A13


                                                        ADMINISTRATIVE REPORT


                                                                                                          Date: March 10, 1997 
                                                                                                          Dept. File:1.40.97.02
                                                                                                          CC File No. 1801-1   


     TO:              Vancouver City Council

     FROM:    General Manager of Engineering Services

     SUBJECT:         Award of Contract No.  9705: Installation of Valve Chambers and Related  Work at Three Sites -  Dedicated
                      Fire Protection System(DFPS)


     RECOMMENDATION

              A.      THAT Contract No. 9705 for  the Installation of Valve Chambers and Related Work at Three Sites be awarded
                      to the low  bidder meeting the  contract requirements,  KWH Constructors Ltd.,  for the net  total tender
                      price of  $801,782.90, 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 tenderers be returned.

              C.      THAT the Director  of Legal Services be  authorized to enter  into a construction  services contract with
                      KWH Constructors  Ltd. for Contract No. 9705, for the Installation of Valve  Chambers and Related Work at
                      Three Sites for the DFPS, in consultation with the General Manager of Engineering Services.


     COUNCIL POLICY

     Construction contracts over $300,000 are to be awarded by City Council.




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     PURPOSE

     This report recommends that  the contract to construct three valve chambers and  related work as part of the completion of
     the first phase of the DFPS pipeline system be awarded to KWH Constructors, 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  water for fire fighting.  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 and Kitsilano.

     The  DFPS 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 and  pump stations at  Coal Harbour  and False Creek,  the new radio  transmitter station, and
     1500m of 600mm steel pipelines  have been completed.   One Fire Department hose  tender truck, designed to  complement the
     DFPS, is presently in service at Fire Hall #8.  An additional 1600m of 600mm pipeline will be  completed this year by City
     forces which will complete the link between the False Creek and Coal Harbour Pump Stations.


     DISCUSSION

     The  installation of the  valve chambers and  related work is a  precursor to the  1600m of pipeline to  be installed this
     summer to complete the pipeline link between False Creek and Coal Harbour.

     The  valve chambers and related works contract  will be adminis-tered 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.







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     Five 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                                        Total Tender Price  

              KWH Constructors Ltd.                                  $  832,920.00
              Westport Construction Group                            $  889,384.00
              B. Cusano Contracting                                  $  963,000.00
              Cicuto & Sons Contractors                                  $  979,011.48
              Sand Piper Contracting                                 $1,048,493.00


     All tenderer's submissions were arithmetically correct.

     The tender submitted by  the low bidder, KWH Constructors Ltd., meets  all the contract requirements, including  insurance
     and bonding, and construction  completion date. KWH Constructors  Ltd. have demonstrated experience with  similar types of
     construction work and have completed similar work in a satisfactory and timely manner, according to references.


     BUDGET AND SUMMARY

     The breakdown of the recommended low bid from KWH Constructors Ltd. can be summarized as follows:

                      Construction Contract:    $778,430.00
                      Net      G.S.T.                   $ 23,352.90
                      Net Total Contract Value  $801,782.90


     The engineer s  cost estimate,  for the  installation  of valve  chambers and  related work  at three  sites contained  in
     contract 9705 was $980,560.00 including net GST.

     Subject  to Council approval today  of the Waterworks Capital  Budget,  funds are available for  the award of construction
     services contract 9705  to the low bid construction  tender, meeting contract requirements, submitted by  KWH Constructors
     Ltd., for the Dedicated Fire Protection System, Installation of Valve Chambers and Related Work at Three Sites.



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