A2
                         ADMINISTRATIVE REPORT

                                           Date:  May 16, 1995

   TO:       Vancouver City Council

   FROM:     General Manager of Engineering Services and
             City Purchasing Agent

   SUBJECT:  Extension  of  Contract  No.  57-94-04:     Supply  and
   Delivery
             of  Extra  Strength  Vitrified  Clay  Sewer   Pipe  and
   Fittings

   RECOMMENDATION

        THAT  Council  approve  the  extension of  the  contract  to
        Gladding  McBean,  a  division  of  Pacific  Coast  Building
        Products,  for the  supply  and delivery  of extra  strength
        vitrified clay  sewer pipe  and fittings, for  an additional
        12-month  period at  an annual  estimated cost  of $336,496,
        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, except where an allowance of
   a  maximum of 5% is given to  those bidders whose tender reflects
   local content.

   Contracts  with a value over $200,000 are referred to Council for
   award.

   DISCUSSION

   On  May 31, 1994, Council awarded a 12-month contract to Gladding
   McBean, a division  of Pacific Coast  Building Products, for  the
   supply and delivery  of extra strength vitrified  clay sewer pipe
   and fittings at an annual estimated cost of $320,472, 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.  This is the first
   12-month  extension period.   A provision in  the contract allows
   for price adjustments.

   Gladding  McBean has agreed to extend for a 12-month period, with
   a 5% price increase, which is considered reasonable due to a rise
   in manufacturing and transportation costs,  and the Canadian/U.S.
   dollar  exchange rate.   All  other terms  and conditions  remain
   unchanged.

   Considering  that   Gladding  McBean  has   been  a  satisfactory
   supplier,  it is recommended that the contract be extended for an
   additional 12-month period.

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