Contract Extension - Contract No. 57-96-01

ADMINISTRATIVE REPORT
Date: October 7, 1997
File No. Crep083.wpd
CC File No. 1805
TO: Vancouver City Council
FROM:General Manager of Engineering Services and Manager of Purchasing Services
SUBJECT: Contract Extension - Contract No. 57-96-01 - Supply and Delivery of 4", 6", 8" & 12" Ductile Iron Water Pipe
RECOMMENDATION
THAT Council approve the extension of the contract to Canada Pipe Company Ltd. for the supply and delivery of 4", 6", 8" & 12" ductile iron water pipe, for a second and final 12-month period, at an annual estimated cost of $509,923 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 for award.
DISCUSSION
On January 11, 1996, Council awarded a 12-month contract to Canada Pipe Company Ltd. for the supply and delivery of 4", 6", 8" & 12" ductile iron water pipe, at an annual estimated cost of $509,923 plus the 7% Goods and Services Tax (less any municipal rebate received) and the Provincial Sales Tax.
The contract provides for two 12-month extensions by mutual agreement between the City and the contractor. Council approved the first 12-month extension on October 22, 1996. This approval included the provision for a $.70 per foot price increase on 4" Tyton joint (TJ) pipe from Canada Pipe’s Alabama plant, if their Ontario pipe was not acceptable, and the removal of the obligation to provide TJ to mechanical joint (MJ) pipe from the contract.
Canada Pipe has agreed to extend the contract for a second and final 12-month period at the original contract prices. The City was able to purchase 4" pipe from Canada Pipe’s Ontario plant in the past year which met City standards. Based on this experience, the City will be able to acquire pipe over the next contract period without encountering the additional price increase for the Alabama pipe. No anticipated requirements exist in the next year for TJ to MJ pipe. All other terms and conditions remain the same.
Considering that Canada Pipe Company Ltd. has been a satisfactory supplier, it is recommended that the contract be extended for a second and final 12-month period.
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