A9
ADMINISTRATIVE REPORT
Date: February 12, 1996
File No. Crep049.Cov
TO: Vancouver City Council
FROM: General Manager of Engineering Services
Manager of Purchasing Services
SUBJECT: Award of Tender No. 57-96-02 -
Supply and delivery of 610mm Steel Water Pipe
RECOMMENDATION
THAT Council accept the bid from Itochu Canada Ltd. for the supply
and delivery of 610mm steel water pipe for a 12-month period from
the date of the purchase order, at an estimated total cost of
$301,738, 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 January 29,
1996, 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 are in addition to all prices shown in this
report and in the tabulation.
Funds for all purchases in the estimated amount of $301,738 are
provided for in the Waterworks Capital Budget.
The tender called for the supply and delivery of three items of 610mm
steel water pipe, with different lengths and thicknesses, for a 12-
month period from the date of the purchase order, for use in the
construction of a 3,000 metre long dedicated fire protection system
pipeline. The dedicated fire protection system pipeline will be used to
distribute water from salt water pumping stations in the event of a
major emergency such as an earthquake.
Approximately 1,250 metres of pipe will be required for the first stage
of construction. In addition, the tender specified a preference for
Canadian Standard Association or American Pipe Institute certified pipe
with a provision for tenderers to submit bids to alternative pipe
standards. The selection of either certified or alternative pipe is at
sole discretion of the City. The tender is to be awarded to a single
contractor.
Four firms submitted tenders for both the preferred certified pipe and
the alternative pipe with one firm submitting a bid on the alternative
pipe only.
Itochu Canada submitted the low bid for the preferred certified pipe
which meets specifications and is recommended for award as best value
to the City. Lower bids were received from Itochu Canada, Grinnell
Supply Sales, and Comco Pipe & Supply Co. for the alternative pipe at
estimated cost differences of $13,993, $4,875 and $702 respectively.
However, the certified pipe is recommended as it consists of a higher
grade steel and demands stricter quality control in the manufacturing
process due to the post seismic construction standard required by the
dedicated fire protection system.
We are therefore, recommending the acceptance of the low bid for the
preferred certified pipe, from Itochu Canada, as best value to the
City, for the supply and delivery of 610mm steel water pipe for a 12-
month period from the date of the purchase order.
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