ADMINISTRATIVE REPORT

Date: February 12, 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. 58-98-06 - Supply and Delivery of Mineral Aggregates (Item 21)

RECOMMENDATION

THAT Council accept the low bid from Lafarge Canada Inc. for the supply and delivery of mineral aggregates (Item 21) as, if and when required for a 12-month period from the date of the purchase order at an annual estimated cost of $425,688, including the 7% Goods and Services Tax (less the anticipated receipt of the municipal rebate) and the Provincial Sales Tax, where applicable, 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 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 February 11, 1998, 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 Item 21 of the City’s master mineral aggregate specifications to Cambie Yard as, if and when required for a 12-month period from the date of the purchase order. Item 21 was not awarded on the recent annual mineral aggregates tender as the prices received exceeded the City’s expectations. The specification for this item was reviewed and amended by the Engineering Services Department resulting in this tender being issued.

A provision exists in the tender document for the relocation of Cambie Yard to the new Kent Avenue facility. 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 are unable to come to a mutual agreement. This option was included in the tender for both the City and supplier 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.

Five firms submitted bids.

We are recommending the acceptance of the low bid from Lafarge Canada Inc. for the supply and delivery of mineral aggregates (Item 21) as, if and when required for a 12-month period from the date of the purchase order at an annual estimated cost of $425,688.

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(c) 1997 City of Vancouver