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.

                                 - 2 -



   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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