Supports Item No.  2
   T&T Committee Agenda
   June 17, 1997


   Date:  May 15, 1997
   Dept. File No.
   CC File No.: 1801-1

   TO:       Standing Committee on Transportation and Traffic

   FROM:     General Manager of Engineering Services

   SUBJECT:  Award of Contract #9702: Pressure Reducing Station
             Construction and Related Work at three sites: 49th &
             West Boulevard, 33rd Avenue & Victoria Drive,
             Beach Avenue & Jervis Street


        THAT the contract for Pressure Regulating Valve Station
        Construction and Related Work at the three sites be awarded to the
        low bidder meeting specifications, Westport Construction,  at a
        lump sum cost of $533,395; source of funds to be Account Code
        17/36/4205/999; and further that the City Engineer be authorized to
        execute a contract with Westport Construction in a form
        satisfactory to the Director of Legal Services.


   Construction contracts over $200,000 to be awarded by Council.

   Contracts are to be awarded on the basis of best value for fee.


   This report recommends that the contracts for the construction and
   related work of the pressure reducing valve (PRV) stations at 49th &
   West Boulevard, 33rd Avenue & Victoria Drive and Beach Avenue & Jervis
   Street be awarded to the low bidder, Westport Construction Group.


   The 1997 Waterworks Capital Budget provides $1,000,000 funding for the
   construction of new and replacement PRV stations throughout the City. 
   These stations 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.


   Tenders were let and received for the pressure reducing valve (PRV)
   stations at 49th & West Boulevard, 33rd & Victoria Drive and Beach
   Avenue and Jervis Street. (Contract #9702).

   Tenders for Contract #9702 were opened on May 26th, 1997, and referred
   to the Manager of Engineering Services.  Nine bidders submitted complete
   tender packages that met the contract requirements, including bonding.

   The tenders were structured such that contractors bid as a combined

   All tenders have been checked for completeness and accuracy and any
   miscalculations and omissions have been corrected.  A tabulation of the
   total lump sum tender prices is shown below with the lowest tender

    Contractor                    Total Lump Sum 
                                  Tender Price
                                  Contract 9702

    Westport Construction Group   $533,395.00

    Cicuto and Sons Contractors   $635,366.00
    Ponte Bros. Contracting Ltd.  $652,703.38

    Sandpiper Contracting Ltd.    $660,639.40

    Tehcon Construction Services  $674,294.00

    Lessard Project Mgmt. and     $794,812.00
    Construction Inc.
    Alexander Construction Ltd.   $841,138.00

    Canem Systems Ltd.            $903,840.00

    C.A.P. Ventures Ltd.          $971,293.00

   The tender submitted by the low bidder, Westport Construction  is in
   accordance with the specifications and includes the required bonding.
   They have experience with this type of work.  Reference checks indicate
   that they are a reputable firm.

   On Wednesday, May 28, 1997, Westport Construction wrote to the City
   indicating that they have made errors in their tender and requesting
   that they not be awarded this contract.  The letter is attached to this

   Despite the concerns that Westport Construction has raised since
   submitting their bid, staff are satisfied that Westport Construction
   Group is capable of carrying out this project, and that their bid is
   legally binding and irrevocable.


   The low bid for Contract #9702 is within the preliminary engineer s
   estimates of $735,000 and the project budget.  The contractors have
   submitted a breakdown of the lump sum  prices which will be used for
   calculating interim payments.  The final cost of each contract may vary
   as a result of extra or "force account" work, if required.

   Funds for these contracts are available in account No. 17/36/4205/999,
   "Pressure Reducing Valve (PRV) Stations".

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