Title
Phoenix Sky Harbor International Airport Terminal 2 Building Demolition, Apron Reconstruction, Mural Relocation, and Garage Demolition - Construction Manager At Risk Construction Services - AV08000082 FAA, AV02000033 (Ordinance S-46084)
Description
Request to authorize the City Manager, or his designee, to enter into an agreement with Kiewit Infrastructure West Co. (Kiewit), to provide Construction Manager at Risk (CMAR) Construction Services for the Phoenix Sky Harbor International Airport (PSHIA) Terminal 2 (T2) Building Demolition, Apron Reconstruction, Mural Relocation, and Garage Demolition 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 $55 million.
Report
Summary
Terminal 2, the apron, and associated systems were constructed over 60 years ago, and they have reached their useful life. Terminal 3 improvements were undertaken to provide gates for airlines operating at T2. This allows T2 to be demolished without an impact to airport capacity and operations. The project will be delivered in phases that will span several years to align with available Federal Aviation Administration (FAA) grant funding beginning in Fiscal Year 2019-20.
The purpose of the project under the first phase, AV08000082 FAA, is to demolish the PSHIA T2 concourse and reconstruct the apron. This will provide dual taxi lanes and improved operational safety. Phase 1 of the project is eligible to receive FAA funding consistent with the phasing and grant availability.
The purpose of the project under the second phase, AV02000033, is to demolish the PSHIA T2 terminal building (processor). Phase 2 will also include relocation of the art mural to a new airport location with public access and possibly demolition of the T2 parking garage in accordance with the airport's plan for development. Phase 2 of the project is not eligible to receive federal funds.
Kiewit Infrastructure West Co.'s initial services will include preparation of a Guaranteed Maximum Price (GMP) 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 second phase of the project. Kiewit will be responsible for construction means and methods related to the project and fulfilling the SBE program requirements under Phase 2 AV02000033, and the Disadvantaged Business Enterprise (DBE) program requirements under Phase 1 AV08000082 FAA. Kiewit will be required to solicit bids from prequalified subcontractors and to perform the work using the City’s subcontractor selection process. Kiewit may also compete to self-perform limited amounts of work.
Kiewit's services include, but are not limited to: project planning, scheduling, and detailed cost estimating; preparing a GMP; managing site operations; field verification of site conditions; procurement of materials and equipment; providing quality controls; and compliance with 49 Code of Federal Regulations Part 26 and the U.S. Department of Transportation DBE Program.
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 CMAR Preconstruction Services selection process.
Contract Term
The term of the agreement is 1,600 calendar days from issuance of the Notice to Proceed. Work scope identified and incorporated into the agreement before the end of the term may be agreed to by the parties, and work may extend past the agreement's termination. No additional changes may be executed after the end of the term.
Financial Impact
The agreement value for Kiewit Infrastructure West Co. will not exceed $55 million, including all subcontractor and reimbursable costs.
Funding is available in the Aviation Department's Capital Improvement Program budget. Staff anticipates reimbursement from a FAA grant in Fiscal Year 2019-20, and in future fiscal years. 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 CMAR Preconstruction Services Agreement 148969 (Ordinance S-45240) on Dec. 12, 2018.
Location
3400 E. Sky Harbor Blvd.
Council District: 8
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich, Deputy City Manager Mario Paniagua, the Aviation Department, and the City Engineer.