ADMINISTRATIVE REPORT Date: December 20, 1995 File No. Crep045.Cov TO: Vancouver City Council FROM: General Manager of Engineering Services and Manager of Purchasing Services SUBJECT: Award of Tender No. 57-96-01 - Supply and Delivery of 4", 6", 8" and 12" ductile iron water pipe RECOMMENDATION THAT Council accept the overall low bid from Canada Pipe Company Ltd., for the supply and delivery of 4", 6", 8" and 12" ductile iron water pipe, as, if and when required for a twelve month period from the date of the purchase order, at an estimated total cost of $509,923, 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, 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 November 20, 1995, and referred to the General Manager of Engineering Services and 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 are in addition to all prices shown in this report and in the tabulation. Funds for all purchases, in the estimated amount of $510,000, are provided from the Waterworks Capital Budget - 2 - The tender called for the supply and delivery of four items of "Tyton" joint ductile iron water pipe in Section A and three items of "MJ-TJ" restrained joint ductile iron water pipe in Section B , as, if and when required for a twelve month period from the date of the purchase order. The quantities tendered for Section A are estimated only. No quantities were shown for Section B as pricing was requested in the event of an unanticipated demand for this type of pipe. Two firms submitted tenders. We are recommending the acceptance of the overall low bid from Canada Pipe Co. Ltd. U.S. Pipe & Foundry Co. submitted the low bid for item No. 4 in Section A , however, the estimated cost difference of $2,040 (less than 1% of the total contract value) does not justify a split in the award. * * * * *