Title
Phoenix Sky Harbor International Airport Terminal 4 Central Utility Plant Modernization - Engineering Services Amendment - AV21000111 FAA (Ordinance S-51246)
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Agreement 159153 with SmithGroup, Inc. to provide additional Engineering 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 $7.5 million.
Report
Summary
The purpose of this project is to replace the current Terminal 4 Central Utility Plant and all associated equipment and possible inclusion of the controls systems that provide all cooling capabilities for the Terminal 4 building campus. The Terminal 4 building campus is approximately 1.9 million square feet, which includes the main terminal and eight concourses with associated connecting bridges. The Terminal 4 Central Utility Plant and associated equipment is more than 30 years old and has reached or exceeded its useful life. The equipment is outdated, costly to operate and maintain, has become obsolete, and parts are no longer manufactured. The modernization design shall align with the Airport's goals in sustainability, resiliency, and any applicable key performance indicators. The objective of the project is to design a modern and sustainable central plant in Terminal 4.
This amendment is necessary for SmithGroup, Inc. to provide additional design, construction administration and inspection, and other services as required for a complete project. This is a multi-phased project that will span several years to align with Federal Aviation Administration (FAA) grant funding availability. This amendment will provide additional funds and time to the agreement.
Contract Term
The term of the agreement amendment is five years 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 initial agreement for Engineering Services was approved for an amount not to exceed $4.5 million, including all subconsultant and reimbursable costs.
- This amendment will increase the agreement by an additional $7.5 million, for a new total amount not to exceed $12 million, including all subconsultant and reimbursable costs.
Funding for this 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 agreement termination.
Concurrence/Previous Council Action
The City Council approved:
- Engineering Services Agreement 159153 (Ordinance S-50144) on September 6, 2023; and
- CMAR Preconstruction Services Agreement 160207 (Ordinance S-50690) on March 20, 2024.
Location
3800 E. Sky Harbor Boulevard
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Managers Mario Paniagua and Inger Erickson, the Aviation Department and the City Engineer.