Included in the Airport's Capital Improvement Program is the Runway 10R/28L Shift Construction Project. The purpose of the project is to shift Runway 10R/28L 1,000 feet to the west.  This project will construct 1,000 feet of new runway and taxiway pavement on the west end of the existing runway and taxiway.  This would be followed by removing 1,000 feet of the existing runway on the east end. The removal of the east end of the runway allows the Runway Protection Zone (RPZ) for the east end of Runway 10R/28L to also move 1,000 feet to the west, providing the Airport with 315,000 S.F. of developable land for new cargo ramps and other facilities near the midfield point of the Airport that could not previously be developed while the RPZ was located in that area.

This project was advertised in The Billings Times on April 20, 27, and May 4, and was posted on the City's Website. On May 9, 2017, the following bids were received:

CONTRACTOR                                              BID
Knife River                                                      $1,565,920.10
Donnes, Inc.                                                   $2,005,850.30

↵The City Council may

• Approve the award of the Runway 10R/28L Shift Construction Project; or
• Decline to approve the award, reject all bids, and delay the project.

The total cost of this project is $1,565,920.10. The project will be funded 90% with Federal Aviation Administration (FAA) Airport Improvement Program (AIP) entitlement grant funds and 10% local match funds.  The FAA's grant funding will be $1,409,328.09   and the City's local match will be $156,592.01.  The local match funds are budgeted and available in the Airport's Capital Account.

Staff recommends that the City Council accept the low bid and approve the contract award for the Runway 10R/28L Shift Construction project with Knife River for the amount of $1,565,920.10.