ADMINISTRATIVE REPORT

Date: November 19, 2001
Author/Local: M.Deo/323-7792

RTS No. 2389

CC File No. 1805

Council: December 4, 2001

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services Manager - Materials Management
SUBJECT:	Award of Tender PS01052 - Supply and Delivery of 1.5 Yard Hydraulic Crawler Mounted Excavator

RECOMMENDATION

THAT Council accept the best value and low bid which meets specifications from Rollins Machinery for one (1) -2001 Hyundai 360LC-3 at a total cost of $305,520, plus the Provincial Sales Tax, the Goods and Services Tax (less any municipal rebate received) and the Provincial Environmental Levy, subject to a contract satisfactory to the Director of Legal Services.

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 September 12, 2001 and referred to the General Manager of Engineering Services and the Manager of Materials Management for report.

The PST, the 7% GST (less any municipal rebate received) and any Provincial Environmental Levy are in addition to the pricing shown in this report.

This tender called for prices for one (1) - 1.5 Yard Crawler Mounted Hydraulic Excavator. This excavator is required to replace an existing unit which is used in the Sewers Operations Branch. This tender was advertised in a local newspaper as well as on the internet.

Seven bids were received from six suppliers with unit prices including the optional control valve ranging from $265,724 to $320,966.

· Bid 1 does not meet the specified minimum operating weight, engine horsepower, alternator size, stick digging force requirements, and preferred engine displacement, and therefore is not acceptable.

· Bid 2 from Rollins Machinery Limited meets specifications and is recommended for acceptance.

FINANCIAL IMPLICATIONS

The existing unit is scheduled for replacement in the 2001 replacement year, and the estimated replacement budget is $300,000. Funds for the purchase of this unit, including the $5,520 budgetary shortfall, are provided from the Truck and Equipment Plant Account.

SUMMARY

Accordingly, we recommend acceptance of the low bid meeting specifications from Rollins Machinery for one (1) - Hyundai 360 LC-3 at a total cost of $305,520. ($278,700 plus $1920 for a control valve and $24,900 for 5 year/7000 hour full extended warranty)

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(c) 1998 City of Vancouver