ADMINISTRATIVE REPORT

Date: November 13, 1998
Author/Local: D.Manarin/323-7793
RTS No. 308

CC File No. 1805

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services and Manager of Purchasing Services
SUBJECT:	Award of Tender No. 35-98-06 - Supply of Two 180-190 HP Landfill Bulldozers

RECOMMENDATION

THAT Council accept the low bid from Terratech Equipment Inc. for two Komatsu D65PX-12 bulldozers at a total cost of $620,366 ($355,571 for one road construction unit, $351,433 for one final cover unit, plus $1020 each for hinged oil coolers, plus $988 each for free-spooling of the winches, plus $6814 for extreme service pads for the final cover unit, less $6234 each for factory paint, less $85,000 for trade-in of one surplus bulldozer), plus the Provincial Sales Tax, the 7% Goods and Services Tax (less any municipal rebate received) and the BC Environmental 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.

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

DISCUSSION

Tenders for the above were opened on September 30, 1998, 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. Funding for these units is provided for in the Truck Plant Account.

This tender called for prices for one road construction and cover grading bulldozer, and one final cover grading bulldozer. Two bulldozers are required at this time for the Vancouver Landfill to replace one bulldozer that has reached the end of its economic life, and to replace one bulldozer currently rented by the City. Funding for the replacement of the rental bulldozer was approved by Council on January 6, 1998 (Vancouver Landfill Improvements). Each machine is configured differently for required tasks. Three bids were received but one was non-compliant for the consent of surety as requested, therefore, this bid is not given further consideration. Prices for the two remaining bids for two bulldozers including different options and trade-in of one City surplus bulldozer are $620,366 and $639,140. The low bid meets specification and is acceptable.

We are, therefore, recommending acceptance of the low bid from Terratech Equipment Inc. for two Komatsu model D65PX-12 bulldozers at a total cost of $620,366 (including options and trade-in of one City surplus unit).

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(c) 1998 City of Vancouver