Included in the Airport's Capital Improvement Program is the Airport Ramp Rehabilitation project. The eligible portion of this project will be funded 90% with a Federal Aviation Administration (FAA) Airport Improvement Program (AIP) grant and the balance with local funds.  The project will rehabilitate 27,000 square feet of the 20-year-old deteriorating asphalt ramp adjacent to the air carrier apron. The project will remove the old  asphalt pavement and aggregate sub-base, and replace it with 21 inches of new base and 5 inches of new asphalt to provide the strength to accommodate large aircraft.  The project also includes maintenance repairs to Runway 7/25 for some abnormally large lateral asphalt cracks, the cost of which will be paid 100% with local funds. The project was advertised in the Billings Times on April 24, May 1 and 8, and was posted on the City's Website. On Tuesday, May 13, 2014, the following bids for this project were received.

CONTRACTOR	TOTAL BID
Knife River	$1,037,810.20
JEM	$1,229,287.00

The City Council may:

• Approve the bid award for the Airport Ramp Rehabilitation Project; or
• Decline the bid award, reject all bids, and delay the project.

The total cost of this project is $1,037,810.20.  The eligible portion of the project funded with the FAA AIP grant is $986,201.20. The 90% Federal portion of the eligible costs is $887,581.08 and the remaining balance of the project's costs totals $150,229.12, and will be paid with local funds. 

Staff recommends the City Council approve the award of this project to the low bidder, Knife River, for the amount of $1,037,810.20.