ADMINISTRATIVE REPORT

                                           Date:  May 9, 1997
                                           Dept. File No.: H742-1
                                           CC File No.: 1801-1


   TO:       Vancouver City Council

   FROM:     General Manager of Engineering Services
             Manager of Purchasing Services

   SUBJECT:  Award of Tender No. 35-97-01,
             Supply of 300 HP Bulldozers


   RECOMMENDATION

        THAT  Council accept  the low  bid from  Terratech Equipment
        Inc.  for two Komatsu D155AX-3 bulldozers at a total cost of
        $798,552 ($522,138  each, plus  $895 for  one for  blade rub
        blocks,  less $38,051 for  one to delete  winch, less $3,712
        for one to delete sweep arms,  plus $4,082 for one for  rear
        and  side guarding, plus $1,689 each for two for lift cylin-
        der  guards,  plus $2,684  for one  for  a 16 -0  wide dozer
        blade, less $100,000 for  trade-in of one surplus bulldozer,
        less $115,000  for trade-in of a  second surplus bulldozer),
        plus the Provincial Sales Tax, the 7% Goods and Services tax
        (less  any municipal  rebate received)  and the  BC Environ-
        mental  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
   values based on quality, service and price.

   Contracts with a value over $300,000 are referred to Council.


   DISCUSSION

   Tenders for the above were opened on March 17, 1997, and referred
   to the General Manager of Engineering Services and the 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.  Funds of $1,300,000
   are provided from the Truck Plant Account.

   This tender called for  prices for one, two, or  three bulldozers
   with  provision for extension for one  additional bulldozer for a
   further 12-month period from the date of the purchase order.  Two
   bulldozers  are required  at this  time to  replace  two existing
   bulldozers that have each reached the end of their economic life.
   One  replacement  bulldozer  will  be located  at  the  Vancouver
   Landfill and one  at the  Southside Transfer Station.   Two  bids
   were  received with  base prices  of $522,138 and  $529,418 each.
   Each  machine is  configured differently  for the  required oper-
   ation.   Including the  different various options  and trade-ins,
   Terratech Equipment Inc. is the low bidder for each machine.

   We are, therefore,  recommending acceptance of  the low bid  from
   Terratech  Equipment Inc.  for two  Komatsu model  D155AX-3 bull-
   dozers.



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