ADMINISTRATIVE REPORT

Date: December 22, 1997

Author/Local: Jim Lloyd/7257

CC File No. 1805

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services and Manager of Purchasing Services
SUBJECT:	Award of Tender No. 58-98-03 - Supply of Ready-Mixed Concrete

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RECOMMENDATION

THAT Council accept the following bids for the supply of ready-mixed concrete 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

DETAIL FIRM COST

A. Ready-mixed concrete, $519,460

picked up by city vehicles

from suppliers' depots

Item No.'s 1- 9 inclusive, *Lafarge Construction

- low bid per item after Materials

hauling costs are considered

*Ocean Construction

Supplies Ltd.

*Supplier will be selected depending on the proximity of the depot to the job site.

B.Ready-mixed concrete,

delivered to job sites

by suppliers

Item No.'s 1, 3 & 7 Rempel Bros. $920,555

- low bid Concrete Ltd.

Item No.'s 2, 4, 5, 6, 8 & 9 Kask Bros. $138,794

- low bid Ready-Mix Ltd.

plus the 7% Goods and Services Tax (less the anticipated receipt of the municipal rebate) and the Provincial Sales Tax.

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 December 10, 1997, 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 in addition to the prices shown in this report.

A copy of the tabulation of bids is on file in the Purchasing Services office.

Funds for all purchases are available from approved Revenue and Capital budgets.

The tender called for the supply of ready-mixed concrete as, if and when required for a 12-month period from the date of the purchase order. 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. Minimum load surcharges are requested to be provided by the tenderers in Section "B" for when smaller than truckload quantities of concrete are required at City 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 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 2, 5, 6 and 8. However, hauling costs from Kask's Burnaby plant would negate the estimated cost difference of $4,945 between Kask's bid and the recommended bids.

For Section "B", we are recommending the acceptance of the low bids from Rempel Bros. Concrete Ltd. for Item No.'s 1, 3 and 7, and Kask Bros. for Item No.'s 5, 6 and 8. Rempel Bros. and Ocean submitted lower bids for Item No.'s 2, 4 and 9. However, we recommend these items be awarded to Kask Bros. as low bid to the City because the total estimated difference of $924 will be negated when minimum load surcharges are taken into consideration.

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 1998, 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.

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(c) 1997 City of Vancouver