HomeMy WebLinkAboutTR-49-89 ° ""° TOWN OF NEWCASTLE
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MEETING: GENERAL PURPOSE & ADMINISTRATION COMMITTEE
DATE: June 5, 1989
REPORT #: TR-49-89 FILE #:
SUBJECT:
TENDER T89-11, 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-49-89 be received; and
2. That Champion Road Machinery Sales Ltd., Brampton, Ontario with a total
bid in the amount of $139,212.00, being the lowest responsible bidder
meeting all terms, conditions and specifications of Tender T89-11, 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 1989 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.
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TR-49-89 Page 2
Subsequently, tenders were received and tabulated as follows:
Bidder Total Bid Amount Less Trade-In Net Bid
Champion Road Machinery 147,80 0.00 18,90101.001 139,212.00 **
Sales Ltd.
Brampton, Ontario
** includes Provincial Sales Tax
Staff have previously investigated the reason for only one (1) bid being
submitted and a report from Mr. Don Patterson, Manager of Operations, dated
,Tune 7, 1988, outlining their findings is attached, marked Schedule "A".
With respect to the trade-in allowance offered for the existing 1975
Champion Model 60101, 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 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 Town of Newcastle, as required by the
Department of Public Works, and that the trade-in offered for the existing
1975 Grader be accepted.
The required funds will be provided from the approved 1989 Public Works
Fleet Account, from which there are adequate funds available.
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
_;Y11 t"011
ie Marano, H.B.Sc. renc Kotseff
Treasurer Chief i istrative Officer
W.A. Evans, P.E.ng.
Director of Public Works 7
MAM/LAB/ges / O 5
TOWN OF NEWCASTLE
MEMORANDUM
"A"
TO: Lou Ann Birkett, Purchasing and Supply Agent
FROM: Don Patterson, Manager of Operations
DATE: 7 June 1988
SUBJECT: 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.
706 . . .2
. . .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
2/vo
Don Patterson, C.E.T.
Manager of Operations
DP:lly
cc: W.A. Evans, P. Eng.
William Werry
707