Supports Item No. 2 T&T Committee Agenda June 17, 1997 ADMINISTRATIVE REPORT Date: May 15, 1997 Dept. File No.1.40.97.04 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 RECOMMENDATION 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. COUNCIL POLICY Construction contracts over $200,000 to be awarded by Council. Contracts are to be awarded on the basis of best value for fee. PURPOSE 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. BACKGROUND 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. DISCUSSION 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 package. 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 first: Contractor Total Lump Sum Tender Price Contract 9702 Westport Construction Group $533,395.00 Cicuto and Sons Contractors $635,366.00 Ltd. Ponte Bros. Contracting Ltd. $652,703.38 Sandpiper Contracting Ltd. $660,639.40 Tehcon Construction Services $674,294.00 Ltd. 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 report. 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. FUNDING AND COST 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". * * * * *