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ADMINISTRATIVE REPORT
Date: April 30, 1996
Dept. File No.1.40.96.05
TO: Vancouver City Council
FROM: General Manager Engineering Services
SUBJECT: Award of Contract No. 9602 for the Installation of
Steel Pipelines and Related Work - False Creek Area
(Dedicated Fire Protection System, First Phase)
RECOMMENDATION
A. THAT Contract No. 9602 for the Installation of Steel
Pipelines and Related Work - False Creek Area be awarded to
the low bidder meeting the contract requirements, B. Cusano
Contracting Inc., for the net total tender price of
$3,048,800, using the funding sources identified. (The
applicable G.S.T. rebate has been subtracted from the total
tendered price.)
B. THAT the bid bonds from the unsuccessful tenderer be
returned.
C. THAT the Director of Legal Services be authorized to enter
into a construction services contract with B. Cusano
Contracting Inc. for Contract No. 9602, for the Installation
of Steel Pipelines and Related Work for the DFPS, False Creek
Area, in consultation with the General Manager of Engineering
Services.
COUNCIL POLICY
Construction contracts over $300,000 are to be awarded by City Council.
PURPOSE
This report recommends that the contract to construct the first phase
of Dedicated Fire Protection System -- Steel Pipeline System be awarded
to B. Cusano Contracting Inc., the low bidder meeting qualifications.
BACKGROUND
In April 1992, City Council approved in principle the concept and
funding of a Dedicated Fire Protection System (DFPS). The system is
designed to provide large volumes of high pressure fire fighting water.
During normal operations the system will supplement the City s water
system. In the event of an emergency, when the City s water system is
disrupted, the DFPS will utilize salt water, pumped directly from the
ocean. When the DFPS project is completed, coverage will include the
Downtown, West End, Kitsilano, Downtown east side and Fairview Slopes.
The Dedicated System project includes the construction of 3 pump
stations, a dedicated system of watermains and a new radio transmitter
station on Grouse Mountain. All facilities are being designed to remain
operational following the maximum credible seismic event for the Lower
Mainland.
To date, intake structures at Coal Harbour and False Creek, the False
Creek Pump Station and the new radio transmitter station have been
completed. The Coal Harbour Pump Station will be completed in June,
1996.
The pump stations have been constructed with specialized Fire
Department connections, capable of drawing the pump station's full
capacity. One Fire Department hose tender truck, designed to
complement the DFPS, is presently in service at Fire Hall #8. A second
hose tender truck will be purchased this year from funds budgeted in
the 1996 Capital Budget. The tender trucks each carry one mile of
large volume, high pressure hose and specialized fittings to create
above-ground mains. Therefore, only a skeletal grid of underground
dedicated mains are required because of increased system coverage from
the Fire Department equipment. The pump stations can also be utilized
immediately, while the dedicated mains are being constructed.
DISCUSSION
The installation of the steel pipelines and related work represents the
fifth major construction phase of the City s Dedicated Fire Protection
System project, which was approved in principle subject to funding, by
Council on April 16, 1992.
The pipelines and related works contract will be administered as a
series of lump sums. The construction services contract includes quoted
unit prices for specific additions and deletions. The successful
contractor has submitted a detailed breakdown of the lump sum prices
tendered, which will be used for the computation of interim progress
payments. The final cost of the contract may vary as a result of
variances from the estimated quantities of work and/or changes to the
scope of work; however it is anticipated that the work will be
completed within budget.
Two complete tenders were submitted. All tenders contained the
appropriate bonding. A summary of the bids, as announced at the tender
opening, is as follows:
Contractor Tender Price
B. Cusano Contracting Inc. $3,167,200.00
Lockerbie & Hole Contracting Inc. $3,756,405.00
In accordance with City policy, which is detailed in our tender
documents, the submitted tenders are checked for arithmetic accuracy.
The true tender value is the correct extension of unit prices against
the estimated quantities and then the correct addition of all unit sum
and lump sum costs. Both tenderer's submissions were arithmetically
correct.
The tender submitted by the low bidder, B. Cusano Contracting Inc.,
meets all the contract requirements, including insurance and bonding,
and construction completion date. B. Cusano Contracting Inc. have
demonstrated experience with similar types of construction work and
have completed similar work in a satisfactory and timely manner,
according to references.
BUDGET & SUMMARY
The breakdown of the recommended low bid from B. Cusano Contracting
Inc. can be summarized as follows:
Construction Contract: $3,167,200.00
Less G.S.T. Rebate $ 118,400.00
Net Total Contract Value $3,048,800.00
The engineer s cost estimate, for the installation of steel pipelines
and related work contained in contract 9602, excluding materials
pre-purchased by the City of Vancouver, was $2,910,873.37 including net
GST. Even though the low bid submitted exceeded the engineer s
estimate by 4.7%, the low tender was close to the estimate and the
engineering team believe it represents fair market value for the
tendered scope of work.
While the construction cost for this phase of pipeline construction is
validated by the engineer's estimate, it is above the unit cost per
metre for pipeline set by the project conceptual design report and
budget. The project team recommend completing the critical pipe work
that connects the Coal Harbour and False Creek pump stations at the
present design and construction standard. This section of the DFPS
pipe system connects the three primary pump stations and contains the
key remote SCADA monitored and controlled valve stations. The post
seismic performance of this key section of pipeline will be critical to
the successful performance of the overall dedicated system.
Deep trenches for consistent seismic foundation, heavy utility
congestion in the Downtown area, and high construction standards to
ensure post seismic reliability all contribute to the overall cost for
this pipe work.
The project engineering team will investigate a variety of options for
the future downtown pipe loops that include reducing the scope of work,
lessening the post seismic resistance, or increasing the overall
project budget and/or implementation schedule.
Funds are available to be allocated from the approved 1995 and 1996
Waterworks Capital Budget for the award of construction services
contract 9602 to the low bid construction tender, meeting contract
requirements, submitted by B. Cusano Contracting Inc., for the
Dedicated Fire Protection System, Installation of Steel Pipelines and
Related Work - False Creek Area.
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