Title
Phoenix Sky Harbor International Airport Terminal 3 North Concourse 2 Package 3 Airport Concourse - Construction Manager at Risk Construction Services - AV08000087, AV13000003 FAA (Ordinance S-50680)
Description
Request to authorize the City Manager, or his designee, to enter into an agreement with McCarthy Building Companies, Inc. to provide Construction Manager at Risk Construction Services for the Phoenix Sky Harbor International Airport Terminal 3 North Concourse 2 Package 3 Airport Concourse 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 fee for services will not exceed $325,785,000.
Report
Summary
The purpose of this project is to develop a new six-gate, two-level airport concourse at Terminal 3 of Phoenix Sky Harbor International Airport to accommodate operations for airlines, passengers and airport staff. The planned work will include an aircraft apron to accommodate six Airplane Design Group III aircrafts that may service two Airplane Design Group V via two-for-one exchange; a connector bridge between the existing and new concourse to facilitate passenger movement with moving walkways; and one or more passenger bus lobbies at Terminal 4 north concourses to facilitate passageway or a tunnel to facilitate inter-terminal passenger connections between Terminal 3 and Terminal 4.
McCarthy Building Companies, Inc.’s initial services will include preparation of a Guaranteed Maximum Price proposal for the Construction Services provided under the agreement and participating with the City in a process to establish a Small Business Enterprise (SBE) goal for the project. McCarthy Building Companies, Inc. will be responsible for construction means and methods related to the project and fulfilling the SBE program requirements. McCarthy Building Companies, Inc. will be required to solicit bids from prequalified subcontractors and to perform the work using the City’s subcontractor selection process. McCarthy Building Companies, Inc. may also compete to self-perform limited amounts of work.
McCarthy Building Companies, Inc.’s services include, but are not limited to: bond, insure, and construct the Phoenix Sky Harbor International Airport Terminal 3 North Concourse 2 Package 3 Airport Concourse project; consult with the City to meet all project requirements; coordinate submission of multiple construction document sets and conduct constructability reviews; develop subcontractor selection plan and construction management plan; prepare and update construction schedule throughout project; evaluate operational impacts and work with stakeholders to minimize or eliminate disruptions; conduct construction progress meetings and other project meetings as needed; participate in Operational Readiness Activation and Transition meetings and provide any supporting documentation; perform reviews and provide input on sustainability evaluation criterion relative to City standards and Aviation Department goals; perform field inspection and prepare reports to ensure compliance with the project plans and specifications; prepare and submit monthly progress payments; provide support role relative to the project Leadership in Energy and Environmental Design report, confirming construction practices comply with contract documents and specifications; prepare and submit Federal Aviation Administration monthly construction progress reports; provide itemized cost detail as required in support of proposed potential change notifications and change orders and participate in weekly cost/credit change review meetings with City third party estimators; prepare and submit punch list and record documents for Design Team review/approval; prepare closeout documentation for City record archive; participate in the 11.5 month warranty inspection; provide quality controls and maintain a safe work site for all project participants; maintain all project records in electronic format; and provide other services as needed for a complete project.
Procurement Information
The selection was made using a qualifications-based selection process set forth in section 34-603 of the Arizona Revised Statutes. Scoring and selection were made in conjunction with the Construction Manager at Risk Preconstruction Services selection process.
Contract Term
The term of the agreement is 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 agreement value for McCarthy Building Companies, Inc. will not exceed $325,785,000, including all subcontractor and reimbursable costs.
Funding is available in the Aviation Department's Capital Improvement Program budget. The Aviation Department anticipates partial grant funding for this project. The Budget and Research Department will separately review and approve funding availability prior to 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 158125 (Ordinance S-49591) on April 19, 2023; and
- Architectural Services Agreement 158106 (Ordinance S-49589) on April 19, 2023.
Location
2485 E. Buckeye Road
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Managers Mario Paniagua and Alan Stephenson, the Aviation Department and the City Engineer.