A resolution to purchase a front-end loader was approved by North Battleford city council, but council made it clear they were not happy with the prices tendered.
City administration had posted a tender for purchase of a front-end loader and had set aside $130,000 in the 2015 capital budget for it.
The tender closed Dec. 18. But the seven submissions came back all over budget. The winning bid was a John Deere 444K from Brandt Equipment for $200,194.20, GST not included.
It was not the cheapest option, but won on the points system, said Director of Operations Stewart Schafer. It won because the training was included in the price, counting for 15 points in their evaluations.
The price drew a concerned reaction from Councillor Don Buglas who wondered why the price was so far “off the mark” of the budget. He asked if market conditions had changed that drastically.
“Yes, the market conditions changed that drastically,” said Schafer.
He pointed to the drop in the dollar, which fell to 70 cents by the time of the purchase.
“It hurt,” said Schafer. He said operations will have to adjust their prices in coming budgets.
Councillor Kelli Hawtin questioned the cost of the training for the Brandt bid, wondering if it was really worth the difference of almost $55,000 from other bidders.
Schafer responded the training was necessary and an Occupational Health and Safety requirement, and worth the $55,000.
Mayor Ian Hamilton was also concerned about the price difference. Two other bids, both from RedHead for a 2013 Volvo L50G and 2015 Case 521F, came in lower without the training included in the price. The Volvo bid came in at $146,178.
But Mayor Hamilton noted the training could be attained separately. He suggested investigating further.
“That’s a big difference,” said Hamilton of the bids.
In the end, council did approve the resolution authorizing administration to purchase the John Deere 444K from Brandt Equipment, subject to investigating training opportunities on the Volvo and/or Case models coming in at a lesser amount.
