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
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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
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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.
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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.
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Don Patterson
Manager of Operations
DP:ph
pc: W. A. Evans, Director of Public Works
William Werry, Fleet Superintendent, Public Works
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