Title
Phoenix Sky Harbor International Airport Terminal 4 Terrazzo Installation Construction Manager at Risk - Amendment 2 - AV21000089 (Ordinance S-43552)
Description
Request to authorize the City Manager, or his designee, to enter into Amendment No. 2 (Amendment) to Contract 140655 (Contract) with McCarthy Building Companies, Inc. (Phoenix, Ariz.) to provide continued Construction Manager at Risk (CMAR) construction phase services for the Phoenix Sky Harbor International Airport Terminal 4 Terrazzo Floor Installation project (Project). Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The Project includes replacing approximately 440,000 square feet of carpeting in the high-traffic areas of Terminal 4 with terrazzo flooring. The long life of terrazzo avoids the frequent carpet replacement that must occur now. The main terminal areas include Levels 1 and 2 and the high-traffic area of Concourses N1, N2, N3, N4, S3, and S4. Because this Project takes place within an airport operating environment, construction will be phased over multiple years to maintain operating functions. This Amendment will authorize additional services, including enabling projects necessary for construction, demolition of existing flooring, and installation of Terrazzo at Level 2 Ticketing. The CMAR construction phase services include scheduling and managing site operations, preparing multiple guaranteed maximum price proposals, fielding verification of site conditions, arranging for procurement of materials and equipment, and providing quality controls.
Procurement Information
McCarthy Building Companies, Inc. was chosen for this Project using a qualifications-based selection process according to section 34-603 of the Arizona Revised Statutes (ARS). Scoring and selection were made in conjunction with the design services selection process.
Contract Term
The term of this Amendment is expected to be complete by Oct. 29, 2018. Contract work scope identified and incorporated into the Contract prior to the end of the Contract may be agreed to by the parties, and work may extend past the termination of the Contract. No additional Contract work scope changes may be executed after the end of the Contract term.
Financial Impact
On Aug. 21, 2015, the City entered into the Contract in the amount of $4.2 million. On Feb. 12, 2016, the City entered into Contract Change Order 1, which reduced the Contract value to $4 million. On Sept. 12, 2016, the City entered into Amendment 1, which increased the Contract value by $2.8 million, for a new total Contract value of $6.8 million. McCarthy Building Companies, Inc.'s fees under this Amendment will not exceed $4.5 million, including all subconsultant, subcontractor, and reimburseable costs. The new Contract value for all construction services for this Project is $11.3 million. Funding is available in the Aviation Department's Capital Improvement Program budget. Contract payments may be made up to Contract limits for all rendered Contract services, which may extend past the Contract termination.
Small Business Outreach
The Small Business Enterprise goal for this Project is five percent.
Concurrence/Previous Council Action
City Council approved CMAR design phase services Contract 139593 on Nov. 5, 2014. City Council approved the CMAR construction phase services Contract 140655 on June 17, 2015. City Council approved Amendment 1 to Contract 140655 on June 22, 2016.
Location
Phoenix Sky Harbor International Airport is located at 3400 E. Sky Harbor Blvd.
Department
Responsible Department
This item is submitted by Deputy City Managers Paul Blue and Mario Paniagua, the Aviation Department, and the City Engineer.