A3 ADMINISTRATIVE REPORT Date: May 23, 1995 Dept. File No. H762-19 TO: Vancouver City Council FROM: General Manager of Engineering Services and City Purchasing Agent SUBJECT: Tender No. 35-95-05 Supply of Mobile Vacuum Street Sweepers RECOMMENDATION THAT Council accept the bid which offers best value to the City from Williams Machinery Ltd. for three (3) Johnson 605 mobile vacuum street sweepers at a total cost of $396,063 ($419,736 plus $1545 for spare brooms, plus $8508 for catch basin cleaners, plus auto reverse retraction and cab controlled left and right suction nozzle doors at no charge, plus $1194 for air dryers, plus $7725 for gutter broom tilt, plus $2355 for gauges, less $45,000 for trade-ins from Metro Motors Ltd.), plus the Provincial Sales Tax, the 7% Goods and Services Tax (less any municipal rebate received) and the Provincial 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 value based on quality, service and price, except where an allowance of a maximum of 5% is given to those bidders whose tender reflects local content. Contracts with a value over $200,000 are referred to Council for award. DISCUSSION Tenders for the above were opened on April 18, 1995 and referred to the General Manager of Engineering Services and City Purchasing Agent 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 and in the tabulation. A copy of the tabulation of bids is on file in the City Purchasing Agent's office. Funds of $525,000 for this purchase are provided from the Truck Plant Account. This Tender called for prices for three street sweepers.Eight bids were received from five suppliers with total prices for three sweepers, including required City of Vancouver specified options less trade-ins, ranging from $73,509 to $441,288. Bid No. 1 M.M.P. Inc. $73,509.00 This bid does not meet specifications for a 4-wheel mobile street sweeper, is not acceptable and is not recommended. Bid No. 2 Vimar Equipment Ltd. $375,031.50 This bid meets specifications but is not recommended. The extra cost of the recommended sweeper (Bid No. 3) is $3,252.50 (2.6%) more per machine and it offers better value as detailed below. Bid No. 3 Williams Machinery Ltd. $384,789.00 This bid meets specifications and offers best value to the City through reduced maintenance costs and improved productivity. The City has operating experience with both Bid No. 2 and the recommended bid. Our experience with both machines indicates that the recommended bid should have substantially lower maintenance costs than Bid No. 2 which will more than offset the increased capital cost. We are also recommending the purchase of additional options (air dryers, gutter broom tilt, and gauges) at an additional total cost for three sweepers of $11,274 to improve the productivity and lower the maintenance costs. We are, therefore, recommending acceptance of the bid which offers best value to the City from Williams Machinery Ltd., for the supply of three (3) mobile vacuum street sweepers, and the highest trade-in bid from Metro Motors Ltd. * * * * *