ADMINISTRATIVE REPORT

Date: May 12, 2000
Author/Local: Rob Chan
RTS No. 01485

CC File No. 1805

Council: May 30, 2000

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services Manager - Materials Management
SUBJECT:	Award of Tender No. PS99058 Supply of 90 HP Tractor Hoe Loaders

RECOMMENDATION

THAT Council accept the bid offering best value to the City from Parker Pacific Equipment for four (4) Case model 590SL tractor hoe-loaders at a total cost of $427,392, plus the PST, the 7% GST (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.

DISCUSSION

Tenders for the above were opened on December 8, 1999 and referred to the General Manager of Engineering Services and the Manger - Materials Management for report. The PST, the 7% GST (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 for this purchase are provided from the Truck Plant Account.

This tender called for prices for up to six 90 HP Tractor hoe-loaders. Four units are required to replace four old units which have exceeded their economic lives. Thesemachines are used for sewers construction and maintenance.

Five bids were received from four suppliers. Unit costs range from $85,800 to $106,291 per machine.

Bids 1 and 4 do not meet specifications as follows:

Bid No. 1 Rollins Machinery - does not meet specifications for loader dump height, bucket roll, boom lift capacity and several other lesser requirements and is not recommended.

Bid No. 4 Coast Tractor & Equipment - does not meet specifications for loader dump height, loader breakout forces, backhoe boom capacity and backhoe dipper stick capacity and is not recommended.

Bids 2, 3 and 5 meet specifications and are discussed below:

Bids 2 & 3 Surfwood Supply - essentially the same machine except bid 3 is four wheel drive in-lieu-of two wheel drive. These bids meet specifications, but are not considered to offer best value compared to the recommended bid. As part of the bid evaluation, this machine was demonstrated by the City's sewers' operators over a two week period and compared to the recommended bid. The operator's feedback is incorporated into this report.

Bid 5 Parker Pacific Equipment - meets all specifications, offers best value to the City and is recommended for the following reasons:

1. Road Speed The specifications include a preference that the machine travel speed be at least 40 km/hr. The recommended bid can travel at 41.3 km/hr vs 32.7 km/hr for Bids 2 and 3. All backhoes are dispatched from the Manitoba Works Yard and must travel an estimated average 10 km to the worksite resulting in a 10 to 15 minute travel differential per day. The crew and equipment costs associated with a backhoe is $200 per hour. The annual cost of this loss time is $8,000 per machine.

2. Break Out Forces The recommended machine is better able to excavate at depths greater than 14 feet. Each machine will work on a minimum 200 projects a year of which at least 10% will be in hard ground that cannot be handled by Bids 2 and 3 at this depth. These jobs will be delayed by a minimum of 1 hour waiting for a hand crew to excavate the material. The annual cost of this lost time isestimated at $4,000 per machine.

3. Backhoe Dipperstick These backhoes are configured with hydraulically powered extendible dippersticks, the purpose of which is to increase working depth and reach. The design of the recommended bid protects the inner workings of the extension mechanism whereas the design of Bids 2 and 3 exposes the inner workings making it much more susceptible to damage. As well, in some situations, the protected design of the recommended bid allows safer handling of boulders and broken concrete. The estimated additional repair costs to an exposed extendible dipperstick are estimated at $500-1,000 per year per machine.

4. Pretrip Inspection Each day the operator is required to check over his machine for maintenance and safety reasons. The recommended machine is much more accessible and the pretrip inspection can be done 5 to 10 minutes quicker. The annual cost of this lost time is at least $4,000 per machine.

5. Operator Visibility The specifications include a clause requiring good operator visibility. These machines work in congested areas, around traffic and often with limited overhead clearance. Visibility is an issue in two areas: (a) The rear stabilizers must be deployed when digging and with the Bids 2 and 3 machines these are not visible and can present a hazard when working against a curb or building or adjacent an excavation. With the recommended bid the stabilizers are clearly visible. (b) Overhead hazards such as telephone and hydro are always a concern and the recommended bid offers a much better line of sight of these hazards.

Estimated Comparative Lifetime Cost Of Each Machine
(Based On 7 Year Life And 6.5% Interest Rate)

	Bid 5 (Recommended)	Bid 2 Surfwood Supply
Purchase Price	$106,291	$ 87,700
Added Costs:
Road Speed	-	$ 43,000
Breakout Cost	-	$ 21,000
Dipperstick Repair	-	$ 2,700
Pretrip Inspection	-	$ 21,000
Lifetime Comparative Cost of Machine (excluding fuel and maintenance)	$106,291	$175,400

Based on the above lifetime comparative cost, the recommended unit is substantially less costly as well as offering a safer operation under some circumstances. Accordingly, we recommend acceptance of the bid offering best value to the City, Bid 5 from Parker Pacific Equipment for four Case model 590SL backhoes at a total cost of $427,392 ($106,291 each plus $555 for 1 set of repair manuals, plus $485 for 1 spare front tire, plus $1,188 for one spare rear tire).

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(c) 1998 City of Vancouver