ADMINISTRATIVE REPORT
Date: June 24, 1997 File No. CREP 078.wpd
CC File No. 1805
TO: Vancouver City Council
FROM: Manager of Purchasing Services
SUBJECT: Co-Operative Purchasing of Gasoline and Diesel Fuels
INFORMATION
The Manager of Purchasing Services submits this report for
INFORMATION.
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.
On March 4, 1980, City Council authorized co-operative purchasing "when
benefits to the City are indicated".
Contracts with a value over $300,000 are referred to Council for
approval.
BACKGROUND
The City of Vancouver annually purchases 6 million litres of diesel and
gasoline fuel. Earlier this year, the City was invited to join the
North Shore Co-operative Purchasing Group (i.e. cities of Burnaby, North
Vancouver and West Vancouver, and the District of North Vancouver) and
several other British Columbia municipalities in a multi-municipality
Request for Proposal (RFP) for gasoline and diesel fuel.
It was anticipated that Vancouver's 6 million litres would strengthen
the purchasing power of the group so that all participants would pay lower prices.
On February 18, 1997, Council gave the Manager of Purchasing Services
the authority to negotiate and execute the contract for 1997 with a one
year extension.
DISCUSSION
The following communities participated in the Co-Operative RFP and had
an estimated collective volume of 20 million litres.
- City of Vancouver
- District of West Vancouver
- City of North Vancouver
- City of Burnaby
- City of New Westminster
- Greater Vancouver Regional District
- City of Surrey
- City of Coquitlam - The Corporation of Delta
- District of Maple Ridge
- District of Pitt Meadows
- City of Port Coquitlam
- City of Port Moody
- City of White Rock
- District of Chilliwack
- School District #42 (Maple Ridge)
- School District #36 (Surrey)
- City of Richmond
- District of Saanich
- City of Victoria
- School District #61 (Victoria)
- Town of Esquimault
- Camosun College
- Greater Victoria Water District
- Municipality of Oak Bay
- University of Victoria
- Capital Regional District
- District of Central Saanich - City of Kelowna
- City of Penticton
- City of Kamloops
The RFP closed on April 25, 1997 and six proposals were received.
After a detailed evaluation of the proposals, it was determined that the
contract should be awarded to Chevron Canada as it:
(1) was the only qualifying vendor willing and able to offer bulk,
card-lock, retail and marine delivered fuel to the entire
membership at all locations,
(2) was the only qualifying vendor offering to serve all locations
and provide the price change mechanism requested in the RFP,
and
(3) offered the entire membership (and the City of Vancouver) the
lowest overall delivered price.
The estimated annual cost to the City of Vancouver based on prices in
effect as of April 23, 1997 is $1,591,103 excluding taxes.
The award has been made for a two-year period commencing June 01, 1997.
The Co-operative and the City of Vancouver (subject to Council's
approval) have the option of extending the agreement for two additional
one year periods.
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