The Airport's approved Capital Improvement Program includes the Cargo Ramp Slot Four Expansion Project. FedEx recently changed the aircraft it uses at Billings from B-727s to B-757s. The 757 is a larger aircraft and to accommodate its arrival, Airport staff required the shuffling of space on the west end cargo ramps so that both UPS and FedEx could operate in the same area, even though at times it is extremely crowded. The current arrangement is not an adequate long term solution for either cargo carrier.  Given the important service that these two large cargo operators provide the community, it is crucial that their operations have the space and facilities necessary to operate efficiently during their twice daily freight sorting operations at the Airport.  Subsequently, the best remedy is to build another large aircraft concrete ramp next to the existing west end ramps.  This will provide the space needed to separate the two cargo operations and allow FedEx to consolidate its operations into one location, which they currently cannot do.  Included in this project is 42,000 square feet of new 16 inch thick concrete ramp to accommodate parking for large jet aircraft and 110,000 square feet of 8 inch asphalt pavement for smaller aircraft and equipment parking. The project will also provide new taxiway lighting and storm water drainage, including new slotted drains and storm drainage piping.  The project was advertised in the Billings Times on March 7, 14, and 21, and was posted on the City's Website.  On Tuesday, March 26, 2013, the following bids for this project were received.

Contractor	Bid
Knife River	$2,212,754
Riverside	$3,833,170
Engineer's Estimate	$2,624,790

The City Council may:

• Approve the award for the Cargo Ramp Slot Four Expansion Project; or
• Decline the bid award, reject all bids, and delay the Cargo Ramp Expansion Project.

The total construction cost for this project is $2,212,754.  Funding for this project is available in the Airport's capital account and will be reimbursed with a Federal Aviation Administration (FAA) Airport Improvement Program (AIP) grant for 90% of the cost in the 2014 AIP grant process. The Federal share will be $1,991,479 and the City's match will be $221,275.

Staff recommends the City Council approve the award of the Cargo Ramp Slot Four Expansion Project to the low bidder, Knife River, for the amount of $2,212,754.