ADMINISTRATIVE REPORT


                                           Date: August 19, 1996
                                           Dept. File No. H762-9


   TO:       Vancouver City Council

   FROM:     General Manager of Engineering Services and
             Manager of Purchasing Services

   SUBJECT:  Tender No. 35-96-02, 
             Supply of 85 HP Tractor Hoe Loaders


   RECOMMENDATION

        THAT  Council accept the low bid to meet specifications from Parker
        Pacific Equipment Sales  for four  Case model 590SL  backhoes at  a
        total cost of  $343,792.00 ($86,855.00 each plus $1,050.00 each for
        bucket  rippers,  plus  $4,225.00  each for  extending  boom,  plus
        $582.00 for one spare front wheel and tire , plus $1,050.00 for one
        spare rear  wheel and  tire, plus  $425.00 for  one  set of  repair
        manuals, plus  $9,215.00 for one front wheel drive, less $18,000.00
        each for two surplus units), plus the  Provincial Sales Tax, the 7%
        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.


   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. 

   Contracts with a value over $200,000 are referred to Council for award.


   DISCUSSION

   Tenders for the above  were opened on June 24, 1996  and referred to the
   General  Manager  of  Engineering  Services and  Manager  of  Purchasing
   Services for  report.    The Provincial  Sales  Tax, the  7%  Goods  and
   Services Tax  (less any municipal  rebate received)  and the  Provincial
   Environmental Levy are in addition to all pricing
   shown in this report and in the tabulation.  A copy of the tabulation of
   bids is  on file in the  Manager of Purchasing Service's  office.  Funds
   are provided from the Truck Plant Account.


                                     - 2 -



   This  Tender called for prices for 85 HP heavy duty Tractor-Hoe-Loaders.
   Four are required.  Eight bids  were received from five suppliers. Bids,
   including the required options  (except for Bid No.1) and  trade-ins for
   two surplus units, ranged from $284,192.00 to $414,448.00.  

   Bid No. 1      Rollins Machinery        $284,192.00

        This  bid is not acceptable since the required extended boom option
        is not offered.

   Bid No. 2      Rollins Machinery        $286,987.00

        This  bid does  not meet  specifications for  dig depth,  boom lift
        capacity,  or  availability  of a  demonstration  unit  and  is not
        recommended.

   Bid No. 3      Surfwood Supply          $287,786.00

        This  bid does not meet specifications for dipper lift capacity and
        is not recommended.

   Bid No. 4      Rollins Machinery        $306,638.00

        This  bid does  not meet  specifications for  dig depth,  boom lift
        capacity,  or  availability  of a  demonstration  unit  and is  not
        recommended.

   Bid No. 5      Parker Pacific           $343,792.00

        This   bid  meets   all  specifications,   is  acceptable   and  is
        recommended.


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