A6
                             ADMINISTRATIVE REPORT

                                            Date: March 5, 1996
                                            File No. Crep051.Cov

    TO:       Vancouver City Council

    FROM:     General Manager of Engineering Services
              Manager of Purchasing Services

    SUBJECT:  Extension of Contract No. 57-95-01 -
              Supply & Delivery of Reinforced Concrete Pipe,
              Manhole Sections and Tops

    RECOMMENDATION

         THAT  Council  approve the  extension  of  the contract  to  Ocean
         Construction  Supplies  Ltd.  for   the  supply  and  delivery  of
         reinforced  concrete  pipe,  manhole  sections and  tops,  for  an
         additional  12-month  period  at   an  annual  estimated  cost  of
         $837,109, 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  April  11,  1995, Council  awarded  a  12-month  contract to  Ocean
    Construction Supplies Ltd.  for the supply  and delivery of  reinforced
    concrete pipe, manhole sections  and tops, at an annual  estimated cost
    of $837,109  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.

    The  above contractor has agreed  to extend for  an additional 12-month
    period,  under the  existing terms  and conditions,  as set out  in the
    contract.

    Considering  that   Ocean  Construction   Supplies  Ltd.  has   been  a
    satisfactory supplier, it is recommended that the  contract be extended
    for an additional 12-month period.


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