Title
Phoenix Sky Harbor International Airport Airfield Lighting Vaults Modernization - Construction Manager at Risk Services - AV08000090 (Ordinance S-53109) - District 8
Description
Request to authorize the City Manager, or his designee, to enter into an agreement with Rural Electric, Inc. to provide Construction Manager at Risk Preconstruction and Construction Services for the Phoenix Sky Harbor International Airport Airfield Lighting Vaults Modernization project. Further request to authorize execution of amendments to the agreement as necessary within the City 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 $21 million.
Report
Summary
The purpose of the project is to replace aging electrical equipment in the north, center, and south airfield lighting vaults to ensure continued safe and reliable airport operations. The existing equipment, including lighting regulators, is over 20 years old and has surpassed its useful lifespan. These units are being phased out by the manufacturer, and replacement parts will soon no longer be available, creating a risk of equipment failure and unusable aircraft movement areas. This initiative is essential to modernize all three airfield lighting vaults, ensuring long-term reliability, safety, and continued compliance with regulatory requirements.
Rural Electric, Inc. will begin in an agency support role for Construction Manager at Risk Preconstruction Services. Rural Electric, Inc. will assume the risk of delivering the project through a guaranteed maximum price agreement.
Rural Electric, Inc.’s Preconstruction Services include providing detailed cost estimating and knowledge of marketplace conditions; providing project planning and scheduling; providing for construction phasing and scheduling that will minimize interruption to City of Phoenix operations; providing alternate systems evaluation and constructability studies; advising the City on ways to gain efficiencies in project delivery; providing long-lead procurement studies and initiating procurement of long-lead items; assisting in the permitting process; participating with the City in a process to establish a Small Business Enterprise commitment for the project; and protecting the City's sensitivity to quality, safety, and environmental factors.
Rural Electric, Inc.’s initial construction services will include preparation of a Guaranteed Maximum Price proposal provided under the agreement. Rural Electric, Inc. will be responsible for construction means and methods related to the project and fulfilling the Small Business Enterprise (SBE) program requirements. Rural Electric, Inc. will be required to solicit bids from pre-qualified subcontractors and to perform the work using the City’s subcontractor selection process. Rural Electric, Inc. may also compete to self-perform limited amounts of work.
Rural Electric, Inc.’s additional Construction Services include constructing the replacement of the existing Constant Current Regulators and associated electrical infrastructure within the three electrical vaults at Phoenix Sky Harbor International Airport to ensure reliable airfield lighting for all runways and taxiways under varying visibility conditions; replacing the major electrical systems, including the Service Entrance Section, power distribution equipment, backup power systems, communication pathways, and regulator equipment, with provisions to maintain operations during construction; selecting subcontractors or suppliers for the project; coordinating with various City departments, other agencies, and utility companies; arranging for the procurement of materials and equipment; scheduling and managing site operations; bidding, awarding, and managing all construction-related contracts while meeting City bid requirements, including the local and SBE participation goals; providing quality controls; bonding and insuring the construction; addressing all federal, state, and local permitting requirements; dealing with City issues; and maintaining a safe work site for all project participants.
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. Three firms submitted proposals and are listed below.
Selected Firm
Rank 1: Rural Electric, Inc.
Additional Proposers
Rank 2: Vellutini Corporation dba Royal Southwest.
Rank 3: Caddell Construction-FS360, Joint Venture.
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 termination of the agreement. No additional changes may be executed after the end of the term.
Financial Impact
The agreement value for Rural Electric, Inc. will not exceed $21 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 amendment. Payments may be made up to agreement limits for all rendered agreement services, which may extend past agreement termination.
Concurrence/Previous Council Action
The City Council approved Engineering Services Agreement 165140 (Ordinance S-52729) on April 8, 2026.
Location
2485 E. Buckeye Road
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Managers Frank McCune and Amber Williamson, the Aviation Department and the City Engineer.