Agenda Index City of Vancouver

RTS NO. 02704

CC File No. 1805

Council: May 14, 2002

TO:

Vancouver City Council

FROM:

General Manager of Engineering Services and Manager of Materials Management

SUBJECT:

Renewal Option - Contract PS01019, Supply of Ready-Mixed Concrete

 

RECOMMENDATION

1.

Pick Up:
Lafarge Construction Materials Ltd. and
Ocean Construction Supplies Ltd. for ready-mixed concrete picked up by City Vehicles from suppliers depots.

Estimated Cost
$541,825

2.

Delivery:
Kask Bros Ready Mix Ltd. for ready-mixed concrete delivered to City job sites.

$1,269,650

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 for award.

BACKGROUND

On May 15, 2001, Council awarded a 12-month contract to the following contractors for the pickup and delivery of ready-mixed concrete:

1.

Pick Up:

    - Lafarge Construction Materials Ltd.

- Ocean Construction Supplies Ltd.
based on the contractor=s proximity to the job site.

Annual Estimated Cost
$511,900

2.

Delivery:
Kask Bros. Ready Mix Ltd.

$1,269,650

The contracts provide for four 12-month renewal options, by mutual consent between the City and the contractor. The renewal options also provide for a price adjustment, at the end of each 12-month period, subject to documented proof of manufacturers raw material cost changes or any other factors related to this product which can be verified with an independent published source.

DISCUSSION

This is the first 12 month renewal. All other terms and conditions remain the same as the original contracts with Lafarge Construction Materials Ltd. and Kask Bros. Ready Mix Ltd., with the exception of a change in estimated quantities. Both Lafarge Construction Materials Ltd. and Kask Bros. Ready Mix Ltd. are prepared to extend for an additional 12 month period with no price increase. Ocean Construction Supplies Ltd., the contractor with the lowest on site costs to the City, requested increase of 2.85% based on increased production and plant maintenance costs. This price increase has been reviewed and is recommended for approval. A change to the estimated quantities and a slight price increase from Ocean Construction Supplies Ltd. results in a slightly higher estimated cost for the pick up portion, compared to the contract award approved in 2001.

It is estimated that the 2002 contract extensions will result in costs of $541,825 for ready-mixed concrete to be picked up by City vehicles from Lafarge Construction Materials Ltd. and Ocean Construction Supplies Ltd., and $1,269,650 for ready-mixed concrete delivered to job sites by Kask Bros. Ready Mix Ltd. The total value of the ready-mixed concrete supplied is estimated to be $1,811,475.

FINANCIAL IMPLICATION

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, these purchases are funded from a variety of sources, i.e. 2002 Streets and Sewers Operating Budget, 2002 Streets, Waterworks and Sewers Basic Capital, 2002 Water Utility Fees and 2002 Sewer Utility Fees.

CONCLUSION

As Lafarge Construction Materials Ltd., Ocean Construction Supplies Ltd. and Kask Bros. Ready-Mix Ltd. have been satisfactory suppliers, it is recommended that the City exercise the renewal options and enter into new contracts with each supplier effective June 1, 2002 through to May 31, 2003.

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ag020514.htm

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