Vancouver City Council |
ADMINISTRATIVE REPORT
Date: April 2, 2004
Author/Local: J. Kuznik/323-7882RTS No. 04111
CC File No. 1805
Meeting Date: April 20, 2004
TO:
Vancouver City Council
FROM:
General Manager, Engineering Services
Manager, Materials ManagementSUBJECT:
Award of Tender PS03047 - Supply and Delivery of 6.5 Cubic Yard Front End Loader
RECOMMENDATION
A. THAT, subject to the conditions set out in Recommendations B, C, and D, Council authorize the General Manager of Engineering Services and the Manager of Materials Management to award to the low bid meeting specifications from Finning Canada for one (1) only Caterpillar 2004 980G II 6.5 cubic yard Front End Loader at a total cost of $448,000.00, plus the Provincial Sales tax, the Goods and Services Tax (less any municipal rebate received) and the Provincial Environmental Levy, subject to a contract satisfactory to the Director of Legal Services.
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
Tenders for the above were opened on January 14, 2004 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.
This tender called for one (1) only four (4) wheel drive, 6.5 cubic yard Front End Loader. This front end loader is replacing an existing unit used by Streets Operations. This tender was advertised on the City's and BC Purchasing Commission's website, in addition to notifying incumbent suppliers to the City and other well known vendors. An advertisement was placed in the Vancouver Sun.
This machine is used to supply various aggregate materials to the asphalt plant and to trucks for use on jobs throughout the City. Loader reliability and the required attendant machine "uptime" are essential to the City's asphalt plant and aggregate operations. Construction jobs and asphalt plant production are scheduled in advance. Because of the high volume of materials handled daily, any unscheduled failure by this critical piece of equipment would result in substantial delays and costs incurred by the City.
Five (5) bids were received with base unit prices ranging from $337,500.00 to $468,000.00.
Bid 1
Bid 2
Bid 3
Bid 4
Bid 5
$337,500.00
$373,832.00
$385,000.00
$430,000.00
$468,000.00
Bids 1, 2 and 3 did not meet the specified bucket minimum reach of 59". The bucket minimum reach is critical in order to clear side boards of City dump trucks and maintain productivity. Individually they also failed to meet specifications in a number of other areas.
Bid 4 meets the required operational specifications with the exception of two (2) minor items and is the recommended machine. The alternator output is rated at 110 amps versus the 120 amps specified and a gear type pump was offered where a piston type pump was specified. The differences are only technological and have no bearing on future performance.
FINANCIAL IMPLICATIONS
The existing unit is scheduled for replacement in the 2004 Annual Equipment Replacement program. Funds for the purchase of this unit are provided from the Truck and Equipment Plant Account.
SUMMARY
Accordingly, we recommend acceptance of the low bid meeting specifications from Finning Canada for one (1) only Caterpillar 2004 980G II 6.5 cubic yard Front End Loader for a total cost of $448,000.00. ($430,000.00 plus $18,000.00 for the auto lube option).
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