ADMINISTRATIVE REPORT

Date: March 15, 1999

Author/Local:Susanne Siu/7258

RTS No. 00617
CC File No. 1805

Council: March 30, 1999

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services Manager of Purchasing Services
SUBJECT:	Award of Tender No. 35-98-09 Supply of 2-Wheel Drive Utility Turf Tractors

RECOMMENDATION

THAT Council accept the bid which represents best value to the City from Rollins Machinery Ltd. for thirteen (13) New Holland Model TN55D Utility Turf Tractors at a total cost of $354,258 ($445,258 less $91,000 for 13 trade-ins), plus the Provincial Sales Tax, the 7% Goods and Services Tax (less any municipal rebate received), and the Provincial Environmental levy, subject to a contract satisfactory to the Director of Legal Services.

COUNCIL POLICY

The policy of Council is to award contracts for the purchase or equipment, supplies and services that will give the highest value based on quality, service and price.

DISCUSSION

Tenders for the above were opened on November 25, 1998 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. Funding is available from the Truck Plant Account.

This tender called prices for up to fifteen (15) utility turf tractors, various options and trade-in of up to fourteen (14) City units. Thirteen (13) tractors are required to replace units in the Park Board which have exceeded their economic service life. Ten of these units are for the general parks and the other three units with front end loaders and 4-wheel drive are for the golf courses.

Six bids were received from six suppliers with prices for thirteen (13) units including optional equipment ranging from $365,225 to $803,205.

The low bid does not meet specifications on the transmission as specified.

The second low bid meets specifications except for the City’s requirement on forward traveling speed detailed below.

The third low bid does not meet specifications on the power train and load capacity as specified.

The second low bid offered John Deere tractors at a total cost of $396,825 or $329,150 including all trade-ins. (This bid offered trade-in prices for 3 City units only. For price comparison purposes, we used an average trade-in price from the other bids received, where applicable.) The fourth low bid offered New Holland tractors at a total cost of $445,258 or $354,258 including all trade-ins. Both bids meet specifications; however, because these tractors travel between mowing sites, the tender specified that the fastest forward traveling speed is one of the major factors being considered in the award of this tender. In order to compare these two tractors, the speeds quoted in the tenders were revised to reflect the use of turf tires. The New Holland, rated at 24 KPH, is 20% faster than the John Deere, rated at 20 KPH; and therefore, will provide more mowing time over the John Deere. Although a high-speed transmission option, which will increase the forward traveling speed to approx. 32 KPH is available for the New Holland, it is only available in a 4-wheel drive at an additional cost of $5,853 each. Previous experience indicated that the two-wheel drive is sufficient for operation in the general parks.

We are, therefore, recommending acceptance of the bid from Rollins Machinery Ltd. which represents best value to the City for thirteen (13) New Holland Model TN55D Utility Turf Tractors at a total cost of $354,258 ($31,528 each plus $1426 each for 1 spare wheels and tires set, plus $5980 each for front end loader for 3 units, plus $4246 each for four wheel drive for 3 units plus $329 each for counter-weight for 10 units less $91,000 for trade-in of 13 City units).

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(c) 1998 City of Vancouver