PAPER NO. FC 46/2018
Memorandum for the Finance Committee of the Hong Kong Housing Authority
Report on Exercise of Delegated Financial Authority for the Quarter Ended 30 September 2018
PURPOSE
This paper informs Members of the delegated financial authority exercised during the quarter ended 30 September 2018.
BACKGROUND
2. The delegated financial authority to officers of the Housing Authority / Housing Department was approved by the Finance Committee (FC). Quarterly reports are required to be submitted to the FC on the delegated financial authority exercised by the Chairman of the Housing Department Tender Board (HDTB) on the advice of HDTB and by officers at D3 level or above.
EXERCISE OF DELEGATED FINANCIAL AUTHORITY
3. The approvals given by the Chairman of HDTB on the advice of HDTB and by officers at D3 level or above for the quarter ended 30 September 2018 are set out in the annexes –
(i) Summary of the exercise of delegated financial authority – Annex 1;
(ii) Items approved by the Chairman of HDTB on the advice of HDTB – Annex 2;
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(iii) Items approved by officers at D3 level or above – Annex 3;
(iv) Major contract variations of $5M or more – Annex 4; and
(v) Major virement of $5M or more approved by officers at D3 level or above – Annex 5.
PUBLIC REACTION/PUBLICITY
4. No publicity will be given on the information in this paper.
INFORMATION
5. This paper is issued for Members’ information.
Ms Michelle LAU Secretary, Finance Committee Tel. No.: 2761 7928 Fax No.: 2761 0019
File Ref. : HD1-2/FPD/4-10/83/61(B) (Corporate Services Division) Date of Issue: 27 November 2018
Annex 1
Summary of the Exercise of Delegated Financial Authority (for the Quarter Ended 30 September 2018)
(i) Items approved by the Chairman of the Housing Department Tender Board (HDTB) on the advice of HDTB (details set out in Annex 2)
Number of Total amount approvals approved $
41 1,318,637,476
(ii) Items approved by officers at D3 level or above (details set out in Annex 3)*
Number of Total amount approvals approved $
19 119,398,374
* Official entertainment expenses have not been included because of the small amount involved.
(iii) Major variations (i.e. $5M or more) approved (details set out in Annex 4)
Number of Total amount approvals approved $
6 20,600,000.00
(iv) Major virement of funds (i.e. $5M or more) approved by officers at D3 level or above (details set out in Annex 5)
Number of Total amount approvals approved $
1 9,880,000 Annex 2 Items Approved by the Page 1 of 3 Chairman of the Housing Department Tender Board (HDTB) on the advice of HDTB under Delegated Financial Authority (for the Quarter Ended 30 September 2018)
Serial No. Description of Items Approved Name of Tenderer/Counterparty Amount ($)
(I) Works and Works Related Services
1 Tender for redecoration of Oi Man and Shek Kip Mei Estates Dao Kee Construction Co Ltd 48,340,204
2 Tender for addition of laundry rods in Kowloon East region (Phase 2) K-Peak Co Ltd 47,057,235
3 Tender for fire services and water pump installation for construction of public rental REC Engineering Company Limited 45,903,000 housing development at Queen’s Hill site 1 phases 2, 4 & 5 and portion of phase 6 cum alteration and addition works at Ching Ho Estate
4 Tender for addition of laundry rods in Wong Tai Sin, Tsing Yi and Tsuen Wan K-Peak Co Ltd 42,588,862 region (phase 2)
5 Tender for lift and escalator installation for construction of public rental housing Chevalier (HK) Limited 42,437,000 development at Queen’s Hill site 1 phases 2, 4 & 5 and portion of phase 6 cum alteration and addition works at Ching Ho Estate
6 Tender for air-conditioning and mechanical ventilation installation for construction of REC Engineering Company Limited 39,822,000 public rental housing development at Queen’s Hill site 1 phases 2, 4 & 5 and portion of phase 6 cum alteration and addition works at Ching Ho Estate
7 Tender for the lift modernization for Shek Sau, Shek Ning, Shek Chun, Shek Yat and thyssenkrupp Elevator (HK) Limited 36,923,937 Shek Hing Houses in Shek Lei (I) Estate
8 Tender for redecoration of Tin Yiu (I) & (II) Estates Program Contractors Limited 34,098,482
9 Tender for advance civil engineering works for public housing development projects Harvest Civil Engineering Company Limited 27,500,000 batch 8 (2018 – 2020)
10 Tender for the lift modernization for Lung Lok, Lung On, Lung Hing, Lung Gut and Otis Elevator Company (H.K.) Limited 26,218,772 Lung Shing Houses in Lower Wong Tai Sin (II) Estate
11 Tender for term contract (2018/2021) for the supply, installation and maintenance of refuse handling systems for Housing Authority buildings
- Package A ATAL Engineering Limited 24,252,600
- Package B REC Engineering Company Limited 21,980,000
12 Tender for provision of body-shopped maintenance surveyors for building Vigers Building Consultancy Limited 20,461,477 maintenance works and services (Package 27)
13 Tender for the lift modernization for Lai Chak, Wing Chak, Wah Chak and Fu Chak thyssenkrupp Elevator (HK) Limited 20,119,217 Houses in Chak On Estate
14 Tender for advance civil engineering works for public housing development projects Excel Engineering Company Limited 17,986,000 batch 9 (2018 – 2020)
15 Tender for agreement for the provision of building services engineering professional Wong & Ouyang (Building Services) Limited 15,956,400 services for lift modernization in existing outsourced estates – Package BS7 Annex 2 Items Approved by the Page 2 of 3 Chairman of the Housing Department Tender Board (HDTB) on the advice of HDTB under Delegated Financial Authority (for the Quarter Ended 30 September 2018)
Serial No. Description of Items Approved Name of Tenderer/Counterparty Amount ($)
16 Tender for redecoration of Mei Lam Estate Junic Construction Company Limited 13,288,000
17 Tenders for 2017-18 batch 2 architectural services agreements for public housing developments
- Lei Yue Mun Phase 4 K&W Architects Ltd. 10,472,162
- Ching Hong Road North Phases 1 & 2 P&T Architects and Engineers Limited 13,000,000
- Ka Wai Man Road Phase 1 Hsin Yieh Architects & Associates Ltd. 11,754,220
Sub-total 560,159,568
(II) IT and Related Purchases/Services
18 Tender for the design, supply, delivery, installation, commissioning, maintenance, ELM Computer Technologies Limited 27,184,064 training and other related services of the enterprise resource planning (ERP) infrastructure for the Hong Kong Housing Authority
19 Tender for the provision of information technology professional services for the Kinetix Systems Limited 11,980,000 enterprise resource planning system upgrade project of the Hong Kong Housing Authority
Sub-total 39,164,064
(III) Supplies and Other Services
20 Extension of property services contract for Tin Chak and Lung Yat Estates, residual Nice Property Management Limited 85,004,210 services for Shan King Estate and Grandeur Terrace, Siu Hong commercial centre and remaining parts of Siu Hong Court (1.10.2018 – 30.9.2020)
21 Extension of property services contract for Choi Tak and Choi Fook Estates and Top One Limited 78,766,423 On Kay commercial centre (1.1.2019 – 31.12.2020)
22 Extension of property services contract for Mei Yan House and Mei Tak House of Pioneer Management Limited 61,599,867 Mei Tung Estate, Tung Wui and Shatin Pass Estates and Lung Poon Court commercial centre (1.1.2019 – 31.12.2020)
23 Tenders for cleansing service contracts for Choi Hung Estate & Yue Wan Estate (1.11.2018-31.10.2024)
- Choi Hung Estate Sun Lee Cleansing Company Limited 44,856,000
- Yue Wan Estate Li Hing Environmental Services Co. Limited 23,832,000
24 Tender for property management agency service contract for Nam Shan shopping China Overseas Property Services Limited 38,368,286 centre and non-domestic premises and Pak Tin shopping centre and non-domestic premises (1.9.2018-31.8.2022)
25 Second extension of security service contract for Yau Oi Estate Guard City Limited 31,759,286 (1.10.2018 – 30.9.2020)
26 Tender for security service contract for Chak On Estate Unimax Property Consultancy Limited 28,521,360 (1.11.2018-31.10.2024)
27 Tender for property management agency service contract for Wah Fu (2) shopping Shui On Properties Management Limited 26,996,832 centre and non-domestic premises (1.9.2018-31.8.2022)
28 Tender for cleansing service contract for Lei Yue Mun Estate Sun Lee Cleansing Company Limited 26,856,000 (1.10.2018-30.9.2024) Annex 2 Items Approved by the Page 3 of 3 Chairman of the Housing Department Tender Board (HDTB) on the advice of HDTB under Delegated Financial Authority (for the Quarter Ended 30 September 2018)
Serial No. Description of Items Approved Name of Tenderer/Counterparty Amount ($)
29 Second extension of security service contract for Pak Tin Estate Nice Property Management Limited 23,438,301 (1.11.2018 – 31.10.2020)
30 Tender for cleansing service contract for Nam Shan Estate Li Hing Environmental Services Co. Limited 21,528,000 (1.11.2018-31.10.2024)
31 Tender for property management agency contract of:
- Kai Long Court 16,168,324 Chevalier Property Management Limited
- Choi Hing Court 20,965,055
- Kwun Tak Court Pioneer Management Limited 17,259,879
32 Tender for security service contract for Mei Tung Estate Unimax Property Consultancy Limited 20,679,477 (1.11.2018-31.10.2024)
33 Tender for property management agency service contract for Ping Yan shopping Sunbase International Properties Management 18,155,344 centre, non-domestic premises and carpark in Ping Yan Court Limited (1.10.2018-30.9.2024)
34 First extension of security service contract for Lei Muk Shue (II) Estate Onward Security Company Limited 16,954,786 (1.10.2018 – 30.9.2020)
35 Second extension of security service contract for Wang Cheong Factory Estate and Creative Property Services Consultants Limited 16,098,205 Yip On Factory Estate (1.10.2018 – 30.9.2020)
36 Second extension of security service contract for Tin Yuet Estate Guard City Limited 13,900,295 (1.12.2018 – 30.11.2020)
37 Tender for cleansing service contract for Chak On Estate Li Hing Environmental Services Co. Limited 13,536,000 (1.11.2018-31.10.2024)
38 First extension of security service contract for Nam Shan Estate Tonwell Security Limited 13,287,339 (1.11.2018-31.10.2020)
39 Tender for the provision of security guard services for the Hong Kong Housing Sun Fook Kong Housing Services Limited 12,982,575 Authority Headquarters (Block 1 and 2) (1.10.2018-30.9.2020)
Sub-total 671,513,844
(IV) Others
40 Acceptance of entrustment works of social welfare facilities for the public rental The Government of the Hong Kong Special 32,200,000 housing development at San Kwai Street, Kwai Chung Administrative Region
41 Tender for exclusive concession for the supply and distribution of piped liquefied petroleum gas for:
- Nga Ning Court at Cheung Chau Island 390,000 ExxonMobil Hong Kong Limited - Wah Fu (II) Estate at Pokfulam 15,210,000
Sub-total 47,800,000
Grand Total 1,318,637,476 Annex 3 Page 1 of 2
Items Approved by Officers at D3 level or above under Delegated Financial Authority (for the Quarter Ended 30 September 2018)
Serial No. Description of Items Approved Name of Tenderer/Counterparty Amount ($)
(I) Works and Works Related Services
1 Engineering services on structural and geotechnical design for public housing development at:
- Ka Wai Man Road phase 1 Meinhardt (C&S) Limited 7,990,000
- Ching Hong Road North, Tsing Yi (phase 1 & phase 2) Grey Wong & Associates Limited 9,400,000
- Lei Yue Mun phase 4 at Yan Wing Street, Yau Tong APT Engineering Consultant Limited 5,400,500
2 QS services for Ching Hong Road North phases 1 and 2 (foundation and building Currie & Brown (China) Limited 8,666,750 works)
3 Replacement of existing chillers no.3 and 5 for blocks 1 & 2 Housing Authority Hsin Chong Aster Building Services 7,775,000 headquarter building Limited (Oct 2018 to Sep 2019)
4 Machine-room-less lift installation for construction of public rental housing development at Queen's Hill site 1 phases 2, 4 & 5 and portion of phase 6 cum alteration and addition works at Ching Ho Estate
- installation 7,673,000 thyssenkrupp Elevator (HK) Limited - 8-year maintenance 1,619,712
5 Building services engineering services for the public housing development at Ka Meinhardt (M&E) Limited 7,209,000 Wai Man Road phase 1
6 Building services engineering services for the public housing development at P&T (M&E) Ltd. 4,660,000 Ching Hong Road North, Tsing Yi, phase 1 and phase 2
7 Building services engineering services for the public housing development at Wong & Ouyang (Building Services) 4,241,000 Lei Yue Mun phase 4 at Yan Wing Street, Yau Tong Limited
8 Compressive strength test of concrete cubes for precast concrete components in Castco Testing Centre Limited 2,347,700 Guangdong provinces of China (Package 1-Region 1)
9 Compressive strength test of concrete cubes for precast concrete components in Fugro Technical Services Limited 1,481,060 Guangdong provinces of China (Package 2-Region 2)
Sub-total 68,463,722
(II) IT and Related Purchases/Services
10 Implementation of responsive web design, migration, maintenance, training and Nexify Limited 9,315,032 other related services for the HA / HD website of the HKHA
11 Supply, delivery, installation, commissioning, maintenance and other related Nexify Limited 4,106,974 services of database software for the HKHA
12 Design, supply, delivery, installation, commissioning, maintenance, training and ELM Computer Technologies Limited 3,450,000 other related services of the implementation of storage encryption for e-services platform of the HKHA
Sub-total 16,872,006 Annex 3 Page 2 of 2
Items Approved by Officers at D3 level or above under Delegated Financial Authority (for the Quarter Ended 30 September 2018)
Serial No. Description of Items Approved Name of Tenderer/Counterparty Amount ($)
(III) Supplies and Other Services
13 Cleansing service contract for Wah Lai Estate Ying Wah Cleaning Service Limited 9,129,600 (1.12.2018 - 30.11.2024)
14 First extension of security service contract for Wah Lai Estate Onward Security Company Limited 7,577,628 (1.12.2018 - 30.11.2020)
15 Provision of chief building supervisors and senior building supervisors for Unimax Property Consultancy Limited 5,195,418 undertaking estate caretaking services for Tuen Mun & Yuen Long region (1.12.2018 - 30.11.2021)
16 Christmas decoration 2018 at Domain Bliss Partners International Limited 1,550,000
Sub-total 23,452,646
(IV) Others
17 Increase of the management fee contribution for Choi Ming Court Incorporated Owners of Choi Ming Court 4,860,000
18 Excess of project budget for EHC site phase 5 - 4,411,000
19 Excess of project budget for EHC site phase 6 - 1,339,000
Sub-total 10,610,000
Grand Total 119,398,374 Annex 4 Major variations (i.e. $5M or more) approved by the Chairman of the Housing Department Tender Board (HDTB) on the advice of HDTB or Officers at D3 level or above (for the Quarter Ended 30 September 2018)
Deemed (Note 1) Cumulative Amount of Serial Original OriginalPrevious Variation Approved Revised No. Description of Items Approved Sum Contract SumVariations Approved in this quarter Contract Sum $M $M $M % $M % $M (A) (B) (C) (C) / (A) or (B) (D) (D) / (A) or (B) [(A) or (B)] + (C) + (D) (I) Works and Works Related Services
1 Variation of contract for advance civil engineering works for public 32.9 - 2.9 8.8% 13.5 41.0% 49.3 housing development projects Batch 7 (2017 – 2019)
2 Variation of materials testing services term contract (2017/2018) for construction 24.8 - - - 9.7 39.1% 34.5 materials (Package A4)
Sub-total 23.2
(II) Consultancy, Professional Advisory or Legal Services
3 Variation of contract sum of legal contract in respect of an HA's construction project 5.0 - 5.0 100.0% 5.0 100.0% 15.0
Sub-total 5.0
(III) Supplies and Other Services
4 Variation of security service contract for Yau Oi Estate 78.0 82.9 0.3 0.4% 5.8 7.0% 89.0
Sub-total 5.8
5 Variation of property services contract for Tin Chak and Lung Yat Estates, 208.1 - - - -5.2 -2.5% 202.9 residual services for Shan King Estate and Grandeur Terrace, Siu Hong commercial centre and remaining parts of Siu Hong Court
6 Variation of property services contract for Choi Tak and Choi Fook Estates 193.5 - 1.4 0.7% -8.2 -4.2% 186.7 and On Kay Commercial Centre
Sub-total -13.4
Total 20.6
Note: It was approved by the Finance Committee on 20 September 2005 that any revised contract value approved by the highest approving authority (the Tender Committee or the HDTB Chairman on the advice of HDTB as applicable to each DFA item) is deemed to be the original contract value. Annex 5
Major Virement of Funds (i.e. $5M or more) Approved by Officers at D3 level or above (for the Quarter Ended 30 September 2018)
Serial Details of Virement Amount ($) No.
1 Virement of funds from EMD to SD for 2018/19 Approved Budget for recurrent 9,880,000 expenditure
Total 9,880,000