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                             ADMINISTRATIVE REPORT

                                            Date: May 7, 1996
                                            File No. Crep053.cov

    TO:       Vancouver City Council

    FROM:     General Manager of Engineering Services and
              Manager of Purchasing Services

    SUBJECT:  Extension of Contract #57-94-04: Supply & Deliver 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.

    Contracts with a value over $300,000 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. A provision in the contact allows
    for price adjustments. On June 6, 1995, Council approved the first
    12-month extension with a 5% price increase.

    The above contractor has agreed to extend for a second and final
    12-month period without any price adjustments, under the existing terms
    and conditions, as set out in the contract.

    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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