ADMINISTRATIVE REPORT

Date: February 23, 2000
Author/Local: S. Siu/7258
RTS No. 01314

CC File No. 1805

Council: March 7, 2000

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services Manager - Materials Management
SUBJECT:	Award of Proposal No. PS99046 Light Duty Vehicles - Brand Standardizaton

RECOMMENDATION

A. THAT Council accept the proposal meeting all requirements from Ford Motor Company of Canada, Limited for a three (3) year period for the supply of light duty vehicles subject to a contract satisfactory to the Director of Legal Services.

B. THAT Council approve the purchase of an initial 77 light duty replacement vehicles at an estimated cost of $1,778,019 plus the Provincial Sales Tax, the 7% Goods and Services Tax (less any municipal rebate received), and the Provincial Environment Levy.

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.

BACKGROUND

In previous years the City would invite various vehicle dealers of different vehicle manufacturers to submit tenders as and when required for the supply of various types of light duty vehicles. In order to standardize the City's fleet on a single manufacturer for all light duty vehicles which would reduce maintenance and administrative costs and improve pricing, the City, on July 29, 1999, sent a Request for Proposal (RFP) to vehicle manufacturers to supply vehicles for a three year period. Once the selection of the brand is made from this RFP, the City will select a local dealer to deliver vehicles and provide related services via a second RFP.

DISCUSSION

Request for Proposals for the above, "Light Duty Vehicles - Brand Standardization", were opened on September 1, 1999 and referred to the General Manager of Engineering Services and the Manager - Materials Management for report. The Provincial Sales Tax, the 7% Goods and Services Tax (less any municipal rebate received) and the Provincial Environmental Levy are in addition to all pricing shown in this report. Funds are provided from the Truck Plant Account.

This Request for Proposal requested prices for different categories of light duty vehicles for a three (3) year period with an estimated quantity of 80-100 vehicle purchases per year.

RFPs were sent to the three largest automobile manufacturers, DaimlerChrysler Canada Limited, Ford Motor Co. of Canada and General Motors of Canada as well as being advertised in the Vancouver Sun and the Internet. Ford Canada submitted the only proposal.

Prices are firm for the first model year of the contract and includes a specific method to determine pricing for the year 2001 and 2002 models.

Additional discounts were offered during the negotiation process and due to the longer term of the contract, the City is eligible for a higher discount than would be available with standard annual tendering. Therefore, this results in lower overall vehicle costs. In addition, the City will now have the option to perform and be reimbursed for small warranty repairs resulting in reduced vehicle downtime.

Engineering Services has an urgent requirement for an initial order of light duty vehicles to replace 77 vehicles in the fleet that have reached the end of their economic service lives.

Ford Motor Co. of Canada, Limited has agreed to place this initial order on behalf of the City to avoid delays in delivery while the City is finalizing the contract documentation and preparing and awarding the second RFP to select a local dealer.

We are, therefore, recommending acceptance of the proposal meeting all requirements from Ford Motor Company of Canada, Limited for the supply of light duty vehicles for a three year period. We are also recommending an initial order of 77 vehicles be placed with Ford Motor Co. of Canada to expedite delivery.

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(c) 1998 City of Vancouver