RECOMMENDATION:
Enact an Ordinance appropriating the sum of $14,600,000.00 for the Program Management Support Services contracts with the Houston Aviation Alliance (HAA), a Joint Venture, and the Parsons & HJ Russell IAH Team (PHJR), a Joint Venture. (Project No. 801)
SPECIFIC EXPLANATION:
The Program Management Support Services (PMSS) scope of services includes the provision for staffing, services, and systems in support of the Project Management, Design Management, and Construction Management (PM/DM/CM) and Project Controls Services of the IAH Terminal Redevelopment Program (ITRP).
On April 8, 2015, Houston City Council enacted Ordinance 2015-0314, approving and authorizing two PMSS Contracts—one with the Houston Aviation Alliance (HAA) and one with the Parsons & HJ Russell IAH Team (PHJR)—and appropriating an initial amount of
$21,000,000.00 for a contract term of eight years.
On October 19, 2016, City Council enacted Ordinance 2016-801, approving and authorizing Amendment No. 1 to the Contract and appropriating an additional $22,000,000.00.
On March 7, 2018, City Council enacted Ordinance 2018-174, appropriating an additional $18,144,400.00.
On May 08, 2019, City Council enacted Ordinance 2019-349, approving and authorizing Amendment No. 2 to the Contract and appropriating an additional $18,900,000.00. Amendment No. 2 updated the Contract’s Exhibit B: PMSS Consultant’s Raw Salary Rates due to increases caused by inflation and annual cost of employment increases.
On August 26, 2020, City Council enacted Ordinance 2020-739, appropriating an additional $13,000,000.00.
The total PMSS appropriation to date is $93,044,400.00 with HAA receiving $30,893,200.00 and PHJR receiving $62,151,200.00. The total cost of the PMSS contracts are included in the overall $1.3B ITRP Budget.
Over the course of the contract, a wide variety of skills and capabilities are required under the PMSS contracts by the Houston Airport System. Resource requirements are prepared on an individual basis for each assignment, and Letters of Authorization (LOAs) are executed prior to the commencement of any given assignment.
It is now requested that City Council approve an additional appropriation of $14,600,000.00 to fund another year of continued and uninterrupted delivery of the Program Management Support Services in support of ITRP. City Council will be asked to approve additional appropriations in FY2023 and FY2024 to fund the remainder of the contract term.
Project Costs:
The $14,600,000.00 will be allocated to the two contracts (HAA and Parsons & HJ Russell IAH Team) as needed through Letters of Authorization (LOAs). A portion of the spending may be eligible for reimbursement under either the FAA AIP or PFC Programs.
M/WBE Participation:
The M/WBE goal for these contracts is 35%. Currently, HAA is achieving 37.85% participation and Parsons & HJ Russell IAH Team is achieving 39.05% participation toward the goal. The HAS Office of Business Opportunity will continue to monitor these contracts in accordance with its procedures.
CIP Fiscal Note:
No significant Fiscal Operating impact is anticipated as a result of this project.
Director's Signature:
____________________ _____________________
Mario C. Diaz Andy Icken
Houston Airport System Chief Development Officer