The Airport Terminal Building Ceiling Tile Replacement Project, included in the City's Capital Improvement Program, will replace the ceiling tiles in the baggage claim, ticketing and security screening lobby areas of the Airport's Terminal Building.  The ceiling tiles in these areas are 17 years old and have been vacuum cleaned on several occasions.  The tiles have discolored with age, and over the years have also been damaged from roof leaks, fire alarm upgrades, and the supports needed to hang the large airplane, kite, and flag exhibits that have been displayed in the Terminal Building.  This project will clean the existing tile grid system and replace the existing tiles with new fire rated 2' x 2' x 3/4" ceiling tiles.  To ensure that some portion of the Terminal's ceiling tiles would be replaced depending on the bid prices, the Airport requested a base bid with four additives.  The base bid included the Baggage Claim area and Screening Area Lobby.  Alternative One was the ceiling area in the corridor between baggage claim and ticketing.  Alternative Two included the high ceiling area in the ticketing area, and Alternative Three was the lower ceiling in ticketing.  Alternative Four included the second floor mezzanine area.  This project was advertised in the Billings Times for two weeks, and was posted on the City's Web Site. On June 15, 2010, the following bids for this project were received:

CONTRACTOR	BID + ADDITIVES 1-4
Empire Lath and Plaster	$114,952
Indoor Air Technologies	$177,805
Yellowstone Acoustics	$220,540
Matco Acoustics, Inc.	$231,581
ESTIMATE	$149,000

Staff contacted Empire Lath and Plaster by phone after the bid to discuss the large price discrepancy of their bid to the other bids.  On Thursday, June 17, 2010, staff met with representatives of Empire Lath and Plaster and reviewed the scope of work and performed a walk through of the project site, and they agreed to do the project at their bid price if the Airport would do the base bid project and all Alternatives.   Given the favorable pricing, Airport staff believes this would be a good option for the Airport as it would complete the entire ceiling on the public side of screening.  Additionally, Empire Lath and Plaster is a product supplier of the specified tile so they have better pricing on the ceiling product.  They also performed the original ceiling tile installation during the Airport Terminal Renovation project in 1993, and have familiarity with the project that the other vendors would not.

The City Council may:

• Approve the award of the Airport Terminal Building Ceiling Tile Replacement Project; or
• Decline to approve the award of the Airport Terminal Building Ceiling Tile Replacement Project, reject all bids, and not complete the project at this time.

The total cost of this project for the base bid and all Alternatives is $114,952. The source of the funds for this project are budgeted and available in the Department's Capital Improvement fund.

Staff recommends that City Council approve the award of the Airport Terminal Building Ceiling Tile Replacement Project to the low bidder, Empire Lath and Plaster, for the amount of $114,952.