Title
Phoenix Sky Harbor International Airport Terminal 4 Baggage Handling System Upgrades - Construction Manager at Risk Services Amendment - AV21000109/AV21000119 (Ordinance S-52749) - District 8
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Agreement 157694 with The Weitz Company, LLC to provide additional Construction Manager at Risk Services for the Phoenix Sky Harbor International Airport Terminal 4 Baggage Handling System Upgrades project. Further request to authorize execution of amendments to the Agreement as necessary within the City Council-approved expenditure authority as provided below, and further to authorize the City Controller to disburse all funds related to this item. The additional fee for services included in the amendment will not exceed $18 million.
Report
Summary
The purpose of this project is to modernize the Phoenix Sky Harbor International Airport Terminal 4 (T4) Baggage Handling System (BHS).
The amendment is necessary because the BHS used by American Airlines and the various common-use systems in T4 are largely obsolete, in poor condition, and operating on end-of-life controls and technology. The amendment will provide additional funds to the Agreement. The Amendment to Guaranteed Maximum Price is necessary for the next phase of construction for the modernization of the T4 American Airlines BHS.
Contract Term
The term of the Agreement remains unchanged from the 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 Agreement for construction manager at risk services was approved for an amount not to exceed $300,000, including all subcontractor and reimbursable costs.
- A first amendment was executed to increase the Agreement by $8.2 million, for a new total amount not to exceed $8.5 million, including all subcontractor and reimbursable costs.
- A second amendment was executed to increase the Agreement by $48.1 million, for a new total amount not to exceed $56.6 million, including all subcontractor and reimbursable costs.
- A third amendment was executed to increase the Agreement by $26 million, for a new total amount not to exceed $82.6 million, including all subcontractor and reimbursable costs.
- This amendment will increase the Agreement by an additional $18 million, for a new total amount not to exceed $100.6 million, including all subcontractor and reimbursable costs.
Funding for the amendment is available in the Aviation Department's Capital Improvement Program budget. 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 termination of the Agreement.
Concurrence/Previous Council Action
The City Council approved:
- Construction Manager at Risk Services Agreement 157694 (Ordinance S-49323) on January 25, 2023.
- Construction Manager at Risk Services Agreement 157694 Amendment (Ordinance S-50050) on July 3, 2023.
- Construction Manager at Risk Services Agreement 157694 Amendment (Ordinance S-50915) on May 29, 2024.
- Construction Manager At Risk Services Agreement 157694 Amendment (Ordinance S-52495) on December 17, 2025.
Location
2485 E. Buckeye Road
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Managers Frank McCune and Amber Williamson, the Aviation Department and the City Engineer.