ADMINISTRATIVE REPORT

Date: January 28, 2000
Author/Local: J. Lloyd/7257
RTS No. 01257

CC File No. 1805

Council: February 15, 2000

TO:	Vancouver City Council
FROM:	General Manager of Engineering Service and Manager - Materials Management
SUBJECT:	AWARD TO TENDER NO. PS99070 - SUPPLY OF READY-MIXED CONCRETE

RECOMMENDATION

THAT Council accept the following bids for the supply of ready-mixed concrete as, if and when required for a 12-month period from the date of the purchase order, subject to contracts satisfactory to the Director of Legal Services:

ESTIMATED

DETAIL                  FIRM                                                  COST

A. Ready-mixed concrete,                                                  $530,187

picked up by city vehicles
from suppliers’ depots

Item No.’s 1- 9 inclusive,                              *Lafarge Construction

- low bid per item after Materials
hauling costs are considered

*Ocean Construction Supplies Ltd.

*Supplier will be selected depending on the proximity of the depot to the job site.

B. Ready-mixed concrete,                          Lafarge Construction                          $1,056,766

delivered to job sites                          Materials

plus the 7% Goods and Services Tax (less the anticipated receipt of the municipal rebate) and the Provincial Sales Tax.

COUNCIL POLICY

The policy of Council is to award contracts for the purchase of equipment, supplies and services that will give the highest value based on quality, service and price.

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

DISCUSSION

Tenders for the above were opened by the City Clerk on January 12, 2000, and referred to the General Manager of Engineering Services and the Manager of Materials Management.

The 7% Goods and Services Tax (less the anticipated receipt of the municipal rebate) and the Provincial Sales Tax are in addition to the prices shown in this report.

A copy of the tabulation of bids is on file in the Materials Management office.

Funds for all purchases are available from approved Revenue and Capital budgets.

The tender called for the supply of ready-mixed concrete as, if and when required for a 12-month period from the date of the purchase order. The tender is divided into two sections. Section “A” is for pick up by City vehicles or hired equipment from the supplier’s depot based on the lowest on-site cost after material and hauling costs are considered. Section “B” is for delivery by the supplier to job sites. The City asked for a discount if Section “B” was awarded in its entirety to a single contractor instead of multiple suppliers.

Three firms submitted bids on both sections and one firm submitted a bid on Section “B” only.

For Section “A”, we are recommending the acceptance of the bids from Lafarge Construction Materials and Ocean Construction Supplies Ltd. for Item No.’s 1 to 9 inclusive, depending on the proximity of the supplier’s depot to the job site. This recommendation is based on the lowest on-site costs to the City. Both Lafarge and Ocean have plants located within the City of Vancouver. Kask Bros. Ready-Mix Ltd. submitted lower bids on some items than either Lafarge or Ocean. However, hauling costs from Kask‘s Barnet Highway plant would negate the estimated cost difference of $3,010 between Kask’s bid and the recommended bids.

For Section “B”, we are recommending the acceptance of the overall low bid from Lafarge. Lafarge offered a three (3%) percent discount for the award of this section in its entirety. This results in an estimated savings to the City of approximately $24,509.

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(c) 1998 City of Vancouver