ADMINISTRATIVE REPORT

Date: December 18, 1998
Author/Local: S.Siu/7258
RTS No. 431
CC File No. 1805

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services Manager of Purchasing Services
SUBJECT:	Award of Tender No. 56-99-01 Supply of Asphalts - Liquid and Paving (Grade 80-100 and MC250)

RECOMMENDATION

THAT Council accept the low bid meeting specifications from Husky Oil Marketing Co. 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, 1999, at an estimated total cost of $874,968., 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.

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.

Contracts with a value over $300,000.00 are referred to Council.

DISCUSSION

Tenders for the above were opened on December 9, 1998 and referred to the General Manager of Engineering Services and the Manager of Purchasing Services for report. The Provincial Sales Tax, where applicable, and the 7% Goods and Services Tax (less any anticipated receipt of the municipal rebate) are included in the prices shown in this report.

Funds are provided in the Asphalt Plant Operating Budget.

The tender requested pricing for the supply of two items of asphalt, grade 80-100, Group A and MC250.

Five firms submitted tenders for grade 80-100 and four firms submitted tenders for MC250.

Grade 80-100, Group A

The low bid does not meet specifications for group A as specified and is not acceptable.

Husky Oil Marketing Co., the second low bidder meets specifications and is acceptable.

MC250

The low bid from Husky Oil Marketing Co. meets specifications and is acceptable.

We are, therefore, recommending acceptance of the bid from Husky Oil Marketing Co. for the supply and delivery of Asphalts - liquid and paving (grade 80-100 and MC250) at an estimated total cost of $874,968.

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(c) 1998 City of Vancouver