ADMINISTRATIVE REPORT

Date: February 12, 1998

Author/Local: Jim Lloyd/7257

CC File No. 1805

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services and Manager of Purchasing Services
SUBJECT:	Award of Tender No. 57-98-04 - Supply and Delivery of 610mm Steel Water Pipe

RECOMMENDATION

That Council accept the low bid from Itochu Canada Ltd. for the supply and delivery of 3,000 metres of 610mm steel water pipe, at a total cost of $641,801 plus the 7% Goods and Services Tax (less any municipal rebate received) and the Provincial Sales Tax, 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 February 4, 1998 and referred to the General Manager of Engineering Services and the Manager of Purchasing Services for report.

The 7% Goods and Services Tax (less any municipal rebate received) and the Provincial Sales Tax are in addition to all prices shown in this report and in the tabulation.

Funds for all purchases are provided for in the Waterworks Capital Budget.

The tender calls for the supply and delivery of 3,000 metres of 610mm steel water pipe. The pipe is required for the continued construction of the dedicated fire protection system This system is designed to provide an emergency water supply in the event of a major incident such as an earthquake.

The City has a preference for pipe specified in Section A of the tender but allows tenderers to provide prices in Section B for alternative pipe. The selection of either Section A or B is at the sole discretion of the City. The tender is to be awarded in its entirety to a single contractor.

Four firms submitted tenders for Section A and one firm submitted a tender for Section B. One of these firms submitted a non-compliant bid due to a lack of a bid bond.

Itochu Canada Ltd. submitted the low bid which meets the specifications in Section A of the tender.

Accordingly, we are recommending the acceptance of the low bid from Itochu Canada Ltd. for the supply and delivery of 3,000 metres of 610mm steel water pipe at a total cost of $641,801.

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(c) 1997 City of Vancouver