ADMINISTRATIVE REPORT

Date: October 23, 2002
Author/Local: L.Woyce /7261

RTS No. 03046

CC File No. 1805

Council: November 26, 2002

TO:	Vancouver City Council
FROM:	General Manager of Corporate Services and Manager of Materials Management
SUBJECT:	Award of Tender No. PS02038 - Supply and Delivery of Laser Printer and Fax Toner Cartridges.

RECOMMENDATION

THAT Council approve a three year contract to Axidata, Inc., the low bid meeting specifications for the supply and delivery of new and remanufactured laser printer and fax toner cartridges at an estimated cost of $709,950 plus 7.5% PST and the 7% GST (less any municipal rebate received), subject to a contract satisfactory to the Director of Legal Services. Funding will be provided for in the 2003 - 2005 departmental operating budgets.

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.

BACKGROUND

The quantities for toner cartridges are estimated for twelve months and are based on previous City usage. There is expected to be a lower requirement over the next four years due to the implementation of multifunctional digital photocopiers which will reduce the stand alone printers and fax machines across the City.

Re-manufactured toner cartridges, which have been recycled from used cartridges, are economical as well as environmentally sound. It is required that the successful tenderer supply class 2 re-manufactured cartridges as defined by the CGSB (Canadian General Standards Board). Cartridges re-manufactured by this process are guaranteed to be of as high quality and produce as high a yield of printing as new cartridges. We will be encouraging more City departments to be adopting the usage of re-manufactured cartridges if they are not already.

DISCUSSION

Tenders for the above were opened by the City Clerk on October 2, 2002 and referred to the Manager of Materials Management for report.

The 7% GST (less any municipal rebate received) and the 7.5% PST are in addition to all prices shown in this report and in the tabulation.

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

The tender calls for the supply and delivery of new and re-manufactured laser printer and fax toner cartridges, as if and when required for a thirty-six month period.

The tender is to be awarded in its entirety to a single contractor. Prices are to remain firm for the first 12 months of the contract, then may only be adjusted in the event of manufacturers material price changes. Supporting documentation and minimum notice would be required for such an adjustment.

FINANCIAL IMPLICATION

Funds for all purchases will be provided for in the 2003 - 2005 Operating Budgets of each department.

CONCLUSION

Thirteen bids were received with estimated prices ranging from $214,798. to $320,231 annually (or $644,394 to $960,693, based on a three year period). The lowest complete bid from Corporate Express offered pricing for low yield cartridges instead of high yield cartridges, as requested by the City, therefore were not equal in comparison and could not be accepted.

The second lowest complete bid from Axidata, Inc. meets specifications, is acceptable and recommended.

* * * * *

(c) 1998 City of Vancouver