ADMINISTRATIVE REPORT

                                           Date: November 21, 1995
                                           File No. Crep042.Cov   

   TO:       Vancouver City Council

   FROM:     General   Manager  of  Engineering  Services  and  Manager  of
             Purchasing Services

   SUBJECT:  Award of Tender No. 58-96-03 - Supply of Ready-Mixed Concrete

   RECOMMENDATION

        THAT Council accept  the following  bids for the  supply of  ready-
        mixed  concrete, as, if, when  and where required  from January 01,
        1996 to December 31, 1996, subject to contracts satisfactory to the
        Director of Legal Services.
                                                          ESTIMATED
        DETAIL                      FIRM                  COST

        A.   Ready-mixed concrete,
             picked-up by City
             vehicles from
             suppliers  depots.

             Item No. s 1 to 9      *Lafarge              $508,125
             inclusive - low bid    Construction Materials,
             per item after         A Division of Lafarge
             hauling charges        Canada Inc.
             are considered.
                                    *Ocean Construction
                                    Supplies Ltd.

             *    Depending on the proximity of the supplier s depot to the
                  job site, the supplier will be chosen accordingly.

        B.   Ready-mixed concrete,
             delivered to job
             sites by suppliers

             Item No. s 1,2,3,4     Rempel Bros. Concrete $699,100
             & 9                    Ltd.

             Item No. s 5,6,7 & 8   Lafarge Construction  $252,600
                                    Materials, A Division 
                                    Of Lafarge Canada Inc.

        Plus  the  7% Goods  and Services  Tax  (less any  municipal rebate
        received),  the   Provincial   Sales   Tax   and   the   Provincial
        Environmental Levy.

                                     - 2 -

   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 by  the City Clerk  on November  06,
   1995,  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 office.

   The 7% Goods and  Services Tax (less any municipal rebate received), the
   Provincial  Sales  Tax  and the  Provincial  Environmental  Levy are  in
   addition to all prices shown in this report and in the tabulation.

   Funds  for all  purchases, in  the estimated  amount of  $1,460,000, are
   provided from approved Revenue and Capital Budgets.

   The tender called for the supply of ready-mixed concrete as follows:

        Section "A". Pick-up by City vehicles from suppliers  depots.
        Section "B". Delivered to job sites by suppliers.

   Three  firms submitted bids on  both the pick-up  and delivered portions
   and one firm submitted a bid on the delivered portion only.

   Section "A". Pick-up Portion - Item No. s 1 to 9.

   We are recommending the acceptance of the bids from Lafarge Construction
   Materials and Ocean  Construction Supplies Ltd.  for Item  No. s 1 to  9
   inclusive.  The recommendation is based on the lowest on-site cost after
   material  and hauling  costs  are considered,  pick-up  being at  either
   Lafarge or Ocean s Vancouver  depots, depending on the proximity  to the
   job site.  Kask Bros. 

   Ready Mix Ltd. submitted  the low bid for materials for Item No. s 1, 2,
   5, 6, 8  and 9, however,  the City s hauling  costs from Kask s  Burnaby
   plant  would negate  the estimated  cost difference  of $23,178  (or 5%)
   between Kask and the recommended bids for these items.




                                     - 3 -


   Section "B". Delivered Portion - Item No. s 1 to 9.

   We  are recommending the acceptance  of the low  bids meeting the tender
   conditions  in each instance from Rempel Bros. Concrete Ltd. and Lafarge
   Construction Materials.

   Kask Bros. Ready  Mix Ltd. submitted the low bid  for Item No. s 4,5,6,7
   and 8, however, Kask cannot meet the tender condition for deliveries  to
   be  made  to work  sites within  one hour  of placement  of order.   The
   Streets, Sewers and Waterworks Operating Branches find it inefficient to
   have  extended waiting periods for concrete supply as there are frequent
   instances when concrete is required at a work site on short notice.

   We believe there are  a sufficient number of these  instances to justify
   the minimal  cost difference  of $6,498  (or 2%)  between  Kask and  the
   recommended bids for these items.

   Engineering staff have reviewed the economics of a City-operated  ready-
   mix plant to  meet internal needs.   It is still not  economical for the
   City  to operate its  own plant.   These conditions will  continue to be
   reviewed each year, since an increase in outside costs could result in a
   City plant becoming cost effective.  In 1996, it will be more economical
   to purchase ready-mix concrete from outside plants.




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