ADMINISTRATIVE REPORT

Date: March 6, 1998

Author/Local: M. Blake/7687

CC File No. 1805

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services
SUBJECT:	Award of Contract No. 9807, for the Supply and Installation of Distribution Watermain

RECOMMENDATION

A.THAT Contract No. 9807 for the supply and installation of distribution watermain, be awarded to the low bidder meeting the contract requirements, Pedre Contractors Ltd., for a total tender price of $680,594.26 (GST included); with the source of funds to be account code 17/36/1004/999.

B.THAT the bid bonds of the unsuccessful tenderers be returned.

C.THAT the General Manager of Engineering Services, in consultation with the Director of Legal Services, be authorized to enter into a construction services contract with Pedre Contractors Ltd., for Contract No. 9807, for the supply and installation of distribution watermain.

CITY MANAGER’S COMMENTS

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

COUNCIL POLICY

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

Contracts are awarded on the basis of best value for fee.

PURPOSE

This report recommends that the contract for the construction and related work of the distribution watermain at Charles Avenue, Salsbury to Lakewood, East Broadway, Fraser to Prince Edward, Guelph, East Broadway to 8^th Avenue, 27^th Avenue and Laurel Street, Laurel to Willow and 26^th to 27^th Avenues, and 5^th Avenue, Commercial to Bauer be awarded to the low bidder Pedre Contracting Ltd.

BACKGROUND

The 1998 Waterworks Capital Budget and the unexpended 1997 Capital Budget provides $13.7 Million funding for distribution watermain replacement. Due to additional commitments by City forces to construct the Dedicated Fire Protection system, a portion of this work will be contracted. The watermains have reached the end of their service lives, and their proper operation is essential to provide a continuous supply of water for both domestic consumption and fire protection.

DISCUSSION

In anticipation of the above award, detailed designs and contract documents were prepared by Engineering Services staff. Bids have now been received for a construction contract that will see the replacement of 10 City blocks of watermain. The work will be administered under a lump sum/unit price construction services contract. As requested, the contractors have submitted unit prices and lump sums which will be used to calculate interim progress payments. The final cost of the contract will vary from the bid price because the estimated quantities of work for unit price items may be different than the actual quantities of work. However, this variation is expected to be small.

Three contract bidders submitted tender packages, including bonding requirements. A summary of the bids received is as follows:

Contractor Bid Price

Pedre Contractors Ltd. $680,594.26

Ponte Bros Contracting Ltd. $787,737.21

B. Cusano Contracting Inc. $1,250,553.00

Therefore, the tender submitted by Pedre Contractors Ltd. is the low bidder and meets all the contract requirements, including bonding and completion date. Pedre Contractors is qualified to complete this work, having demonstrated experience with watermain installation on a number of similar projects in a satisfactory and timely manner.

FUNDING AND COST

The low bid for Contract No. 9807 is within the Engineer’s preliminary estimate of $799,860. Funds for this contract is available in account No. 17/36/1004/999, "Distribution Watermain Replacement"

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(c) 1998 City of Vancouver