purposes. Such notices will be posted on the Bid Opportunities web page (see
section 2.3).

4.2 Waiver of Deficiencies and Rejection of Non-Compliance

MLC reserves the right to waive minor deficiencies or non-compliances in any proposal. The decision as
to whether a deficiency or non-compliance is deemed minor and may be waived, or shall require the
rejection of a proposal, shall be solely within the discretion of MLC. Bidders are instructed that failure to
comply with, or respond to, any part of this RFP may result in the rejection of a proposal as non-
responsive.

4.3 Negotiation

MLC may, prior to and after Contract/Agreement award, negotiate changes to the scope of work,
specifications or any conditions with the short listed Bidder(s) without having any duty or obligation to
advise any other Bidder or to allow them to vary their proposal fees as a result of such changes. MLC
shall have no liability to any other Bidder as a result of such negotiations or modifications.
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4.4 Privileges

MLC is under no obligation to either accept or award to the lowest proposal or any of the proposals
submitted. MLC reserves the right to reject any proposal at any time without further explanation or to
accept any proposal considered advantageous to MLC.

4.5 Awarding Rights

No award may result from this RFP process. If this RFP process results in an award, then MLC reserves
the right to award any Contact/ Agreement, in whole or in part, and may accept goods and /or services
from one or more Bidders in such quantities as shall be advantageous to MLC.

4.6 Contract/ Agreement Provisions

MLC may, as needs arise, add, modify, replace or delete one or more of the specifications, goods,
services or locations provided for in the Contract/ Agreement. The Bidder agrees to conform to these
amendments within a reasonable time. Such amendments shall not render the entire Contract/
Agreement, or any part thereof, void, invalid, terminated or subject to renegotiation. Only substantial
amendments may be considered for adjustments to the existing Contract/ Agreement price(s). All price
adjustments shall be substantiated, based on fair market value, mutually agreed upon and confirmed by
both parties in writing.

MLC may, at its discretion, request an extension of the Contract/ Agreement and its rates, terms and
conditions for a period of time specified by MLC, at any time prior to the expiration of the contract.

5.0 TERMS AND CONDITIONS

5.1 Assignment

The Bidder shall have sole responsibility for the quality, liability, coordination and completion of all work
outlined in this endeavor. MLC considers the Bidder to be the sole contact regarding all Contract/
Agreement matters.

The Bidder shall be prohibited from assigning, transferring and conveying, subletting or otherwise
disposing of any Contract/ Agreement of its rights, title or interest therein, or its power to execute such
Contract/ Agreement without the previous written approval of MLC.

5.2 Cancellation

MLC reserves the right at its exclusive option to immediately and without further notice, cancel any
resulting Contract/ Agreement, or part thereof, without further liability of any kind:
a) For failure by the Bidder to complete the Agreement in a timely fashion;
b) For failure by the Bidder to supply goods and/or services in accordance with the
specifications, terms or conditions of the Agreement; and
c) For any Unforeseeable Event which lasts longer than thirty (30) days.

MLC may at any time, without cause, cancel the Contact/ Agreement upon giving thirty (30) days
cancellation notice.

Should termination occur, the Bidder shall be compensated for the satisfactorily completed work up the
date of termination and not thereafter. Any compensation shall be based upon the Bidder providing
supporting documentation satisfactory to MLC.

5.3 Confidentiality

The contents of this RFP and any other information received by the Bidder relating to the RFP gained
through the RFP process or otherwise shall be treated in strict confidentiality. The Bidder shall not
disclose any of the information in whole or in part to anyone not specifically involved in the preparation of
the Bidder’s proposal, unless written consent is secured from MLC prior to the said disclosure. The
obligation of each Bidder to maintain confidentiality shall survive the expiration or the
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acceptance/rejection of their proposal and/or any resulting Contract/ Agreement(s) to supply the
requirements of this RFP.

5.4 Conflict of Interest

By the submission of a sealed proposal, the Bidder declares that the Bidder has no financial interest,
directly or indirectly, in the business of any third party that would be or be seen to be conflict of interest in
carrying out the requirements of this RFP. In the event an interest is acquired or the Bidder should be
found to be in a potential conflict of interest during the performance of the requirements of this proposal,
the Bidder shall be required to cure the conflict forthwith to MLC’s satisfaction, or shall be disentitled to
any compensation under the Contract/ Agreement to supply the requirements of this RFP.

5.5 Manitoba Gaming Control Commission Supplier Registration

Application for registration with the Manitoba Gaming Control Commission (MGCC) is required for
business entities or associations of persons that:
• Make, sell, advertise or distribute gaming supplies, or
• Provide a gaming service, directly or indirectly, to MLC or to a licensing authority, gaming
operator or license holder.

Bidders shall confirm their present registration, or confirm their commitment to become registered with
MGCC, if applicable. The successful Bidder cannot begin commencement of any and all awarded
undertaking prior to MGCC registration.

For information regarding registration with MGCC please contact:

Manitoba Gaming Control Commission Mr. David Layte, Registration Manager


800 – 215 Garry Street Telephone:(204) 954-9420
Winnipeg, Manitoba, Canada Toll Free: 1-800-782-0363
R3C 3P3 Facsimile: (204) 954-9451
Website: www.mgcc.mb.ca

MLC assumes no responsibility for any incurred costs, or of rendering additional service or information to
assist Bidders though the process of becoming a MGCC registered supplier.

5.6 News Releases and Advertising

News releases shall not be permitted regarding the awarding of, or terms and conditions of, any
Agreement/Contract without prior written approval of MLC.

Bidder(s) shall not be permitted to use the name, logos or advertise association with MLC for any purpose
without prior written approval of MLC.

5.7 Province of Manitoba Held Harmless

The successful Bidder shall hold harmless the Province of Manitoba and MLC, officers of the corporate
and members of the Board, their agents or employees from liability of any nature arising out of a claim or
suit regarding the public liability, personal injury, property damage or worker’s compensation resulting
from or that may arise out of the Bidder’s operations under the terms of any proposal or agreement.

5.8 Insurance

The Bidder shall, at its own expense, effect and maintain for the duration of its services all insurance(s)
required by law. All required shall be underwritten by insurers acceptable to MLC.

5.9 Respect of Legislation

The Bidder shall commit themselves to respect all legislation governing their sector of activity and those
of their agents, including the current municipal, provincial, provincial, federal and international laws
governing regulations and licensing requirements, and those likely to be modified or enacted during
execution of the Contract/ Agreement.
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The laws of the Province of Manitoba shall govern any Contract/ Agreement resulting from this RFP and
the Courts of Manitoba shall have sole and exclusive jurisdiction over any dispute or lawsuit.

5.10 Fiscal Funding Out

Any Contract/ Agreement(s) resulting from this RFP document shall terminate without penalty at the end
of MLC’s fiscal year (March 31) in the event that funds are not appropriated for the ensuring fiscal year. If
funds are appropriated for a portion of the fiscal year, all Contract/ Agreement shall terminate without
penalty at the end of the term for which funds were appropriated.

5.11 Severability

If any term, condition or requirement of this proposal is held invalid, unenforceable or illegal for any
reason, the remainder of the Agreement/Contract shall continue to be valid and enforceable.

5.12 Delivery

Time is of the essence, and any resulting Contract / Agreement may be terminated if delivery is not made
or services are not performed by the dates as they become specified. No change in the scheduled
delivery date or performance shall be permitted without MLC’s written consent. No acceptance of goods
after the scheduled delivery date shall waive MLC’s rights with respect to such late delivery nor shall it be
deemed a waiver of future compliance with the terms hereof.

All goods delivered shall be subject to MLC’s inspection and approval. Goods rejected by MLC for
whatever reason shall be held, transported and/or stored at Bidder’s sole expense. Bidder shall promptly
reimburse MLC for any such expenses.

5.13 Risk of Loss

Regardless of F.O.B. Point, Bidder shall bear all risks of loss, injury or destruction of goods and materials
ordered herein which occur prior to acceptance by MLC. No such loss, injury or destruction shall release
Bidder from any obligation hereunder.

5.14 Liens, Claims and Encumbrances

Bidder warrants and represents that all the goods, materials and/or services supplied shall be free and
clear of al liens, claims and encumbrances of any kind.

5.15 Infringements

Bidder warrants that MLC’s purchase, installation and/ or use of the goods and/or services covered
hereby shall not result in any claim of infringement, or actual infringement of any patent, trademark,
copyright, franchise or other intellectual property right. Bidder shall indemnify and hold MLC harmless
from and against all claims, losses, expenses, damages, causes of action and liabilities of every kind and
nature, including without limitation reasonable attorney’s fees (without waiver of Bidder’s obligation to
indemnify MLC hereunder), arising from or out of any breach of the foregoing warranty.
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5.16 Unforeseeable Event

An unforeseeable event is anything which is beyond the control of the parties affected and which, by
exercise of reasonable diligence by the parties aforementioned, could not be avoided including, but not
limited to, the following:

• Fire
• Explosion
• Action of the elements
• Strikes
• Rationing of materials
• Adverse government decision; or
• Act of God.

Neither the Bidder nor MLC shall be liable to the other for any delay in, or failure of, performance under
the proposal due to an unforeseeable event. Any such delay in or failure or performance shall not
constitute default or give rise to any liability for damages or either party.

The existence of such causes of such delay or failure shall extend the period for performance to such
extent as determined by MLC to enable complete performance by the Bidder provided reasonable
diligence is exercised after the causes of delay or failure have been removed.

6.0 BIDDER INFORMATION AND QUALIFICATIONS

6.1 Bidder Experience & Profile

The Bidder should provide:


• A brief profile and history of the company
• A brief description of any goods and/or services of a comparable scope provided to other
companies within the past two (2) years.

6.2 References

Bidder may be requested to provide a list of three (3) references and descriptions of clients other than
MLC, who have purchased goods and/or services of comparable scope from the Bidder within the past
three (3) years. MLC may contact these references; therefore include organization name, address,
telephone number, contact person (name and title), date(s) when goods/service was provided, and a
short narrative description.

6.3 Bidder’s Sustainable Development Policy

The Bidder is encouraged to provide information regarding their business activities that support
sustainability in general terms with specific environmental improvements associated with the services to
be offered to MLC. The Bidder should provide an overview of their commitment to sustainability.

7.0 GOODS SPECIFICATIONS AND REQUIREMENTS

7.1 General Requirements

Bidder to provide the described coffee, supplies and equipment for MLC operations for a 24-month term
plus MLC’s option to extend services for one 12-month term subject to a favourable MLC review.

7.2 Product(s) and Products Specifications

The Bidder to supply the following products:

7.2.1 Coffee:
• Preferably Fair Trade products or accepted alternative. If alternative is submitted, please specify.
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• Preference will be given to coffee beans for regular and espresso coffee at the casino sites but
MLC will consider pre-ground coffee. Pre-ground coffee is currently being used at the Corporate
Campus.

• Blend: Complimentary – regular & decaffeinated


Restaurant / Banquet – regular, decaffeinated & espresso

• Roast: MLC has no preferences as to roast degree.

• Grade: Low (L)


Medium (M)
High (H)

MLC is requesting Bidder to identify a minimum of one coffee product per each Grade and Blend
category. Bidder may include the same coffee product for consideration for both Blend categories within
the same Grade category. Bidder may also elect to provide more than one product for consideration for
any given Grade and Blend.

• Estimated coffee product annual usage: whole beans: 20,000 to 25,000 lbs.
decaffeinated: 4,500 to 5,000 lbs.
All indicated quantities are estimated. MLC does not represent these quantities to be either minimums or
maximums.

Decaffeinated coffee is requested to be in single package sizes that will satisfy 40-cup urns.

Bidder should only submit coffee products that are priced accordingly for complimentary and restaurant /
banquet applications within a casino and for office environments. Current regular coffee products range
in price from $4.00 to $5.00/pound.

The Bidder is requested to include a brief description about their coffee samples including instructions on
how to best prepare their product.

Bidder shall provide coffee samples for product evaluations. Coffee evaluations shall take into account
price, aroma, taste and aftertaste.

7.2.1.1 Tea and Hot Chocolate

The Bidder shall indicate the type of tea and hot chocolate products, the brand names and prices that are
available.

7.2.2 Equipment:

The Bidder shall provide the following equipment as part of this contract:

Equipment Current Make MSSC CRC Corporate Total


Coffee grinder required Bunn 5 5 10
Coffee brewer: single required Fetco / Newco 2 3 4 9
Coffee brewer: twin required Fetco 3 2 5
Server: 2.5-litre thermal urn required T-Tek 12 12
Server: 8-litre thermal urn with sleeve required Zojirishi 32 32 64
Server: 12-cup thermos required 60 90 150
Server: 5-cup thermos required 50 50 100
Espresso machine, automatic required 1 1 2

Single-cup brewing system optional 1 1 2


Hot chocolate dispenser optional 4 4 8
Mobile coffee cart optional Nabob 1 1 2
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Equipment shall match the coffee product being provided, i.e. if grounds are being supplied, then coffee
grinders are not necessary, etc.

The Bidder shall include the make and model number of each piece of equipment. Where possible
please include supplier literature. The quality of the Bidder’s equipment must at minimum match the
quality of MLC’s current equipment, in the sole opinion of MLC.

The maintenance and repair of all supplied equipment is the Bidder’s sole responsibility for the duration of
the contract. Bidder shall repair or supply replacement equipment within 24-hours of notification of
malfunction.

7.2.2.1 Future Equipment Requirements:

MLC may elect to add, modify, replace, upgrade or delete any of the beverage brewing or dispensing
equipment. Any such requested changes shall not be cause for renegotiation of existing pricing.

7.2.3 Supplies (Value Added Opportunity):

MLC believes that there may be marketing opportunities associated with supplies and the complimentary
coffee program that would be beneficial to both the Bidder and MLC. MLC would consider a marketing
arrangement that will add value (financial or otherwise). Bidder is requested to identify the opportunity
and propose how such an opportunity could be achieved.

The Bidder is requested to indicate the availability of the following supplies:


• Paper cups - 8 oz.
• Lids to match
• Stir sticks - 4.5”
• Jackets
• Coffee filters

The Bidder shall provide information regarding the environmental attributes associated with the supplies
(e.g. % recycled content and % post-consumer waste in paper cups, jackets and filters and % post-
consumer waste in plastic lids and stir sticks).

The Bidder shall use the given estimated coffee product annual usage to make a determination of supply
requirements.

The Bidder is requested to include samples of their supplies.

All supplies are subject to MLC’s final approval. MLC may at its sole discretion elect to exclude the
supplies from award, if in its sole opinion it is beneficial for MLC to do so.

7.2.4 Samples

All requested samples (coffee and supplies) should be submitted with the proposal.

7.3 Delivery Requirements

Products shall be delivered FOB to the casinos on an as needed basis.

7.4 Warranties

Bidder shall detail all warranty and/or maintenance terms and conditions for the requested goods and/or
services. Bidder shall identify period and whether the goods and/or services carry full manufacturer’s
warranty. If third party components are included in the proposal, the warranty for these components shall
also be detailed.

The Bidder warrants that the goods and/or services are free of all defects, deficiencies, and problems
arising from faulty manufacture, construction, material installation or workmanship during the warranty
period.
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07-rfp-CN.618 – Coffee, Equipment and Supplies March 24, 2007

If, in the sole opinion of MLC, defects, deficiencies or problems appear during the warranty period, the
successful Bidder shall immediately remedy, replace, re-perform or correct the goods or services at no
cost to MLC within a time fixed by MLC.

7.5 Alternate/ Equivalent Products

Products equivalent in form, fit, function, and quality shall be considered only if the Bidder:

a) Designates the trade reference of the substitute and name of the manufacturer
b) Provides complete specifications and descriptive literature for the substitute, and
c) Warrants that the proposed equivalent substitute shall be fully interchangeable with the trade
reference specified.

MLC shall be the sole decision maker as to whether a product is considered an equal and/or acceptable
for MLC purposes.

8.0 COST

8.1 Financial Proposal

Costs shall be evaluated on the basis of the information supplied in Appendix B – Bidder Response Form.

The price(s) quoted by the Bidder shall be firm for a period of not less than 12 months from
commencement of contract. After 12 months, pricing may be subject to revision during the period of the
contract in response to extreme fluctuations in the world pricing of coffee beans and related raw materials
within the North American market, and other sources publishing market trends, including vendors’
published price lists.

Negotiation of pricing increases or decreases may be initiated and commenced at the request of MLC or
the Successful Bidder, upon written notification. A period of thirty days will be allowed for price
negotiations, after which amended pricing will become effective for a subsequent period of not less than
six months or MLC may opt to cancel the contract.

FOB point shall be MLC destination with freight prepaid, including all other applicable charges to show
total landed cost.

8.2 Currency & Taxes

All pricing is requested to be in Canadian funds with GST and Manitoba PST (if applicable) shown
separately.

If the Bidder is non-resident and legally authorized to collect GST and Manitoba PST, the Bidder is
requested to provide MLC with their GST or Manitoba PST registration numbers with their proposal.

MLC is required to pay all applicable federal and Manitoba provincial sales taxes and does not have
exempt status.

8.3 Payment Terms

The Bidder shall specify invoice terms and any applicable discounts for early payment. MLC standard
payment terms are net thirty (30) days.
REQUEST FOR PROPOSAL (RFP)
07-rfp-#CN.618

COFFEE, EQUIPMENT AND SUPPLIES

APPENDIX A – BIDDER CERTIFICATION FORM


Manitoba Lotteries Corporation Page 16 of 19
07-rfp-CN.618 – Coffee, Equipment and Supplies March 24, 2007

APPENDIX A - BIDDER CERTIFICATION FORM


I certify that I have the authority to bind the Bidder, indicated below, to the specifications, requirements,
rights privileges, terms and conditions imposed in this RFP and offered in the Bidder’s proposal. By my
signature on this document, the Bidder:
Agrees to all of the RFP specifications, requirements, rights, privileges, terms and conditions.
Agrees to all the RFP specifications, requirements, rights, privileges, terms and conditions, with
minor amendments, as noted in the proposal.
Does not agree to the RFP specifications, requirements, rights, privileges, terms and conditions.
I understand that by not agreeing to the RFP specifications, requirements, rights, privileges, terms and
conditions, with the exception of minor amendments, the Bidder’s proposal may result in being rejected
as non-responsive.
I further state that in making this proposal, neither the indicated Bidder nor the represented business
entity have consulted with others, either directly, entered into any agreements or otherwise taken any
action for the purpose of restricting or circumventing competition and that the Bidder has not knowingly
made any false statements in it’s proposal of background statement.

Name (Signature)

Name (Printed)

Title

Business Entity Submitting Proposal

Date
REQUEST FOR PROPOSAL (RFP)
07-rfp-CN.618

COFFEE, EQUIPMENT AND SUPPLIES

APPENDIX B – BIDDER RESPONSE FORM

Note: The purpose of Appendix B – Bidder Response Form is to ensure Bidders


respond to the RFP in an identical manner. Bidders choosing to duplicate this
form on their own computer system shall ensure that the MLC form is not
changed in any manner. Complete proposals are essential as acceptance for
evaluation is based upon meeting the mandatory criteria as specified in Section
3.3 Evaluation Criteria. Proposals failing to meet the mandatory criteria shall be
deemed non-compliant and shall not be considered. Carefully review each
section and attach additional information if space is not sufficient. It is requested
that any attachments reference the applicable numbered section.
Manitoba Lotteries Corporation Page 18 of 19
07-rfp-CN.618 – Coffee, Equipment and Supplies March 24, 2007

Financial Proposal
Coffee:

The Bidder shall identify their product’s Coffee Classification with the following codes:
Coffee Grade
Roast Degree Low (L) Medium (M) High (H)
Light (1) L1 M1 H1
Medium-Light (2) L2 M2 H2
Medium (3) L3 M3 H3
Medium-Dark (4) L4 M4 H4
Dark (5) L5 M5 H5
Very Dark (6) L6 M6 H6

Coffee, Bean
Coffee Coffee Fair Trade Cost per Case lot Cost per
Blend
Classification Product Yes / No pound size case
Complimentary, regular L $ $
Complimentary, decaf L $ $
Rest./Banquet, regular L $ $
Rest./Banquet, decaf L $ $
Rest./Banquet, espresso L $ $

Complimentary, regular M $ $
Complimentary, decaf M $ $
Rest./Banquet, regular M $ $
Rest./Banquet, decaf M $ $
Rest./Banquet, espresso M $ $

Complimentary, regular H $ $
Complimentary, decaf H $ $
Rest./Banquet, regular H $ $
Rest./Banquet, decaf H $ $
Rest./Banquet, espresso H $ $

Coffee, Ground
Coffee Coffee Fair Trade Cost per Case lot Cost per
Blend
Classification Product Yes / No pound size case
Complimentary, regular L $ $
Complimentary, decaf L $ $
Rest./Banquet, regular L $ $
Rest./Banquet, decaf L $ $
Rest./Banquet, espresso L $ $

Complimentary, regular M $ $
Complimentary, decaf M $ $
Rest./Banquet, regular M $ $
Rest./Banquet, decaf M $ $
Rest./Banquet, espresso M $ $

Complimentary, regular H $ $
Complimentary, decaf H $ $
Rest./Banquet, regular H $ $
Rest./Banquet, decaf H $ $
Rest./Banquet, espresso H $ $
Manitoba Lotteries Corporation Page 19 of 19
07-rfp-CN.618 – Coffee, Equipment and Supplies March 24, 2007

Fair Trade Cost per


Tea and Hot Chocolate Brand Case lot size
Yes / No case

Equipment:

Will Provide
Equipment Total Make Model # Yes No
Coffee grinder 10
Coffee brewer – single 9
Coffee brewer – twin 5
Server – 2.5-litre thermal urn 12
Server – 8 litre thermal urn 64
Server – 12-cup thermos 150
Server – 5-cup thermos 100
Espresso machine - automatic 2
Single-cup brewing system 2
Hot chocolate dispenser 8
Mobile coffee cart 2

Supplies (Value Added Opportunity):

Product Case Lot Size Regular Cost per Case Value Added Cost per Case
Paper cups (8 oz.)
Lids
Jackets
Stir sticks (4.5”)
Coffee filters

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