A2
ADMINISTRATIVE REPORT
Date: May 16, 1995
TO: Vancouver City Council
FROM: General Manager of Engineering Services and
City Purchasing Agent
SUBJECT: Extension of Contract No. 57-94-04: Supply and
Delivery
of Extra Strength Vitrified Clay Sewer Pipe and
Fittings
RECOMMENDATION
THAT Council approve the extension of the contract to
Gladding McBean, a division of Pacific Coast Building
Products, for the supply and delivery of extra strength
vitrified clay sewer pipe and fittings, for an additional
12-month period at an annual estimated cost of $336,496,
plus the 7% Goods and Services Tax (less any municipal
rebate received) and the Provincial Sales Tax.
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, except where an allowance of
a maximum of 5% is given to those bidders whose tender reflects
local content.
Contracts with a value over $200,000 are referred to Council for
award.
DISCUSSION
On May 31, 1994, Council awarded a 12-month contract to Gladding
McBean, a division of Pacific Coast Building Products, for the
supply and delivery of extra strength vitrified clay sewer pipe
and fittings at an annual estimated cost of $320,472, plus the 7%
Goods and Services Tax (less any municipal rebate received) and
the Provincial Sales Tax.
The contract provides for two 12-month extensions by mutual
agreement between the City and the contractor. This is the first
12-month extension period. A provision in the contract allows
for price adjustments.
Gladding McBean has agreed to extend for a 12-month period, with
a 5% price increase, which is considered reasonable due to a rise
in manufacturing and transportation costs, and the Canadian/U.S.
dollar exchange rate. All other terms and conditions remain
unchanged.
Considering that Gladding McBean has been a satisfactory
supplier, it is recommended that the contract be extended for an
additional 12-month period.
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