ADMINISTRATIVE REPORT
Date: January 11, 1996
File No. Crep044a.Cov
TO: Vancouver City Council
FROM: General Manager of Engineering Services and Manager of
Purchasing Services
SUBJECT: Award of Tender No. 58-96-04 - Supply and Delivery of
Mineral Aggregates
RECOMMENDATION
THAT Council accept the following bids for the supply and delivery
of mineral aggregates as, if and when required to December 31, 1996
subject to contracts satisfactory to the Director of Legal
Services, and that Omega Aggregates Ltd. be allowed to withdraw
their tender.
ESTIMATED
FIRM DETAIL COST
Lafarge Construction Item No. s 4, 7, 9, $1,434,022
Materials, A Div. Of 11, 17 & 22 - low bid
Lafarge Canada Inc.
Mainland Sand & Item No. s 5, 13 & 15 $446,615
Gravel Ltd. - low bid
Jack Cewe Ltd. Item No. 2 $557,406
(alternative material)
- best value
Item No. 21 - low bid
Mainland Labour Item No. 10 - low bid $7,233
Contracting Ltd.
Allard Contractors Item No. 3 - low bid $21,358
Ltd.
Including the 7% Goods and Services Tax (less the anticipated
receipt of the municipal rebate) and the Provincial Sales Tax,
where applicable.
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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 the anticipated receipt of the
municipal rebate) and the Provincial Sales Tax, where applicable, are
included in the prices shown in this report and in the tabulation.
Funds for all purchases, in the estimated amount of $2,470,000, are
available from approved Revenue and Capital budgets.
The tender requested pricing for the supply, delivery and unloading of
thirteen items of mineral aggregates to Cambie Yard as, if and when
required to December 31, 1996, with an additional price being requested
for alternative material (Item No. 2).
Eight firms submitted tenders. Since the opening of tenders, one of
these firms, Omega Aggregates Ltd., has requested that their tender be
withdrawn. This firm has advised that they are closing down
their operation as of January 12, 1996.
Staff have determined that the materials offered under these tenders
constitute 100% local content for those items manufactured in British
Columbia.
We are recommending the acceptance of the low bid in each instance with
the exception of Item No. s 1 and 2. Item No. 1 (paving sand) and Item
No. 2 (manufactured sand) are alternative products and the tender states
that only one of these items will be purchased. The single bid for Item
No. 2, submitted by Jack Cewe Ltd., is offered at a 1.25% premium to the
low bid for Item No. 1, submitted by Lafarge Construction Materials.
The General Manager of Engineering Services believes that this premium
is warranted, because asphalt which is produced using a manufactured
sand has superior resistance to rutting than asphalt which is produced
using naturally occurring sand.
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