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CITY OF VANCOUVER ADMINISTRATIVE REPORT |
Report Date: |
March 10, 2005 | |
Author: |
Merv Robertson | |
Phone No.: |
604.873.7321 | |
RTS No.: |
04971 | |
CC File No.: |
1805/5752-3 | |
Meeting Date: |
March 29, 2005 |
TO: |
Vancouver City Council |
FROM: |
General Manager of Engineering Services |
SUBJECT: |
Award of Contract No. 2005-01
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RECOMMENDATION
A. THAT, subject to the conditions set out in Recommendations C and D below, Council authorize the award of Contract No. 2005-01 for the Burrard Bridge Seismic Upgrading South Approach to the low tenderer, Mutual Construction (2000) Ltd. for the Total Tender Price of $4,363,460.00, (including GST).
B. THAT the total budget for the project be confirmed at $4.7 million, with the source of funding as follows:
· $2.0 million previously approved from the Canada/BC Infrastructure Program;
· $2.5 million previously approved from the $20 million of borrowing authority for cost shared projects and available in Streets Basic Capital Order Group CB3EA6A;
· an additional $200,000 from the $20 million of borrowing authority for cost shared projects.
C. THAT, subject to the conditions set out in Recommendation D below, the General Manager of Engineering Services be authorized to execute and deliver the Notice of Award on behalf of the City, and the Director of Legal Services be authorized to execute the Form of Agreement on behalf of the City.
D. THAT no legal rights or obligations will arise or be created by Council's adoption of Recommendations A, B and C unless and until the Notice of Award has been (a) approved as to form by the Director of Legal Services and the General Manager of Engineering Services, and (b) executed and delivered by the General Manager of Engineering Services.
CITY MANAGER'S COMMENTS
The City Manager RECOMMENDS approval of A, B, C and D.
COUNCIL POLICY
Construction contracts more than $300,000 are to be awarded by Council.
PURPOSE
The purpose of this report is to obtain Council approval to award Contract No. 2005-01 for the seismic upgrading of the expansion piers at the south approach of the Burrard Bridge.
BACKGROUND
A program to improve the performance of the Granville and Burrard bridges and the Grandview Viaduct during a major earthquake was undertaken during the 1990's. All phases of the seismic upgrading of the Granville Bridge and the Grandview Viaduct have been completed as of 1996. On the Burrard Bridge, the steel truss spans have been strengthened, new improved bearings have been installed and the north approach of the bridge has been upgraded. The only seismic work remaining in this program is the strengthening of the south approach spans of the Burrard Bridge, south of False Creek.
The work consists of the strengthening of the six sets of expansion piers (bents) which are every third bent on the south end of the bridge. The work includes PCB testing and clean-up, the construction of new reinforced concrete footings overlaying and tying the three existing footings together, reinforced concrete encasement of the columns and the crossbeams, and the installation of steel lateral restraints and longitudinal restrainers.
DISCUSSION
On November 16, 2004, Council approved the seismic upgrading of the Burrard Bridge South Approach Project. A "Notice to Contractors" tender advertisement was placed in the January 17th, 2005 Journal of Commerce newspaper, and tender notices were placed with BC Bid, the BC Road Builders & Heavy Construction Association and the Vancouver Regional Construction Association. Twenty-seven companies requested and received the Tender Documents and Drawings.
Tenders for Contract No. 2005-01 for the seismic upgrading of Burrard Bridge South Approach were opened on Wednesday, March 9, 2005 and referred to the General Manager of Engineering Services for tabulation. Seven tenders were received. All tenders have been checked for completeness and accuracy by Engineering Services and the City's Consultant, Buckland & Taylor Ltd. A tabulation of the Total Tender Prices including GST is shown below with the lowest tender underlined.
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CONTRACTOR |
TOTAL TENDER PRICE
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Mutual Construction (2000) Ltd. |
$ 4,363,460.00 |
Lafarge Canada Inc. |
$ 4,370,273.29 |
Westpro Constructors Group Lt. |
$ 4,467,517.50 |
Seismic 2000 Construction Ltd. |
$ 4,791,364.77 |
Peter Kiewit Sons Co. Ltd. |
$ 5,095,340.00 |
Precision Civil Installations Ltd. |
$ 5,577,589.00 |
Kenaidan Contracting Ltd. |
$ 5,887,000.00 |
This is a lump sum Contract with unit prices for additions and deletions. Each Contractor has submitted a Total Tender Price for all work under the Contract. Also, as requested, the Contractors have submitted a breakdown of the Total Tender Price which will be used for computation of interim payments. The final cost of the contract may vary as a result of any additions and deletions, and extra or "force account" work, if required.
There will also be various costs incurred for this project which will be in addition to the Total Tender Price in the Contract and these will include engineering consultant fees, plugging of catch basins by City Forces, cleanup of PCB's by an environmental Contractor, tender advertisement costs, printing and delivery of notices, etc. and the City's overhead.
The tender submitted by the low bidder, Mutual Construction (2000) Ltd., is in accordance with the specifications in the Contract documents and is deemed reasonable. The Contractor has provided an acceptable construction schedule. This company has several years experience in related construction work, and their qualifications are considered acceptable for this Contract. Therefore, it is recommended that they be awarded Contract No. 2005-01.
FINANCIAL IMPLICATIONS
Prior to tendering, the total estimated cost and budget for the project was $4.5 million. On November 16, 2004, Council authorized the City to participate in the Canada/British Columbia Infrastructure Program, whereby Federal and Provincial funding of up to $2 million would be provided to the Burrard Bridge Seismic Upgrading project, and Council also approved that $2.5 million be allocated as the City's share from the $20 million approved through the Capital Plan plebiscite for cost shared projects. Funding of $4.5 million for the project has been set up in Streets Basic Capital Order Group CB3EA6A.
However, considering the low bid by Mutual Construction (2000) Ltd. for the construction contract, Engineering Consultant fees of $120,000 for the design, construction administration and inspection, preliminary PCB clean-up work, work by City Forces, and overhead and a small contingency, it is now expected that the total project costs will be closer to $4.7 million. The tender by Mutual Construction has been reviewed and has been deemed reasonable.
It had not been anticipated when preparing the original cost estimate that construction prices including reinforcing steel, structural steel and placement of concrete would have escalated as they have over the last year. It is the result of these cost increases since our cost estimate was prepared, that there is a shortfall of about $200,000 in the funding. As the original $2.5 million of the City's share of the project costs were approved to be allocated from the $20 million of borrowing authority approved through the 2003 - 2005 Capital Plan plebiscite to provide the City share of cost shared projects, it is recommended that the allocation from the $20 million be increased by $200,000 to cover the expected shortfall for this project.
CONCLUSION
It is recommended that Contract No. 2005-01 for the Seismic Upgrading of the Burrard Bridge South Approach be awarded to the low bidder, Mutual Construction (2000) Ltd., and that the allocation from the $20 million of borrowing authority for cost shared projects be increased from $2.5 million to $2.7 million for this project.
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