ADMINISTRATIVE REPORT
Date: November 21, 1995
File No. Crep042.Cov
TO: Vancouver City Council
FROM: General Manager of Engineering Services and Manager of
Purchasing Services
SUBJECT: Award of Tender No. 58-96-03 - Supply of Ready-Mixed Concrete
RECOMMENDATION
THAT Council accept the following bids for the supply of ready-
mixed concrete, as, if, when and where required from January 01,
1996 to December 31, 1996, subject to contracts satisfactory to the
Director of Legal Services.
ESTIMATED
DETAIL FIRM COST
A. Ready-mixed concrete,
picked-up by City
vehicles from
suppliers depots.
Item No. s 1 to 9 *Lafarge $508,125
inclusive - low bid Construction Materials,
per item after A Division of Lafarge
hauling charges Canada Inc.
are considered.
*Ocean Construction
Supplies Ltd.
* Depending on the proximity of the supplier s depot to the
job site, the supplier will be chosen accordingly.
B. Ready-mixed concrete,
delivered to job
sites by suppliers
Item No. s 1,2,3,4 Rempel Bros. Concrete $699,100
& 9 Ltd.
Item No. s 5,6,7 & 8 Lafarge Construction $252,600
Materials, A Division
Of Lafarge Canada Inc.
Plus the 7% Goods and Services Tax (less any municipal rebate
received), the Provincial Sales Tax and the Provincial
Environmental Levy.
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COUNCIL 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, except where an allowance of a maximum
of 5% is given to those bidders whose tender reflects local content.
Contracts with a value over $200,000 are referred to Council for award.
DISCUSSION
Tenders for the above were opened by the City Clerk on November 06,
1995, and referred to the General Manager of Engineering Services and
Manager of Purchasing Services for report.
A copy of the tabulation of bids is on file in the Purchasing office.
The 7% Goods and Services Tax (less any municipal rebate received), the
Provincial Sales Tax and the Provincial Environmental Levy are in
addition to all prices shown in this report and in the tabulation.
Funds for all purchases, in the estimated amount of $1,460,000, are
provided from approved Revenue and Capital Budgets.
The tender called for the supply of ready-mixed concrete as follows:
Section "A". Pick-up by City vehicles from suppliers depots.
Section "B". Delivered to job sites by suppliers.
Three firms submitted bids on both the pick-up and delivered portions
and one firm submitted a bid on the delivered portion only.
Section "A". Pick-up Portion - Item No. s 1 to 9.
We are recommending the acceptance of the bids from Lafarge Construction
Materials and Ocean Construction Supplies Ltd. for Item No. s 1 to 9
inclusive. The recommendation is based on the lowest on-site cost after
material and hauling costs are considered, pick-up being at either
Lafarge or Ocean s Vancouver depots, depending on the proximity to the
job site. Kask Bros.
Ready Mix Ltd. submitted the low bid for materials for Item No. s 1, 2,
5, 6, 8 and 9, however, the City s hauling costs from Kask s Burnaby
plant would negate the estimated cost difference of $23,178 (or 5%)
between Kask and the recommended bids for these items.
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Section "B". Delivered Portion - Item No. s 1 to 9.
We are recommending the acceptance of the low bids meeting the tender
conditions in each instance from Rempel Bros. Concrete Ltd. and Lafarge
Construction Materials.
Kask Bros. Ready Mix Ltd. submitted the low bid for Item No. s 4,5,6,7
and 8, however, Kask cannot meet the tender condition for deliveries to
be made to work sites within one hour of placement of order. The
Streets, Sewers and Waterworks Operating Branches find it inefficient to
have extended waiting periods for concrete supply as there are frequent
instances when concrete is required at a work site on short notice.
We believe there are a sufficient number of these instances to justify
the minimal cost difference of $6,498 (or 2%) between Kask and the
recommended bids for these items.
Engineering staff have reviewed the economics of a City-operated ready-
mix plant to meet internal needs. It is still not economical for the
City to operate its own plant. These conditions will continue to be
reviewed each year, since an increase in outside costs could result in a
City plant becoming cost effective. In 1996, it will be more economical
to purchase ready-mix concrete from outside plants.
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