ADMINISTRATIVE REPORT

Date: January 4, 1999
Author/Local: Jim Lloyd/7257
RTS No. 00445
CC File No. 1805

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services and Manager of Purchasing Services
SUBJECT:	Contract Extension - Contract No. 58-98-03 Supply of Ready-mixed Concrete

RECOMMENDATION

THAT Council approve the extension of the contract for the supply of ready-mixed concrete to Lafarge Construction Materials, Rempel Bros. Concrete Ltd. and Kask Bros. Ready Mix Ltd. with a $2 per cubic metre price increase, and to Ocean Construction Supplies Ltd. with a $3 per cubic metre price increase, for a 12-month period, at annual estimated costs of $547,710, $940,155, $142,094 and $529,580 respectively, plus the 7% Goods and Services Tax (less any municipal rebate received) and the Provincial Sales Tax, where applicable.

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.

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

DISCUSSION

On January 20, 1998, Council approved the award of contracts to Lafarge Construction Materials, Rempel Bros. Concrete Ltd., and Kask Bros. Ready Mix Ltd. and Ocean Construction Supplies Ltd. for the supply of ready-mixed concrete.

The contract provides for two 12-month extensions by mutual agreement between the City and the contractor and allows for price adjustments. This is the first 12-month extension period.

The contract is divided into two sections. Section "A" is for pick up by City vehicles from either Ocean or Lafarge's depots based on the lowest on-site cost after material and hauling costs are considered. Section "B" is for delivery by either Rempel Bros. or Kask Bros. depending on the mix required, to job sites.

The 7% Goods and Services Tax (less the anticipated receipt of the municipal rebate) and the Provincial Sales Tax are in addition to the prices shown in this report. Estimated prices shown in this report for Lafarge and Ocean can vary greatly depending on the final location of the job sites and their proximity to the nearest supplier's depot.

Funds for all purchases are available from approved Revenue and Capital budgets.

All four contractors requested higher than the recommended price increases shown in this report. Price increases were requested to offset increased labour, mineral aggregate, and environmental protection program costs. Lafarge, Rempel Bros., and Kask Bros. agreed to accept a $2 per cubic metre increase after further discussion.

Ocean reduced their original price increase request but would not accept less than a $3 per cubic metre increase. Ocean would still be the lowest on-site cost due to their Marpole, Granville Island, and North Vancouver depots after their price increase and hauling costs are considered for some job sites.

Considering that Lafarge Construction Materials, Rempel Bros. Concrete Ltd., and Kask Bros. Ready Mix Ltd. and Ocean Construction Supplies Ltd. have been satisfactory suppliers, it is recommended that their contracts be extended for a 12-month period with the above-mentioned price increases.

* * * * *

(c) 1998 City of Vancouver