ADMINISTRATIVE REPORT

Date: February 7, 2000
Author/Local: J. Lloyd/7257
RTS No. 01273

CC File No. 1805

Council: February 22, 2000

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services and Manager of Materials Management
SUBJECT:	Award of Tender No. PS99073 - Supply of Traffic Signal and Street Lighting Steel Poles

RECOMMENDATION

THAT Council accept the low bid from Nova Pole International Inc. for the supply of traffic signal and street lighting steel poles as, if, and when required for up to a 5 year period from the date of the purchase order, at a potential estimated cost of $1,563,875 plus the 7% Goods and Services Tax (less any municipal rebate received) and the Provincial Sales Tax, subject to a contract satisfactory to the Director of Legal Services.

COUNCIL POLICY

The policy of Council is to award contracts for the purchase of equipment, supplies and services that will give the highest value based on quality, service and price.

Contracts with a value over $300,000 are referred to Council.

DISCUSSION

Tenders for the above were opened by the City Clerk on January 19, 2000 and referred to the General Manager of Engineering Services and the Manager of Materials Management for report.

The 7% Goods and Services Tax (less any municipal rebate received) and the Provincial Sales Tax are in addition to all prices shown in this report and in the tabulation.

Funds for all purchases are provided for in various Engineering Capital and OperatingBudgets.

The tender calls for the supply of traffic signal and street lighting steel poles as, if, and when required for a 36-month period from the date of the purchase order plus two 12-month extension periods. A price adjustment clause exists in this tender with prices to be reviewed and adjusted on each 12-month anniversary of the contract. The tender is to be awarded in its entirety to a single contractor.

Two firms submitted bids for this tender.

Nova Pole International Inc. submitted the overall low bid and their product is considered acceptable.

Nova proposed percentage increases, subject to steel prices being within certain ranges, for the potential five year period of the contract. The proposed increases are considered reasonable and with them, Nova would still be approximately $89,000 or 21.5% less in the fifth year of the contract than the other tenderer's initial prices.

Accordingly, we are recommending the acceptance of the low bid from Nova Pole International Inc for the supply of traffic signal and street lighting steel poles as, if, and when required for the 36-month initial period from the date of the purchase order with the option of the two 12-month extension periods, subject to a review and mutual agreement between the Contractor and City staff at the end of the initial contract period, at a potential estimated cost of $1,563,875 for a 5 year period.

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(c) 1998 City of Vancouver