Staff recommends that the City Council approve and award the low bid of $974,561 provided by Knife River – Billings for the 2026 Taxilane Construction Project.
 

The airport has an unmet demand for more hangar space and this taxilane will open lots for airport users to develop up to six new aircraft hangars. The project has been designed, environmental requirements met, and 95% financing has been made available through the FAA's Airport Improvement Program. Staff recommends awarding the project to the low bidder of $974,561.

Included in the Airport’s Capital Improvement Program and FY26 budget is the construction of the new taxilane. The airport needs hangar spaces and this 80-foot-wide taxilane will allow development for larger 100’ x 100’ hangars. Additional based aircraft could increase the airport’s eligibility for federal funding and will increase the airport’s economic multiplier effect on the local community.

The project was advertised in the Yellowstone County News on February 13, 20, 27 and posted on the City and Airport’s websites. On March 3, 2026, the following bids were received:
 

Contractor	Bid Amount
Knife River – Billings	$974,561.00
Askin Construction	$1,161,895.00

Knife River was the lower bidder by about 16%. A background check was made and there is no record of debarment on the Excluded Parties List System. The Knife River also acknowledged that the project would meet Buy American requirements by 100%.
 

The low bid for this project was $974,561 and 95% funding is available from an FAA Airport Improvement Program (AIP) grant and the 5% match will be paid using the budgeted Airport’s Capital Account. FAA’s grant funding will be $925,832.95 and the local match will be $48,728.05.
 

City Council may:

• Approve the award for the 2026 Taxilane Construction Project to Knife River — Billings for $974,561; or,
• Decline to approve the award, reject all bids, and limit an opportunity to provide more hangars to the airport.