A20
ADMINISTRATIVE REPORT
Date: November 22, 1996
File No. CREP068.wpd
TO: Vancouver City Council
FROM: General Manager of Engineering Services and Manager of Pur-
chasing Services
SUBJECT: CONTRACT EXTENSION - CONTRACT NO. 56-96-01
THE SUPPLY OF ASPHALTS - LIQUID &PAVING (GRADE 80-100 AND
MC250)
RECOMMENDATION
THAT Council approve the extension of the contract to
Imperial Oil for the supply and delivery of Grade 80-100 and
MC250 liquid asphalt, for an additional 12-month period, at
an annual estimated cost of $744,649 including the
Provincial Sales Tax, where applicable, and the 7% Goods and
Services Tax (less the anticipated receipt of the municipal
r e b a t e ) .
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 January 11, 1996, Council awarded a 12-month contract to
Imperial Oil, the low bid, for the supply and delivery of liquid
and paving asphalts at an annual estimated cost of $744,649
including the Provincial Sales Tax, where applicable, and the 7%
Goods and Services Tax (less the anticipated receipt of the
municipal rebate).
The contract provides for two 12-month extensions by mutual
agreement between the City and the contractor. This is the first
12-month extension.
Imperial Oil has agreed to extend the contract for a second 12-month period, under the existing terms and conditions, as set
out in the contract.
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Considering that Imperial Oil has been a satisfactory supplier,
it is recommended that the contract be extended for an additional
12-month period.
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