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. - 2 - 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. - 3 - 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. * * * * *