LATE DISTRIBUTION
     FOR COUNCIL NOVEMBER 26, 1996
                                                                                                                            A10

                             ADMINISTRATIVE REPORT

                                                   Date:  November 20, 1996
                                                    Dept. File No.: H 762-9


   TO:       Vancouver City Council

   FROM:     General Manager of Engineering Services

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

   RECOMMENDATION

        THAT Council award a contract to Parker Pacific Equipment
        Sales for two Case Model 590SL backhoes at a total cost of
        $184,260 ($86,855 each, plus $1,050 each for bucket rippers,
        plus $4,225 each for extending booms), plus the Provincial
        Sales Tax, the 7% Goods and Services Tax (less any municipal
        rebate received) and the BC Environmental Levy, subject to a
        contract satisfactory to the Director of Legal Services.

   COUNCIL POLICY

   The policy of Council is to obtain prices by tender for purchases
   over $100,000.

   BACKGROUND

   On September 10, 1996, City Council approved the purchase from
   Tender 35-96-02 of four Case Model 590SL backhoes from Parker
   Pacific Equipment Sales.  This bid was for the low bid meeting
   specifications.  These backhoes were purchased as replacement
   machines for the Sewers Operations Branch.  The maximum quantity
   indicated on the tender was four and all have been purchased.

   DISCUSSION

   Waterworks Operations also require replacement backhoes as
   approved in the 1996 replacement program.  The Waterworks
   machines were originally to be of a different size, but because
   Sewers and Waterworks are combining to install both utilities at
   the same time, both branches  backhoes need to be the same size.

                                 - 2 -


   Although the total purchase price is over $100,000, we are asking
   Council s permission to make a direct purchase from Parker
   Pacific Equipment Sales because:

   1.      Parker Pacific Equipment Sales has offered to supply two 
           more backhoes at the same price as those purchased in
           September 1996.

   2.      Retendering is not likely to produce prices significantly
           different than those received in September 1996.

   3.      The evaluation of backhoe tenders is very time consuming
           and this purchase will save staff time and travel costs
           for Equipment Management, Purchasing and Waterworks
           Operations.

   4.      One of the units to be replaced is already inoperative
           and is uneconomic to repair.

   5.      A direct purchase will put these machines in service at 
           least four months sooner than if we retendered.

   6.      There are efficiencies in maintenance to be gained with
           having more commonality in equipment.

   Accordingly, we RECOMMEND that Parker Pacific Equipment Sales be
   awarded a contract for two backhoes at a total cost of $184,260
   ($86,855 each, plus $1,050 each for bucket rippers, plus $4,225
   each for extending booms).


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