ADMINISTRATIVE REPORT

Date: November 6, 2001
Author/Local: T. Ban/323-7882

RTS No. 02372

CC File No. 1805

Council: November 20, 2001

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services Manager - Materials Management
SUBJECT:	Award of Tender No. PS01059 The Supply of Delivery of Tandem Axle Chassis

RECOMMENDATION

THAT Council accept the bid offering best value to the City from Co-Van International Trucks for four (4) International model 9400 6 x 4 tandem axle chassis at a total cost of $434,140 plus the PST, the 7% GST (less any municipal rebate received), and the Provincial Environmental Levy, subject to a contract satisfactory to the Director of Legal Services.

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.

DISCUSSION

Tenders for the above were opened on August 29, 2001 and referred to the General Manager of Engineering Services and the Manager - Material Management for report. The 7% GST (less any municipal rebate received), the PST and the Provincial Environmental Levy are in addition to all pricing shown in this report. This tender was advertised in local newspapers and the internet.

This tender requested prices for four (4) conventional tandem axle chassis and cabs with various options with provision to purchase up to four (4) additional units within twelve (12) months from date of the purchase order. Four (4) units are requested at this time. Thesetrucks will haul refuse to the Burns Bog Landfill from the Vancouver Transfer Station using the City's transfer trailers.

Seven bids were received from seven suppliers with unit prices including options ranging from $100,665 to $122,125.

Bid 1 from Vancouver Mack and Bid 4 from Volvo Trucks of Vancouver do not meet the required engine displacement as they offer only a 12-litre engine. A 14-litre or larger engine was requested specifically in the tender in order to provide a high level of engine braking performance.

Bid 2 from Western Star and Sterling Trucks does not meet specifications. The tender specifically asks for aluminum fuel tanks, but Western Star and Sterling only offer steel fuel tanks.

Bid 3 from Dams Ford Lincoln Sales Ltd. meets all of the specifications but it does not provide the best value when compared to the recommended bid. Dams' vehicle offering weighs 1,000 lbs more than the recommended bid (17,262 lbs for Dams vs. 16,175 lbs for Co-Van). The higher vehicle weight reduces the vehicle's payload capacity, and therefore reduces the City's operating revenues for hauling refuse. Curb weights are requested in the tender specifications.

Bid 5 from Co-Van International offers the lowest curb weight amongst all of the bids that meet specifications. Co-Van's lighter truck will allow at least an additional 500 lbs of refuse, relative to the third low bid, to be carried by each truck per trip. The City receives $10/ton for refuse hauled to the Landfill. The increased payload will result in approximately $5,200 of increased revenue per truck per year.

During the evaluation process, it was determined that additional options would improve operator visibility and ergonomics. It is therefore recommended that heated & motorized 16" x 7" side-view mirrors, tilt/telescopic steering wheel, and two 8" convex mirrors be ordered for each unit. In addition, we recommend ordering the optional Caterpillar C15 engine, at no extra cost, in order to maximize engine braking performance.

FINANCIAL IMPLICATIONS

The four units tendered are scheduled for replacement in the 2001 replacement program. The units have reached the end of their planned lives. The estimated budget cost was $480,000. Funding is provided from the Plant Account.

The truck bid by Co-Van International has a higher payload capacity relative to the truck bid by Dams Ford Lincoln. With the Co-Van International bid, the City will gain revenue dueto a higher payload capacity. The cost of the lower payload is shown in the table below (based on a 5 year vehicle life and a 5% inflation rate):

	Bid 5: Co-Van International (recommended)	Bid 3: Dams Ford Lincoln Sales Ltd.
Relative Additional Payload Capacity	500 lbs	0 lbs
Purchase Price	$108,910	$105,524
Lost Revenue: Due to Decreased Payload	$ 0	$ 22,500
Total Cost For 5 Years of Operation	$108,910	$128,024

Over the planned life of the units, the comparative cost of the International unit is less than the Dam's bid.

CONCLUSION

It is recommended that the City accept the bid offering best value, Bid 5 from Co-Van International Trucks, for four (4) International model 9400 6 x 4 chassis at a total cost of $435,640 ($106,400 each plus $1280 for bid options, plus additional options of $240 each for motorized side view mirrors, $350 each for tilt/telescopic steering wheels and $140 each for convex mirrors, plus $500 for two sets of repair manuals).

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(c) 1998 City of Vancouver