ADMINISTRATIVE REPORT

Date: October 20, 1998
Author/Local: M. Blake/7687

RTS-00218

CC File No. 1805

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services
SUBJECT:	Award of Contract No. 9813 Supply and Installation of Distribution Watermain

RECOMMENDATION

A. THAT Contract No. 9813 for the supply and installation of distribution watermain, be awarded based on best value to the City to Pedre Contractors Ltd., for a total tender price of $1,325,835.00 (GST included); with the source of funds to be account code 17/36/1067/999.

B. 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. 9813, for the supply and installation of distribution watermain.

C. THAT the bid bonds of the unsuccessful tenderers be returned upon execution of the construction services contract.

COUNCIL POLICY

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

PURPOSE

This report recommends that the contract for the construction and related work of the following distribution watermain:

· 46th Avenue, Ontario to Main Street;
· 51st Avenue, Fraser to Ross Street;
· Ross Street, 51st to 53rd Avenue;
· 55th Avenue, Knight to Victoria;
· 54th Avenue, victoria to Nanaimo Street, and
· Nanaimo Street, 54th Avenue to Upland

be awarded to the low bidder meeting the contract requirements, Pedre Contractors Ltd.

DISCUSSION

The 1998 Waterworks Capital Budget and the unexpended 1997 Capital Budget provide $13.7 Million of funding for distribution watermain replacement. The watermains are near the end of their service lives and are undersized. Their replacement will ensure an adequate and continuous supply of water for both domestic consumption and fire protection.

Detailed designs and contract documents were prepared by Engineering Services staff for the replacement of the watermains listed above. The work will be administered under a lump sum/unit price construction services contract. Lump sums for each tender item and unit prices are used to calculate interim progress payments to the contractor.

Six contract bidders submitted complete tender packages, including bonding requirements. A summary of the bids received follows:

Contract Bid Price

E. B. Friesen Associates Ltd. $1,243,585.00
Pedre Contractors Ltd. $1,325,835.00
Ponte Bros. Contracting Ltd. $1,328,744.00
B. Cusano Contracting Inc. $1,498,205.00
Rissling Companies $1,534,407.00
Hyland Excavating $1,643.446.00

Although E.B. Friesen Associates Ltd. has the lowest bid, staff feel that the second lowest bidder Pedre Contractors Ltd. offers best value to the City.

Pedre Contractors Ltd. is qualified to supply and install watermain based on their satisfactory completion of similar work in the City. Therefore, staff recommend that Pedre Contractors Ltd. be awarded Contract No. 9813 for the supply and installation of watermain.

FUNDING AND COST

The low bid for Contract No. 9813 is within the Engineer’s preliminary contract estimate of $1,497,900. The final cost of the contract will vary from the bid price because the estimated quantities of work for unit price items may be different than the actual quantities of work.
The total cost estimate for the work, which includes the contract price, contingency, overhead, and inspection costs, is $1,560,200. Funds for this project are available in account No. 17/36/1067/999, “Distribution Watermain Replacement”.

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(c) 1998 City of Vancouver