ADMINISTRATIVE REPORT

                                      Date:  June 10, 1997
                                      Dept.File No.1.40.97.07
                                      CC File: 1801-1

   TO:       Vancouver City Council

   FROM:     General Manager of Engineering Services

   SUBJECT:  Award of Contract No. 9708, for the Supply and Installation of
             Distribution Watermain


   RECOMMENDATION

        A.   THAT Contract No. 9708 for the supply and installation
             ofdistribution watermain be awarded to the low bidder meeting
             the contract requirements, Pedre Contractors Ltd., for a total
             tender price of $757,642.13; with the source of funds to be
             account code 17/36/1004/999.

        B.   THAT the bid bonds of the unsuccessful tenderers be returned.

        C.   THAT the General Manager of Engineering Services, in
             consultation with the Director of Legal Services, be
             authorized to enter into a construction services contract with
             Pedre Contractors Ltd., for Contract No. 9708, for the Supply
             and Installation of Distribution Watermain.

   GENERAL MANAGER'S COMMENTS

        The City Manager RECOMMENDS approval of A, B and C.

   COUNCIL POLICY

   Construction contracts over $200,000 are to be awarded by Council. 
   Contracts are to be awarded on the basis of best value for fee.

   PURPOSE

   This report recommends that the contract for the construction and
   related work of the distribution watermain at 48th Ave. from Main to
   Fraser, 50th Ave. from Ontario to Main, 18th Ave. from Oak to Laurel,
   18th from Windsor to Glen and 17th Ave. from Glen to Inverness be
   awarded to the low bidder, Pedre Contracting Ltd.

   BACKGROUND

   The 1997 Waterworks Capital Budget provides $8.3 Million funding for
   distribution watermain replacement. This work was chosen to be
   contracted due to additional commitments by City forces to construct the
   Dedicated Fire Protection System, approximately 25% more work than
   usual.  The watermains have reached the end of their service lives, and
   their proper operation is essential to provide a continuous supply of
   water for both domestic consumption and fire protection.

   DISCUSSION

   In anticipation of the above award, advanced designs and contract
   documents were prepared by Engineering Services staff.  Bids have now
   been received for a construction contract that will see the replacement
   of 9 City blocks of watermain.  The work will be administered under a
   lump sum/unit price type, construction services contract.  As requested,
   the contractors have submitted unit prices and lump sums, which will be
   used to calculate interim progress payments.  The final cost of the
   contract will vary slightly as a result of variances from the estimated
   quantities of work, or from extra work, but it is anticipated this
   variation will be small.

   Three contract bidders submitted tender packages, including bonding
   requirements.  A summary of the bids received is as follows:

   Contractor                         Bid Price

   Pedre Contractors Ltd.             $757,642.13
   Ponte Bros Contracting Ltd.        $763,601.00
   B. Cusano Contracting Inc.         $959,300.00

   Therefore, the tender submitted by Pedre Contractors Ltd. is the low
   bidder and meets all the contract requirements, including bonding and
   completion date.  Pedre Contractors is well qualified to complete this
   work, having demonstrated experience with watermain installation on a
   number of similar projects in a satisfactory and timely manner.

   FUNDING AND COST

   The low bid for Contract No. 9708 is within the preliminary engineer's
   estimate of $903,000.  Funding for this contract is available in account
   No. 17/36/1004/999, "Distribution Watermain Replacement"


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