ORDINANCE appropriating $5,400,385 out of HAS Consolidated ITRP AMT Construction Fund and $72,614 out of Airports Improvement Fund and approving and authorizing contract for Construction-Manager-At-Risk Services between the City of Houston and AUSTIN-GILBANE, JOINT VENTURE, for the IAH Mickey Leland International Terminal (Project No. 826); providing funding for the Civic Art Program - DISTRICT B - DAVIS

SUBJECT: Construction-Manager-At-Risk (CMAR) Contract with Austin-Gilbane, Joint Venture, for the IAH Mickey Leland International Terminal (MLIT); Project No. 826 (WBS: A-000800-0007-3-01-01) 

RECOMMENDATION: Enact an ordinance to approve a contract for Construction-Manager-At-Risk (CMAR) Services with Austin-Gilbane, Joint Venture, for the IAH Mickey Leland International Terminal (MLIT) and appropriate the necessary funds to finance the cost of these services.

PROJECT LOCATION: George Bush Intercontinental Airport/Houston (IAH)

SPECIFIC EXPLANATION:
The Houston Airport System (HAS) has identified a significant need for the development of additional facilities at IAH to handle aircraft, passengers, and cargo departing to, and arriving from, domestic and international destinations on scheduled and chartered flights.

To support the airlines’ growth plans in Houston, the HAS and airlines will complete a major capital improvement program, known as the IAH Terminal Redevelopment Program (ITRP), that will include constructing a new 11-gate concourse on the north side of Terminal B, becoming the “New Terminal C North” and reconstructing and integrating the existing Terminal C North and Terminal D into a new single common-use international facility (the Mickey Leland International Terminal (MLIT)). The expansion of the terminal facilities will also necessitate an enlargement of certain components of the existing Federal Inspection Services (FIS) facility. The improvement plan will also include several enabling projects to serve the newly constructed facilities as well as a new roadway system, airfield improvements, and parking structure for increased parking capacity.

The MLIT Construction-Manager-At-Risk (CMAR), designated as the “Prime Contractor” of the MLIT site, will be required to provide complete Pre-Construction Services and Construction Services and to furnish all labor, materials, and equipment necessary and reasonable to complete the entire contemplated scope of work in accordance with City requirements and the terms of the contract. The scope of work includes permitting, supervision, testing, inspection, integration, construction, commissioning building and system components and interfacing with third party commissioning services firms, provider for integrated systems testing, information technology, systems integration and activation, regulatory requirements, project closeout, and all necessary general conditions that may be reasonably inferred, among other services.

A Request for Qualifications (RFQ) was advertised in accordance with City policy, and Statements of Qualification (SOQ) were received from five (5) firms. The Evaluation Committee, comprised of HAS functional managers and a PWE senior manager, evaluated and ranked the SOQs based on criteria contained in the RFQ. Three (3) firms were short-listed and interviewed by the Evaluation Committee, and Austin-Gilbane, Joint Venture was recommended for contract award. The selection process was observed by the City’s Acting Chief Procurement Officer, representatives of United Airlines and the IAH Foreign Flag carriers, and the ITRP Executive Program Manager.

The CMAR will perform services for the MLIT under two phases. Phase 1 – Pre-Construction Services will commence shortly after award of the Contract upon issuance of a Notice to Proceed (NTP) and includes a Lump Sum for the Pre-Construction Services. The culmination of Phase 1 will result in a Guaranteed Maximum Price (GMP), which will be brought to City Council for approval. Phase 2 – Construction Services will commence upon issuance of an NTP following the establishment of a GMP and will be completed in accordance with the scope of work.

HAS will be requesting City Council’s approval of additional appropriations in support of Phase 2 – Construction Services.

Funding in the amount of $72,614 Civic Art funding is included in the Contract amount for Phase 1. Additional funding in support of Civic Art will be included in the future appropriation request for Phase 2.

A portion of the spending under this contract may be eligible for reimbursement under either the FAA AIP or PFC programs.

Project Cost: The total appropriation is as follows:

$ 5,400,385        Preconstruction Services
$      72,614        Civic Art
$ 5,472,999        TOTAL APPROPRIATION

Pay or Play: The proposed contract requires compliance with the City’s “Pay or Play” ordinance regarding health benefits for employees of City contractors. In this case, the contractor provides benefits for some employees but will pay into the Contractor Responsibility Fund for others, in compliance with City policy.

M/WBE Participation: The Minority/Women Business Enterprise (M/WBE) goal for the Phase 1 – Pre-Construction Services portion of this contract is 10%. Austin-Gilbane, Joint Venture proposes to exceed the 10% goal for Phase 1 through the services performed by the following firms:

Certified Firm               Type of Work                                                          %
ChaseSource    Pre-Construction Services, Estimating, Scheduling      10%
                          Project Management, Building Information Modeling
                           (BIM) Coordination

Con-Real           Staffing and Construction Services in Support of the     5%
                          Pre-Construction and Construction Scopes of Work

A separate M/WBE participation goal will be established for Phase 2 – Construction Services, and the firm’s Phase 2 participation plan will be submitted to City Council for approval in conjunction with a request for appropriations in support of Phase 2.

The City Council Budget and Fiscal Affairs Committee was briefed on this contract on November 19, 2015.

 Kathy Elek            Phone: 281/233-1826
Robert Barker                     281/233-1953