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HomeMy WebLinkAboutTR-87-93 THE CORPOIRATION OF THE MUNICIPALITY OF -C'L.ARINGTON REPORT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File# Date: OCTOBER 4, 1993 Res. #Cc2 Report TR-87-93 File #: By-Law# Subject: TENDER NW93-32 - ONE ( 1) ONLY MOTOR GRADER Recommendations: It is respectfully recommended that the General. Purpose and Administration Committee recommend to Council the following: 1. THAT report TR-87-93 be received; and 2 . THAT Champion Road Machinery Sales Ltd. , Brampton, Ontario with a total bid in the amount of $94,017 .51 (including taxes) , being the lowest responsible bidder meeting all terms, conditions and specifications of Tender NW93-32, be awarded the contract to supply one (1) only Class 7 Motor Grader, as required by the Municipality of Clarington, Department of Public Works; and 3 . THAT the funds expended be provided from the approved 1993 Public Works Fleet Account. BACKGROUND & COMMENTS: Tenders were publicly advertised and five (5) potential bidders invited for the supply and delivery of one ( 1) only Class 7 Motor Grader, as required by the Department of Public Works . Subsequently, tenders were received and tabulated as follows: Bidder Total Bid Amount Less Trade-in Net Bid Champion Road Machinery $173,447 .00 $ 87,893 .77* $94,017 .51** Sales Ltd. Brampton, Ontario *Includes National Tax Credit **Includes Provincial Sales Tax and Goods and Services Tax / 16 PAP- EE Page Two REPORT TR-87-93 TENDER NW93-32, ONE (1) ONLY MOTOR GRADER Staff have investigated the reason for only one (1) bid being submitted and a report from Mr. Don Patterson, Manager of Operations, outlining their findings is attached, marked Schedule "A" . With respect to the trade-in allowance offered for the existing 1988 Champion Model 0740, bidders were advised that the Municipality of Clarington reserved the right to accept or reject a trade-in allowance. It is the opinion of staff that the trade-in offered is reasonable and is likely in excess of any amount the equipment could be sold for at the Regional Auction Sale. After further review and analysis of the tender by Public Works and Purchasing, it was mutually agreed that Champion Road Machinery Sales Ltd. , Brampton, Ontario, be recommended for the contract to supply and deliver one ( 1) only Class 7 Motor Grader to the Municipality of Clarington, .as required by the Department of Public Works, and that the trade-in offered for the existing 1988 Grader be accepted. The required funds will be provided from the approved 1993 Public Works Fleet Account, and are within the $120,000 . 00 allocation as reflected on page 63 of the 1993 Capital Budget. The Treasurer has reviewed the funding requirements and concurs with the recommendation. Queries with respect to department needs, specifications, etc. , should be referred to the Director of Public Works . The subject firm have previously performed satisfactorily for the Municipality of Clarington. Respectfully submitted, Mar e Marano, H.B.Sc . , A.M.C.T. , Treasurer. W. A. Evans, P. Eng. Director of Public Works. LAB:ss I i I i 117 SCHEDULE "A" THE CORPORATION OF THE TOWN OF NEWCASTLE Memorandum To: Lou Ann Birkett, Purchasing and Supply Agent From: Don Patterson, Manager of Operations Date: September 21, 1993 Subject: TENDER NW-93-32 - MOTOR GRADER We have reviewed the tender and are disappointed that only one ( 1) bid was received. Upon investigating the reasons for only one ( 1) bid, we submit our results to you: The Ministry of Transportation of Ontario has specifications for various models and classes of equipment from manufacturers, whom have submitted to their testing procedures . As a result, they have defined rather rigid specifications which meet their criteria. We are obligated to use their specifications, modified to suit our special needs (if any) , in order that we remain eligible for maximum subsidy. In the case of the Municipality of Clarington, our subsidy is received based on hourly rental charges charged for that particular piece of equipment. According to our investigations, only two (2) manufacturers produce a Class 7 Grader. However, others do manufacture a Class 10 which is over specifications and correspondingly over-priced. The Champion Graders are made in Canada and meet the Class 7 M.T.O. specifications . Caterpillar also manufactures a Class 7, but they are a superior quality machine with several added features not required in our work, such as articulated frames, etcetera, and the cost of a Cat Class 7 is in the range of $300. 000. Carruthers are conscious of the difference and therefore, consider tendering against Champion a waste of time in similar situations . We are best served by a Class 7 Grader, since our present attachments (e.g. V-plows and scarifiers) are adaptable to this size of machine. I i I Lou Ann Birkett - 2 - September 21, 1993 We are faced with a situation, at present, that we either commence major repairing and rebuilding of our present 1988 model grader or dispose of it and replace it with new equipment. Our fleet management experience weighs heavily in favour of the replacement option and, since this cost bid was on target with our estimated cost, I recommend that we proceed forthwith to award the tender to Champion. Our Fleet Manager will continue to monitor the suppliers and manufacturers of this equipment, along with co-ordinating with M.T.O. officials, in an effort to ensure more competition in future bids on this type of equipment. Please contact me for any further information required. i i Don Patterson Manager of Operations DP:ph pc: W. A. Evans, Director of Public Works William Werry, Fleet Superintendent, Public Works . 111 1 I19