ADMINISTRATIVE REPORT


                                                      Date:  March 19, 1996

     TO:       Vancouver City Council

     FROM:     General Manager of Corporate Services

     SUBJECT:  Tender for Travel Agency Services



     RECOMMENDATION

          A.   THAT Council  instruct  the  General  Manager  of  Corporate
               Services to initiate a Request  for Proposal ("RFP") for the
               City's business travel requirements  to the travel  agencies
               doing  business  in  the  Lower Mainland,  along  the  lines
               described in this report.

          B.   THAT  the  results of  the  RFP  process, along  with  staff
               recommendations,   be   reported   back   to   Council   for
               consideration and approval.


     COUNCIL POLICY

     On June 23, 1992, City  Council instructed the Director of  Finance to
     tender  the City's  business travel  requirements on  a  formal basis.
     Council also directed that the selected travel agency be appointed for
     a term  of three years  and that  the appointment be  reflected in  an
     agreement with normal safeguards for early termination.


     PURPOSE

     The purpose  of this report  is to recommend that  the City's business
     travel  arrangements again be  tendered in the  form of a  Request for
     Proposal.  The results of that process will be reported to Council for
     review and approval.


     BACKGROUND

     In 1992, City Council engaged the accounting firm of KPMG Peat Marwick
     Thorne ("PMT")  to review  the City's travel  policies and  practices.
     PMT recommended the  appointment of  one travel agency  to handle  all
     City  business  travel, in  order to  achieve  economies of  scale, to
     assist with  policy  enforcement, and  to simplify  the processing  of
     travel claims generally.         - 2 -

     After an extensive  Expression of Interest solicitation  and a Request
     for Proposal ("RFP") process, Council appointed Atlas Worldwide Travel
     Management as the  City's travel agency  for a period of  three years,
     commencing on April 20, 1993.


     DISCUSSION

     The three-year  term for  Atlas Travel will  expire in  April of  this
     year.   Following Council's policy of  encouraging competitive bidding
     for  acquisition of  goods and  services, it  would be  appropriate to
     again  tender the  City's  business travel  requirements.   The tender
     process would be conducted along the following lines:

     -  the  City would  issue a formal  RFP to  the travel  agencies doing
        business  in the  Lower Mainland  and advertise  the tender  in the
        appropriate manner;

     -  an RFP review  group comprised  of the travel  arrangers from  City
        departments and  boards  having significant  business travel  needs
        (Engineering,  Park   Board,  Police,  City  Clerk   and  Corporate
        Services)  would be  formed to  review the submission  material and
        recommend a travel agency to Council;

     -  the  travel  agency  recommended  by  the  review  group  would  be
        appointed  by Council for a three-year term covered by an agreement
        with normal safeguards for early termination; and,

     -  the  City's business travel  requirements would  be subject  to re-
        tender after three years.

     Given that  the recommended  RFP process may  not be  completed on  or
     before  the expiry of the  City's present travel  agreement with Atlas
     Travel, there will likely be a requirement to hold over that agreement
     on a  month-to-month  basis pending  the  selection of  a  replacement
     travel agency.


     CONCLUSION

     The tender process  conducted in  1993 to  acquire the  services of  a
     travel  agency  for  the City's  business  travel  requirements was  a
     challenging and useful exercise.  The tender generated a good deal  of
     interest  in the travel  community and fostered  a healthy competition
     among  the travel  agencies that  chose to  bid.   We expect  the same
     conditions to apply this time around.

     I should note, however, that Atlas Travel has responded to  the City's
     needs over the last  three years in a competent,  professional manner.
     The   excellent   relationship   that   has   developed   between  our
     organizations is a compliment to the  people involved on both sides of
     the travel service.

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