ADMINISTRATIVE REPORT

Date: January 17, 2001
Author/Local: Doug Doyle/7307

RTS NO. 01859

CC File No. 3651

Council: January 30, 2001

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services
SUBJECT:	Direct Purchase of Dedicated Fire Protection System Fire Hydrants

RECOMMENDATION

THAT Council approve the direct purchase of twenty-five (25) Dedicated Fire Protection System (DFPS) Fire Hydrants from Olympic Foundry Inc., at a cost of $347,542 Canadian, plus GST and waive the standard tender process.

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 of $300,000 are referred to Council for award.

Purchases of a value greater than $100,000 are tendered to the public.

PURPOSE

The purpose of this report is to obtain Council approval for the purchase of high pressure fire hydrants for the Dedicated Fire Protection System and waive the tendering process.

DISCUSSION

Funds for this purchase are available from the current Waterworks Capital Plan.

Council has previously approved the construction of the DFPS system in the Kitsilano area.

The Water Design Branch of the Engineering Services Department requires the additional 25 high performance fire hydrants for the extension of the Dedicated Fire Protection System (DFPS) into the Kitsilano/Southshore area. The purpose of the DFPS system is to provide emergency firefighting water in the event of a major incident, such as an earthquake.

In 1996, Olympic Foundry Inc. of Seattle was the sole bidder on Tender No. 57-95-05 for 25 high performance fire hydrants required for the initial phase of the DFPS project. The Olympic Foundry product is the only known hydrant of its type and is in use in a similar application by the City of San Francisco. The hydrant design has been modified by the City of Vancouver to include a drain valve that permits these hydrants to be used in Vancouver's climate.

In 1995, local foundries were queried as to their interest in producing the high performance fire hydrants. Dobney Foundry (corporately related to Olympic) and Terminal City Ironworks were unable to produce the hydrants at a reasonable price when compared to Olympic Foundry's existing operation. Queries in 1999 with Terminal City indicated that they were unprepared to develop and test a high pressure hydrant at a price which would be competitive with Olympic Foundry. Terminal City has also subsequently closed their foundry operation, and no longer produces castings themselves. Queries to the Fire Department of the City of San Francisco have indicated that they know of no other supplier of high pressure fire hydrants and that they are not considering another supplier at this time.

It is also beneficial to maintain the same equipment on the DFPS system in order to ensure that the firefighters' familiarity with the equipment allows for their speedy use. The Water Design Branch examined conceptual designs for alternative hydrants, but found that no cost savings could be found by developing a proprietary hydrant.

This hydrant purchase will supply the City with the hydrants required for the DFPS capital works through 2003. The total cost of the hydrants is anticipated to be approximately $347,542.50 plus GST. The City is receiving a price benefit of approximately $2,000.00 per hydrant by purchasing the 25 hydrants at this time when compared to a smaller order.

The price per hydrant of $13,901.70 is fair and reasonable when compared to our previous purchases. The previous purchase price, in 1998, for these hydrants was: $12,685.00. The change in valuation of the Canadian Dollar has resulted in the majority of the cost difference.

Accordingly, we seek Council's approval to waive the formal tender process and purchase the high performance hydrants directly from Olympic Foundry Inc. for a total cost of $347,542.50 in Canadian funds.

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(c) 1998 City of Vancouver