REPORT Meeting Date: March 7,201 3 Waste Management Committee
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- Naomi Dickerson
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From this document you will learn the answers to the following questions:
What is the law that governs the sale of RFID systems?
Who was authorized to increase the contract for additional licenses?
What phase of the RFID system was awarded to Lyngsoe Systems Ltd .?
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1 J Wohkiq foh y OIL REPORT Meeting Date: March 7,201 3 Waste Management Committee DATE: February 22, REPORT TITLE: PROFESSIONAL SERVICES TO SUPPLY, INSTALL AND INTEGRATE RADIO FREQUENCY IDENTIFICATION (RFID) SYSTEM FOR WASTE COLLECTION REPORTING FROM: Dan Labrecque, Commissioner of Public Works RECOMMENDATION That the contract (Document P) for Supply, Installation and Integration of a Radio Frequency Identification (RFID) System for Waste Collection Reporting be awarded to Lyngsoe Systems Ltd. in the estimated amount of $297,655 (excluding applicable taxes), for a one year Design and Testing Phase (referred to as Pilot Test in RFP document), in accordance with Purchasing By-law ; And further, that the Director of Purchasing be authorized to award the Full Scale Implementation of the RFID system and system licensing, maintenance and support for a period of five years following the Full Scale Implementation, at an estimated cost of $657,228 (excluding applicable taxes), subject to the successful completion of the Design and Testing Phase of the project; And further, that staff be authorized to increase the contract for the purchase of additional licenses, hardware and professional services and upgrades after the completion of the Full Scale Implementation; And further, that staff be authorized to extend the contract for upgrades, maintenance, support and hosting or licensing services beyond the five year post implementation period, for the duration of the useful life of the system.
2 4~ -2- February 22, 2013 o The purpose of the project is to implement a Radio Frequency ldentification (RFID) System for Multi-residential Waste Collection Reporting. The RFID system will allow for the preparation of Report Cards for Peel's multi-residential buildings, which is expected to lead to increased Blue Box diversion in the multiresidential sector. Request for Proposal (RFP) Document P was competitively bid for the Supply, Installation and Integration of a Radio Frequency ldentification System for Waste Collection Reporting. Lyngsoe Systems Ltd. achieved the highest overall score and is recommended for award. 0 The project costs are broken down as follows: - Design and Testing Phase - commencing March 2013 at a cost of $297,655 - Region-wide Full Scale lmplementation - commencing in 3" quarter of 2014 at a cost of - Five (5) year Post Implementation service and maintenance, hosting or licensing fees, helpdesk fees - commencing in 3rd quarter of at a cost of $345,000 DISCUSSION 1. Background The integration and use of Radio Frequency ldentification (RFID) technology for tracking waste collection at multi-residential properties is a critical component of the long term strategic plan to increase waste diversion. In the past six years, the Region of Peel has made significant strides towards understanding its population of multi-residential locations. This has mainly been accomplished through the creation of the Hansen multi-residential database and use of Loadman@ onboard weigh scales. The Region has also improved the efficiency and effectiveness of services through the introduction of front-end recycling collection services and improved promotion and education materials and outreach.
3 4s -3- February 22,2013 There has been a measured increase in diversion in the multi-residential sector (+5%) and increase in recycling tonnage (+ 35%) since 2006 (See Figure 1 below). Figure 1 - Historical Multi-Residential Recycling Tonnes Year Even with this improved performance there is much more room for improvement. Based on multi-residential audits in and , recycling capture rates have remained substantially lower than curbside households: 37% for multi-residential households compared to over 85% for curbside households (See Figure 2).
4 February 22, Figure 2 - Capture Rate by Recyclable Commodity - Curbside vs Multi-Residential Source: Waste Audits Recyclable Commodity I W Curbside Multi-Residential I The next step in the Region's multi-residential plan is to integrate RFlD technology into a waste collection tracking system to enable the accurate recording of collection data for all garbage and recycling containers. The RFlD system will be designed, implemented and tested for approximately one year, collecting data from 20 multi-residential buildings. Upon successful completion of the Design and Testing phase, it is anticipated that the RFlD system will be implemented at all multi-residential locations. To further inform future policy decisions and provide direct feedback to property ownerslmanagers, the proposed RFlD Reporting System will: lnclude a procedure, hardware and mobile software to document the installation of RFlD tags on all multi-residential garbage and recycling containers; lnclude hardware and software on multi-residential collection vehicles to detect and record all garbage and recycling containers collected at each multi-residential property; lnclude a WiFi system at transfer station to allow an automatic data transfer as multi-residential collection vehicles are weighed; lnclude custom software that will include property information, collection records, detailed reporting and analysis features and mapping capabilities;
5 4& -5- February 22, 2013 ldentiflcatlon (RFID) SYSTEM FOR WASTE COLLECTION REPORTING a Allow for reporting of key performance indicators, for each property, including: waste generation rates (kg/unit/week), weight of material collected (kg), waste volume collected (yd3), waste density (kg/yd3), diversion rates, etc; Allow staff to determine trends and averages across the multi-residential sector in an effort to determine if an appropriate standard level of service (similar to the Two Bag Standard) can be determined; Generate a building specific report card that can be mailed to each property ownerlmanager detailing the waste collection services provided and associated performance measurements such as diversion rate, waste volume collected and waste generation rates recorded during the reporting period. The report card will be able to report building performance trends over time and compare a building's performance to similar buildings across Peel Region. The RFID Waste Collection Reporting System is a necessary component of any potential future user pay billing system should Council decide to move in that direction. 2. Procurement Process The Region issued a Request for Proposal (RFP) for Professional Services for the Supply, Installation, and Integration of a Radio Frequency Identification System for Waste Collection Reporting (Document P) on November 19, 2012 and it was publicly advertised on the Region of Peel's and Ontario Public Buyer's Association Internet sites. This document was issued to 22 vendors. Submissions were received from the following four vendors: Fleetmind Solutions, Dapasoft Inc., Nova Envirocom and Lyngsoe Systems Ltd. The documents of three of the four vendors were found to be in order. The submission received from Nova Envirocom did not conform to the document and was therefore not given consideration for award. The proposals were submitted in two parts; the first being the technical component and the second the financial component. The Technical Evaluation Team reviewed the remaining submissions in accordance with set criteria. The evaluation criteria included the vendor's profile, experience and references, the vendor's proposed solution and the maintenance and support services provisions. Analysis of the proposed system including a comparison of the Region's functional requirements and specifications to the functional requirements available in the proposed solution, the vendor's approach to software development, implementation, performance and security. The technical evaluation included a real time demonstration of the system by the vendor that met the technical threshold. The proposal submitted by Lyngsoe Systems Ltd. was comprehensive and thoroughly addressed all of the Region's requirements. Lyngsoe Systems Ltd. is a leading provider of software solutions and technical services, specializing in the software development and system integration of logistics chain solutions. Since April 2010, the City of Toronto has been using an RFID Automated Data Collection System solution developed by Lyngsoe to track waste collection from multi-residential locations. The system proposed met all of the Region's functional and IT requirements and Lyngsoe demonstrated the expertise and experience required to implement the system and meet the Region's stated reporting requirements within the requested implementation timelines. Staff compared the estimated costs for the system implemented in the City of Toronto to Lyngsoe's proposal and concluded that Lyngsoe's proposal appeared to represent good value to the Region.
6 4c( -6- February 22, 2013 Upon completion of the technical evaluation the purchasing representative completed the financial analysis and the technical and financial scores were combined and the overall ranking was determined. The system proposed by Lyngsoe Systems Ltd. meets all of Region's functional and technical requirements, represents good value to the Region and is therefore being recommended for award. 3. Next Steps Phase I - Design and Tesfing: March 2013 The first phase of the project begins with Lyngsoe Systems Ltd. procuring all the required hardware for the system and designing, installing and testing all the components. The main hardware components include: RFlD tags (front-end garbage and recycling containers and 95 gallon plastic recycling carts); mobile handheld terminals or tablets (used to record the installation of tags on containers); four on-truck hardware kits (includes RFlD reader, antenna, GPS, computer, camera) and transfer station WiFi equipment (to enable data transfer from truck to the central server). The software will also be developed concurrently. The Design and Testing Phase will be for a duration of approximately one year. The RFlD system will track waste collection at 20' multi-residential locations (10 private condominium/rental buildings and 10 Peel Living locations). The entire functionality of the system will be tested and report cards will be mailed to property ownerslmanagers to inform them of their building's performance and waste collection history. At the completion of the Design and Testing Phase, staff will prepare an information report for Council showing the results of the Design and Testing Phase and the final report card that was generated and sent out. Staff will also work with the Region's Information, Systems and Technology Services (ISTS) Division to ensure the appropriate integration of the RFlD system with Regional systems and applications, where applicable. Phase 2 - Region-wide Full Scale Implementation: 3rd Quarter 2014 Once Council and ISTS is informed of the results of the Design and Testing Phase, staff will request that Lyngsoe Systems Ltd. provide the additional hardware and services required to install and test all components at all multi-residential buildings and on the entire multiresidential collection fleet. Once all the required hardware is installed and all components are tested, staff will collect data for up to one year and send report cards to every multiresidential location being serviced by the Region. Data from the RFlD system will be analyzed to determine trends and averages for waste generation, volume, diversion rates, waste density, etc. All this information will assist staff in determining individual building performance, average performance for every building type and across all building types and a standard level of service (similar to the Two Bag Standard). Upon the completion of the full scale implementation and data collection period, staff will report back to Council, on an annual basis, with data from the system, showing Region-wide trends and averages.
7 44-7,-- February 22,2013 PROFESSIONAL SERVICES TO SUPPLY, INSTALL AND INTEGMTE RADIO FREQUENCY IDENTIFICAT10N (RFID) SYSTEM FOR WASTE COLLECTION REPORTING Phase 3 - Operations and Ongoing Maintenance: 3& Quarfer 2015 Once the full scale implementation. is completed and final system testing is conducted and approved; the Region will determine an appropriate service, support and hosting agreement with Lyngsoe Systems Ltd. to ensure trouble-free operation of the system for at least five (5) years, while representing the best value for the Region, in accordance with the Purchasing By-law and procurement process. FINANCIAL IMPLICATIONS 1 i Sufficient funding for the procurement of the RFlD system is available under Capital Project No additional staff will be required for the Design and Testing Phase as Lyngsoe Systems Ltd. will be responsible for installing all components and training current Region staff. The RFP document specifies that installation of the additional components required during the Full Scale lmplementation Stage will be the Region's responsibility. Additional staffing is therefore required for the full scale implementation and on-going system monitoring and maintenance. Staff have determined that in order to provide the best customer service and reduce costs, temporary staff should be hired to complete the installations required during the Full Scale lmplementation Stage. The equivalent of one new full-time equivalent (FTE) position will be required to maintain the RFlD system on a regular basis, including the coordination and mailing of report cards to property ownerslmanagers. Hiring details and required funds will be included in the 2014 Waste Management budget. Dan Labrecque Commissioner of Public works Approved for Submission: - D. Szwarc, Chief Administrative Officer For further information regarding this report, please contact Erwin Pascual at exfension 4399 or via at erwin.pascual@peelregion. ca Authored By: Peter Kalogerakos h? k-- VN. islative Services nager, Financial Support Unit (FSU) mes Macintyre, Director, Purchasing and Project Management Lee, Director; Waste Management.,
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