COMMISSION AGENDA MEMORANDUM Item No. ACTION ITEM Date of Meeting DATE: March 5, 2018 TO: Steve Metruck, Executive Director FROM: Wayne Grotheer, Director, Aviation Project Management Group Jeffrey Brown, Director, Aviation Facilities and Capital Programs 6c March 13, 2018 SUBJECT: Wi-Fi Enhancement Project Irregular Bid (CIP #C800585) (Short Form) Amount of this request: Total estimated project cost: $0 $10,676,000 ACTION REQUESTED Request Commission authorization for the Executive Director to award and execute a major public works construction contract with the low responsive and responsible bidder for the second phase of the Wi-Fi Enhancements project, notwithstanding the low bid exceeding the engineer's estimate by more than 10 percent. No additional funding is requested. SUMMARY On August 8, 2017, Commission authorized this remaining phase of construction for the Wi-Fi Improvements project to install Wi-Fi service in portions of the main terminal budgeted at $1.5 million of the total $10.7 million project budget. Bids were opened on February 14, 2018, for a portion of this second phase. Of the two bids received, the lowest responsible bid exceeded the engineer's estimate by 19% (bid: $539,644 vs. estimate: $455,000). Staff reviews indicate this result to be a market change from the estimate and would not be improved by re-bidding. Staff believes the bid amount is a fair and reasonable price for this work. Due to cost savings on the previous phase of the Wi-Fi project, no additional funding is required to cover the increased cost of this bid. When complete, the Wi-Fi Enhancement project will provide a 200% increase in Wi-Fi service, up to tenfold increase in bandwidth, and support for newer devices by supporting today's technology on wireless protocols. Today, service improvements are nearly one-half complete. There are no attachments to this memo. Template revised September 22, 2016.