LSJ Cable Installation Bid Tabulation

LSJ Cable Installation Bid Tabulation Item No. Item Pirelli Remarks 1 Marine Survey/Report $ 49,896 2 Cable Transfer $ 35,640 3 Mobilation/Demobilization $ 35,640 4 Marine Installation $ 203,148 5 LSJ Cable Protectors $ 47,100 6 St. Thomas Cable Protectors $ 11,775 7 LSJ TrenchingNault $ 35,000 See note 1 and 2 8 LSJ Landside Cable Installation $ 13,600 9 St. Thomas Trenching $ 15,000 See note 1 and 2 10 St. Thomas Landside Installation $ 11,600 11 Cable Testing $ 17,820 12 As-laid Drawings $ 14,256 Subtotal of Cable Installation Bid: $ 490,475 Additional Owner Expense: $ 840,500 See Note 3 and 4. Total Cable Material and Installation Costs: $ 1,330,975 Notes: 1. Based on budget values provided by local subcontractors. 2. Items in Italics completed by Pirelli include reduction in cost based on a combination of Cable installer and Owners Contractor efforts. 3. Cost for spare cable splice kit ($138,900) has been omitted from the itemized list total as purchase of this item may be delayed or omitted altogether as standby generator capability will be provided in the event the cable is damaged. 4. Cost for Items 2, 3, and 4 from the attached addl installation cost table possibly to be omitted pending disposition of spare cable. Cost of Item 12 - spare cable reel, may also possibly be omitted as this will become WAPA's responisiblity. The exclusion of these four items from owner's costs could reduce the additional installation costs to $777,500, which would be a reduction of $63,000, and would reduce the Total Cable Material and Installation Costs to $1,267,975. EFTA01125854 LSJ Cable Installation Bid Tabulation Item No. Item Pirelli Remarks 1 Marine Survey/Report $ 49,896 2 Cable Transfer $ 35,640 3 Mobilation/Demobilization $ 35,640 4 Marine Installation $ 203,148 5 LSJ Cable Protectors $ 47,100 6 St. Thomas Cable Protectors $ 11,775 7 LSJ TrenchingNault $ 35,000 See note 1 and 2 8 LSJ Landside Cable Installation $ 13,600 9 St. Thomas Trenching $ 15,000 See note 1 and 2 10 St. Thomas Landside Installation $ 11,600 11 Cable Testing $ 17,820 12 As-laid Drawings $ 14,256 Subtotal of Cable Installation Bid: $ 490,475 Additional Owner Expense: S 840,500 See Note 3 and 4. Total Cable Material and Installation Costs: $ 1,330,975 Notes: 1. Based on budget values provided by local subcontractors. 2. Items in italics completed by Pirelli include reduction in cost based on a combination of Cable installer and Owner's Contractor efforts. 3. Cost for spare cable splice kit ($138,900) has been omitted from the itemized list total as purchase of this item may be delayed or omitted altogether as standby generator capability will be provided in the event the cable is damaged. 4. Cost for items 2, 3, and 4 from the attached addl installation cost table possibly to be omitted pending disposition of spare cable. Cost of Item 12 (spare cable reel) from the attached add, installation cost table may also possibly be omitted as this will become WAPA's responsibility. The exclusion of these four items from owner's costs could reduce the additional installation costs to $777,500, which would be a reduction of $63,000, and would reduce the Total Cable Material and Installation Costs to $1,267,975. EFTA01125855 St Thomas to LSJ Cable Installation (costs additional to Cable Installation Bids) Item No. Item Ouantlty/Descriprion Installed by Value") Owner's Cost (2) Pricing Source Remarks Redhook 1 WAPA Transformer/Hi-Pot 3-phase termination WAPA S 22,000 S 11,000 Estimate Initial 13.2 kV source at St. Thomas 2 Underground Ductbank; Pole to Vault at Redhook beach 1100 ft., conc. Encased. 15 kV rated WAPA $ 68,000 $ 34.000 Estimate Approximate length by WAPA 3 Redhook Vault Pre-cast or cast in place WAPA $ 18,000 $ 9,000 Estimate 4 Cable splices in Redhook beach vault 3 sets of splices WAPA $ 20,000 S 10,000 Estimate Splitting of St. John, LSJ, and WAPA feeders in WAPA Vault 5 VITELCO Fiber Optic Termination F/O cable installation from vault to adjacent terminal cabinet VITELCO $ 15,000 $ 7,500 VITELCO Required as a condition of service - VITELCO provides terminal installation and all eoiliornont LSJ 6 Primary feeders; vault to transformer Direct bury 15kV; 150ft. Owner's Contractor $ 6,500 Estimate Work performed by electrician 7 Transformer Pad Concrete, per WAPA spec. Owner's Contractor $ 2,000 Estimate Work performed by GC 8 Transformer 15kV primary- 5kV secondary WAPA $ 18,000 $ Estimate Provided and installed by WAPA 9 VITELCO Fiber Optic Termination F/O cable installation from vault to adjacent terminal cabinet VITELCO $ 25,000 S 12,500 VITELCO Required as a condition of service - VITELCO provides terminal installation and all equipment. Includes allowance fry Irpnrhinn Cable Incidentals 10 Spare submarine repair splices Two complete splice assts none S 138,900 S 138,900 Bid Received P-J Quotation 11 Cable storage allowance Demurrage at Pensacola. Florida none $ 6,000 $ 6,000 Estimate 2 month allowance per P-J 12 Spare storage reel Left over cable, delivered to WAPA none S 10,000 Estimate To be finalized after insta'lation Professional Services 13 Globaltech Project management. Installation oversight, engineering, agency snort $ 98.000 Contract Not to exceed, per agreement 10-17-02. less $50,000 w/o design/drawings 14 Biolmpact Marine surveys, permitting assitancc tb $ 14,000 Proposal 15 BCA, Ltd. Cable test witness S 9,000 Invoice 16 Legal Fees S 75,000 Estimate Agency Fees 17 CZM S 1,000 Permit fees 18 Corp of Engineers $ No permit fees 19 NRP (Submerged Lands) $ No upfront fees • periodic rental pmts. Paget or 2 EFTA01125856 St. Thomas to LSJ Cable Installation (costs additional to Cable Installation Bids) Item No. Item Quantity/Descript on Installed by Value) Owner's Cost(?) Pacing Source Remarks Cable Cost 20 Cabte Cost 18,000 feet Power/FO Cable $ 535.000 $ 535,000 Based on actual purchase price Notes Total Cosf = Value based on est mato of coms 19 standard ;Wt costing niottod s. 2 Owners cost based on vaiue estimate (or partial Contnbution) unless specific bid has been received or contract pnco has been negotiated $ 979.400 Page 2 of 2 EFTA01125857 MEMORANDUM Globahech, Inc. TO: Darren Indyke, Esq. COPY: Charles Miller/Miller & Raved, Inc. FROM: Paul Gandy/Globaltech, Inc. DATE: 4/4/2003 SUBJECT: LSJ — Cable Recommendations We have reviewed the latest proposal from Pirelli High Voltage Systems — Submarine Group (formerly Pirelli-Jacobson) which allows for installation of cable protectors at LSJ and Red Hook by Owner's forces under supervision of Pirelli's onsite personnel. The purpose of this quotation is to allow the Owner to realize a cost savings by using his own subcontractor while at the same time maintaining warranty coverage of the cable integrity. I have included in the attachments a copy of my telephone conversation log with Pietro Mondini concerning this latest proposal. We currently have a turnkey cost proposal from Pirelli to complete this work with their forces as a part of the cable installation scope of services (see attached LSJ Cable Installation Bid Tabulation). In order for us to determine the cost savings of having the installation work completed by the Owner's subcontractor we need a firm quote for the installation work from the installing subcontractor. We have attempted to do this however, the marine subcontractors we have spoken with are extremely reticent to provide a firm quotation because the exact route and bottom conditions have not been established. These conditions can not be known in detail until a marine survey (which is part of the turnkey installation contract) has been prepared, with the laying route and landing coordinates noted, and the specific anchoring conditions of the CZM determined. We have requested a quotation based on assumptions of bottom conditions however this will not yield a firm price until the conditions are known for sure. A marine survey will be the first task to be completed by Pirelli once a notice to proceed has been completed. We do not recommend proceeding with a separate marine survey for the purpose of refining the installation quotation as the cost of the, at $49,000 or greater. survey will equal. or exceed, the level of refinement we would expect to achieve. Additionally, should there be a delay in the installation a new marine survey may be required by the installing contractor prior to installation. In the attached Installation Bid Tabulation (first bid column, Pirelli) the following items have been identified as items in which the Owner's subcontractor could complete the work 1 4722 NW 214 Avenue. Suite C103, Boa Raton. FL, 33431 • EFTA01125858 MEMORANDUM Darren Indyke, Esq. 04/04/2003 page 2 at a potential savings and for which Pirelli has indicated a willingness to relinquish that scope item (or portions thereof) from their contract: Item 5: LSJ Cable Protectors Item 6: St. Thomas Cable Protectors (Red Hook area) Item 7: LSJ Trenching/Vault Item 9: St. Thomas Trenching. Items in italics reflect the total amount for activities where the installing contractor can be expected to share the effort with the Owner's sub-contractor for a net savings. Areas where we continue to find a potential for savings are: • Installation of cable protectors using the Owner's marine contractor of supervision of Pirelli personnel • Purchase of cable protectors directly at less than half the cost quoted by Pirelli ($50/ft. vs $136/fL) • Near shore and onshore excavation and vault installation In Pirelli's proposal, dated November 26, 2002, they have provided firm fixed costs for these activities, assuming the worst case of what they know to be the marine and land conditions with the exception of costs for rock removal during excavation (unknown until marine survey and landing conditions are known). In our subsequent requests for information. justification, and unit costs Pirelli has left the door open for modifications to their scope after a notice to proceed has been issued and have further indicated a willingness to eliminate certain near shore and landside activities from the contract. For each of these activities we have a line item cost and various unit costs for sharing of responsibilities. While some of these costs seem excessive they provide a basis for subsequent modifications (additions or deletions) to the contract. As you know, in subsequent discussions, Pirelli has indicated no willingness to reduce the amounts quoted for Marine Survey/Report, Cable Transfer, Mobilization/Demobilization, Marine Installation, Cable Testing, or As-laid Drawings. In order to have an accurate estimate of the marine cable installation costs to form a basis for notice to proceed. and in the interest of keeping pace with the permitting and installation schedule (ahead of hurricane season) we recommend issuing a notice to proceed based on the item costs contained in the attached Installation Bid Tabulation ($490,475 +/-). We further recommend that the final proposal from Pirelli contain allowances for Owner's work and associated unit prices contained in the various proposals from Pirelli as follows: • Email proposal dated 3/12/03 (attached) Glohahech. Inc. • 4722 NW t' Avenue, Boca Raton, FL 33431 • EFTA01125859 MEMORANDUM Darren Indyke, Esq. 04/04/2003 page 3 • Email proposal modification dated 2/04/03 (attached) • Letter proposal dated 11/26/02 (attached) In addition to the above items, we should request from Pirelli a unit cost for rock removal to minimize costs due to "unforeseen conditions". We believe this notice to proceed will allow for mobilization of the activities necessary to prepare for cable installation while affording the Owner the opportunity to lower the costs of various aspects of the installation contract once the specific marine conditions have been ascertained. The contract should contain provisions for execution of work by the Owner's forces. Some typical language that we have employed in the past is presented below: Clobakech. Inc. • 4722 NW 2nd Avenue. Boca Raton, FL. 33431 • EFTA01125860 MEMORANDUM Darren Indyke, Esq. 04/04/2003 page 4 ARTICLE 6 CONSTRUCTION BY OWNER OR BY SEPARATE CONTRACTORS 6.1 OWNERS RIGHT TO PERFORM CONSTRUCTION AND TO AWARD SEPARATE CONTRACTS 6.1.1 The Owner reserves the right to perform construction or operations related to the Project with the Owner's own forces, and to award separate contracts in connection with portions of the Project or other construction or operations on the site under Conditions of the Contract identical or substantially similar to these. 6.1.2 When separate contracts are awarded for different portions of the Project or other construction or operations on the site, the term 'Contractor in the Contract Documents, in each case, shall mean the Contractor who executes each separate Owner-Contractor Agreement 6.1.3 The Owner shall provide for coordination of the activities of the Owner's own forces and of each separate contractor with the Work of the Contractor, who shall cooperate with them. The Contractor shall participate with other separate contractors and the Owner in reviewing their construction schedules when directed to do so. The Contractor shall make any revisions to the construction schedule and Contract Sum deemed necessary after a joint review and mutual agreement and based on unit or lump sum prices provided in the proposal. The construction schedules shall then constitute the schedules to be used by the Contractor, separate contractors and the Owner until subsequently revised. 6.1.4 Unless otherwise provided in the Contract Documents, when the Owner performs construction or operations related to the Project with the Owner's own forces, the Owner shall be deemed to be subject to the same obligations and to have the same rights which apply to the Contractor under the Conditions of the Contract.. 6.2 MUTUAL RESPONSIBILITY 6.2.1 The Contractor shall afford the Owner and separate contractors reasonable opportunity for introduction and storage of their materials and equipment and performance of their activities and shall connect and coordinate the Contractors construction and operations with theirs as required by the Contract Documents. 6.2.2 If part of the Contractor's Work depends for proper execution or results upon construction or operations by the Owner or a separate contractor, the Contractor shall, prior to proceeding with that portion of the Work, promptly report to the Owner apparent discrepancies or defects in such other construction that would render it unsuitable for such proper execution and results. Failure of the Contractor to report shall constitute an acknowledgment that the Owner's or separate contractor's completed or partially completed construction is fit and proper to receive the Contractor's Work, except as to defects not then reasonably discoverable. Globaltech, Inc. • 4722 NW 2•'m Avenue. Boca Raton. FL. 33431 • EFTA01125861 MEMORANDUM Darren Indyke, Esq. 04/04/2003 page 5 6.2.3 Costs caused by delays or by improperly timed activities or defective construction shall be borne by the party responsible thereof. 6.2.4 The Contractor shall promptly remedy damage wrongfully caused by the Contractor to completed or partially completed construction or to property of the Owner or separate contractors . These provisions will need to be modified as required for the specific project. Globalk:ch. Inc. • 4722 NW 2nd Avenue. Boca Raton. FL. 33431 • EFTA01125862 LSJ Cable Installation Bid Tabulation Item No. Item Pirelli Pirelli (Stand- aloner) Global Marine Systems Durocher Marine Remarks 1 Marine Survey/Report $ 49,896 $ 57,000 $ 130,000 2 Cable Transfer $ 35,640 Ma in Item 3 $ 110.000 3 Mobilation/Demobilization $ 35,640 $ 471,500 $ 35,000 4 Marine Installation $ 203,148 $ 198,000 $ 250,000 5 LSJ Cable Protectors $ 47,100 $ 47,100 $ 43,500 6 St. Thomas Cable Protectors $ 11,775 $ 11,775 $ 14,500 7 LSJ TrenchingNault $ 35,000 $ 35,000 $ 10,000 GMS items 7 & 8 combined, see note 2 8 LSJ Landside Cable Installation $ 13,600 $ 13,600 Included 9 St. Thomas Trenching $ 15,000 Ind. in Item 7 $ 6,000 GMS items 9 & 10 combined, see note 2 10 St. Thomas Landside Installation $ 11,600 $ 11,600 Included 11 Cable Testing $ 17,820 $ 20,000 $ 17,820 See Note 3 12 As-laid Drawings $ 14,256 $ 14.000 $ 5,000 Subtotal of Cable installation Bids: $ 490,475 $ 879,575 $ 621,820 $800,000 Derochure Marine lump sum, see corresp. Additional Owner Expense: $ 840,500 $ 840.500 $ 840,500 $ 979,400 See attached itemized list. See Note 5. Total Cable Material and Installation Costs: $ 1,330,975 $ 1,720,075 $1,462,320 $ 1,779,400 Notes: 1. NI = Not included. 2. Based on budget values provided by local subcontractors. 3. P-J value for testing applied to GMS quote as Pirelli factory has not been forthcoming with information for competitor request. 4. Items in italics completed include reduction in cost based on a combination of Cable installer and Owners Contractor efforts. 5. Cost for spare cable splice kit ($138,900) has been omitted from the itemized list total as purchase of this item may be delayed or omitted altogether as standby generator capability will be provided in the event the cable is damaged. io-tol goe) 5-13sei ca) 5 40 goo IC Stitt D° i lie O I3%100 cr lq49e) 14A EFTA01125863