Aviation Capital Program
Central Terminal
Infrastructure Upgrade
Project
1
Item No: 6a_Supp
Mtg Date: June 27, 2017
The problem
• August 2016 the ADR Infrastructure Modifications
Central Terminal project received a single bid. That
bid was 127% over the engineers estimate.
• October 2016 the CTE HVAC Upgrade project
received a single bid. That bid was 197% over the
engineers estimate.
Both projects had the same single bidder
2
What we learned from the
construction community
• Post bid interviews conducted with single bidder for both projects and select contractors
that did not bid on either project.
– Feedback
• Working at the airport is difficult; stringent security requirements additional
staff & overhead required, limited work hours & spaces.
• Laydown areas for both projects were small with limited access to work sites,
required multiple mobilizations which is not efficient for construction .
• All crafts in the region are busy; we cannot find qualified personnel.
• Subcontractor bids exceeded engineers estimates for both projects.
Post procurement cancelation interviews with contractors
3
Recommended scope of work
solution
• Combine the ADR Infrastructure Modifications and CTE
HVAC projects into one design and re-advertise this
combined design package as one larger project.
Combine two capital projects
4
Project schedule
• 2
nd
QTR 2017 Request Commission Authorization
– Transfer ADR Infrastructure Modifications Central Terminals authorization
and budget to Central Terminals Infrastructure Upgrade.
– Increase the Central Terminals Infrastructure Upgrade authorization and
budget.
– Advertise and award a major construction contract.
• 3
rd
QTR 2017 Advertise and award a major construction contract
• 1
st
QTR 2018 Start Construction
• 1
st
QTR 2019 Phase 1 (south side construction) completed
• 4
th
QTR 2019 Phase 2 (north side construction) completed
Requires closure of multiple tenant spaces
5
Budget
• Design: $ 1,851,000
• Construction: $14,983,000
• Total Project: $16,834,000
Increase the budget and authorization from $12,802,000 to $16,834,000
6
Effect on Passengers
Maintaining a Level of Service to the Passengers
7
• Closure of 5 Central Terminal south-side units in Phase 1:
– Loss of 4,600 square feet of space and $22.6 million in annual sales
• Impacts of these closures will be minimized by:
• Opening 4 new food and beverage units from Lease Group 1 and 2
• Gain of 4,600 square feet of new space and $12.3 million new annual sales
• Installing temporary food and beverage units in the Central Terminal and within the
concourses
• Gain of 500 square feet and $9.0 million annual sales
• Working with existing tenants to increase productivity.
Phase 1 Construction Activity
8
Phase 2 Construction Activity
9
