ADMINISTRATIVE REPORT
Date: October 3, 1995
TO: Vancouver City Council
FROM: General Manager of Engineering Services and
Manager of Purchasing Services
SUBJECT: Award of Tender No. 58-95-07 -
Supply of De-Icing Salt
RECOMMENDATION
THAT Council accept the low bid submitted by McTar
Petroleum Co. Ltd. for the supply of de-icing salt, as,
if and when required for a 12-month period from the date
of the purchase order at an estimated total cost of
$232,155, plus the 7% Goods and Services Tax (less any
municipal, rebate received) and the Provincial Sales
Tax, where applicable, 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, 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
Tenders for the above were opened by the City Clerk on
September 25, 1995, and referred to the General Manager of
Engineering Services and the Manager of Purchasing Services
for report.
A copy of the tabulation of bids is on file in the Purchasing
office. The 7% Goods and Services Tax (less any municipal
rebate received) and the Provincial Sales Tax, where
applicable, are in addition to all prices shown in this
report and in the tabulation.
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Funds for all purchases are provided from the Central Stores
Operating Budgets.
Three firms submitted bids, with one of these firms also
submitting an alternative bid.
We are recommending the acceptance of the low bid submitted
by McTar Petroleum Co. Ltd.
The total cost is estimated at $232,155 based on an average
season. However, in previous years quantities have varied
from zero to 14,000 tonnes, so that the total cost could
range as high as $722,261. These estimated total costs are
based on the pattern of receiving salt at City works yards
over the past five years.
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