ADMINISTRATIVE REPORT


                                                    Date:  August 25 , 1995
                                                    Dept. File: Crep038.cov

     TO:       Vancouver City Council

     FROM:     General Manager, Corporate Services

     SUBJECT:  Contract Extension - Contract No. 8-93-01
               Microcomputer Systems



     RECOMMENDATION

          THAT Council approve the extension of the contract  to Microserve
          Business  Computer  Services  for  the  supply  of  microcomputer
          systems  for an additional and final 12-month period at a minimum
          annual estimated cost of $400,000, 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  September  14,  1993,  Council  awarded  a  12-month  contract  to
     Microserve Business Computer Services  for the supply of microcomputer
     systems at an annual estimated cost of $400,000, 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.  On September 27,  1994, Council
     approved the first 12-month extension.

     The  above contractor has agreed to extend  for a second and final 12-
     month  period, under the existing terms and  conditions, as set out in
     the contract.

     Purchases  of  microcomputer  equipment   during  the  first  12-month
     extension totalled approximately $1.5 million with funds provided from
     approved  Operating and Capital Budgets  funded by the  City and other
     external  agencies.  Funds for purchases from this second extension of
     the contract will be  from approved budgets funded by  similar funding
     sources.

     Considering  that Microserve  Business  Computer Services  has been  a
     satisfactory   supplier,   and  this   contract   is   based  on   the
     manufacturer s Government  Price List which  assures the  City of  the
     best possible price for  any quantity ordered, it is  recommended that

     the contract be extended for an additional and final 12-month period.



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