Title
Phoenix Sky Harbor International Airport Terminal 4 Central Utility Plant Modernization - 2-Step Construction Manager at Risk Construction Services Amendment - AV21000111 FAA (Ordinance S-51790) - District 8
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Agreement 160208 with Holder Construction Group, LLC to provide additional Construction Manager at Risk Construction Services for the Phoenix Sky Harbor International Airport Terminal 4 Central Utility Plant Modernization project. Further request to authorize execution of amendments to the agreement as necessary within the Council-approved expenditure authority as provided below, and for the City Controller to disburse all funds related to this item. The additional fee for services included in this amendment will not exceed $20 million.
Report
Summary
The purpose of this project is to replace the current Terminal 4 Central Utility Plant and all associated equipment, evaluation and possible inclusion of the controls systems that provides all cooling capabilities for the Terminal 4 building campus. When this project is completed, the new Terminal 4 Central Utility Plant will provide increased building campus cooling capacity and energy efficiency while simultaneously reducing operation and maintenance costs.
This amendment is necessary to allow for continued Construction Phase Services for the modernization of the Central Utility Plant at Phoenix Sky Harbor International Airport Terminal 4 to continue. This amendment will provide additional funds to the agreement.
Contract Term
The term of the agreement amendment remains unchanged at five years from issuance of the Notice to Proceed. Work scope identified and incorporated into the agreement prior to the end of the term may be agreed to by the parties, and work may extend past the termination of the agreement. No additional changes may be executed after the end of the term.
Financial Impact
- The initial agreement for Construction Manager at Risk Construction Services was approved for an amount not to exceed $105 million, including all subconsultant/subcontractor and reimbursable costs.
- This amendment will increase the agreement by an additional $20 million, for a new total amount not to exceed $125 million, including all subconsultant/subcontractor and reimbursable costs.
Funding for this amendment is available in the Aviation Department's Capital Improvement Program. The Aviation Department anticipates grant funding for a portion of the project. The Budget and Research Department will separately review and approve funding availability prior to the execution of any amendments. Payments may be made up to agreement limits for all rendered agreement services, which may extend past the agreement termination.
Concurrence/Previous Council Action
The City Council approved:
- Construction Manager at Risk Preconstruction Services Agreement 160207 (Ordinance S-50690) on March 20, 2024; and
- Construction Manager at Risk Construction Services Agreement 160208 (Ordinance S-50690) on March 20, 2024; and
- Construction Manager at Risk Construction Services Amendment to Agreement 160208 (Ordinance S-51228) on September 4, 2024.
Location
2485 E. Buckeye Road
Council District: 8
Responsible Department
This item is submitted by Assistant City Manager Inger Erickson, Deputy City Manager Mario Paniagua, the City Engineer and the Aviation Department.