ADMINISTRATIVE REPORT

                                                   Date: September 12, 1996
                                                   File No. Crep058.wpd    

   TO:       Vancouver City Council

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

   SUBJECT:  AWARD OF TENDER NO. 53-96-01 - SUPPLY AND DELIVERY OF 
             MERCHANT STEEL


   RECOMMENDATION

        THAT  Council accept the following bids for the supply and delivery
        of merchant steel, as, if, and when required, for a 12-month period
        from  the  date  of  the  purchase  order,  subject   to  contracts
        satisfactory to the Director of Legal Services:

                                                          ESTIMATED
          FIRM                                DETAIL                   AMOUNT
    A.J. Forsyth & Co. Ltd     Item #s 25, 26 & 27 - sole bid         $ 66,382
    Wilkinson Steel & Metals   Item #s 1 to 24 & 28 - best value      $498,411

    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.


   DISCUSSION

   Tenders for  the above were opened  by the City Clerk on  July 15, 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 $564,793 are provided
   for in various Engineering Services operating accounts.

                                     - 2 -




   The tender calls for the supply and delivery of merchant  steel, as, if,
   and when  required for a 12-month  period from the date  of the purchase
   order.  The tender requested prices on twenty-eight items for comparison
   purposes.   A  price  list  was  also  requested,  with  any  applicable
   discounts, for the purchase  of miscellaneous steel items not  listed in
   the tender.

   Five firms submitted tenders.

   Wilkinson Steel & Metals submitted the overall  low bid for Item #s 1 to
   24 and 28, and is recommended for acceptance as best value to  the City.
   Lower  bids were  received  from other  tenderers  on individual  items.
   However, the  $11,874 difference between the individual low bids and the
   overall low bid does not justify  an increase from two suppliers to five
   in the contract when  additional administrative and operational expenses
   are taken into consideration.

   We are therefore, recommending the acceptance of A.J. Forsyth & Co. Ltd.
   sole bid  for Item  #s 25,  26  and 27,  and Wilkinson  Steel &  Metals,
   overall low bid, for Item #s 1 to 24 and 28, which represents best value
   to the City.



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