Sole Source Contract
Rental of an Earth Pressure
Balancing Tunnel Boring Machine
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Recommendation:
That the sole source contract for the
rental of an Earth Pressure Balancing
Tunnel Boring Machine Model
REM167SE in the amount of $7.9 million,
excluding GST, be approved and the
contract be in a form acceptable to the
City Manager.
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Report Summary
The rental of a four-metre diameter
Tunnel Boring Machine with Earth
Pressure Balancing capability is
required for the completion of a
section of Millwoods Double Barrel
Replacement/SA1 project.
Previous Council/Committee Action
At the December 18, 2006, City Council
meeting, Council approved the
Millwoods Double Barrel
Replacement/SESS SA1 (CPP 08-239202) project.
Report
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Millwoods Double Barrel
Replacement project will provide
flood relief to the Millwoods area and
the SA1 sanitary trunk sewer will
provide sanitary servicing to
southeast Edmonton.
Two kilometres long, four-metre
diameter section of Millwoods
Double Barrel Replacement tunnel is
in wet ground conditions requiring
the use of an Earth Pressure
Balancing Tunnel Boring Machine.
Construction of this tunnel, using inhouse tunnelling crews, is scheduled
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to start in late fall, 2008 and will
continue to March 2010.
The City does not have a four-metre
diameter tunnel boring machine with
earth pressure balancing capability.
Rental of a tunnel boring machine
will be funded by the Millwoods
Double Barrel Replacement/SESS
SA1 (CPP 08-23-9202) project.
At the present time, Drainage
Services does not have another
tunnel project requiring a four-metre
diameter tunnel boring machine.
The rental agreement will have an
optional “rent to purchase” clause in
case a need arises for the continued
use of this tunnel boring machine
beyond the rental period. Lovat Inc.
is agreeable to the option of the City
purchasing the tunnel boring
machine at the end of the rental
period.
Lovat Inc.’s proposal for the rental of
the Earth Pressure Balancing Tunnel
Boring Machine Model RME167SE
meets the requirements of the City.
Lovat Inc. has successfully supplied
the City with six tunnel boring
machines since 1974.
Lovat Inc. is the only firm able to
provide the rental of an Earth
Pressure Balancing Tunnel Boring
Machine Model RME167SE that is
compatible with our existing tunnel
boring machines. This will reduce
the initial learning time during
operation of the tunnel boring
machine.
Lovat Inc. is a Canadian company
with proven capability to provide
immediate response to any technical
support needed for the operation of
the tunnel boring machine.
ROUTING – Transportation and Public Works Committee | DELEGATION – W. D. Burn/J. Hodgson
WRITTEN BY – S. Fernando | November 1, 2007 – Asset Management and Public Works Department 2007PW2400
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Sole Source Contract
Policy
In accordance with the City
Administration Bylaw 12005, Part V,
Clause 12, Committee approval is
required for sole source contracts over
$250,000.
Focus Area
Protect the environment, promote safe
communities and support economic
development.
Justification of Recommendation
Lovat Inc.’s price for the rental is
reasonable and represents the current
market conditions. The approval of a
sole source contract with Lovat Inc. will
allow the timely completion of the
Millwoods Double Barrel Replacement
tunnel project.
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