ADMINISTRATIVE REPORT
Date: November 23, 1995
File No. Crep043.Cov
TO: Vancouver City Council
FROM: General Manager of Engineering Services and Manager of
Purchasing Services
SUBJECT: Contract Extension - Contract No. 40-92-01, Supply, Retread
and Repair of Tires and Tubes.
RECOMMENDATION
THAT Council approve the extension of the contracts to Kal Tire for
items 1 & 3, Irving Tire Ltd./Quality Retreaders Inc. for items 2 &
5, and Pacific Rim Tire Distributors for item 4, for the Supply,
Retread and Repair of Tires and Tubes, for an additional and final
12-month period at an annual estimated cost of $107,562, $246,928
and $4,413 respectively, plus the 7% Goods and Services Tax (less
any municipal rebate received), the Provincial Sales Tax and the
Provincial Environmental Levy.
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 January 26, 1993, Council awarded 24-month contracts to Kal Tire for
items 1 & 3, Irving Tire Ltd./Quality Retreaders Inc. for items 2 & 5,
and Pacific Rim Tire Distributors for item 4, for the Supply, Retread
and Repair of Tires and Tubes, at 24-month estimated costs of $215,124,
$493,856 and $8,826 respectively, plus the 7% Goods and Services Tax
(less any municipal rebate received), the Provincial Sales Tax and the
Provincial Environmental Levy.
The contracts provide for two 12-month extensions by mutual agreement
between the City and the contractors. On December 6, 1994, Council
approved the first 12-month extensions.
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The above contractors have agreed to extend for a second and final 12-
month period, under the existing terms and conditions, as set out in the
contracts.
Considering that Kal Tire, Irving Tire Ltd./Quality Retreaders Inc. and
Pacific Rim Tire Distributors have been satisfactory suppliers, it is
recommended that the contracts be extended for an additional and final
12-month period.
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