Vancouver City Council |
ADMINISTRATIVE REPORT
Date: May 12, 2003
Author/Local: M. Irvine/7375
RTS NO. 03390
CC File No. 1805
Meeting Date: May 27, 2003
TO:
Vancouver City Council
FROM:
General Manager of Engineering Services and Manager of Materials
SUBJECT:
Award of Contract PS03019, Mineral Aggregates for Canada - British Columbia Infrastructure Program
RECOMMENDATIONS:
A. THAT Council authorize the award of Contract PS03019 for the supply of mineral aggregates (to be partially funded by the Canada-British Columbia Infrastructure Program, as discussed in this report), to Mainland Sand & Gravel Ltd. as the tenderer offering the overall best value to the City, at an estimated annual cost of $602,000 plus GST (less any municipal received) and PST.
B. THAT no legal rights or obligations will be created or arise unless and until a notice of award is executed and delivered by the City to Mainland Sand & Gravel Ltd.
C. THAT the Manager - Materials Management be authorized to execute and deliver a notice of award on behalf of the City, once the form of the notice of award and related contract documentation have been approved by 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.
BACKGROUND
On March 11, 2003 Council authorized the City Manager to, on behalf of the City, enter into the Canada-British Columbia Infrastructure Program contract agreements. As part of this Program the three sewer construction projects in China Creek are eligible to receive reimbursement of 2/3 of the total project costs from the Federal and Provincial governments. The remaining 1/3 of the funding is to be provided by the City of Vancouver.
The infrastructure program stipulates that any City related construction expenditures, such as employees of the City, City equipment and, value added by the City to any materials are not eligible for reimbursement. In order to meet this requirement, the tender document was structured to request the cost of material at the supplier's depot only. It also specified that the City will evaluate the award based on the cost of the material at supplier's depot plus transportation costs.
DISCUSSION
Tenders for the supply of 3 items (#17, #9 and #15) of mineral aggregates to be used in the above projects were opened on May 7, 2003 and referred to the General Manager of Engineering and the Manager of Materials Management for report.
The tender called for pricing for a twelve (12) month period with an option to extend for an additional 12-months. Depending on completion of the project there may be a possibility of up to a further six (6) month extension by mutual agreement between the City of Vancouver and the Contractor.
One of the bids submitted was for one item only and did not meet City's specifications therefore, it was not considered further.The remaining five bids were evaluated on material cost including the cost of transportation.
Although Mainland Sand & Gravel's material cost is not the lowest their depot is convenient for trucks returning from dumping at the City's Burns Bog Landfill. When factoring the additional trucking costs that the City will incur into each bid, Mainland Sand & Gravel will provide the City with the best lowest estimated overall cost.
Company
Company's Depot Locations
Material Cost for Contract PS03019
Additional Transportation Cost Via Hired Trucking
Evaluated Estimated Overall Cost
Mainland Sand & Gravel
12500 #5 Rd. & 14271 River Rd. Richmond
602,000
114,286
716,286
Lafarge Construction Materials
268 E. Kent Avenue, Vancouver
697,500
114,286
811,786
G.R. Singh & Son Trucking
6911 No 3 Road, Richmond, (item #17 only)
and North Vancouver568,100
214,286
782,386
Allard Contractors Ltd
1580 Pipeline Rd. Coquitlam
31587 Keystone Rd., Mission551,400
571,429
1,122,829
Jack Cewe Ltd.
1850 Hillside Avenue
Coquitlam, BC706,000
571,429
1,277,429
FUNDING
Funding is available in the 2003-5 Capital Plan, main sewers reconstruction (Canada - British Columbia Infrastructure Program). Funds are required at this time for the material costs of $602,000.
CONCLUSION
Accordingly, we recommend acceptance of the bid meeting specifications and offering best overall value to the City from Mainland Sand & Gravel for a twelve (12) month period at an estimated total price of $602,000. plus the Goods and Services Tax (less any municipal rebate received) and the PST.
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