Title
Phoenix Sky Harbor International Airport Facilities and Services Tonto Lot Campus Phase I - Construction Manager at Risk Services - AV16000037 (Ordinance S-52148) - District 8
Description
Request to authorize the City Manager, or his designee, to enter into an agreement with Sundt Construction, Inc. to provide Construction Manager at Risk Preconstruction and Construction Services for the Phoenix Sky Harbor International Airport Facilities and Services Tonto Lot Campus Phase I 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 $20.5 million.
Report
Summary
The purpose of this project is to develop a new consolidated campus for the Facilities and Services Division at Phoenix Sky Harbor International Airport. The main Facilities and Services building campus is in the site area for the future West Terminal building. This new multi-building campus is proposed as a phased development to relocate all operational functions of Facilities and Services Division onto a consolidated campus site. The first phase includes the construction of the initial building facility to accommodate both permanent and temporary functions and comprehensive master planning for the entire new campus site.
Sundt Construction, Inc. will begin in an agency support role for Construction Manager at Risk Preconstruction Services. Sundt Construction, Inc. will assume the risk of delivering the project through a Guaranteed Maximum Price agreement.
Sundt Construction, Inc.’s Preconstruction Services include, but are not limited to: provide preconstruction services team to deliver a complete project; perform all preconstruction services for design phase to assure conformance with requirements; investigate and evaluate existing conditions and project constraints; protect the City’s sensitivity to quality, safety, and environmental factors; assist the design team with efforts to identify private and public utility easements; validate LEED goals and incorporate the Aviation Department's sustainability initiatives; collaborate with the owner and design team during the design phase to validate and synchronize the scope, budget, and schedule to meet project requirements; provide detailed cost estimating, validate milestone deliverables, and reconcile with third party construction cost estimates for each design phase milestone; provide project planning, scheduling, and assist in the permitting processes; provide construction phasing and scheduling that will minimize interruption to City operations; initiate procurement of long-lead items; identify Guaranteed Maximum Price (GMP) proposal package strategy and present alternate strategies to optimize sequence of construction; attend all project and team meetings as necessary to maintain the project objectives; prepare all reports for distribution to executives and stakeholders; perform design/constructability review of design documents at milestone review period; perform value engineering / cost reduction efforts to optimize project budget; and participate with the City in a process to establish a Small Business Enterprise (SBE) goal for the project.
Sundt Construction, Inc.’s initial Construction Services will include preparation of a Guaranteed Maximum Price proposal provided under the agreement. Sundt Construction, Inc. will be responsible for construction means and methods related to the project and fulfilling the SBE program requirements. Sundt Construction, Inc. will be required to solicit bids from prequalified subcontractors and to perform the work using the City’s subcontractor selection process. Sundt Construction, Inc. may also compete to self-perform limited amounts of work.
Sundt Construction, Inc.’s additional Construction Services include construct the Phoenix Sky Harbor International Airport Facilities and Services Tonto Lot Campus Phase I project; bond and insure the construction; provide quality controls and maintain site safety personnel from preconstruction through project closeout; notify the City of any unsafe conditions observed at the construction site; obtain required As-Built documentation to establish existing conditions; conduct field surveys/inspections and prepare reports to ensure compliance with the project plans and specifications; coordinate with various City of Phoenix departments, other agencies, and utility companies to meet all project requirements; prepare time-scaled logic construction schedule, and update throughout project duration; participate in Operational Readiness Activation and Transition meetings and provide any supporting documentation, as required; perform reviews and provide input on LEED and sustainability evaluation criteria relative to City standards and Aviation Department goals; provide itemized cost detail as required in support of proposed potential change notifications and change orders; prepare and submit punch list and record documents for design team review/approval; prepare closeout submittal log with metrics; participate in the 11.5 month warranty inspection; maintain all project records in electronic format; and provide construction services team to deliver 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 (A.R.S.). In accordance with A.R.S. section 34-603(H), the City may not publicly release information on proposals received or the scoring results until an agreement is awarded. There were 12 firms that submitted proposals, which are listed in Attachment A.
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 Sundt Construction, Inc. will not exceed $20.5 million, including all subcontractor and reimbursable costs.
Funding 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 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 Professional Services Agreement 162466 (Ordinance S-51625) on February 5, 2025.
Location
2485 E. Buckeye Road
Council District: 8
Department
Responsible Department
This item is submitted by Assistant City Manager Inger Erickson, Deputy City Manager Mario Paniagua, the Aviation Department and the City Engineer.