ADMINISTRATIVE REPORT

Date: January 13, 1998

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. 58-98-02 - Supply and Delivery of Mineral Aggregates

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RECOMMENDATION

THAT Council accept the following bids for the supply and delivery of mineral aggregates 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 COST

Lafarge Canada Item No.’s 7, 9, & 15 - low bid $1,965,056

Inc. Item No. 17 - low bid meeting specifications

Item No. 17(Alternative Bid) - low bid

Mainland Sand & Item No.’s 3, 4, 10, & 22 - low bid $99,347

Gravel

Pitt River Quarries Item No.’s 5 & 13 - low bid $179,093

Allard Contractors Item No.’s 11 - low bid $28,860

Ltd.

And that Item No.’s 1, 2, and 21 not be awarded.

Estimated costs include the 7% Goods and Services Tax (less the anticipated receipt of the municipal rebate) and the Provincial Sales Tax, where applicable.

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 Manager of Purchasing Services for report.

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

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 and in the tabulation.

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

The tender requested pricing for the supply, delivery, and unloading of 14 items (see Appendix `A’) of mineral aggregates to Cambie Yard as, if and when required for a 12-month period from the date of the purchase order. A provision exists in the tender document for the relocation of Cambie Yard to the new Kent Avenue facility. Alternative materials are allowed in the tender document.

September 15, 1998, is the expected operational date for the new facility. At time of writing, this date may change depending on the outcome of construction tenders for the new facility.

When, and if, the relocation occurs during the contract term, the document provides the option of continuing at the same price, an adjusted price to be negotiated by the City, or termination of the contract if the City and the contractor(s) are unable to come to a mutual agreement. This option was included in the tender for both the City and suppliers to gain experience with the new facility through an interim period. A new tender will be initiated after the relocation has occurred and the interim period is complete.

Seven firms submitted bids.

We are recommending the acceptance of the low bid for each item with the exception of Item No.’s 1, 2, 17, and 21.

The tender states that Item No. 17 is to be awarded on the basis of the lowest cost per unit volume. Mainland Sand & Gravel Ltd. submitted the lowest cost per unit volume but their material does not meet specifications. Lafarge Canada Inc. submitted the second lowest cost per unit volume which 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 an alternative bid from Lafarge for Item No. 17 will meet Item No. 1 requirements and result in an estimated savings of $46,790. Item No. 1 is recommended not to be awarded and Lafarge’s Item No. 17 alternative bid be accepted for an estimated 20,000 tonnes. Item No. 2 is also recommended not to be awarded as it was an alternative material specification for Item No. 1 and the prices received were higher than Item No. 1.

Item No. 21 is recommended not to be awarded as the prices received exceeded the City’s expectations. The specification for this item is being reviewed by Engineering Services and a new tender will be issued after the review is complete.

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APPENDIX `A’

ITEM	PRODUCT	GRADATION	COMMON NAME	NORMAL USE	TOTAL ESTIMATED REQUIREMENTS IN TONNES FOR SCOW DELIVERY
ASPHALT MIX ITEMS
1.	Fine Aggregate	9.5 mm MINUS (3/8 in MINUS)	Sand	Asphaltic Concrete, Portland Cement Concrete, Fill, Bedding	20,000
2.	Fine Aggregate (Alternative material)	9.5 mm MINUS (3/8 in MINUS)	Manufacture d Sand	Asphaltic Concrete, Portland Cement Concrete, Fill, Bedding	20,000
NOTE: The City will purchase either Item 1 or Item 2, but not both.
3.	Clear Crushed Coarse Aggregate	2.36 mm to 9.5 mm (No. 8 to 3/8 in)	Seal Coat Chips	Asphaltic Concrete, Chip Sealing	1,500
4.	Crusher Dust	9.5 mm MINUS (3/8 in MINUS)	Screenings	Asphaltic Concrete	2,500
5.	Clear Crushed Coarse Aggregate	19 mm to 37.5 mm (3/4 in to 1-1/2 in)	Crushed Rock	Asphaltic Concrete, Subgrades	7,000
15.	Clear Crushed Coarse Aggregate	2.36 mm to 19 mm (No. 8 to 3/4 in)	-	Pipe Bedding, Asphaltic base	35,000
21.	Combined Crushed Aggregate	12.5 mm MINUS (1/2 in MINUS)	Asphalt Blend	Asphaltic Concrete	48,000
22.	Clear Crushed Fine Aggregate	2.36 mm to 9.5 mm (No. 8 to 3/8 in)	-	Asphaltic Concrete	2,500
BACKFILL ITEMS
7.	Clear Gravel	19 mm to 37.5 mm (3/4 in to 1-1/2 in)	Drain Gravel	Covering Drain Tile	2,500
9.	Combined Crushed Aggregate (60% Crushed)	19 mm MINUS (3/4 in MINUS)	Mulch	Surface Dressing, Fills	100,000
13.	Crushed Tailings (Quarried)	75 mm MINUS (3 in MINUS)	Tailings	Fills, Sub-Grades	12,000
17.	Sand Fill	12.5 mm MINUS (1/2 in MINUS)	River Sand or Sand Fill	Filling Trenches	120,000
CONCRETE ITEMS
10.	Clear Torpedo	4.75 mm to 9.5 mm (No. 4 to 3/8 in)	Torpedo	Spray Capping	500
11.	Combined Aggregate	19 mm MINUS (3/4 in MINUS)	Navvy-Jack	Portland Cement Concrete	2,000
					353,500

(c) 1997 City of Vancouver