Vancouver City Council |
ADMINISTRATIVE REPORT
Date: January 2, 2003
Author/Local: L. Syvertsen/7256
RTS No. 03155
CC File No. 1805Council: January 28, 2003
TO:
Vancouver City Council
FROM:
General Manager of Engineering Services and Manager of Materials Management
SUBJECT:
Award of Tender PS02049
Supply and Delivery of Municipal CastingsRECOMMENDATION
THAT Council accept the low bid meeting specifications and offering best value from Westview Sales Limited for the supply and delivery of Municipal Castings for a 36 month period from the date of purchase order, with the option to extend for two (2) additional twelve (12) month periods, at an estimated three (3) year cost of $763,915.19, plus the PST and 7% GST (less any municipal rebate received) 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
Pre-qualification
Request for Information PS02037 Vendor Pre-qualification to provide Municipal Castings was issued in September, 2002 with the intent of identifying vendors who have the expertise, proven ability and capability to supply and deliver municipal castings manufactured to the standards required by the City. The pre-qualification document was placed on the internet plus four (4) local companies were notified. Responses were received from Dobney Foundry and Westview Sales Limited.
Engineering Services Materials Branch inspected samples provided by Dobney Foundry for appearance, fit and dimensional conformance as well as weight. Test bars were retained for metallurgical and strength testing, if required. Materials Branch recommended minimal changes and considered Dobney Foundry an acceptable vendor.
Westview Sales Limited has been the most recent supplier of municipal castings and the Cities inspections and testing programs have shown them to be an acceptable supplier. Westview Sales Limited have provided a product for the past three (3) years that has met or exceeded the City=s requirements.
The above two (2) vendors were pre-qualified and then invited to submit bids for the supply and delivery of municipal castings.
Tender
Tenders were opened on November 6, 2002 and referred to the General Manager of Engineering Services and the Manager of Materials Management for report.
The tender called for prices for the supply and delivery of four (4) major items of sewer and waterworks castings with three (3) options for delivery and storage.
S Option A explored the possibility of a consignment system with the City=s Central Stores holding stock until used. Payment would be made 30 days from the date the item was withdrawn from inventory and used by the City.
S Option B explored quarterly shipments with either an increase or decrease of up to twenty percent (20%) in quantities with one shipment stockpiled by the Contractor at all times in the Lower Mainland area in case of exceptional demands.
S Option C is for the supply of castings as, if and when required during the term of the contract.Central Stores has recommended a combination of Option B and Option C to ensure the availability of castings to City operations at an acceptable inventory investment.
Prices shown below are for a thirty-six (36) month period based on the projected first, second and third year estimated quantities. Prices may be adjusted at the end of each twelve (12) month period of the thirty-six (36) month contract as provided by the contract document. An option exists for two (2) additional twelve month periods.
Bid #
Vendor
Option A
Option B
Option C
1
Westview Sales Limited
$894,667.60
$763,915.19
$763,915.19
2
Dobney Foundry Limited
$959,169.96
$856,397.00
$984,874.23
Bid #1 from Westview Sales Limited (Option B and C) is low bid meeting specifications and delivery requirements and is recommended for acceptance.
FINANCIAL IMPLICATIONS
Funding is available from various Engineering Services operating and capital budgets. Compared to the previous contract, the price on a per unit basis has gone down by 14%. Each year of the new contract contains a projected 25% increase in quantities to meet expected increased demands from Engineering based on past year=s experience.
CONCLUSION
Accordingly, we recommend acceptance of the low bid and best value meeting specifications and delivery requirements from Westview Sales Limited for a thirty-six (36) month period at an estimated total price of $763,915.19.
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