ADMINISTRATIVE REPORT

Date: April 28, 2000
Author/Local: S. Yee/7380
RTS No. 01434
CC File No. 1805

Council: May 16, 2000

TO: Vancouver City Council

FROM: General Manager of Engineering Services

SUBJECT: Award of Contract No. 2000-05 for the Supply and Installation of Distribution Watermain

RECOMMENDATIONS

A. THAT Contract No. 2000-05 for the supply and installation of distribution watermain, be awarded to the low bidder meeting the contract requirements, Sandpiper Contracting Ltd., for a total tender price of $912,817.00 (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 Sandpiper Contracting Ltd., for Contract No. 2000-05, 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 watermains:

· 10th Avenue between Alma Street and Dunbar Street;
· 12th Avenue between Discovery Street and Courtenay Street;
· 17th Avenue between Crown Street and Wallace Street;
· 18th Avenue between Crown Street and Wallace Street;
· 19th Avenue between Camosun Street and Highbury Street;
· Wallace Street between W. 17th Avenue and W. 19th Avenue;
· W. 22nd Avenue between Crown Street and Wallace Street;
· W. 23rd Avenue between Crown Street and Wallace Street;
· Crown Street between W. 22nd Avenue and W. 23rd Avenue;
· W. 36th Avenue between Larch Street and Vine Street;
· W. 26th Avenue between Wallace Street and Highbury Street; and
· Alma Street between W. 28th Avenue and W. 29th Avenue

be awarded to the low bidder - Sandpiper Contracting Ltd.

DISCUSSION

The 2000 Waterworks Capital Budget provides approximately $7.8 Million of funding for distribution watermain replacement. The watermains in this contract are near the end of their service lives. 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. Five contract bidders submitted complete tender packages, including bonding requirements. A summary of the bids received are as follows:

Contractor Bid Prices
1. Sandpiper Contracting Ltd. $ 912,917.00
2. Pedre Contractors Ltd. $ 948,715.50
3. J. Cote & Son Excavating Ltd. $1,034,641.85
4. Targa Constracting Ltd. $1,052,854.32
5. Ponte Brothers Contracting Ltd. $1,138,160.07

The low bidder, Sandpiper Contracting Ltd., is qualified to supply and install watermain based on their recent satisfactory completion of Contract No. 9912 for the Supply and Installation of Distribution Watermain.

Therefore, staff recommend that Sandpiper Contracting Ltd. be awarded Contract No. 2000-05 for the supply and installation of watermain.

FUNDING AND COST

The low bid for Contract No. Contract 2000-05 is within the Engineer's preliminary contract estimate of $1,052,555.77. 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 $1,214,046.61. 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