A2
ADMINISTRATIVE REPORT
Date: November 20, 1996
File No. CREP066.wpd
TO: Vancouver City Council
FROM: General Manager of Engineering Services and Manager of
Purchasing Services
SUBJECT: AWARD OF TENDER NO. 58-97-02 - SUPPLY OF READY-MIXED CONCRETE
RECOMMENDATION
THAT Council accept the following bids for the supply ready-mixed
concrete as, if and when required from January 1, 1997 to December
31, 1997, subject to contracts satisfactory to the Director of
Legal Services:
ESTIMATED
DETAIL FIRM COST
A. Ready-mixed concrete, *$553,910
picked up by city vehicles
from suppliers depots
Item No. s 1-9 inclusive, *Lafarge
- low bid per item after Construction
hauling costs are Materials
considered
*Ocean Construction
Supplies Ltd.
* Supplier will be selected depending on the proximity of t h e
depot to the job site.
B. Ready-mixed concrete,
delivered to job sites
by suppliers
Item No. s 1, 3, 4 & 7 Rempel Bros. $958,870
- low bid Concrete Ltd.
Item No. s 5, 6, 8 & 9 Kask Bros. $119,366
- low bid Ready-Mix Ltd.
Item No. 2 - low bid after
minimum load charge is considered
including the 7% Goods and Services Tax (less the anticipated
receipt of the municipal rebate) 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 for award.
DISCUSSION
Tenders for the above were opened by the City Clerk on November 4, 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 the anticipated receipt of the
municipal rebate) and the Provincial Sales Tax are included in the
prices shown in this report.
Funds for all purchases, in the estimated amount of $1,632,146, are available from approved Revenue and Capital budgets.
The tender called for the supply of ready-mixed concrete as, if and when
required from January 1, 1997 to December 31, 1997. The tender is
divided into two sections. Section "A" is for pick up by City vehicles
from the supplier s depot based on the lowest on-site cost after
material and hauling costs are considered. Section "B" is for delivery
by the supplier to job sites.
Three firms submitted bids on both sections and one firm submitted a bid
on Section "B" only.
For Section "A", 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, depending on the proximity of the
supplier s depot to the job site. This recommendation is based on the
lowest on-site costs as best value to the City. Both Lafarge and Ocean
have plants located within the City of Vancouver. Kask Bros. Ready-Mix
Ltd. submitted the low bid for Item No. s 1, 2, 5, 6, 8 and 9. However,
hauling costs from Kask s Burnaby plant would negate the estimated cost
difference of $13,694 between their bid and the recommended bids.
For Section "B", we are recommending the acceptance of the low bids in
each instance except for Item No. 2. Rempel Bros. Concrete Ltd.
submitted the low bid for Item No. s 1, 2, 3, 4 and 7. Item No. 2 has
a tendency to be ordered in smaller quantities than truck load resulting
in minimum load charges. Therefore, when the minimum load charges are
taken into consideration, Kask Bros., the second low bidder by a
difference of $1,010, becomes the low bid. Kask Bros. submitted the low
bid for Item No. s 5, 6, 8 and 9.
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Engineering Services 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. In 1997, it will be
more economical to purchase ready-mix concrete from outside plants. This
situation will continue to be reviewed each year, since an increase in
outside cost could result in a City plant becoming cost effective.
* * * * *
City of Vancouver
Inter-Office Correspondence
PURCHASING
Corporate Services Group
November 18, 1996
MEMO TO: City Manager
City Clerk
FROM: Sid Fancy, Manager of Purchasing
SUBJECT: TENDER NO. 58-97-02 -
SUPPLY OF READY-MIXED CONCRETE
Attached is a Council report and a tabulation of bids for the above-mentioned tender for the December 10, 1996 Council
meeting.
The following is a list of vendors that submitted tenders:
VENDOR STREET CITY P/CODE CONTACT TEL
Kask Bros. 840 Sperling Avenue Burnaby, BC V5B 4H8 W.R. Kask 298-1016
Ready-Mix
LaFarge 268 E. Kent Avenue Vancouver, BC V5X 4N6 Mark Holmes 325-4655
Concrete South
Ocean 8955 Shaughnessy Street Vancouver, BC V6B 3W6 T.R. Lankester 261-2211
Construction
Supplies
Rempel Bros. P.O. Box 3160 Langley, BC V3A 4R5 Barry Meade 525-9344
Concrete
Sid Fancy
Manager of Purchasing Services
SF/el