ADMINISTRATIVE REPORT


                                            Date:  October 3, 1995


     TO:        Vancouver City Council

     FROM:      General Manager of Engineering Services and
                Manager of Purchasing Services

     SUBJECT:   Award of Tender No. 58-95-07 -
                Supply of De-Icing Salt


     RECOMMENDATION

          THAT  Council  accept the  low  bid  submitted by  McTar
          Petroleum Co. Ltd.  for the supply of de-icing salt, as,
          if and when required for a 12-month period from the date
          of the  purchase  order at  an estimated  total cost  of
          $232,155, plus  the 7% Goods and Services  Tax (less any
          municipal,  rebate received)  and  the Provincial  Sales
          Tax,   where   applicable,   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, 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

     Tenders  for the  above  were opened  by  the City  Clerk  on
     September 25, 1995,  and referred to  the General Manager  of
     Engineering Services and the  Manager of Purchasing  Services
     for report.

     A copy of the tabulation of bids is on file in the Purchasing
     office.   The 7% Goods  and Services Tax  (less any municipal
     rebate  received)  and   the  Provincial  Sales   Tax,  where
     applicable,  are in  addition  to all  prices  shown in  this
     report and in the tabulation.


                                 - 2 -




     Funds for  all purchases are provided from the Central Stores
     Operating Budgets.

     Three  firms submitted  bids,  with one  of these  firms also
     submitting an alternative bid.

     We are recommending the  acceptance of the low  bid submitted
     by McTar Petroleum Co. Ltd.

     The total cost is  estimated at $232,155 based on  an average
     season.  However, in  previous years  quantities  have varied
     from  zero to  14,000 tonnes,  so that  the total  cost could
     range as high as  $722,261.  These estimated total  costs are
     based  on the pattern of  receiving salt at  City works yards
     over the past five years.



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