ADMINISTRATIVE REPORT

Date: April 24, 2001
Author/Local: A.Kyriakides/7257

RTS No. 02047

CC File No. 1805

Council: May 15, 2001

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services and Manager of Materials Management
SUBJECT:	Award of Tender PS01019, 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 purchase order, subject to contracts satisfactory to the Director of Legal Services.

	Detail	Firm	Estimated Annual Cost
A.	Ready-mixed concrete picked up by City vehicles from suppliers depots	Lafarge Construction Materials Ltd. / Ocean Construction Supplies Ltd.	$511,900
B.	Ready-mixed concrete delivered to job sites	Kask Bros. Ready Mix Ltd.	$1,269,650

The combined estimated annual costs of $1,781,550 for pickup and delivery of ready-mixed concrete includes the environmental levy , but does not include the applicable 7% GST (less the anticipated receipt of the municipal rebate) and the 7% PST.

COUNCIL POLICY

The policy of Council is to award contracts for the purchase of equipment, supplies andservices 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 were opened by the City Clerk on March 28, 2001 and referred to the General Manager of Engineering Services and the Manager of Materials Management.

The 7% GST (less the anticipated receipt of the municipal rebate) and the 7% PST 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.

The tender was advertised in the local newspaper as well as the internet.

The tender called for the supply of ready-mixed concrete, as, if and when required for a 12 month period from date of purchase order. The tender is divided into 2 sections, each section covering 9 items. Section A is for the pickup by City vehicles or hired equipment from the suppliers depot based on the lowest on site cost after material and hauling costs are considered. Section B is for the delivery by the supplier to job sites.

Two firms submitted bids on Section A and four firms submitted bids on Section B.

For Section A, we are recommending the acceptance of the bids from Lafarge Construction Materials Ltd. and Ocean Construction Supplies Ltd. for all items in Section A, depending on the proximity of the suppliers depot to the job site. This recommendation is based on the lowest on site costs to the City.

For Section B, we are recommending acceptance of the bid from Kask Bros. Ready Mix Ltd. for all 9 items.

Ocean Construction Supplies Ltd. is low bidder on Items 1, 2 & 4, however their quoted delivery time is unacceptable. Therefore we are recommending acceptance of the second low bid on these items from Kask Bros. Ready Mix Ltd. This represents an estimated additional cost of $36,400, based on the low bid on these items from Ocean Construction Supplies Ltd. This extra cost is justified by the improved operational efficiency provided by the assurance that two hour notice for delivery ( Kask) can be provided, as opposed to ordering on the previous day (Ocean). This is especially important in an operation that is highly weather dependent, often requiring decisions to be made on the same day.

Rempel Bros. Concrete Ltd. is low bidder for Item 3 , however it is a requirement that above grade use, concrete Items 1, 3 & 4 come from the same concrete plant to ensure consistentcolour and finish quality. Therefore it is recommended that Item 3 be awarded to Kask Bros. Ready Mix Ltd. together with Items 1 and 4 above.

Kask Bros. Ready Mix Ltd. is the low bidder on Items 5, 6, 7, 8 & 9.

FINANCIAL IMPLICATIONS

Generally, ready-mixed concrete is used for Waterworks, Sewers and Streets capital and maintenance work. Ready-mixed concrete is ordered on an as needed basis for each particular job site. On some occasions operating budget and capital budget funding is used for the same delivery as new capital work and maintenance work is taking place in the same location. The concrete for each is charged to specific work orders. Therefore, the these purchases are funded from a variety of sources, i.e. 2001 Streets and Sewers operating budge, 2001 Waterworks and Sewers Basic Capital, 2001 Water utility Fees and 2001 Sewer Utility Fees.

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(c) 1998 City of Vancouver