Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Vancouver City Council

FROM:

General Manager of Engineering Services and Manager of Materials Management

SUBJECT:

Award of Tender No. PS00004
Supply and Delivery of Mineral Aggregates

 

RECOMMENDATION

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 February 9, 2000, and referred to the General Manager of Engineering Services and the Manager of Materials Management for report.

The 7% Goods and Services Tax (less the anticipated receipt of the municipal rebate) and the Provincial Sales Tax, where applicable, are included in 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 various Engineering Services operating and capital budgets.

The tender called for the supply of mineral aggregates as, if and when required for a 12-month period. All items will require transportation by barge to the Kent Avenue facility with the exception of Items 10 and 11. These two items are to be awarded together as they require transportation by truck to the City's Pre-cast Plant at Cambie Yard.

Fifteen items were listed. Item numbers referred to in this report and the tender refer to the City's master mineral aggregate specifications list.

The tender is divided into two options. Option "A" is for the Contractor to be responsible for both the supply and delivery of the aggregate. Option "B" provided an opportunity for aggregate producers and transportation companies to provide pricing on aggregates and marine delivery separately. Option "B" was offered to determine if the City could achieve savings by amalgamating all of our transportation needs with one marine transportation supplier.

Seven firms submitted bids on aggregates and transportation. Three firms submitted bids on transportation only.

We are recommending that the tender be awarded as Option "A". To award by Option "B", after combining the low bids on aggregates with the low bid on marine transportation, would cost the City an estimated $107,809 more than Option "A".

The tender states that one of either Item's 1 or 2 and 20 or 21 are to be awarded but not both, as they can be used interchangeably, with some modifications to asphalt mixtures.

Lafarge Construction Materials submitted the low bid for Item 1, which is acceptable, andis lower than Item 2 prices. Item 2 will not be required.

Lafarge's bid for Item 21 is the low bid and is recommended for acceptance. Item 14 quantities have to be increased for the correct asphalt mixture if Item 20 is ordered. A combination of increased quantities for Item 14 and the low bid from Mainland for Item 20 is $24,248 higher than the recommended bid from Lafarge for Item 21. Item 20 will not be required.

Items 9 and 17, which are generally used for backfill, are awarded based on their cost per volume (or how much material is required to fill a given area). Samples are tested by the City and verified to independent laboratory test reports.

Mainland's bid for Item 9 is recommended as the lowest cost per volume. Mainland submitted the lowest cost per volume for Item 17 but the material did not meet the gradation specifications. Lafarge submitted the second lowest cost per volume bid for Item 17 which meets specifications and is recommended for acceptance .

Lafarge Construction Materials submitted the overall low bid for Items 10 and 11 and is recommended for acceptance. These two items, valued at approximately $31,877, are to be awarded together as they require transportation by truck to the City's Sewers Pre-cast Plant at Cambie Yard. This plant is currently the subject of a feasibility study. Therefore, the tender advises that these items may be cancelled or subject to renegotiation during the contract in the event that the plant is relocated or closed.

Mainland submitted the low bids for Items 3, 4, 5, 7, and 13 and they are recommended for acceptance. Lafarge submitted the low bid for Item 15 and it is recommended for acceptance.

In summary, we are recommending the acceptance of the following bids for the supply and delivery of mineral aggregates:

DETAIL

FIRM

ESTIMATED COST

Items 1, 15, & 21 - low bid
Item 17 - lowest cost per
volume to specifications
Items 10& 11 - overall low bid

Lafarge Construction Materials Ltd.

$1,783,615

Items 3, 4, 5, 7, 13, & 14
- low bid
Item 9 - lowest cost per volume

Mainland Sand & Gravel Ltd.

$940,767

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ag000328.htm

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