The Billings Logan International Airport (Airport) is currently in the design process for the Terminal Building Expansion project.  As part of the design process, the Airport would like to enter into a contract with a general contractor under a General Contractor Construction Management Agreement.  MCA 18-2-501 defines a General Contractor Construction Management Agreement as "a contract  in which the general contractor, in addition to providing the preconstruction, budgeting and scheduling services, procures necessary construction services, equipment, supplies, and materials through competitive bidding contracts with subcontractors and suppliers to construct the project."
 
Because the Airport Terminal Building must remain operational during the duration of the Terminal Expansion Project, Airport staff believes a General Contractor Construction Management Agreement would significantly benefit the project planning, construction phasing, and project cost pricing, resulting in less time for construction, and shorter duration of disruption to the Terminal Building operations.  Additionally, through proper phasing, the opportunity to open up the new concession areas earlier as opposed to later could improve the revenue earnings of the Airport, while still encouraging competition for contracts for the work to be completed.  MCA 18-2-502 provides a number of requirements to proceed with an Alternative Project Delivery Contract, and the Airport's staff believes the Terminal Expansion Project adequately meets these requirements including having knowledgeable staff and consultants with the capacity to manage an Alternative Project Delivery Contract.  City Council must approve the Resolution for the Alternative Project Delivery Contract for the Terminal Expansion project before the Airport may proceed with solicitations for a Request for Qualifications (RFQ) for a General Contractor Construction Management Contract.

City Council may:

• Approve the Resolution for the Airport to use an Alternative Project Delivery Contract; or
• Disapprove the Resolution for the Airport to use an Alternative Project Delivery Contract and provide staff with guidance on how to proceed.

The financial impact is unknown at this time.  Once an RFQ has been advertised and staff has had the opportunity to review and select a contractor for the General Contractor Construction Management Contract, then a financial cost will be known and Council will have the opportunity to review and approve the selected contractor.

Staff recommends that the City Council approve the Resolution for the Alternative Project Delivery Contract so that the Airport may proceed with the solicitation of an RFQ for a contractor to enter into a future General Contractor Construction Management Contract with the City for the Airport Terminal Expansion Project.