ADMINISTRATIVE REPORT

Date: June 21, 1999
Author/Local: Jim Lloyd/7257
RTS No. 00825

CC File No. 1805

Council: July 6, 1999

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services and Manager of Purchasing Services
SUBJECT:	Award of Tender No. PS99025 - Supply and Delivery of Copper Water Tube

RECOMMENDATION

THAT Council accept the low bid from International Plastics Ltd. for the supply and delivery of copper water tube as, if, and when required for a 36-month period from the date of the purchase order, with the option to extend the contract for one or two 12-month period(s), at an estimated cost of $504,612 for the 36-month period 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 of over $300,000 are referred to Council.

DISCUSSION

Tenders for the above were opened by the City Clerk on May 12, 1999 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 Central Stores Operating Budget.

The tender calls for the supply and delivery of five types of copper water tube as, if, and when required for a 36-month period from date of the purchase order. An option exists to extend for an additional one or two 12-month period(s) subject to mutual agreement between the City and the contractor. A price adjustment clause exists in the contract due to the commodity nature of copper but provides for advance notice in order for the City to better manage our inventory. The tender is to be awarded in its entirety to a single contractor.

Seven firms submitted tenders. International Plastics Ltd. submitted the low bid and meets specifications.

Accordingly, we are recommending the acceptance of the low bid from International Plastics Ltd. for the supply and delivery of copper water tube as, if, and when required for a 36-month period from the date of purchase order, with the option to extend the contract for one or two 12-month period(s), at an estimated total cost of $504,612.

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(c) 1998 City of Vancouver