ADMINISTRATIVE REPORT



                                                    Date: February 13, 1996
                                                     Dept. File No. H193-30


   TO:       Vancouver City Council

   FROM:     The General Manager of Engineering Services

   SUBJECT:  Award of  Contract No. 9520, for the Microtunnelling
             Construction of Clark Drive Sanitary Trunk Sewer


   RECOMMENDATIONS

        A.   THAT Contract No. 9520 for the Microtunnelling Construction of
             Clark Drive Sanitary Trunk Sewer, be awarded to the low bidder
             meeting the contract requirements,  P. Baratta Construction
             Ltd., for a total tender price of $1,576,110.00.

        B.   THAT the bid bonds of the unsuccessful tenderers be returned,
             upon execution of the Contract by P. Baratta Construction Ltd.

        C.   THAT the City Engineer, in consultation with the Director of
             Legal Services, be authorized to enter into a construction
             services contract with P. Baratta Construction Ltd., for
             Contract No. 9520, for the Microtunnelling Construction of
             Clark Drive Sanitary Trunk Sewer.

        D.   THAT a temporary Engineering Assistant IV position, for site
             inspection and contract administration, be approved for a six
             month period.  Costs resulting from this staffing will be
             recovered from Sewers capital overhead loadings.


   CITY MANAGER'S COMMENTS

        The City Manager RECOMMENDS approval of A, B, C and D.


   COUNCIL POLICY

   Construction contracts over $200,000 are to be awarded by Council.




                                     - 2 -


   PURPOSE

   As part of the implementation process of the Grandview/Woodlands Sewer
   Reconstruction Program, this report requests Council's approval for the
   award of a $1,576,110.00 construction services contract, (Contract No.
   9520), to P.Baratta Construction Ltd. for the Microtunnelling
   Construction of Clark Drive Sanitary Trunk Sewer.  This report further
   requests that Council approve a 
   temporary EA IV position, for site inspection and contract
   administration for a six month period for the above work.

   BACKGROUND

   The Canada-British Columbia Infrastructure Works Program awarded $12
   million to the City on September 15, 1994, for sewer reconstruction in
   Grandview/Woodlands.  This award allows the City to further address our
   highest priority sewer problem, combined sewer overflows at Clark Drive.

   It was planned that this work would be carried out through a combination
   of additional City forces and Contractors.  

   To date, approximately $9 million of work has been constructed, with
   $1.9 million being successfully completed by a construction contract to
   Progressive Contracting Ltd. and the remainder being completed by
   additional City forces.


   DISCUSSION

   Included in the Grandview/Woodlands Sewer Reconstruction Phase I work is
   the installation of about 900 meters of large 24 to 30 inch diameter,
   sanitary sewer trunk line on Clark Drive, which extends north from
   Venables Street, under the C.P.Rail Yard and connects to the existing
   GVRD s interceptor sewer line on the north side of Stewart Street. 

   Noting that tunnelling was required for the railway crossing and that
   approximately two blocks would have to go through solid rock, staff
   retained an engineering consultant, Golder Associates Ltd. to estimate
   the cost of completing this entire section by microtunneling. Golder s
   estimate for the proposed microtunneling was $1.5 million, whereas our
   estimate to complete this section using normal open cut methods was $2
   million.  On this basis it was decided to call tenders for construction
   of this section using microtunneling technology.



                                     - 3 -


   Bids have now been received with four bidders submitting complete tender
   packages that met the contract requirements, including bonding.  A
   summary of these bids, including several proposed alternates for various
   types of pipe, is as follows:


   CONTRACTOR                    PIPE TYPE           BID PRICE

   P. Baratta Construction Ltd.  Concrete Polymer    $1,576,110.00
                                 Plastic Mortar      $1,645,660.00

   Merletti Construction Ltd.    Concrete Polymer    $2,423,596.60
                                 Plastic Mortar      $2,423,596.60

   Fedrick Nova Contracting Ltd. Concrete Polymer    $2,895,420.00
                                 Plastic Mortar      $2,978,880.00

   Ras-Dam Microtunneling Ltd.   Coated Concrete     $2,864,690.67
                                 Pipe Form           $2,971,337.57
                                 Concrete Polymer    $3,057,624.51
                                 Plastic Mortar      $3,211,573.97


   The low tender, meeting all the bid requirements,  was submitted by P.
   Baratta Construction Ltd., (Baratta).  Using this low bid and allowing
   for the GST rebate and the City s overhead loading, the total project
   cost would be $1,623,393.30.

   The day after the bids were opened Baratta wrote to the City, indicating
   that due to an error in converting from US to Canadian funds, their bid
   was $160,000 short.  They requested that the City adjust their bid
   price.  They were informed that this was not possible. Subsequently,
   Baratta wrote again asking that the City reject their bid due to the
   error, and because of their lack of experience with the microtunneling
   technology.  Both of these letters are attached to this report (Appendix
   A).  

   Despite the concerns that the contractor has raised since submitting
   their bid, staff are satisfied that Baratta, together with their major
   subcontractor, Iseki Inc., are capable of carrying out this project, and
   their bid is legally binding and irrevocable. Furthermore their bid
   price is significantly less than our estimate of the cost for the City
   to carry out the work ourselves, which is the next cheapest option.
   Therefore, staff recommend that this contract be awarded to Baratta.

   This contract will require full time site inspection  and contract
   administration.  This report also requests approval of a temporary full
   time Engineering Assistant IV for this purpose. The cost of this
   position will be recovered from the overhead loading on the construction
   cost of the work



                                     - 4 -

   FUNDING

   The total tender price of $1,576,110.00 by P. Baratta Construction Ltd.
   is the recommended low bid.  The G.S.T. rebate of $58,920.00 (4%) is
   included in this tender price, but will be refunded by the Federal
   Government.  The contract costs breakdown as follows:

       Construction Contract          $1,576,110.00
       Less: G.S.T. Rebate (4%)          $58,920.00

       Net Total Contract Value       $1,517,190.00
       Plus: Overhead Loading (7%)      $106,203.30

       City's Total Project Cost      $1,623,393.30


   Funding for this project is available from the Sewers Capital Accounts
   established for the Grandview/Woodlands Sewer Reconstruction Program.

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