ADMINISTRATIVE REPORT

Date: Sept 16, 2002
Author/Local: Y. Olund/6611

RTS NO. 02969

CC File No. 1805

Council: October 1, 2002

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services
SUBJECT:	New Chess Street Works Yard Award of Tender for Pre-Engineered Buildings

RECOMMENDATION

A. THAT Council approve award of Contract No.1313120 for Pre-Engineered Buildings to the low complete tenderer, FP Construction Ltd., in the amount of $1,926,365.00 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 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. 1313120 on behalf of the City.

C. 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 FP Construction 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 a construction tender for Pre-Engineered Buildings 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 Pre-Engineered Buildings for the new Chess Works Yard project. Pre-Engineered buildings are constructed from a structural steel frame with insulated metal cladding and an insulated metal roof. The new garage and radio shop building, the storage warehouse, the storage sheds and covered vehicle parking areas will be constructed as pre-engineered buildings and are included in this tender.

From a public invitation for expression of interest for prequalifications, five contractors were pre-qualified . Tenders were opened on Aug 16, 2002. The following complete tenders were received (which include PST and GST):

Pre-Engineered Buildings
Contract No. 1313120

FP Construction Ltd.	$1,926,365.00
Smith Bros. & Wilson Ltd.	$2,202,086.00
Interlox Building Systems Ltd.	$2,253,210.00
Humphrey Metal Buildings Inc.	$2,308,483.00

The consulting engineer's estimate for this work is $2,306,048.00. 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 Pre-Engineered Buildings contract be awarded to FP Construction Ltd., the low bidder, in the amount of $1,926,365.00, including PST and GST.

All tenderers have been notified of these recommendations.

FINANCIAL IMPLICATIONS

The overall budget approved for this project is $21.884 million. This tender award is below the engineer's estimate. Funding for the project is approved in the 2000 - 2002 Capital Plan and Capital Financing Fund Loans. Funding for this tender which totals $1,926,365.00 is available in Yards Basic Capital account no. 30003133.

SUSTAINABILITY

Contracts covered by this tender incorporate a number of sustainable features. Reinforcing steel will contain 75% recycled material and structural steel will contain 80% recycled steel. There will also be a strong emphasis on locally manufactured material. A Construction waste management program has been specified for these tenders with a goal of recycling in excess of 80% of all construction waste.

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(c) 1998 City of Vancouver