ADMINISTRATIVE REPORT

Date: May 3, 1999
Author/Local: B.Aujla/6241

RTS: 683

CC File: 1805

Council: May 18, 1999

TO: Vancouver City Council

FROM: General Manager of Engineering Services

SUBJECT: Award of Contract No. 9906 for the Supply and Installation of

Distribution Watermain

RECOMMENDATION

A. THAT Contract No. 9906 for the supply and installation of distribution watermain, be awarded to the low bidder meeting the contract requirements, Ponte Bros. Contracting Ltd., for a total tender price of $1,622,638.95 (GST included); with funding available from the distribution watermain replacement program (order group C07E1A).

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 Ponte Bros. Contracting Ltd., for Contract No. 9906, 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 $300,000 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:

· Selkirk Street between 32nd and 33rd Avenues, and 32nd Avenue between Selkirk and Oak Streets;

· Heather Street between 57th and 59th Avenues, and 59th Avenue between Oak and Heather Streets;
· SW Marine Drive between MacDonald Street and 49th Avenue;
· MacDonald Street between 43rd and 45th Avenues;
· 45th Avenue between Cypress and Granville Streets;
· Churchill Street between 41st and 49th Avenues;
· Adera Street between 41st and 49th Avenues;
· Marguerite Street between 41st and 49th Avenues; and
· Wiltshire Street between 41st and 49th Avenues

be awarded to the low bidder - Ponte Bros. Contracting Ltd.

DISCUSSION

The 1999 Waterworks Capital Budget and remaining 1998 Capital Budget funds provide approximately $11.7 Million of funding for distribution watermain replacement. The watermains in this contract are near the end of their service lives and some 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.

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

Contractor	Bid Prices
1. Ponte Bros. Contracting Ltd.	$1,622,638.95
2. Pedre Contractors Ltd.	$1,914,037.40
3. Tyam Construction Ltd.	$2,377,447.25
4. B. Cusano Contracting Inc.	$2,536,777.40

The low bidder, Ponte Bros. Contracting Ltd., appears qualified to supply and install watermain based on their satisfactory completion of similar work in other municipalities. Therefore, staff recommend that Ponte Bros. Contracting Ltd. be awarded Contract No. 9906 for the supply and installation of watermain.

FUNDING AND COST

The low bid for Contract No. 9906 is within the Engineer’s preliminary contract estimate of $1,906,351. Typically the contract estimate, which is based on previous contract costs, falls within the middle of the contractors’ bids.

The total cost estimate for the work, which includes the contract price, contingency, 10% overhead, related City work and inspection costs, is $2,312,260. 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. Funds for this project are available from the distribution watermain replacement program (order group C07E1A).

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(c) 1998 City of Vancouver