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. * * * * *