Report to: General Committee Report
Date:
SUBJECT: Contract Award 039-T-09
PREPARED
BY:
RECOMMENDATION:
1) THAT the report titled
“Contract Award 039-T-09 Markham Fire Station No. 93 (Cathedral) Construction” be
received; and,
2) THAT staff be authorized
to award contract 039-T-09 to the lowest
priced qualified bidder Devlan Construction Ltd for the construction of Fire
Station #93 located at Major Mackenzie Drive and Woodbine Avenue, in the amount
of $2,998,000.00 exclusive of GST; and,
3) THAT the
Architectural/Engineering Services fee for Thomas Brown Architects be increased
by $132,750 primarily to account for the non-repeat design of the fire station
as well as costs associated with targeting the project to achieve LEED Gold
Certification; and
4) THAT a contingency
amount of $299,880.00, exclusive of GST, be established to cover any additional
construction costs, and that the
Director of Asset Management, or his designate, be authorized to approve the
expenditure of this contingency amount up to the specified limit in accordance
with the Town’s Expenditure Control Policy; and,
5) THAT
staff be authorized to retain external project management resource for the
construction phase of Fire Station No. 93 (Cathedral), at an upset limit of
$120,000 and in accordance with the Purchasing Bylaw; and,
6) THAT
the awards be funded from the Fire Station No. 93 (Cathedral) project
budget account 067-5350-7710-005
7) THAT the required additional $593,268.00 be funded from the
Development Charges Reserve; and further,
8) THAT staff be
authorized and directed to do all things necessary to give effect to this
resolution;
PURPOSE:
The primary purpose of this
report is to seek Council’s approval to award the construction contract to
Devlan Construction Ltd for the construction of Markham Fire Station #93
(Cathedral). This report also seeks
Council’s authorization to increase the Architectural and Engineering Services
fee to Thomas Brown Architects.
BACKGROUND:
The Unionville Sub-committee of Council adopted, in part,
the following resolution at their
“That the Unionville Subcommittee is in
support of the three-dimensional schematic design of the proposed sloped roof
elevation for the West Cathedral Fire Station as presented by Thomas Brown
Architect’s at the May 21, 2008 Unionville Subcommittee meeting;”
Council adopted by resolution at their
“That staff be directed to develop the detailed design and technical
specifications with the target of achieving the certification level of LEED
Gold”
Detailed design drawings and technical specifications were
produced accordingly. Tender for the
construction phase of the project closed on
OPTIONS/ DISCUSSION:
Prequalification
Due to
the scope of the project, contractors were pre-qualified to ensure that all
bidders would have the necessary qualifications, experience and resources to
complete the works within the project timelines. The
prequalification package was issued in accordance with the
PREQUALIFICATION INFORMATION
|
Advertised, place and date |
(ETC) |
|
Prequalification closed on |
|
|
Number of contractors picking up bid documents |
39 |
|
Number of contractors responding to bid |
20 |
|
Number of contractors prequalified |
6 |
Construction
Tender
The construction tender # 039-T-09 was issued in accordance with the
BID INFORMATION
|
Tender release |
|
|
Bids closed on |
|
|
Number of contractors picking up bid documents |
6 |
|
Number of contractors responding with valid
bid |
5 |
DETAILED PRICE
INFORMATION:
|
|
Contractors |
Bid Price |
|
1 |
Devlan
Construction Ltd |
$
2,998,000 |
|
2 |
Pre-Eng
Contracting Ltd. |
$
3,090,000 |
|
3 |
J.J. McGuire
General Contractors Inc. |
$
3,179,000 |
|
4 |
Gay Company
Ltd. |
$
3,190,000 |
|
5 |
Gateman-Milloy
Inc. |
$
3,230,000 |
Tender prices submitted fall within a tight range, see
summary above. The lowest bidder, at
$2,998,000 exclusive of GST, is Devlan Construction Ltd. The Town’s retained Project Architect advised
that he had worked satisfactorily with this contractor on a similar project previously
(within the past 5 years). Staff
recommends that Council authorizes the award of the construction contract to
this contractor.
The original approved project was to utilize a repeat architectural
design that was used for the recent Bur Oak Fire Station project. The Town’s Architectural Consultant estimated
a corresponding construction cost of $2.7 m. in 2007. Since then Council has selected a design that
is more consistent with the built-form of the surrounding neighbourhood. In support of the progressive ideal of
sustainable design, Council also authorized staff to target this project to
achieve the LEED Gold certification level, with the inclusion of a
ground-source heating and cooling (geothermal) system.
Prior to tendering, a cost consultant was retained to provide
an estimate of the construction cost of the project. Based on typical mid-range costs, rather than
a prediction of low bid, the consultant estimated a value of $3.678 m,
exclusive of GST. The Town’s retained
Architectural Consultant advised that it is reasonable to expect a tender
result in the range of $3.5 m to 3.7 m. The
tender result represents an excellent competitive process.
FINANCIAL
CONSIDERATIONS AND TEMPLATE:
COST SUMMARY
|
|
Land |
Building |
Design Fees |
Other Fees |
FF&E |
Total |
|
Budget for Cathedral (A) |
741,000 |
2,400,000 |
150,500 |
249,500 |
363,500 |
3,904,500 |
|
|
|
|
|
|
|
|
|
Actuals: |
|
|
|
|
|
|
|
Land |
409,018 |
|
|
|
|
409,018 |
|
Construction |
|
2,998,000 |
|
|
|
2,998,000 |
|
Construction Contingency |
|
299,800 |
|
|
|
299,800 |
|
Design Fees (Repeat Design) |
|
|
135,000 |
|
|
135,000 |
|
Design Fees (Energy Modelling) |
|
|
15,500 |
|
|
15,500 |
|
Additional Design Fees (non-repeat
design) |
|
|
45,000 |
|
|
45,000 |
|
Additional Design Fees (security
system, cost report, green funding) |
|
|
15,250 |
|
|
15,250 |
|
Additional Design Fees (LEED Gold
design, Admin & Registration) |
|
|
62,500 |
|
|
62,500 |
|
Additional Design Disbursements |
|
|
10,000 |
|
|
10,000 |
|
Other Engineering Consultant Costs |
|
|
|
24,200 |
|
24,200 |
|
Project Management consultant fee
(construction phase) |
|
|
|
120,000 |
|
120,000 |
|
FF&E expected |
|
|
|
|
363,500 |
363,500 |
|
Total Actuals & Forecast
(B) |
409,018 |
3,297,800 |
283,250 |
144,200 |
363,500 |
4,497,768 |
|
|
|
|
|
|
|
|
|
Budget
Variance (A-B) |
331,982 |
(897,800) |
(132,750) |
105,300 |
- |
(593,268) |
There is a favourable variance in the actual land purchase
cost as a result of an OMB settlement with the developer, at a rate far below
market value.
The original approved construction cost component of the
project, $2.4 m, was based on the previous Bur Oak Fire Station No. 98 that was
approved in 2004. Based on established
industry cost adjustment factors, this amount would escalate to $3.36 m in 2009
value. Note that the scope of work
included for the Bur Oak project did not include features and cost to achieve
the LEED Gold certification level. In
June 2008, the Town’s Architectural Consultant presented to Council the
estimated additional construction cost for the present Fire Station 93
(Cathedral) project to achieve LEED Gold certification level to be
$255,000. The tender result of $2.998 m
actually represents an excellent competitive price. The Town will be designing
and certifying a LEED Gold building.
There is a provision for retaining a project management
consultant for the construction phase of the project. In-house workload necessitated this need.
PROPOSED FUNDING SOURCES:
Fire stations are 100% funded from Development
Charges. Staff recommends to provide the
remaining funding for the project from the Development Charges account.
ENVIRONMENTAL
CONSIDERATIONS:
The design of the Markham Fire
Station No. 93 (Cathedral) incorporates sustainable and environmentally
friendly features, including a ground source heating and cooling (geothermal)
system. The project will pursue the LEED
Gold Certification level.
ACCESSIBILITY
CONSIDERATIONS:
The facility has been designed in
accordance with all requirements of the Ontario Building Code as well as the
current (2007) Accessibilities Guidelines of the Town.
ENGAGE
21ST CONSIDERATIONS:
The project aligns with the
following Town of
BUSINESS
UNITS CONSULTED AND AFFECTED:
Fire Services
Real Estate Services
Financial Services
__________________ _____________________
Bill Snowball Steve
Andrews, P.Eng.
Fire Chief, Director,
Fire &
Emergency Services Asset
Management
________________________
Brenda Librecz
Commissioner,
Community and
Fire Services
Q:\commission
share\operation & asset management\reports\2009\asset management\Cathedral
Fire Station FS 93 GC Report – Tender Award - 2009-05-15.doc