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                             ADMINISTRATIVE REPORT

                                            Date: February 20, 1996
                                            File No. Crep050.cov

    TO:       Vancouver City Council

    FROM:     General Manager of Engineering Services
              Manager of Purchasing Services

    SUBJECT:  Award of Tender No. 57-96-03 -
              Supply and Delivery of Butterfly Valves and Actuators


    RECOMMENDATION

         THAT Council accept the bid from Hoyle Industries Limited for the
         supply and delivery of butterfly valves and actuators at a total
         estimated cost of $272,633, plus the 7% Goods and Services Tax
         (less any municipal rebate received) and the Provincial Sales Tax,
         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 January 29,
    1996, 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 are in addition to all prices shown in this
    report and in the tabulation.

    Funds for all purchases in the estimated amount of $272,633 are
    provided for in the Waterworks Capital Budget.
    The tender called for the supply, delivery and field commissioning of
    three types of  butterfly valves complete with actuators for a total
    quantity of twenty two valves. The tender is to be awarded to a single
    contractor. These valves will be installed in the dedicated fire
    protection system which provides emergency water supply from the salt
    water pumping stations in the event of a major emergency such as an
    earthquake.

    Six bids were received from four firms.

    Hoyle Industries Limited submitted the low bid which meets
    specifications. An estimated amount of $10,000 is included in the total
    cost for field commissioning of the valves by the contractor and for
    plant inspection during the manufacturing process by City personnel.
    These costs were provided for in the tender document and the estimated


    amount will vary depending on the actual number of days required for
    field commissioning. Bid order will not be affected by the estimated
    costs.

    We are therefore recommending the acceptance of the low bid from Hoyle
    Industries Limited for the supply and delivery of twenty two butterfly
    valves and actuators.


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