ADMINISTRATIVE REPORT

Date: April 8, 2002
Author/Local: Thomas Ban /323-7882

RTS No. 02595

CC File No. 1805

Council: April 23, 2002

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services Manager - Materials Management
SUBJECT:	Award of Tender PS01094 The Supply and Delivery of Conventional Cab and Chassis

RECOMMENDATION

THAT Council accept the low bid meeting specifications representing best value from Western Star and Sterling Trucks as follows:

Item 1 - for twenty (20) Sterling LT7501 conventional cabs and chassis at a total cost of $1,840,991,
Item 2 - for five (5) Sterling LT9513 conventional cabs and chassis at a total cost of $559,651,

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 values based on quality, service and price.

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

DISCUSSION

Bids for the above tender were opened on February 13, 2002 and referred to the General Manager of Engineering Services and the Manager - 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.

This tender was advertised in local newspapers and on the internet.

This tender consisted of two items. Item 1 requested prices for twenty (20) conventional cabs and chassis with a minimum power rating of 275 HP and Item 2 requested prices for five (5) conventional cabs and chassis with a minimum power rating of 400 HP for use in towing end-dump trailers.

The bid prices shown in the tables contained in this report include the unit base price plus options (if & where available) so that the units as much as possible are equipped comparably.

Item 1 - Ten bids were received from seven suppliers.

Bid Ranking	Vendor	Model	Price with Options ($)
1	Freightliner of Vancouver	FL80	88,029
2	Dams Lincoln Ford	LT7501	88,313
3	Dams Lincoln Ford	LT8513	91,163
4	Western Star and Sterling Trucks	LT7501	91,966
5	Western Star and Sterling Trucks	LT8513	93,065
6	Co-Van International	7500	94,854
7	Vancouver Mack	DM690S	95,910
8	Dams Lincoln Ford	LT9513	97,063
9	Inland Kenworth	T800	103,675
10	Volvo Trucks of Vancouver	VHD64B	110,363

Bid No.1 from Freightliner of Vancouver, Bid No.2 from Dams Ford Lincoln, and Bid No.3 from Dams Ford Lincoln do not meet the minimum engine performance requirements as requested in the tender. The tender specifically asks for a net minimum engine rating of 275 hp and 860 lb-ft of torque as measured according to the SAE J1349 standard. This power rating is required to ensure adequate power for towing and going up hills when fully loaded.

Bid No.4 from Western Star and Sterling Trucks is the lowest bid meeting specifications. It is acceptable and recommended.

Item 2 - Six bids were received from six suppliers.

Bid Ranking	Vendor	Model	Price with Options ($)
1	Vancouver Mack	DM688S	104,670
2	Dams Lincoln Ford	LT9513	105,175
3	Co-Van International	7600	110,734
4	Western Star and Sterling Trucks	LT9513	111,596
5	Inland Kenworth	T800	113,833
6	Volvo Trucks of Vancouver	VHD64B	115,817

Bid No.1 from Vancouver Mack, and Bid No.2 from Dams Ford Lincoln do not meet the minimum engine performance requirements. The tender specifically asks for a net minimum engine rating of 400 hp and 1450 lb-ft of torque as measured according to the SAE J1349 standard. The above engine performance requirements ensure proper operation when pulling end-dump trailers.

Bid No.3 from Co-Van International does not meet the transmission specifications as requested in the tender. The tender specifically asks for a fifteen (15) speed transmission which is ideally suited for the anticipated on/off road working conditions.

Bid No.4 from Western Star and Sterling Trucks is the lowest bid meeting specifications. It is acceptable and recommended.

FINANCIAL IMPLICATIONS

The existing twenty-five (25) dump trucks are scheduled to be replaced in 2002 and are included in the 2001-2002 Truck and Equipment Plant Replacement Program as they have reached the end of their planned economic lives. The budgeted chassis cost excluding taxes was $3,000,000. The total purchase cost for Items 1 and 2 is $2,400,640. Funding for the purchase of these units are provided from the Truck and Equipment Plant Account.

CONCLUSION

Accordingly, we recommend acceptance of the low bid meeting specifications for Item 1 from Western Star and Sterling Trucks, for twenty (20) Sterling LT7501 conventional cabs and chassis at a total cost of $1,840,991 ($84,139 each, complete with the following options valued at $7827: locking differential, crankshaft-driven front PTO adaptor, towing package, painted wheels, synthetic transmission and differential lubricants to extend component warranties, 18,000lbs front axle and suspension, HN402 rear suspension, 425/65R 22.5 tires, split hydraulic/fuel tank, vertical muffler and exhaust,and an upgraded Cummins ISC 315 engine, plus $1671 for two sets of repair manuals).

We also recommend acceptance of the low bid meeting specifications for Item 2 from Western Star and Sterling Trucks for five (5) Sterling LT9513 conventional cabs and chassis at a total cost of $559,651 ($ 99,759 each, complete with the following options valued at $11,837: dual locking differentials, crankshaft-driven front PTO adaptor, painted wheels, synthetic transmission and differential lubricants to extend component warranties, 18,000lbs front axle and suspension, 46,000lbs rear axle, HN462 rear suspension, 425/65R 22.5 tires, split hydraulic/fuel tank, upgraded driveline, and a vertical muffler and exhaust, plus $1671 for two sets of repair manuals).

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(c) 1998 City of Vancouver