Vancouver City Council |
ADMINISTRATIVE REPORT
Date: January 26, 2004
Author/Local: S. Chai/323-7792
RTS No. 03920
CC File No. 1805
Meeting Date: February 10, 2004
TO:
Vancouver City Council
FROM:
General Manager of Engineering Services
Manager - Materials ManagementSUBJECT:
Award of Tender PS03033 - Supply and Delivery of Backhoe Loader
RECOMMENDATION
A. THAT, subject to the conditions set out in Recommendations B, C, D, and F, Council authorize the General Manager of Engineering Services and Manager of Materials Management to award Tender PS03033 to Parker Pacific Equipment Sales as the tenderer offering the best value meeting specifications in the amount of $918,981.00, 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.
F. THAT the City standardize on the Case backhoe for this replacement cycle which extends through 2007.
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 October 8, 2003 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.
The City's fleet consists of twenty-one (21) backhoe loaders, twelve (12) of which are Case. The purchase of these backhoes will set the City standard for the next replacement cycle that will extend until 2007. By standardizing on a common machine, savings can be achieved by reducing mechanic and operator training, increasing parts availability, and allowing for easy interchangeability of auxiliary equipment.
This tender called for prices for nine (9) - Backhoe Loaders. These backhoe loaders are required to replace existing units which have reached the end of their economic lives and are used in the Sewer and Waterwork Operation Branches. This tender was advertised on the City's and BC Purchasing Commission's web site, in addition to notifying incumbent suppliers to the City and other well known vendors. An advertisement was placed in the Vancouver Sun.
Seven bids were received with base unit prices, including options ranging from $89,795.00 to $111,828.00.
Bid 1
Bid 2
Bid 3
Bid 4
Bid 5
Bid 6
Bid 7
$89,795.00
$92,290.00
$92,900.00
$93,872.00
$97,000.00
$102,109.00
$111,828.00
Bids 2, 5 and 6 met the required operational specifications with the exception of a few minor items. Bids 1, 3, and 4 did not meet operational specifications and Bid 7 was not considered further.
Bid 6 This machine meets specifications and is the recommended machine. Our operators and mechanics have past experience and history with these units. They are the preferred machine for their driveability, serviceability, controls, operator visibility and operation. Bid 6 has a better performance on roads because of its tight turning radius and higher road speed when compared with Bids 2 and 5. Pre-trip inspections take less time to do because of a flip up hood that opens to the engine that is absent on the other machines. The loader arms easily secure in the up position making the engine serviceable from the ground. The controls are easily accessible without infringing on cab movement and tasks are easier to control when compared with Bids 2 and 5. Overall, the performance on this machine was quicker, safer, more powerful and easier to handle.
FINANCIAL IMPLICATIONS
The existing units are scheduled for replacement in the 2003-2004 program replacement year, and the estimated replacement budget is $990,000. Funds for the purchase of these units are provided from the Truck and Equipment Plant Account.
SUMMARY
Accordingly, we recommend acceptance of the bid providing best value from Parker Pacific Equipment Sales for nine (9) - 2004 Case 590 SM backhoe loaders at a total cost of $918,981. ($91,500 each plus $9,283.00 each for front-wheel drive, plus $1,326 each for ride control).
We also recommend that the City standardize on the Case backhoe for the remaining (12) units that are up for replacement for this replacement cycle which extends through 2007.
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