ADMINISTRATIVE REPORT

Date: April 23, 2002
Author/Local: M.Deo/323-7792

RTS No.2642

CC File No. 1805

Council: May 14, 2002

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services Manager - Materials Management
SUBJECT:	Award of Tender PS02003 - Supply and Delivery of 2.0 Yard Hydraulic Crawler Mounted Excavator

RECOMMENDATION

THAT Council accept the low bid meeting specifications and best value from Inland Parker Pacific for one (1) -2002 Linkbelt 460LX at a total cost of $446,273, less $45,000 for trade-in, 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 March 6, 2002 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 was advertised in a local newspaper as well as on the internet.

This tender called for prices for one (1) - 2.0 Yard Crawler Mounted Hydraulic Excavator. The crawler mounted excavator is required to replace an existing unit which is used in the Sewers Operations Branch .

Five bids were received with unit prices ranging from $395,000 to $465,000. With trade-ins, net prices ranged from $375,000 to $423,000.

Bid No.	Dealer/ Brand	Unit Price	Trade-In	Net Price
1	Douglas Lake Equipment/ New Holland	$395,000.00	$20,000.00	$375,000.00
2	Wajax Industries/Hitachi	$443,151.50	$42,000.00	$401,151.50
3	Inland Parker Pacific/ Linkbelt	$446,273.00	$45,000.00	$401,273.00
4	Terratech Equipment/ Komatsu	$454,724.00	$45,000.00	$409,724.00
5	Coast Tractor/ John Deer	$465,000.00	$42,000.00	$423,000.00

· Bid 1 from Douglas Lake Equipment does not meet the swing clearance and 12'-10"dipper stick requirements, and therefore is not acceptable. The swing clearance requirement is important because the excavator must be able to work in narrow lanes and right-of-ways. The dipper stick length is important because this size stick provides the best trenching ability while maintaining a safe and close distance to the trench. This bid did offer an alternative 14'-4" dipper stick, however this stick was deemed too long for City operations because it makes loading trucks difficult.

· Bid 2 from Wajax Industries does not meet the 12'-0" track width and therefore is not acceptable. The track width is important because the excavator routinely has to be walked down narrow streets to the job site. With vehicles on both sides of the street, a 12'-0" wide machine leaves approximately two (2) inches between the outside of the tracks and the vehicles.

· Bid 3 from Inland Parker Pacific meets specifications and was found to be acceptable.

FINANCIAL IMPLICATIONS

The unit was scheduled for replacement in the 2001 replacement year, and the estimated replacement budget, excluding all taxes and levies is $407,200. The approximate purchase price of the unit excluding taxes and levies is $446,273. The cost increase is due to an increase in factory pricing and changes in the exchange rate. Funds for the purchase of this unit, including the shortfall are provided from the Truck and Equipment Plant Account.

CONCLUSION

Accordingly, we recommend acceptance of Bid 3 from Inland Parker Pacific for one (1) -2002 Linkbelt 460LX at a total cost of $446,273 , less $45,000 for the trade-in.

* * * * *

(c) 1998 City of Vancouver