The Transportation Security Administration (TSA) leases a portion of the Airport's West End Office Building and has been negotiating with Airport staff to add office space to their operations. To meet the TSA's requirements for the additional office areas, the new space must be upgraded. This construction upgrade is part of a new Lease agreement with the TSA that is being presented to City Council in a separate action. Airport staff has worked with TSA staff to develop a scope of work for this upgrade project, which includes installing sound dampening insulation in the walls and ceilings, new entry doors with high security locks, new data cabling, and new paint throughout the entire office area. TSA will reimburse the City for these improvement costs. The project was advertised in the Billings Times and on the City's Web Site on October 13 and 20. The following bids were received on October 25, 2011:

• High Tech Construction & Properties, Inc. $45,400
• Hardy Construction Co. $48,300 DPS Company, LLC $52,312
• General Contractors Construction, Inc. $55,189
• Fisher Construction, Inc. $55,220

This item was delayed from the November 14, 2011 meeting.

The City Council may:

• Approve the award of the Upgrades for the Airport's West End Office Building Project; or
• Decline to approve the award of the Upgrades for the Airport's West End Office Office Building Project, reject all bids and not complete the project at this time, and subsequently not enter into a five-year lease for the space with the TSA.

The total cost of this project is $45,400. The Airport will be fully reimbursed for these costs by the TSA upon the completion of the project. Subsequently, there is no financial impact to the Airport from this project.

Staff recommends that the City Council award the contract for the Upgrades for the Airport's West End Office Building to the low bidder, High Tech Construction & Properties, Inc., for the amount of $45,400.