ADMINISTRATIVE REPORT

Date: July 05, 1999
Author/Local: Susanne Siu/7258

Rob Chan/7792

RTS No. 00875
CC File No. 1805

Council: July 20, 1999

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services Manager of Purchasing Services
SUBJECT:	Direct Purchase of Combination Catch Basin Cleaners

RECOMMENDATION

THAT Council approve waiving the public tendering procedure and authorize the Manager of Purchasing Services to acquire, by direct purchase, three (3) additional combination catch basin cleaners at a total cost of $877,059 plus G.S.T., P.S.T and Provincial Environmental Levy, from Vimar Machinery.

COUNCIL POLICY

The policy of Council is to issue a tender or RFP for contracts in excess of $100,000.

Contracts with a value over $300,000 are referred to Council for approval.

PURPOSE

The purpose of this report is to request authority from Council to waive the normal bidding process and purchase directly from Vimar Machinery, three (3) Freightliner FL80 chassis complete with Vactor 2110 combination catch basin cleaner bodies.

FINANCIAL IMPLICATIONS

Funding is provided from the Truck Plant Replacement Account to replace the three units that have reached the end of their economic life.

BACKGROUND

Two (2) combination catch basin cleaners were tendered on Tender No. 37-97-01. On October 02, 1997, the General Manager of Engineering Services approved the purchase of these units as follows: the chassis, Freightliner FL-80, were awarded to the low bidder, Freightliner of Vancouver at $84,141 each and the bodies were split between two companies: one (1) Vactor 2110 at $167,476, from Vimar Machinery and one (1) Vac-Con V311 at $173,302, from Williams Machinery.

Engineering Services decided to split the award for the bodies to allow for operating experience and evaluation of both trucks prior to the purchase of additional units. Both companies agreed to supply one machine at the tendered prices.

DISCUSSION

Both machines have been in service for nine (9) months and Engineering Services have completed the evaluation and are recommending the purchase of three (3) additional Vactor 2110 from Vimar Equipment, the sole source, for the following reasons:

1. This machine was able to perform with less downtime and was assimilated into the fleet with fewer start-up problems.

2. The hose reel mounted at the front of the truck is more compact allowing better visibility than the Vac-Con machine.

Due to the world wide shortage of the required automatic transmission for the chassis, delivery to the body supplier is approximately twelve (12) months from the date of order or up to fifteen (15) months if factoring in the tender process. After receipt of the chassis, the body supplier then requires another three (3) to four (4) months for installation.

Vimar Machinery is able to supply three (3) Freightliner FL-80 chassis currently in stock at Vactor, at $92,112 each. In order to compare the price of the chassis, quotes were obtained from Freightliner of Vancouver and Co-Van International. In addition to the one (1) year delivery of the chassis, the price quoted by Freightliner was $92,372 each and by International was $98,625 each.

Vimar also has agreed to supply three (3) Vactor 2110 bodies at $193,686 each. Analysis of the manufacturer's list prices for the 1999 and 1997 model years revealed a price increase of 9.4%. Analysis of the U.S. exchange rate revealed a 5.7% increase which results in an overall 15.6% increase. Discount from the 1999 price list offered by Vimar was the same used for the original tender where the document specified the purchase of 2 bodies with possible extension for two (2) additional units.

The previous analysis was based on configuring the body exactly as originally tendered, however based on our operating experience, Engineering Services recommend that the configuration be modified slightly at an additional cost of approximately $6,555 per unit.

CONCLUSION

Vimar Equipment is the sole supplier of Vactor bodies, the recommended body manufacturer. They are able to provide chassis for immediately delivery if an order is placed by the end of July, 1999, therefore, saving up to fifteen (15) months over the tendering process. In addition, prices quoted are reasonable. Accordingly, we RECOMMEND a direct purchase from Vimar Machinery, of three (3) Freightliner FL-80 chassis for $276,336 ($92,112 each) plus three (3) Vactor 2110 bodies for $600,723 ($200,241 each).

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(c) 1998 City of Vancouver