ADMINISTRATIVE REPORT

Date: November 25, 1997

Author/Local: Rob Chan/7792

CC File No. 1805

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services and Manager of Purchasing Services
SUBJECT:	Award of Tender No. 35-97-04 Supply of 13.6 Tonne 4-Wheel Drive Crane

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RECOMMENDATION

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THAT Council accept the low bid to meet specifications from Terratech Equipment for two Galion model 150FA cranes at a total cost of $415,656 plus the Provincial Sales Tax, the 7% Goods and Services tax (less any municipal rebate received) and the BC Environmental Levy, subject to a contract satisfactory to the Director of Legal Services.

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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 values based on quality, service and price.

Contracts with a value over $300,000 are referred to Council.

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DISCUSSION

Tenders for the above were opened on October 29, 1997 and referred to the General Manager of Engineering Services and the Manager of Purchasing Services 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. Funds of $580,000 are provided from the Truck Plant Account.

This tender called for prices for two units to replace two machines that have passed their economic lives for sewer construction.

Seven bids were received from five suppliers. Prices for two cranes including options and trade-in for a surplus crane, range from $346,929 to $572,033.

Bids No. 1 and 2 from Cranemaster Sales do not meet specifications because the crane reach is 47 feet in lieu of 60 feet as specified. These bids are not recommended.

Bid No. 3 from Terratech Equipment meets all specifications, is acceptable and is recommended.

We are, therefore, recommending acceptance of the low bid meeting specifications from Terratech Equipment for two Galion Model 150FA cranes at a total cost of $415,656 ($216,723 each plus $2,355 each for 5 year warranty less $22,500 for one trade-in).

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(c) 1997 City of Vancouver