ADMINISTRATIVE REPORT

Date: July 9, 2001
Author/Local: P. Bremner/6720

RTS NO. 02213

CC File No. 1805

Council: July 31, 2001

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services
SUBJECT:	Award of Contract - 1353 Chess Street - Works Yard

RECOMMENDATION

A. THAT Council authorize the General Manager of Engineering Services to enter into a contract with the Omicron Consulting Group, a registered general partnership of Omicron Technologies Ltd., Tim Loo & Associates Ltd., Bill Tucker Investments Ltd., and GR Sawatsky & Associates Ltd. ("Omicron") for:

i) Detailed design and construction management at a total cost of $1,511,850 plus GST; and,
ii) General project services as outlined in this report at a cost not to exceed $1,056,000 plus applicable taxes with funding to be provided from the 2001 Yards Basic Capital Budget;

B. THAT the General Manager of Engineering Services be authorized to execute and deliver the contract on behalf of Council once the contract is in a form which is satisfactory to the Director of Legal Services; and,

C. THAT no legal rights are hereby created and none shall arise unless and until the contract is approved as to form by the Director of Legal Services and executed and delivered by the General Manager of Engineering Services.

GENERAL MANAGER'S COMMENTS

The City Manager and the General Manager of Engineering Services RECOMMEND approval of A, B and C.

COUNCIL POLICY

Council must approve consulting contracts that exceed $30,000.

PURPOSE

The purpose of this report is to seek Council approval to award a design and construction management contract to Omicron for the Chess Street Works Yard.

BACKGROUND

· In 1996, Engineering Services began the planning process for a replacement of the Cambie Works Yard as the existing buildings were near the end of their useful life and the site was under pressure from adjacent residential developments.

· The City has purchased land for the new works yard on a portion of the old Burlington Northern Rail Yard northeast of the Via Rail Station.

· The majority of the required funding for the new yard is included in the current Capital Plan.

· The first phase of the yard design is now complete which has established the overall building layout and site plan. An overall site plan is attached. This plan is based on extensive interviews and workshops with the superintendents, foremen and staff. The first phase includes a detailed vehicle inventory, user space needs, draft outline specifications, special equipment requirements, and updated cost estimates.

· The next phase of work is the detailed design and construction management. Construction management project delivery uses sequential tendering of the various components of the yard. For this project, construction management involves:

· having a construction manager actively take part in the design stage giving input into the constructability, cost, value engineering, and schedule;
· tendering with options allowing greater flexibility to adjust the work based on price;
· prequalifying trades and competitively tendering the works; and,
· flexibility to incorporate green design initiatives.

· A public process has been used to select a consultant as discussed below.

DISCUSSION

Process

Staff initially sought expressions of interest and proposals for design services only. Four firms responded with proposals; unfortunately, these did not meet the City's needs. In order to save the time lost through the initial unsuccessful process, two firms (Kom Lynn & Associates and Omicron) were asked for proposals directly rather than issuing a new request for expressions of interest. Construction management was also incorporated into the request to save time in tendering for this separately.

Concerns were raised by the original proponents that the new process was not public and that they, or others may be interested in submitting proposals on this basis. Acknowledging these concerns, expressions of interest were readvertised in two issues of the Journal of Commerce and an independent advisor was engaged in order to ensure the proponents of a fair evaluation process.

An evaluation committee was established consisting of four staff and an independent advisor. Selwyn Dodd of Blewett Dodd Architecture was selected for the advisor role due to his many years as a consulting architect involved in both design and construction. The advisor took part as a full committee member in both the short-listing and the final evaluation.

Following a request for expressions of interest, the following four firms were short-listed and responded to a detailed Request for Proposals:
· Kom Lynn and Associates Ltd. with N. Wallace & Company Ltd.;
· Ledcor Industries Ltd with Busby and Associates Architects Ltd.;
· Omicron; and,
· Unitech Construction Management Ltd. with Larry McFarland Architects Ltd.

Evaluation

Proposals were evaluated by the committee based on demonstrated ability, qualifications and experience of the team and key individuals, past projects of similar scope, references, and best value to the City based on quality, service and price. Based on a review of the proposals, interviews and references, the General Manager of Engineering Services recommends Omicron for this phase of the project.

Omicron has assembled a team of professionals with expertise in all areas required for this project. The project manager assigned to the team comes with strong references and recent experience on the new Kennedy Heights Printing Plant for Pacific Press, Richmond City Hall and the e-court high tech facility. Team members have been involved with a range of projects including the Township of Langley's engineering operations centre and the Vancouver Park Board's Evans Yard. Omicron's experience and knowledge will provide good value to the City.

Scope of Work

In this phase, the role of the consultant is to provide full design services and to provide construction management services from the design stage through construction to occupancy.

Omicron has proposed a fixed fee of $1,511,850 for the main design and the construction manager. General project services would be invoiced at cost plus 5% administration (no overhead on items paid directly by the City).

General project services cover items such as site superintendent, site safety, general labour, temporary facilities, office, vehicle, equipment, security, survey, insurance, site clean-up and disbursements. Further work by Omicron and specialty subconsultants will be retained as required such as geotechnical, environmental, energy efficiency, material testing and inspection. General project services are not to exceed $1,056,000 and are further detailed in Omicron's proposal dated June 22, 2001 which will form part of the contract.

FINANCIAL IMPLICATIONS

Cost of the design and the construction manager will be a fixed fee of $1,511,850 plus GST. General project services will be at cost plus administration not to exceed $1,056,000 plus applicable taxes. Funding for the above work is available in the 2001 Yards Basic Capital Budget.

CONCLUSION

Staff have conducted a public proposal call and a thorough proposal evaluation for the design and construction management of the new works yard. Omicron is recommended for this phase of the works yard project. Omicron has assembled a comprehensive team for this project with varied staff experience including past works yards.

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(c) 1998 City of Vancouver