A3 ADMINISTRATIVE REPORT Date: October 18, 1996 File No. CREP061.wpd TO: Vancouver City Council FROM: General Manager of Engineering Services and Manager of Purchasing Services SUBJECT: AWARD OF TENDER NO. 56-96-02 SUPPLY OF PROPANE GAS AND STORAGE TANKS RECOMMENDATION THAT Council accept the low bid from Super-Save Propane, for the supply of propane gas in contractor-owned and City-owned storage tanks, and cylinder rentals, as, if and when required, for a 24-month period from date of acceptance, at an estimated total cost of $461,000, plus the 7% Goods and Services Tax (less any municipal rebate received), 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. Contracts with a value over $300,000 are referred to Council. DISCUSSION Tenders for the above were opened by the City Clerk on September 03, 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) is in addition to all prices shown in this report and in the tabulation. The Provincial Sales Tax is not applicable. - 2 - Funds for all purchases are provided for in the Operating Budget. At present, the City owns some propane dispensing equipment and one of the three storage tanks required. Two storage tanks are supplied by the current contractor. The tender requested prices for two items. Item one, for the supply of propane gas if storage tanks are, a) owned by the contractor and b) owned by the City. Item two, is for the rental of cylinders. Five firms submitted tenders. Super-Save Propane submitted the low bid for both items. We are, therefore, recommending acceptance of the low bid from Super-Save Propane, for the supply of propane gas in contractor-owned and City-owned storage tanks, and the rental of cylinders. * * * * *