ADMINISTRATIVE REPORT

Date: February 5, 2002
Author/Local: A. Grill

RTS NO. 02504

CC File No. 1805

Council: February 19, 2002

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services
SUBJECT:	Award of Contract No. 2001-11 for Main Sewer Reconstruction

RECOMMENDATION

A. THAT Contract No. 2001-11 for main sewer reconstruction be awarded to the low bidder meeting the contract requirements, Sandpiper Contracting Ltd., for a total tender price $742,633.50 (GST included); with funding provided by the Province under the Local Government Grants Program to assist in main sewer replacement (order group CA2ED16).

B. 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 Sandpiper Contracting Ltd. for Contract No. 2001-11, main sewer reconstruction.

C. THAT the bid bonds of the unsuccessful tenderers be returned upon execution of the construction services contract.

GENERAL MANAGER'S COMMENTS

The General Manager of Engineering Services RECOMMENDS approval of A, B, and C.

COUNCIL POLICY

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 the related work of the following main sewers:

· Balaclava Street; W. 10^th Ave. to 36 meters north
· Lane East of Balaclava St.; W. 10^th Ave. to W. 11^th Ave.
· W. 2^nd Avenue; Balaclava St. to Waterloo St.
· East 24^th Avenue; Lane East of Fraser St. to Carolina St.
· Lane West of Fraser St.; East 23^rd Ave to East 24^th Ave.

be awarded to the low bidder, Sandpiper Contracting Ltd.

DISCUSSION

In 2001, the City received $1,049,250 from the Province under the Local Government Grants Program to assist in main sewer replacement. The City's application for financial assistance had been accepted based in part on the environmental benefits provided by accelerating the replacement of the original combined sewer system with separated sanitary and storm systems. This funding, which is supplemental to the City's regular main sewer replacement capital budget, is being used to finance this main sewer reconstruction contract.

The contract documents and detailed designs for the replacement of the sewers listed above were prepared by Engineering Services staff. 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. Six contract bidders submitted complete tender packages, including bonding requirements. A summary
of the bids received are as follows:

Contractor Bid Price
1. Sandpiper Contracting Ltd. $742,633.50
2. Pedre Contractors Ltd. $792,998.40
3. Targa Contracting Ltd. $832,960.76
4. B. Cusano Contracting Inc. $844,203.90
5. Ponte Bros. Contracting Ltd. $902,063.50
6. Double M. Excavating Ltd. $1,120,825.00

FINANCIAL IMPLICATIONS

The low bid for the contract is within the Engineer's preliminary contract estimate of $810,000. Therefore, staff recommend that Sandpiper Contracting Ltd. be awarded Contract No. 2001-11 for Main Sewer Reconstruction. Funds for this project are available from the Local Government Grants Program from the Province to assist in main sewer replacement (order group CA2ED16, Order 30003122).

The total cost estimate for the work, which includes the contract price, 10% overhead, contingency, inspection costs, and related City work , is $950,000. The final cost of the contract will vary from the bid price as the estimated quantities of work for unit price items may be different from the actual quantity of work.

* * * * *

(c) 1998 City of Vancouver