Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO: Vancouver City Council

FROM: General Manager of Engineering Services

SUBJECT: Award of Contract No. 9912 for the Supply and Installation of

RECOMMENDATION

Construction contracts over $300,000 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 following distribution watermains:
· Quesnel Drive between W. King Edward Avenue and W. 16th Avenue
· W. 16th Avenue between Dunbar Street and Quesnel Drive;
· W. 23rd Avenue between Blenheim Street and Quesnel Drive;
· W. 24th Avenue between Blenheim Street and Quesnel Drive;
· W. 28th Avenue between Dunbar Street and Quesnel Drive;
· Puget Drive between W. 33rd Avenue and Eddington Drive;
· W. 33rd between Larch Street and Trafalagar Street;
· W. 34th Avenue between Dunbar Street and Camosun Street;
· Crown Street between W. 33rd Avenue and W. 34th Avenue
· W. 36th Avenue between Larch Street and Vine Street;
· Vine Street between W45th Avenue and W. 49th Avenue; and
· W. 43rd Avenue between Dunbar Street and Blenheim Street

be awarded to the low bidder - Sandpiper Contracting Ltd.

DISCUSSION

The 1999 Waterworks Capital Budget and remaining 1998 Capital Budget funds provide approximately $11.7 Million of funding for distribution watermain replacement. The watermains in this contract are near the end of their service lives. Their replacement will ensure an adequate and continuous supply of water for both domestic consumption and fire protection.

Detailed designs and contract documents were prepared by Engineering Services staff for the replacement of the watermains listed above. The work will be administered under a lump sum/unit price construction services contract. Lump sums for each tender item and unit prices are used to calculate interim progress payments to the contractor.
Seven contract bidders submitted complete tender packages, including bonding requirements. A summary of the bids received follows:

Contractor Bid Prices
1. Sandpiper Contracting Ltd. $1,877,625.30
2. Pedre Contractors Ltd. $2,181,141.50
3. Targa Contracting Ltd. $2,259,968.40
4. MCI Construction Ltd. $2,367,268.00

The low bidder, Sandpiper Contracting Ltd., appears qualified to supply and install watermain based on their satisfactory completion of similar work in other municipalities. Therefore, staff recommend that Sandpiper Contracting Ltd. be awarded Contract No. 9912 for the supply and installation of watermain.

FUNDING AND COST

The low bid for Contract No. 9912 is within the Engineer's preliminary contract estimate of $2,566,394.86. Typically the contract estimate, which is based on previous contract costs, falls within the middle of the contractors' bids. However, a slowdown in local construction has resulted in a relatively large number of contractors submitting very competitive bids for this work.

The total cost estimate for the work, which includes the contract price, contingency, 10% overhead, related City work and inspection costs, is $2,497,241.65. 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. Funds for this project are available from the distribution watermain replacement program (order group C07E1A).

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ag990727.htm

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