A17
ADMINISTRATIVE REPORT
Date: November 13, 1996
File No. CREP064. wpd
TO: Vancouver City Council
FROM: General Manager of Engineering Services and Manager of
Purchasing Services
SUBJECT: AWARD OF TENDER NO. 57-96-05 - SUPPLY AND DELIVERY OF
PVC SEWER PIPE AND FITTINGS
RECOMMENDATION:
That Council accept the following bids for the supply and delivery
of PVC sewer pipe and fittings, as, if, and when required, for a
12-month period from the date of the purchase order, subject to
contracts satisfactory to the Director of Legal Services:
ESTIMATED
FIRM DETAIL AMOUNT
Westburne
Supply Item No.'s A1, A3, B1, B3, B5, B7 $501,261
& B48 - low bid
Item No.'s A2, A4, B2, B4, B6 & B8
- low bid meeting specifications
Item No. s A20, A21, B12, B15, B24,
B27, B34 & B37 - best value
International
Plastics Item No. s A8-10, A12, A13, A15-A19 $251,388
A22, B10, B11, B13, B14, B16-B21,
B26, B29, B31, B36, B38, B39,
B41-B43, B47, B49 & B51 - low bid
Item No. s A5-A7, A11, A14, B9,
B22, B23, B25, B28, B30, B32, B33,
B35, B40, B44-46, B50 & B52-56
- best value
Plus the 7% Goods and Services Tax (less any municipal rebate
received) and the Provincial Sales Tax.
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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.
Contracts with a value over $300,000 are referred to Council.
DISCUSSION
Tenders for the above were opened by the City Clerk on September 16,
1996 and referred to the General Manager of Engineering Services and
the Manager of Purchasing Services for report.
The 7% Goods and Services Tax (less any municipal rebate received) and
the Provincial Sales Tax are in addition to all prices shown in this
report.
Funds for all purchases in the estimated amount of $752,649 are provided
for in the Sewers Connection Fee and Sewers Capital Budget.
The tender calls for the supply and delivery of 22 items of SDR-28 PVC
sewer pipe and fittings in Section A and 56 items of SDR-35 PVC sewer
pipe and fittings in Section B as, if and when required for a twelve
month period from the date of purchase order. The quantities tendered
are estimated only. The tender indicates a preference to award entirely
to a single contractor or to a maximum of three contractors in order to
reduce administrative expenses and to ensure compatibility of pipe and
fittings.
Eight firms submitted tenders. Six firms bid on pipe and fittings and
two firms bid on pipe only.
PIPE:
CPI Equipment submitted the low bid for six sizes of 13' pipe (Item
No. s A2, A4, B2, B4, B6 & B8) which is approximately $57,000 lower than
the recommended bid. Pipe samples were requested from CPI as the City
did not have experience with their manufacturer s brand.
Basic tests of joining pipe and fittings were conducted by City
operations personnel experienced in the use of PVC pipe. This testing
identified that the joint between the pipe and fittings was loose
compared to previous experience with other manufacturers pipe. A loose
joint could result in poor connections and an opening of joints in sewer
mains. This would lead to blockages and basement flooding which would
have to be rectified by costly dig ups and repairs.
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City Materials staff measured the pipe confirming it did meet the
required specifications established by independent agencies. Staff can
only surmise that manufacturing differances may be the cause of this
loose joint. Independent laboratory testing is available at $800 per
pipe length but this was not justified due to the basic trial results.
The concerns have been demonstrated to CPI Equipment and the
manufacturer s agent in an evaluation session. It was suggested to CPI
that a factory representative be present for the evaluation session to
address the City findings and concerns but this representative was not
made available. Engineering Services Operations, Design, and Materials
Branch staff were present with Purchasing Services at this evaluation
session for the discussion of these concerns.
At this time, staff do not have the confidence in joint compatibility
between CPI s offered pipe and their use with the existing inventory or
infrastructure and the fittings to be supplied by other contractors. Any
initial savings in the purchase price may be offset if problems occurred
as a result of these joint compatibility concerns. Staff are prepared to
work with CPI and the manufacturer to address these concerns for future
tenders.
Westburne Supply submitted the next low bid for the above six items.
They also submitted the low bid for the shorter pipe lengths (Item No.'s
A1, A3, B1, B3, B5 and B7). Westburne's bid meets specifications and is
recommended for acceptance.
FITTINGS:
Low bids on individual fitting items were received from four firms. We
recommend that the award be made to two firms, International Plastics
and Westburne Supply, as best value to the City. A further split in the
award of the contract would save only $1,721, or .0023% of the total
contract value but add significantly to the City s administrative costs.
International Plastics is the lowest overall bidder for fittings but
they did not provide pricing for six minor items. These six items can be
awarded to Westburne, as they are the recommended supplier for the pipe
portion, along with three items that they were either low bid or second
low bid.
In summary, it is recommended that the fittings portion of the contract
be awarded as follows:
1. International Plastics for Items No. s A8 to A10, A12, A13,
A15 to A19, A22, B10, B11, B13, B14, B16 to B21, B26, B29,
B31, B36, B38 to B39, B41 to B43, B47, B49, & B51 on a low bid
basis.
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2. Westburne Supply for Item No. B48 as low bid.
3. International Plastics for Item No. s A5 to A7, A11, A14, B9,
B22, B23, B25, B28, B30, B32 to B34, B40, B44 to B46, B50 &
B52 to B56 as best value.
4. Westburne Supply for Item No. s A20, A21, B12, B15, B24, B27,
B34 & B37 as best value.
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