Title
Phoenix Sky Harbor International Airport Terminal 4 Central Utility Plant Modernization - 2-Step Construction Manager at Risk Services - AV21000111 (Ordinance S-50690)
Description
Request to authorize the City Manager, or his designee, to enter into an agreement with Holder Construction Group, LLC to provide Construction Manager at Risk Preconstruction and Construction 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 fee for services will not exceed $105 million.
Report
Summary
The purpose of this project is to replace the current Terminal 4 Central Plant and all associated equipment, evaluation and possible inclusion of the controls systems that provides all cooling capabilities for the Terminal 4 building campus. When this project is completed, the new Terminal 4 Central Plant will provide increased building campus cooling capacity and energy efficiency while simultaneously reducing operation and maintenance costs.
The Terminal 4 building campus is approximately 1.9 million square feet. This includes the main terminal and eight concourses with associated connecting bridges. The Terminal 4 Central Plant and associated equipment is more than 30 years old. It has reached or exceeded the useful life and is outdated, costly to operate and maintain, and with some components has become obsolete and/or parts are no longer manufactured. The modernization design shall align with Phoenix Sky Harbor International Airport's goals in sustainability, resiliency, and efficiency.
Holder Construction Group, LLC will begin in an agency support role for Construction Manager at Risk Preconstruction Services. Holder Construction Group, LLC will assume the risk of delivering the project through a Guaranteed Maximum Price agreement.
Holder Construction Group, LLC's Preconstruction Services include, but are not limited to: attend and participate in project meetings; provide detailed cost estimating and knowledge of marketplace conditions; provide project planning and scheduling; provide construction phasing and schedule to minimize interruption to City operations; provide alternate systems evaluations, constructability studies and value engineering; prepare trade contractor selection plan; provide long-lead procurement studies and initiate procurement of long-lead items; assist in permitting processes; assist design team in subsurface investigation and identification of utilities and easement; provide other services for a complete preconstruction phase; and participate with the City in a process to establish a Disadvantaged Business Enterprise (DBE) goal for the project.
Holder Construction Group, LLC’s initial Construction Services will include preparation of a Guaranteed Maximum Price proposal provided under the agreement. Holder Construction Group, LLC will be responsible for construction means and methods related to the project and fulfilling the DBE program requirements. Holder Construction Group, LLC will be required to solicit bids from prequalified subcontractors and to perform the work using the City’s subcontractor selection process. Holder Construction Group, LLC may also compete to self-perform limited amounts of work.
Holder Construction Group, LLC’s additional Construction Services include construct the modernization of Terminal 4 Central Utility Plant; conduct construction meetings, provide monthly schedule updates and prepare construction progress reports; bond and insure construction; provide required and coordination to achieve acceptance for testing and commissioning by all parties; provide project close-out and other work as necessary for a complete project.
Procurement Information
The selection was made using a two-step qualifications and price-based 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 any information on proposals received, including the scoring results, until an agreement is awarded. Eight firms submitted proposals and are listed below.
Selected Firm
Rank 1: Holder Construction Group, LLC
Additional Proposers
Rank 2: Hunt Construction Group, Inc.
Rank 3: Hensel Phelps Construction Co.
Rank 4: M.A. Mortenson Company
Rank 5: Clayco, Inc.
Rank 6: The Weitz Company, LLC
Rank 7: FCI Constructors, Inc.
Rank 8: Sun Eagle Corporation
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 Holder Construction Group, LLC will not exceed $105 million, including all subcontractor and reimbursable costs.
Funding is available in the Aviation Department's Capital Improvement Program budget. The Aviation Department anticipates grant funding for a portion of the 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.
Location
2485 E. Buckeye Road
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Managers Alan Stephenson and Mario Paniagua, the Aviation Department, and the City Engineer.