SUBJECT: Design/Build Contract with Hensel Phelps for Landside Enabling Utilities for the IAH Terminal Redevelopment Program (ITRP); Project No. 822 (WBS: A-000800-0010-3-01-01)
RECOMMENDATION: Enact an ordinance to approve a contract for Design/Build Services with Hensel Phelps for the Landside Enabling Utilities in support of the IAH Terminal Redevelopment Program (ITRP) 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 Landside Enabling Utilities Design/Build Services firm will be designated as the “Prime Contractor” of the Landside Enabling Utilities site and will be required to provide complete Design, Pre-Construction Services and Construction Services to complete the ITRP Landside Enabling Utilities Project. The firm must 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, design, construction, supervision, testing, inspection, integration, construction, commissioning building and system components and interfacing with third-party commissioning services, 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.
A Request for Qualifications (RFQ) was advertised in accordance with City policy, and Statements of Qualification (SOQ) were received from four (4) firms. The Evaluation Committee, comprised of HAS functional managers, 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 Hensel Phelps was recommended for contract award. The selection process was observed by members of the ITRP Program Management Team.
The Landside Enabling Utilities Design/Build Services firm will perform services for the Project under two phases. Phase 1 – Design/Pre-Construction/Early Construction Services will commence shortly after award of the contract upon issuance of a Notice to Proceed (NTP). Early Construction Services, for the construction/installation of a new triturator, will be completed during Phase 1. 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.
Phase 1 Costs:
Pre-Construction Services and Design Services $4,370,000
Early Construction Services $ 330,000
Contingency $ 33,000
Total $4,733,000
HAS will be requesting City Council’s approval of additional appropriations in support of Phase 2 – Construction Services. A portion of the spending under this contract may be eligible for reimbursement under either the FAA AIP or PFC programs.
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) participation goal for the Phase 1 – Pre-Construction Services portion of this contract is 19%. Hensel Phelps proposes 19.5% participation through the services performed by the following firms:
Certified Firm Type of Work %
4b Technology Information Technology and Telecommunication 6.3%
Aviles Engineering Geotechnical Services 3%
HT&J Drainage Design 1%
Isani Consultants Water Line Services 3%
Shah Smith & Associates Lighting, Ventilation 5%
Vesta Rae & Associates Public Outreach 1.2%
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 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.