ADMINISTRATIVE REPORT

Date: June 3, 1998
Author/Local: G. Sutherland/7565

CC File No. 4251

TO:	Vancouver City Council
FROM:	Director of Civic Theatres, in consultation with Manager of Facilities Development
SUBJECT:	Civic Theatres - Award of Contracts for Orpheum/QET Construction Package - Summer `98

RECOMMENDATION

THAT Pentium Management Corporation Inc. be awarded the general construction contract for the renovation of the Orpheum/QET Construction Package - Summer `98 in the amount of $699,543 plus GST; source of funding to be Theatres Capital Account.

DIRECTOR'S COMMENTS

The Director of Civic Theatres RECOMMENDS approval of the foregoing.

POLICY

· Construction contracts over $300,000 require the approval of Council.

· Contracts are awarded on the basis of best value for the City.

PURPOSE

This report seeks authorization to award contracts for the first construction package in Phase 2 of the Civic Theatres upgrading work.

BACKGROUND

In February 1998, Council approved the allocation of $4.1 million for Phase 2 of several upgrading projects in the Queen Elizabeth, Vancouver Playhouse and Orpheum Theatres. The first package of work will upgrade concession stations in the Orpheum and Queen Elizabeth Theatres, as well as, improve the coat check/box office area in the Orpheum. Detailed development of the next package of work which includes major upgrades to the Queen Elizabeth Theatre and Vancouver Playhouse is scheduled for the early fall.

DISCUSSION

An invitation was publicly advertised for general contractors with similar renovation experience to prequalify for the work. Nine firms prequalified and six submitted tenders as follows:

Vanbots Construction Inc.$788,000
Pax Construction Ltd.$785,785
CDC Construction Ltd$774,797
Halse-Martin Construction Co. Ltd.$726,000
Civil Construction Co. Ltd.$724,800
Pentium Management Corporation$699,543

Supply and installation of food and beverage service equipment was tendered separately to three specialist companies. Three tenders were submitted as follows:

Alex Gair & Sons (1997) Ltd. ⁽¹⁾
Russell Food Equipment$211,846
TSM Engineered Products$184,948

⁽¹⁾ Did not include a bid security causing the tender to be rejected.

On the basis of the low bid and compliance with tender requirements, it is recommended that the general contract be awarded to Pentium Management Corporation in the amount of $699,543 (base bid) plus GST. On the same basis, it is recommended that the sub-contract to supply and install food and beverage service equipment be awarded to TSM Engineered Products in the amount of $184,948 plus GST. This sub-contract value is already included in the general contract amount as a cash allowance.

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(c) 1998 City of Vancouver