ADMINISTRATIVE REPORT

Date: June 26, 2000
Author/Local: Rob Chan

RTS No. 01581

CC File No.1805

Council: July 11, 2000

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services Manager of Materials Management
SUBJECT:	Award of Proposal No. PS00035 Supply & Delivery of Ford Light Duty Vehicles

RECOMMENDATION

THAT Council accept the lowest cost and best value proposal from Coastal Ford Sales Limited for a three (3) year period for the supply and delivery of light duty vehicles.

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. To reduce maintenance and administrative costs and improving pricing, it was decided to standardize the City's fleet on a single manufacturer for all light duty vehicles.
This process involved the issuing of two Request For Proposals (RFP):

(1) to select the brand of vehicles;
(2) to select the local dealer of the successful brand, to deliver vehicles and provide related services.

On March 9, 2000, City Council awarded a contract to Ford Motor Company of Canada tosupply light duty vehicles to the City of Vancouver for a three (3) year period, with an estimated quantity of 80-100 vehicle purchases per year.

This report is for the selection of a Ford vehicle dealer to deliver the vehicles, administer the Ford contract and provide related services.

DISCUSSION

Request for Proposals for the supply and delivery of Ford Light Duty Vehicles were opened on June 21, 2000 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 for purchases from this contract wil be largely provided from the Truck Plant Account and from time to time from other approved accounts.

The RFP addressed the issues of vehicle delivery, dealer fee, warranty repairs, minor warranty repair parts costs, ancillary equipment costs, technical support, and other value added services to the City.

Five proponents submitted proposals. Coastal Ford Sales Limited submitted the lowest cost proposal and the best value added package and therefore is being recommended. A partial summarized tabulation is as follows:

	Proposal #1 (Recommended)	Proposal #2	Proposal #3	Proposal #4	Proposal #5
Minor Warranty Repair Parts	Dealer Cost Plus 0%	Dealer Cost Plus 10%	Dealer Cost Plus 13%	Dealer Cost Plus 15%	Dealer Cost Plus 20%
Discount from Ford's dealer fee	$180.00 per vehicle	$25.00 per vehicle	$100.00 per vehicle	None	None

Accordingly, we are recommending acceptance of the lowest cost and best value proposal from Coastal Ford Sales Limited for the supply and delivery of Ford light duty vehicles for a three year period.

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(c) 1998 City of Vancouver