ADMINISTRATIVE REPORT

                                                Date: December 21, 1995    
                                                Dept. File No.: Crep046.Cov


   TO:       Vancouver City Council

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

   SUBJECT:  Tender  No.  56-96-01, Supply  of  Asphalts -  Liquid  and    
             paving

   RECOMMENDATION

        THAT Council  accept the low  bid, from Imperial Oil  Ltd., for the
        supply  of asphalts - liquid  and paving (grade  80-100 and MC250),
        as, if  and when required, for  a 12 month period  from January 25,
        1996,  at  an  estimated  total  cost  of  $744,649, including  the
        Provincial  Sales  Tax, where  applicable,  and  the  7% Goods  and
        Services  Tax  (less  the  anticipated  receipt  of  the  municipal
        rebate),  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 December 11, 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  Provincial  Sales  Tax, where  applicable,  and  the  7% Goods  and
   Services  Tax (less the anticipated receipt of the municipal rebate) are
   included in the prices shown in this report and in the tabulation.

   Funds in the  budgeted amount of $777,000 for all purchases are provided
   for in the Asphalt Plant Operating Budget.



                                     - 2 -


   The  tender requested pricing  for the supply  of two  items of asphalt,
   grade 80-100, group A and MC-250.

   Four firms submitted tenders.

   The local content claim of one  of these firms was not considered  to be
   reasonable.   We therefore  requested  this firm  to substantiate  their
   local  content  claim.     When   the  revised  claim   is  taken   into
   consideration, local content does not affect the order of bids.

   We are recommending acceptance of the low bid for each item.



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