ADMINISTRATIVE REPORT
Date: July 23, 1996
File No. Crep056.wpd
TO: Vancouver City Council
FROM: General Manager of Engineering Services and
Manager of Purchasing Services
SUBJECT: CONTRACT EXTENSION
CONTRACT NO. 58-95-07 - SUPPLY OF DE-ICING SALT
RECOMMENDATION
THAT Council approve the extension of the contract to McTar
Petroleum Co. Ltd., for the supply of de-icing salt, for an
additional 12-month period at an annual estimated cost of
$232,155, plus the 7% Goods and Services Tax (less any
municipal rebate received) and the Provincial Sales Tax,
where applicable.
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 October 17, 1995, Council awarded a 12-month contract to
McTar Petroleum Co. Ltd., for the supply of de-icing salt, at an
annual estimated cost of $232,155 plus the 7% Goods and Services
Tax (less any municipal rebate received) and the Provincial Sales
Tax, where applicable. This estimate is based on an average
season. Previous quantities have varied from zero to 14,000
tonnes, so that the total cost could range as high as $722,261.
The contract provides for two 12-month extensions by mutual
agreement between the City and the contractor. This is the first
extension.
The above contractor has agreed to extend for a 12-month period
under the existing terms and conditions, as set out in the
contract.
Considering that McTar Petroleum Co. Ltd., has been a
satisfactory supplier, it is recommended that the contract be
extended for an additional 12-month period.
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