A3 ADMINISTRATIVE REPORT Date: November 15, 1996 File No. CREP 065.wpd TO: Vancouver City Council FROM: General Manager of Engineering Services and Manager of Purchasing Services SUBJECT: AWARD OF TENDER NO. 58-97-01 - SUPPLY AND DELIVERY OF MINERAL AGGREGATES RECOMMENDATION THAT Council accept the following bids for the supply and delivery of mineral aggregates as, if and when required from January 1, 1997 to December 31, 1997, subject to contracts satisfactory to the Director of Legal Services: ESTIMATED FIRM DETAIL COST Lafarge Item No. 11 - low bid $922,277 Construction Item No. 17 - low bid meeting specifications Item No. 17(Alternative Bid) - low bid Mainland Sand Item No. s 9, 15 & 22 & Gravel - low bid $1,202,176 Pitt River Item No. s 5, 13 & 21 Quarries - low bid $564,015 Allard Item No. s 3 & 4 - low bid $50,130 Contractors Ltd. Construction Item No. s 7 & 10 - low bid $41,184 Aggregates Item No. 1 is not to be awarded and Item No. 2 is to be cancelled. Costs include the 7% Goods and Services Tax (less the anticipated receipt of the municipal rebate) and the Provincial Sales Tax, where applicable. - 2 - 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 October 21, 1996, and referred to the General Manager of Engineering Services and 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, where applicable, are included in the prices shown in this report. Funds for all purchases, in the estimated amount of $2,779,782, are available from approved Revenue and Capital budgets. The tender requested pricing for the supply, delivery and unloading of fourteen items of mineral aggregates to Cambie Yard as, if and when required from January 1, 1997 to December 31, 1997. We are recommending the acceptance of the low bid for each item with the exception of Item No. s 1, 2, 9, and 17. The tender states that Item No. s 9 and 17 are to be awarded on the basis of the lowest cost per unit volume. Mainland Sand and Gravel Ltd. submitted the lowest cost per unit volume for Item No. 9 and 17. Mainland s bid for Item No. 9 meets specifications and is recommended for acceptance. However, Mainland s material for Item No. 17 did not meet specifications. Lafarge Construction Materials submitted the second (an alternative bid) and third lowest costs per unit volume on Item 17. Lafarge s second lowest bid did not meet specifications. The third lowest bid from Lafarge meets specifications and is recommended for acceptance. Lafarge was the low bid for Item No. 1. However, the City s Materials Engineer has determined that Lafarge s alternative bid for Item No. 17 meets Item No. 1 specifications and is a less expensive material for operational requirements at an estimated savings of $52,800. Therefore, it is recommended that Item No. 1 not be awarded and Lafarge s alternative bid for Item No. 17 be accepted for an estimated 20,000 tonnes. Item No. 2 is also recommended to be cancelled as it was an alternative material specification for Item No. 1 and the bids received were higher than Item No. 1. * * * * * City of Vancouver Inter-Office Correspondence PURCHASING Corporate Services Group November 15, 1996 MEMO TO: City Manager City Clerk FROM: Sid Fancy, Manager of Purchasing SUBJECT: TENDER NO. 58-97-01 - SUPPLY AND DELIVERY OF MINERAL AGGREGATES 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/PROV P/CODE CONTACT TEL Construction P.O. Box 2300 Vancouver, BC V6B 3W6 J. Creasy 261-6225 Aggregates 8955 Shaughnessy Street LaFarge Construction POB 367, 31601 Walmsley Abbotsford, BC V2S 4N9 Ken Hiltgen 525-4144 Materials Road Allard Contractors P.O. Box 47 Pt.Coquitlam, V3C 3V5 Barry R. 944-2556 BC Allard Pitt River Quarries 2300 Rogers Avenue Coquitlam, BC V2K 5X6 Ed Claggett 525-2222 Mainland Sand & 9512 - 194A Street Surrey, BC V4N 3G6 Brent Carlson 882-5650 Gravel Sid Fancy Manager of Purchasing Services SF/el