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HomeMy WebLinkAboutTR-47-88 TOWN OF NEWCASTLE REPORT File # � � . Res. # R '1 5' By-Law # MEETING: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE DATE: June 201, 1988 REPORT #: TR-47-88 FILE #: SUBJECT: TENDER T88-12, ONE (1) ONLY MOTOR GRADER RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. That this report be received; and 2. That Champion Road Machinery, Brampton, Ontario, with a total bid in the amount of $1201,312.00, being the lowest responsible bidder meeting all terms, conditions and specifications of Tender T88-12, be awarded the contract to supply one (1) only Class 7 Motor Grader, as required by the Town of Newcastle Department of Public Works; and 3. That the funds expended be provided from the approved 1988 Public Works Fleet Account. BACKGROUND AND COMMENT: Tenders were publicly advertised and seven (7) potential bidders invited for the supply and delivery of one (1) only Class 7 Motor Grader, as required by the Department of Public Works. Page - 2 - TR-47-88 TENDER T88-12, ONE (1) ONLY MOTOR GRADER Subsequently, tenders were received and tabulated as follows: Bidder Total Bid Amount Less Trade-In Net Bid Champion Road Machinery $ 144,200.00 $ 32,800.00 $120,312.00 ** Brampton, Ontario ** includes Provincial Sales Tax 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 1978 Champion Model 741, bidders were advised that the Town of Newcastle reserved the right to accept or reject a trade-in allowance. It is staffs opinion, that the trade-in offered is reasonable and is likely in excess of any amount the equip- ment 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, Brampton, Ontario, be recommended for the contract to supply and deliver one (1) only Class 7 Motor Grader to the Town of Newcastle, as required by the Department of Public Works, and that the trade-in offered for the existing 1978 Grader be accepted. The required funds will be provided from the approved 1988 Public Works Fleet Account, from which there are adequate funds available. Page - 3 - TR-47-88 TENDER T88-12, ONE (1) ONLY MOTOR GRADER 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 Town of Newcastle. Respectfully submitted, Recommended for presentation to the Committee, I:R. Blanchard, 4rence4 otseff, Treasurer. Chief nistrative Officer. W.A. Evans, P. Eng., Director of Public Works. LAB/hjm Attachments ro SCHEDULE " A " r U/,3 � r TOWN OF NEWCASTLE 1> } WARANDUM TO: Lou Ann Birkett, Purchasing and Supply Agent FROM; Don Patterson, Manager of Operations DATE; 7 June 1988 SECT; TENDER NO. T88-12 MOTOR GRADER We have reviewed the tender and are disappointed that only one bid was received. Upon investigating the reasons for only one bid we submit our results to you. Ministry of Transportation of Ontario have 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 meeds (if any) in order that we remain eligible for maximum subsidy. In the case of the Town of Newcastle, our subsidy is recovered based on hourly rental charges, charged for that particular piece of equipment. According to our investigations, only 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. Caterpiller 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, etc., and the costs 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 eg: V plows and scarifier are adaptable to this size of machine. Further to this, we had a smaller Class 6 Grader on trial, but were not satisfied with the performance, especially for winter maintenance plowing. Alternately, to specify a larger machine only means an additional expenditure of approximately $50,000. which is not necessary. . . .2 We are faced with a situation at present, that we either commence a major repair and rebuilding of our present 1978 model grader or dispose of it and replace 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 myself for any further information required. yours truly Don Patterson, C.E.T. Manager of Operations DP:lly cc: W.A. Evans, P. Eng. William Werry 3 (F) `? TOWN OF NEWCASTLE MEMORANDUM TO: Lou Ann Birkett, Purchasing and Supply Agent FROM: Don Patterson, Manager of Operations, Public Works DATE: June 14, 1988 SUBJECT: MOTOR GRADER TRADE-IN As discussed this morning with Kaye, the Town will be using our 1978 Champion Grader as a Trade In on a new motor grader. Than ou, Don Patterson Manager of Operations DP:kr c.c. : W.A. Evans, Director of Public Works