RECOMMENDATION:
Enact an Ordinance appropriating $587,173.00 from the Airport System Consolidated ITRP AMT Construction Fund (8207) for the Professional Materials Engineering and Testing Services Contract with Aviles Engineering Corporation in support of the IAH Terminal Redevelopment Program (ITRP) Enabling Utilities-Landside (EUL) Project at George Bush Intercontinental Airport/Houston (IAH) (Project No. 822).
SPECIFIC EXPLANATION:
On February 27, 2019, City Council enacted Ordinance 2019-123, approving a Design-Build Services Contract with Burns & McDonnell Engineering Company, Inc. for the Enabling Utilities-Landside (EUL) Project (Project No. 822) in support of the IAH Terminal Redevelopment Program (ITRP) and appropriating $7,693,277.00 for Phase 1 - Pre-Construction Services. The EUL Project includes the design and construction of waterline and isolation valve between Terminal A and the new Water Plant; a new East Water Facility; a new water well; installation of site fencing; and the West Triturator (a small sanitary facility to process wastewater from aircraft).
On January 6, 2021, City Council enacted Ordinance 2021-2, approving Professional Materials Engineering and Testing Services Contracts, including with Aviles Engineering Corporation, for certain professional geotechnical investigations and construction materials testing and inspection services in connection with the design, construction, or maintenance of airport capital projects.
On September 29, 2021, City Council enacted Ordinance 2021-841, approving Amendment No. 1 to the Design-Build Contract with Burns & McDonnell to accept the Guaranteed Maximum Price (GMP) and appropriating $42,808,706.00 for Phase 2 – Construction Services. The appropriation included $587,173.00 for the Contract with Aviles Engineering Corporation (Contract No. 4600016473) for testing services for the EUL Project.
On September 26, 2022, City Council enacted Ordinance 2022-721, approving an additional appropriation to the EUL Project to increase the Owner’s Reserve by $2,000,000.00.
On October 19, 2022, City Council enacted Ordinance 2022-818, amending Ordinance 2021-2 to increase the maximum contract amount for the Professional Materials Engineering and Testing Services Contracts supporting airport capital projects, including the one with Aviles Engineering Corporation.
On November 8, 2023, City Council passed Motion 2023-759, approving a Change Order in excess of the contractual threshold for the Professional Materials Engineering and Testing Services Contract with Aviles Engineering Corporation in support of the EUL Project. Due to the complexity of the EUL Project Work, including an extended schedule duration, unforeseen underground conditions and enhanced traffic control, additional testing and inspections are necessary in the amount of $587,173.00. Sufficient funds remain within the budget for the EUL Project to fund the testing and inspections, and it was anticipated that funding reallocations from previously appropriated funds would be utilized. However, upon further guidance, a direct appropriation to the Contract with Aviles is required.
Thus, now that City Council has approved the issuance of a Change Order for Aviles Engineering Corporation in excess of the contractual threshold, it is requested that an Ordinance be enacted appropriating $587,173.00 from the Airport System Consolidated ITRP AMT Construction Fund (8207) to fund it. This appropriation will not increase the overall EUL Project budget and will be offset by unused funds for the Project.
The ITRP EUL Project was included in presentations to the City Council Economic Development Committee on June 21 and November 15, 2023.
M/WBE Participation:
A 0% goal document was approved by the Office of Business Opportunity for the Contract with Aviles Engineering Corporation.
Burns & McDonnell achieved 39.01% participation towards the 35% M/WBE goal for the EUL Phase 1 – Pre-Construction Services.
The M/WBE goal assigned to EUL Phase 2 – Construction Services is 19% (12% MBE, 3% WBE and 4% SBE). Burns & McDonnell is currently achieving 23.87% (11.55% MBE, 5.46% WBE and 6.80% SBE) participation towards the goal. The HAS Office of Business Opportunity will continue to monitor this project in accordance with its procedures to insure maximum M/WBE participation.
Fiscal Note:
No significant Fiscal Operating impact is anticipated as a result of this project.
Director's Signature:
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Mario C. Diaz
Houston Airport System