ADMINISTRATIVE REPORT

Date: Sept 3, 2002
Author/Local: Y. Olund/6611

RTS NO. 02934

CC File No. 1805

Council: September 17, 2002

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services
SUBJECT:	New Chess Street Works Yard Award of Tenders for Concrete Work and Structural Steel

RECOMMENDATION

A. THAT Council approve award of Contract No.0303000 for Concrete to the low complete tenderer, Smith Bros. & Wilson (B.C.) Ltd., in the amount of $1,906,464.00, which includes PST and GST (less any municipal rebate received). The funding is to be provided from Yards Basic Capital Account Number 30003133.

B. THAT Council approve award of Contract No.0505120 for Structural Steel to the low complete tenderer, Solid Rock Steel Fabricating Co. Ltd., in the amount of $791,410.00, which includes PST and GST (less any municipal rebate received). The funding is to be provided from Yards Basic Capital Account Number 30003133.

C. THAT the General Manager of Engineering Services be authorized to execute and deliver Notices of Award on behalf of the City, and the Director of Legal Services be authorized to execute and deliver contracts No. 0303000 and No.0505120 on behalf of the City.

D. THAT no legal rights or obligations will be created or arise by Council's approval of Recommendations A and B unless and until a Notice of Award is executed and delivered by the City to Smitb Bros.& Wilson (B.C.) Ltd. and Solid Rock Steel Fabricating Co. Ltd.

GENERAL MANAGER'S COMMENTS

The General Manager of Engineering Services RECOMMENDS approval of the foregoing.

COUNCIL POLICY

The policy of Council is to award contracts for the purchase of equipment, supplies and services that will give the highest values based on quality, service and price.

Construction contracts with a value over $300,000 are to be awarded by Council.

PURPOSE

This report seeks authorization to award construction tenders for Concrete and Structural Steel for the New Chess Street Yard.

BACKGROUND

· Development of the new Chess Works Yard is part of the 2000 - 2002 Capital Plan.
· On July 31, 2001, Council approved awarding the design and construction management contract for the yard to Omicron Consulting Group.
· On November 20, 2001, Council approved implementing LEED^TM sustainable practices into the two main buildings in the yard.
· On July 9, 2002 Council approved award of the piling and earthworks contracts for this project to Griffiths pile driving and Conwest Contracting respectively.
· Construction management is being used for the works yard development which involves sequential tendering for the main building components.

DISCUSSION

This report recommends award of Concrete and Structural Steel tenders for the new Chess Works Yard project. From a public invitation for expression of interest for prequalifications, five contractors were prequalified for Concrete and seven contractors were prequalified for Structural Steel. Tenders for concrete and structural steel were opened on Aug 20, 2002. The following complete tenders were received (which include PST and GST):

Concrete
Contract No. 0303000

Smith Bros.&Wilson (B.C.) Ltd .	$1,906,464.00
N. Walace & Company	$2,010,034.00
R-Four Contracting Ltd.	$2,107,646.00

The consulting engineer's estimate for this work is $2,182,585.00. The low bid is below the engineer's estimate and fits within the overall budget for the project. On the basis of best value, it is recommended that the concrete contract be awarded to Smith Bros.& Wilson (B.C.) Ltd., the low bidder, in the amount of $1,906,464.00 including GST&PST.

Structural Steel
Contract No. 0505120

Solid Rock Steel Fabricating Co. Ltd.	$791,410.00
Marsh Steel Ltd.	$861,120.00
XL Ironworks Co.	$950,591.00
George Third & Son	$987,506.00

The consulting engineer's estimate for this work is $903,047.00. The low bid is below the engineer's estimate and fits within the overall budget for the project. On the basis of best value, it is recommended that the structural steel contract be awarded to Solid Rock Steel Fabricating Co. Ltd., the low bidder, in the amount of $791,410.00 including GST&PST.

All tenderers have been notified of these recommendations.

FINANCIAL IMPLICATIONS

The overall budget approved for this project is $21.884 million. These tenders awards are below the engineer's estimate. Funding for the project is approved in the 2000 - 2002 Capital Plan and Capital Financing Fund Loans. Funding for these tenders which totals $2,697,874 is available in Yards Basic Capital account no. 30003133.

SUSTAINABILITY

Contracts covered by these tenders incorporate a number of sustainable features. Reinforcing steel will contain 75% recycled material, structural steel will contain 80% recycled steel, the cement in concrete will contain between 30%-60% flyash depending on the curing time requirements. There will be a strong emphasis on locally manufactured material.

A Construction waste management program has also been specified for these tenders with a goal of recycling in excess of 80% of all construction waste.

* * * * *

(c) 1998 City of Vancouver