ADMINISTRATIVE REPORT

Date: June 23, 1998

Author/Local: M.Blake/7687

CC File: 1805

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services
SUBJECT:	Award of Contract No. 9808 for the Supply and Installation of Distribution Watermain

RECOMMENDATION

A.THAT Contract No. 9808 for the supply and installation of distribution watermain, be awarded to the low bidder meeting the contract requirements, E.B. Friesen Associates Ltd., for a total tender price of $405,154 (GST included); with the source of funds to be account code 17/36/1004/999.

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 E.B. Friesen Associates Ltd., for Contract No. 9808, 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.

GENERAL MANAGER’S COMMENTS

The General Manager of Engineering Services RECOMMENDS approval of A, B and C.

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:

• Blanca Street, 3rd to 4th Avenues;

• lane south of Crown, Courtenay to Camosun Streets;

• Courtenay Street, lane south of Crown to 11th Avenue;

• 14th Avenue, Trimble to Discovery Streets, and

• 14th Avenue, 14th to 15th and 12th to 13th Avenues

be awarded to the low bidder E. B. Friesen Associates 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.

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

Contract Bid Price

E. B. Friesen Associates Ltd. $ 405,154.00

Pedre Contracting Ltd. $ 502,550.00

Rissling Companies $ 593,224.00

Ponte Bros. Contracting Ltd. $ 659,874.35

B. Cusano Contracting Inc. $ 679,080.00

The low bidder, E. B. Friesen Associates Ltd. appears qualified to supply and install watermain based on their satisfactory completion of similar work in other municipalities. Therefore, staff recommend that E.B. Friesen be awarded Contract No. 9808 for the supply and installation of watermain.

FUNDING AND COST

The low bid for Contract No. 9808 is within the Engineer’s preliminary contract estimate of $534,560. The final cost of the contract will vary slightly 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 $550,000. Funds for this project are available in account No. 17/36/1004/999, "Distribution Watermain Replacement".

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(c) 1998 City of Vancouver