Vancouver City Council |
ADMINISTRATIVE REPORT
Date: July 7,2003
Author/Local: Y.Olund/6611
RTS NO. 03505 CC File No. 1805
Meeting Date: July 22, 2003
TO:
Vancouver City Council
FROM:
General Manager of Engineering Services
SUBJECT:
New Engineering Works Yard Award of Tender for Fuel Systems
RECOMMENDATION
A. THAT Council approve award of Contract No.1313300 for fuel systems to the low complete tenderer, Golden Globe Construction Ltd., in the amount of $ 433,254 which includes PST and GST (less any municipal rebate received). The funding is to be provided from 2002 Yards Basic Capital account numbers 30005178 in order group CA3EF;
B. THAT the General Manager of Engineering Services be authorized to execute and deliver a Notice of Award on behalf of the City, and the Director of Legal Services be authorized to execute and deliver contract No. 1313300 on behalf of the City ,and
C. THAT no legal rights or obligations will be created or arise by Council's approval of Recommendation A unless and until a Notice of Award is executed and delivered by the City to Golden Globe 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 fuel systems for the new works yard project.
BACKGROUND
· Development of the new engineering works yard is part of the 2000 - 2002 Capital Plan.
· The new yard will replace the existing Cambie Yard which is nearing the end of its useful life.
· 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 LEEDTM sustainable practices into the two main buildings in the yard. LEEDTM ( Leadership in Energy and Environmental Design) is a means of measuring sustainable building practices in five key areas: Sustainable Sites, Water Efficiency, Energy & Atmosphere, Materials & Resources, and Indoor Environmental Quality.
· Construction management is being used for the works yard development which involves sequential tendering for the main building components.
· Council has previously approved award of contracts for piling, earthworks, concrete, structural steel, pre-engineered buildings, mechanical systems, electrical systems, communication systems, exterior glazing, engineered wood, metal roofing, metal wall cladding and steel stud wall systems.DISCUSSION
This report recommends award of a contract for fuel systems. This contract covers purchase and installation of fuel tanks, pumps, dispensers and associated piping and electrical work for the fuel island at the new yards. From a public invitation for expression of interest, 5 contractors were pre-qualified for this tender.
Two tender processes were held for this work. In late May, the fuel system was tendered as part of a larger package which included car wash and garage equipment. Bids closed on June 10th with prices substantially over the budget. In order to meet the project budget, this tender was cancelled and a revised tender with a reduced scope of work was issued on June 16th. All 5 pre-qualified bidders were invited to submit a bid for the new tender package. Bids were closed on June 25th. The following complete bids were received:
Golden Globe Construction Ltd.
$433,254.00
Kedco Constructors Ltd.
$510,145.00
The consulting engineer's estimate for this work is $369,910. The low bid is above the engineer's estimate and engineering staff will work with Golden Globe Construction to implement cost savings. On the basis of best value, it is recommended that the fuel systems contract be awarded to Golden Globe Construction Ltd., the low bidder, in the amount of $433,254, 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 is within the budget for the project. Funding for the project is approved in the 2000 - 2002 Capital Plan and Capital Financing Fund Loans. Funding for this tender which totals $433,254 is available in 2002 Yards Basic Capital account numbers 30005178 in order group CA3EF.
SUSTAINABILITY
This Contract incorporates a number of sustainable features:
· Steel piping and tanks have a high recycled content
· Care and effort has been taken in the fuel system design to prevent the chance of contamination of the surrounding ground and storm system with fuel.
· A construction waste management program has been specified for this contract with a goal of recycling in excess of 80% of all construction waste.* * * * *