Vancouver City Council |
ADMINISTRATIVE REPORT
Date: August 25, 2003
Author/Local: M.Deo/323-7792RTS No. 03589
CC File No. 1805
Meeting Date: September 16, 2003
TO:
Vancouver City Council
FROM:
General Manager of Engineering Services
Manager - Materials ManagementSUBJECT:
Award of Tender PS01080 - Supply and Delivery of 305 Hp Bulldozer
RECOMMENDATION
A. THAT, subject to the conditions set out in Recommendations B, C and D, Council authorize the General Manager of Engineering Services and Manager of Materials Management to exercise the option, as provided for in the original Tender document to purchase an additional 305 Hp Cat D8RII Bulldozer from Finning Canada in the amount of $607,495 plus the Provincial Sales Tax, the Goods and Services Tax (less any municipal rebate received) and the Provincial Environmental Levy.
B. THAT, the Director of Legal Services be authorized to execute and deliver on behalf of the City all legal documents, required to implement Recommendation A.
C. THAT all such legal documents be on terms and conditions satisfactory to the General Manager of Engineering Services, Manager of Materials Management and the Director of Legal Services.
D. THAT no legal rights or obligations will be created by Council's adoption of Recommendation A, B and C above unless and until such legal documents are executed and delivered by the Director of Legal Services.
E. THAT funding for the purchase described in Recommendation A be provided from the Truck and Equipment Plant Account.
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
Tender PS01080 called for the supply and delivery of one (1) 305 Hp Bulldozer with an option to purchase an additional unit within approximately 12 months from the date of the first purchase order. Council awarded tender PS01080 to Finning Canada for one (1) 2002 Cat D8RII bulldozer at a total cost of $648,772, which was put into service on August 30, 2002.
Purchasing a CAT D8RII bulldozer today as compared to the 2002 purchase, based on the specifications of tender PS01080, will result in a savings of $15,847 on the cost of the machine plus tax savings of $1663.94 - a net savings to the City of $17,510.94. This savings takes into consideration the cost of the machine due to price changes, the deletion of non required optional features, and the decrease in value of the US dollar.
Based on experience, Landfill Operations and Equipment Services recommend deleting the rear striker bar and the fire suppression system options that were specified in tender PS01080. The rear striker bar component can be interchanged with the existing CAT D8RII as both machines do not utilise this feature at the same time. The fire suppression system feature should also be deleted because the fire suppression system provided by Finning Canada was not designed and installed to meet the City's fire suppression system standards. As a result, City staff will perform the fire suppression system installation. By deleting the two options the net cost of a 2004 Cat D8RII Bulldozer will be $607,495.
ITEM
PRICE
CAT D8RII
$632,925
Rear Striker Bar Option Delete
($12,508)
Fire Suppression System Option Delete
($12,922)
NET COST TO CITY
$607,495
FINANCIAL IMPLICATIONS
The existing unit is scheduled for replacement in the 2003 program replacement year, and the estimated replacement budget is $750,000. Funds for the purchase of this unit are provided from the Truck and Equipment Plant Account.
SUMMARY
Accordingly, we recommend authorization to purchase an additional 2004 Cat D8RII Bulldozer from Finning Canada at a total cost of $607,495. (Based on tender specifications of PS01080, with rear striker bar and fire suppression system deleted).
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