ORDINANCE appropriating $22,000,000.00 out of Airports Improvement Fund as additional appropriation and approving and authorizing Amendment No. 1 to two contracts between the City of Houston and HOUSTON AVIATION ALLIANCE, a Joint Venture, and PARSONS & H. J. RUSSELL IAH TEAM, A Joint Venture, for Professional Program Management Support Services for the Houston Airport System (Approved by Ordinance No. 2015-314) (Project No. 800) - DISTRICTS B - DAVIS; E - MARTIN and I - GALLEGOS

Enact an Ordinance to approve Amendment No. 1, to approve and authorize an additional appropriation of $22,000,000 for the two Professional Services Agreements.

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).  The expansion of the terminal facilities may necessitate and 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 and airfield improvements.

On April 7, 2015, Houston City Council approved two contracts for Program Management Support Services with the Houston Aviation Alliance (HAA), and with the Parsons & HJ Russell IAH Team.

The Program Management Support Services (PMSS) scope of services includes the provision for Project Management, Design Management, and Construction Management (PM/DM/CM) systems, services, and personnel staffing in support of the ITRP and other HAS-designated capital projects as may be assigned.  The PMSS teams work under the direction of the separately-contracted Executive Program Manager (EPM) Team, and provide services for all phases of assigned work , including the:  Program Initiation Phase, Program Definition Phase, Design Phase, Construction Phase, Commissioning and Activation Phase, and Contract Closeout Phase.  Over the course of the contract, a wide variety of skills and capabilities will be required.  Assignments of work to be carried out by the PMSS teams will be determined by the EPM and approved by HAS.  Detailed scopes of work and cost estimates are prepared on an individual basis for each assignment, and task orders (Letters of Authorization) are issued as Notice to Proceed (NTP) on any given assignment. 

During the initial year, the PMSS has made substantial progress in accomplishing the following tasks:

• Completion of the development of the Program Management Plan and Procedures;
• Completion of the  purchase, and initial setup of the Project Controls System;
• Establishment  of an approved Baseline Budget for the IAH Terminal Redevelopment Program;
• Implementation of  an invoice processing system for projects within the scope of ITRP;
• Development of Procurement documents for the initial projects within the scope of ITRP, which entails services of the architecture team, and construction manager at risk or design-build documentation for these projects.

It is now requested that City Council approve and authorize an additional appropriation to fund the second year of the eight year contract, amend the Contract to provide for the clarification of certain contract terms regarding reimbursable expenses, for Program Management Support Services in support of the ITRP and other HAS-designated capital projects as may be assigned on an on-call, as needed basis. 

Date and identification of prior authorizing Council action:

04/07/2015 (O) 2015-0314

Project Costs:  This $22,000,000 will be allocated to the two contracts (Houston Aviation Alliance (HAA) and Parsons & HJ Russell IAH Team) as needed through Letters of Authorization (LOAs).  It is anticipated that City Council approval of additional funds for these contracts will be requested in the future.

Fiscal Note:

This Program Management Support Services (PMSS) contract is considered to be a capital contract and therefore all expenditures will be capitalized as a component of the asset supported. It was executed in 2015 with the express purpose of providing Project Management, Design Management, and Construction Management (PM/DM/CM) systems, services, and staffing in support of the ITRP (an estimated $1.5 billion undertaking) and other HAS-designated capital projects as assigned to the PMSS teams.  These services will be and are being utilized for multiple separate and distinct construction projects for which HAS will follow a procurement process for formal Design and Constructions of such projects.  At the time of the construction procurement for a given project, an analysis of the incremental O&M impact will be provided for that individual project.

See attached Form A. The capital budget for this project is included in the amount shown for Other in FY17.

MWBE Participation:

The Minority/Women Owned Business Enterprise goal for these contracts is thirty-five percent (35%).  Due to the on-call nature of the work to be performed, the amount of work required of the MWBE firms listed through contacts between Houston Aviation Alliance (HAA) and Parsons & HJ Russell IAH Team below will be identified as the scopes of the projects evolve.  The HAS Office of Business Opportunity has reviewed and approved this participation plan.

Currently Houston Aviation Alliance (HAA) is achieving 33.62% and Parsons HJRussell IAH Team is achieving 59.5%, respectively, toward the 35% goal.

04/07/2015……………………$10,500,000.00

04/07/2015……………………$10,500,000.00

HAS Aprt Improvement Fund (8011)

CIP A-0800.07   $22,000,000.00   HAS – Arpt Improvement (8011)

            TOTAL   $22,000,000.00

Up to a maximum of $22,000,000 for this appropriation which will be allocated to the two firms as needed through Letters of Authorization (LOAs) between contracts with Houston Aviation Alliance (HAA) and Parsons & HJ Russell IAH Team.

Rhonda Arnold              281/233-1618

Robert Barker                281/233-1953