Ltd.'s unit price for the supply and placement of granular
Sub-base- material is $8.61 per cubic metre whereas the cost
to the City to purchase this material from Jack ‘Cewe Ltd.'s
gravel. pit alone ranges from $8.25 to $10.03 per cubic
metre. This difference in unit price for this item has a
significant impact on the total tender price since the
reconstruction of Broadway will involve an estimated 17,000
cubic metres of gravel.

Standard Generel has submitted an alternate tender (see
appendix II) to their Original tender in thé amount of
$525,282.00 at the time of the tender opening. This
alternate tender, if accepted by the City, will result in a
reduction from their original tender price to $439,282.00.
The price for the alternate tender submitted by Standard
General is $25,835.50 lower than Jack Cewe Ltd.'s tender
price.

The alternate tender is a conditional offer based upon the
Following:

a) owner of 1734 Broadway is willing to have the preload
material removed.

b) the preload material meets the tender specifications.

Subsequent to the tender opening, our staff has
investigated into this conditional offer made by Standard
General and have found the Following:

a) Standard General has now withdrawn their conditional
offer because of insufficient quantity of material
at 1734 Broadway for their use.

b) sieve analysis of the preload material indicates that
it meets the tender specifications.

City is not obligated to accept any of the tenders.

In selecting the successful tenderer, Council should also
consider the following:

a) although none of the tenderers. are currently affected
by the C.L.R.A. labour dispute, there exists
nevertheless a slight possibility that should the
situation deteriorate, the Progress of construction may
be affected. If the construction project is not
completed by the end of February, 1983, the City will
Forfeit a portion of the $236,039.00 Highways Grant
already approved. The City can only submit a claim for
30% of the work completed by the end of February, 1983.