ADMINISTRATIVE REPORT

Date: May 28, 2001
Author/Local:A.Kyriakides/7257

RTS No. 02110

CC File No. 1805

Council: June 12, 2001

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services
SUBJECT:	Award of Tender No. PS01023 - Supply and Delivery of PVC Sewer Pipe and Fittings

RECOMMENDATION

THAT Council accept the following bids, offering the highest value based on quality, service and price from the following firms, for the supply and delivery of PVC sewer pipe and fittings, as, if and when required for a 36 month period from date of purchase order, subject to a contract satisfactory to the Director of Legal Services.

· Mueller Flow Control for Section 1, PVC Sewer Pipe, at an estimated annual cost of $325,066.

· BCG Services for Section 2, PVC Sewer Fittings, at an estimated annual cost of $171,732.

The Combined estimated annual cost for the supply and delivery of PVC sewer pipe and fittings, is $496,798 plus the applicable 7% GST (less the anticipated receipt of the municipal rebate) and the 7% PST.

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 April 11, 2001 and referred to the General Manager of Engineering and the Manager of Purchasing Services for report.

The 7% GST (less the anticipated receipt of the municipal rebate) and the 7% PST are in addition to all prices shown in this report and in the tabulation.

Funds for all purchases are provided for in the Sewers Connection Fee and Sewers Capital Budget.

The tender was advertised in the local newspaper as well as on the Internet.

The tender calls for the supply and delivery of 8 items of PVC sewer pipe in Section 1 and 62 items of PVC sewer fittings in Section 2, as, if and when required for a thirty-six month period from date of purchase order. The quantities tendered are estimates only.

The tender is to be awarded on a section by section basis or in its entirety to a single contractor. Price are to remain firm for first 12 months of contract, then may only be adjusted in the event of manufacturers raw material price changes. Supporting documentation and minimum notice would be required.

Six firms submitted tenders, with one firm also submitting an alternate.

For Section 1, we are recommending the acceptance of the low bid from Mueller Flow Control for all eight items. An alternate bid was received from Mueller quoting firm prices for a minimum period of 4 months. At the end of this period price adjustments may be made to reflect any increases/decreases complete with supporting documentation and 30 days notice. Prices are not to exceed prices submitted on tender for the 12 month pricing. (This bid is also the lowest price for the 12 month period) In taking advantage of this alternate pricing, there is a cost saving of approximately $12,780 over the 4 month period.

For Section 2, we are recommending the acceptance of the low bid from BCG Services for all 62 items.

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(c) 1998 City of Vancouver