Staff recommends that the City Council approve and award the Airport's Cargo Ramp Slot 5 Project to Knife River Construction for $4,705,378.00

Included in the Airport's Capital Improvement Plan and FY 24 budget is a project to construct a new large 137,000 square foot aircraft parking ramp for cargo operations to take place on, called Slot 5.  A contractor will have to remove 23,000 cubic yards of dirt and sandstone; install 56,000 square feet of 16 inches of concrete, 81,000 square feet of asphalt, storm drain pipe infrastructure under a taxiway; construct a block retaining wall; remove incandescent lights and install all new LED taxiway lights including many other miscellaneous work items.  Additionally, the Airport is currently working with Northwestern Energy to relocate an underground electrical line that provides power to the airfield which includes runway and taxiway lighting, FAA aircraft navigational aids and other facilities. 

Slots 1 - 4, which are directly east of this new ramp were built between 2002 - 2013 and are at capacity many times throughout the year and especially during the holiday peak season when packages are being transported; therefore, additional ramp space is needed.  UPS and FedEx continue to increase the number of flights and up-size their aircraft each year; subsequently, in 2023 they loaded and unloaded approximately 75 million pounds of freight, which makes the Billings Airport the busiest cargo airport in Montana and overall ranks number 63 throughout the entire United States.  Additionally, Slots 1 - 4 are in need of rehabilitation and Slot 5 will provide additional aircraft parking space in order for these ramps to be repaired. The Airport plans to build the new cargo ramp this coming summer and it will take 120 days to complete.

This project was advertised in the Yellowstone County News on February 16, 23, and March 1 and posted on the City and Airport's websites.  On March 5, 2024, the following bids were received:

Contractor                                           Bid
Knife River Construction               $4,705,378
Askin Construction                       $6,083,580
 

City Council may:

• Approve the award of the new Cargo Ramp Slot 5 Project to Knife River Construction for $4,705,378; or,
• Not Approve the award, reject all bids, and delay the project.

The total cost of this project is $4,705,378.  This project will be funded at 90% with Federal Aviation Administration (FAA) Airport Improvement Program (AIP) entitlement grant funds and 10% with local match funds.  The FAA's grant funding will be $4,234,840.20 and the local match will be $470,537.80.  The local match funds are budgeted and available in the Airport's Capital Account.