Historically, the Department of Aviation and Transit has entered into a five-year contract with a registered professional engineering firm to provide the necessary engineering services for all Federally funded Airport Improvement Program (AIP) projects, Passenger Facility Charge (PFC) projects, and other general engineering services needed by the Department. The most recent engineering contact expired on November 30, 2011. The five-year contract term provides continuity in the design and construction administration that takes place on the Airport's airfield where the AIP and PFC projects mostly take place. While a longer term might provide a greater continuity of service, the Federal Aviation Administration (FAA) Advisory Circular Number 150/5100-14D requires that the engineering services provided must be initiated within five (5) years of the date the contract is executed. Subsequently, in order to meet the FAA's requirements to receive additional AIP grants for projects including engineering services, staff developed a Request for Qualifications (RFQ) for the planning, design, bidding, and construction oversight and administration of the annual construction projects for the Department of Aviation and Transit over the next five-year period.

The RFQ was advertised in the Billings Times for two weeks, was posted on the City's Website, and distributed to sixteen engineering firms that expressed interest in providing engineering services for the Airport. In spite of these efforts, only one Statement of Qualifications was received and was from Morrison-Maierle, Inc., which also had the past contract with the Aviation and Transit Department. The Statement of Qualifications submitted by Morrison-Maierle was reviewed by staff and it fully complies with all of the requirements of the RFQ. We believe that the lack of participation from other engineering firms was related to the requirement within the RFQ for the successful firm to start with a very complex 2013 runway project that includes the removal and replacement of the Airport's main runway asphalt surface utilizing Morrison-Maierle's previously completed design work. Because of the complexity of the logistical planning and the advance notice needed for the airlines and general public, the design and planning for this critical project had to be started far in advance of the 2013 runway construction. The FAA issued and the City approved on August 30, 2011, AIP Grant 42 for $315,500 so that Morrison-Maierle could begin the field survey, runway core sampling, and the design and staging plans for this complex project. Since the design work began prior to the end of Morrison-Maierle's five-year contract term, the Airport will have a Morrison-Maierle design plan, paid for by the FAA, ready to go for the 2013 construction project. As indicated above, in order to receive any additional FAA AIP grant funds for construction projects that include engineering design or construction administration work (like the runway overlay project), the Aviation and Transit Department must secure a new five-year engineering contract. Subsequently, the RFQ required that the successful engineer would need to follow Morrison-Maierle's design and construction plan for the 2013 runway overlay project.

The City Council may:

• Approve the award of the five-year Engineering Contract with Morrison-Maierle, Inc.; or
• Decline to approve the award of the five-year Engineering Contract with Morrison-Maierle, Inc. and provide staff with guidance on how to proceed.

There is no direct financial impact from this Council action. The future engineering fees associated with each future project will be negotiated with staff and approved by the FAA. Subsequently, the base contract will be amended each time a project is undertaken and the financial impact will be presented at that time. As in the past, the majority of the costs will be funded with FAA AIP grants or PFC funds.

Staff recommends that Council approve the award of the Aviation and Transit Department's Five-Year Engineering Service Contract with Morrison-Maierle, Inc.