ADMINISTRATIVE REPORT

Date: September 24, 1999
Author/Local: Jim Lloyd/7257
RTS No. 01028

CC File No. 1805

Council: October 19, 1999

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services and Manager of Purchasing Services
SUBJECT:	AWARD OF TENDER NO. PS99052 - SUPPLY OF DE-ICING SALT

RECOMMENDATION

THAT Council accept the low bid from Mainroad Contracting Ltd. for the supply of de-icing salt as, if, and when required for a 36-month period from the date of the purchase order, with the option to extend the contract for one or two 12-month periods, at an estimated cost of $637,605 for a 36-month period, 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.

Contracts with a value over $300,000 are referred to Council.

BACKGROUND

On April 7, 1998, Council approved the continued use of road salt for de-icing purposes.

DISCUSSION

Tenders for the above were opened by the City Clerk on September 15, 1999 and referred to the General Manager of Engineering Services and the Manager of Purchasing Services for report.

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 are provided for in the Engineering Operating Budget.

The tender calls for the supply of bulk de-icing salt as, if, and when required for a 36-month period from the date of the purchase order. The contractor is required to deliver bulk de-icing salt to various City locations or, in very unusual circumstances, for pick up by City trucks at the supplier’s depot.

An option exists to extend the contract for an additional one or two 12-month periods subject to mutual agreement between the City and the contractor. The contract allows price adjustments, if required, at each 12-month anniversary date of the contract. Adjustments are not to exceed the Statistics Canada Consumer Price Index for Vancouver.

The estimated price in this report is based on 13,500 tonnes of salt, an average of 4,500 tonnes a year, delivered to the City’s Cambie Yard over a 36-month period. Previous quantities have varied from zero to 14,000 tonnes per year depending on winter conditions and the contract value will fluctuate accordingly. Cambie Yards remains the primary salt storage facility at this time but the contract has pricing for other City yards should this change.

Three firms submitted tenders. Mainroad Contracting Ltd. submitted the low bid and meets specifications.

Accordingly, we are recommending the acceptance of the low bid from Mainroad Contracting Ltd. for the supply of de-icing salt as, if, and when required for a 36-month period from the date of the purchase order, with the option to extend the contract for one or two 12-month periods, at an estimated total cost of $637,605.

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(c) 1998 City of Vancouver