ADMINISTRATIVE REPORT

Date: December 08, 1998
Author/Local: Jim Lloyd/7257
RTS No. 00405

CC File No. 1805

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services and Manager of Purchasing Services
SUBJECT:	Contract Extension - Contract No. 57-98-01 Supply and Delivery of PVC Sewer Pipe and Fittings

RECOMMENDATION

THAT Council approve the extension of the contract for the supply and delivery of PVC sewer pipe and fittings to Grinnell Supply Sales, for a 12-month period, at an annual estimated cost of $478,852, plus the 7% Goods and Services Tax (less any municipal rebate received) and the Provincial Sales Tax.

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 are referred to Council.

DISCUSSION

On February 17, 1998, Council awarded a 12-month contract to Grinnell Supply Sales, for the supply and delivery of PVC sewer pipe and fittings, at an annual estimated cost of $469,749.

The 7% Goods and Services Tax (less any municipal rebate received) and the Provincial Sales Tax are in addition to all prices in this report.

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The contract provides for two 12-month extensions by mutual agreement between the City and the contractor. This is the first 12-month extension period. Price adjustments are allowed in the contract due to the fluctuating value of PVC resin.

Grinnell has agreed to extend the contract for an additional 12-month period. A three percent price increase on the pipe portion of the contract has been instituted recently to offset rising PVC resin prices.

A local PVC pipe manufacturer has requested that the City retender these requirements in order for them to have another opportunity. However, staff are satisfied with product quality and service provided by Grinnell for this contract and feel that a new tender would not add value to the City at this time. In addition, all manufacturers will be subject to similar price adjustments due to resin pricing which is valued in US funds.

Considering that Grinnell Supply Sales has been a satisfactory supplier, it is recommended that this contract be extended for an additional 12-month period.

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(c) 1998 City of Vancouver