Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Vancouver City Council

FROM:

General Manager of Engineering Services
Manager - Materials Management

SUBJECT:

Award of Tender No. PS99058
Supply of 90 HP Tractor Hoe Loaders

 

RECOMMENDATION

COUNCIL POLICY

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

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

DISCUSSION

Tenders for the above were opened on December 8, 1999 and referred to the General Manager of Engineering Services and the Manger - Materials Management for report. The PST, the 7% GST (less any municipal rebate received) and the Provincial Environmental levy are in addition to all pricing shown in this report and in the tabulation.

Funds for this purchase are provided from the Truck Plant Account.

This tender called for prices for up to six 90 HP Tractor hoe-loaders. Four units are required to replace four old units which have exceeded their economic lives. Thesemachines are used for sewers construction and maintenance.

Five bids were received from four suppliers. Unit costs range from $85,800 to $106,291 per machine.

Bids 1 and 4 do not meet specifications as follows:

Bid No. 1 Rollins Machinery - does not meet specifications for loader dump height, bucket roll, boom lift capacity and several other lesser requirements and is not recommended.

Bid No. 4 Coast Tractor & Equipment - does not meet specifications for loader dump height, loader breakout forces, backhoe boom capacity and backhoe dipper stick capacity and is not recommended.

Bids 2, 3 and 5 meet specifications and are discussed below:

Bids 2 & 3 Surfwood Supply - essentially the same machine except bid 3 is four wheel drive in-lieu-of two wheel drive. These bids meet specifications, but are not considered to offer best value compared to the recommended bid. As part of the bid evaluation, this machine was demonstrated by the City's sewers' operators over a two week period and compared to the recommended bid. The operator's feedback is incorporated into this report.

Bid 5 Parker Pacific Equipment - meets all specifications, offers best value to the City and is recommended for the following reasons:

Estimated Comparative Lifetime Cost Of Each Machine
(Based On 7 Year Life And 6.5% Interest Rate)

 

Bid 5
(Recommended)

Bid 2
Surfwood Supply

Purchase Price

$106,291

$ 87,700

Added Costs:

   

Road Speed

-

$ 43,000

Breakout Cost

-

$ 21,000

    Dipperstick Repair

-

$ 2,700

    Pretrip Inspection

-

$ 21,000

Lifetime Comparative Cost of Machine
(excluding fuel and maintenance)

$106,291

$175,400

Based on the above lifetime comparative cost, the recommended unit is substantially less costly as well as offering a safer operation under some circumstances. Accordingly, we recommend acceptance of the bid offering best value to the City, Bid 5 from Parker Pacific Equipment for four Case model 590SL backhoes at a total cost of $427,392 ($106,291 each plus $555 for 1 set of repair manuals, plus $485 for 1 spare front tire, plus $1,188 for one spare rear tire).

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