ADMINISTRATIVE REPORT

Date: October 8, 2002
Author/Local: P.Bremner/6720

RTS NO. 03025

CC File No. 1805

Council: October 22, 2002

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services
SUBJECT:	New Chess Street Works Yard Award of Tender for Mechanical Systems

RECOMMENDATION

A. THAT Council approve award of Contract No. 1515000 for Mechanical Systems to the low complete tenderer, Fred Welsh Ltd., in the amount of $2,616,722.00 which includes PST and GST (less any municipal rebate received). The funding is to be provided from Yards Basic Capital Account Number 30005178;

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. 1515000 on behalf of the City ,and

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 Fred Welsh 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 Mechanical Systems 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.
· Council has previously approved award of contracts for piling, earthworks, concrete, structural steel and pre-engineered buildings.
· 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 Mechanical Systems for the new Chess Works Yard project. This contract covers the building heating and cooling system as well as the building plumbing and fire sprinklers.

From a public invitation for expression of interest for prequalifications, four contractors were pre-qualified and picked up documents. Tenders were opened on September 27, 2002. Of three tenders submitted, the following two complete tenders were received (which include PST and GST):

Mechanical Systems
Contract No. 1515000

Fred Welsh Ltd.	$2,616,722.00
Brighter Mechanical Ltd.	$2,907,120.00

The consulting engineer's estimate for this work is $2,683,530. 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 Mechanical Systems contract be awarded to Fred Welsh Ltd., the low bidder, in the amount of $2,616,722.00, 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 $2,616,722.00 is available in Yards Basic Capital account no. 30005178.

SUSTAINABILITY

Contracts covered by this tender incorporate a number of sustainable features. A energy efficient ground source heat pump system uses the constant temperature of the earth to heat and cool the buildings. Low flow water fixtures will be used including dual flush toilets and waterless urinals. 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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