ADMINISTRATIVE REPORT

Date: January 7, 2000
Author/Local: S.Larson/7256
RTS No. 01206

CC File No. 1805

Council: February 1, 2000

TO:	Vancouver City Council
FROM:	Manager of Materials Management
SUBJECT:	Award of Systems Contract - Office Supplies

RECOMMENDATION

THAT Council accept the low bid from Mills Stationery and Printing Co. Ltd. for the supply of office supplies and stationery, as, if and when required for a 36 month period from the acceptance date, with the option to extend the contract to a total of 60 months. Estimated annual expenditure for the contract is $320,000, 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.

GENERAL MANAGER’S COMMENTS

The General Manager of Corporate Services RECOMMENDS approval of the foregoing.

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.

BACKGROUND

The City of Vancouver participates in the Vancouver Regional Co-operative Purchasing Group ("VRCPG") with 21 other lower mainland municipalities in order to obtain better pricing, better terms, and/or better service. The purchase of office supplies was done on a co-operative basis, with the City of North Vancouver serving as ‘lead’. The lead accumulates requirements from other municipalities, creates the bid document, receives and analyses the bids, and makes recommendations to those participating.

DISCUSSION

Requests for Proposals were opened by the Purchasing Manager of North Vancouver on October 13, 1999.

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

Funds for all purchases are provided for in the Operating Budget of each department.

The Request for Proposal called for the supply of various specified stationery items, and a firm discount for all other items not specified, as, if and when required for a 36 month period from the date of acceptance with an option to extend the contract to a maximum total of 60 months. Pricing is firm for the first year and will be re-negotiated for each subsequent 12 month period.

Three firms submitted proposals. Mills Printing & Stationery Co. Ltd. submitted the low bid and meets specifications. By participating with other municipalities, the prices for the specified items have decreased by an average 33% and the discount for other catalogue items has gone from a variable rate between 20% and 40% to an overall 48%. Based on last year’s purchases, the City of Vancouver anticipates this will reduce stationery costs by 14% or $75,000.00.

Accordingly, we are recommending the acceptance of the low bid from Mills Printing & Stationery Co. Ltd. for the supply of Office Supplies as, if and when required for a 36 month period from the date of acceptance, with the option to extend the contract for a total of 60 months, at an estimated annual cost of approximately $320,000.

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(c) 1998 City of Vancouver