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Consent   1.C.
Regular City Council Meeting
Meeting Date:
08/27/2018
TITLE
Approval of General Contractor/Construction Manager Contract with Sletten Construction Company for the Airport Terminal Expansion Project
PRESENTED BY:
Kevin Ploehn
Department:
Airport
Presentation:
No

PROBLEM/ISSUE STATEMENT

On February 12, 2018, Council approved Resolution 18-10698 allowing the use of an Alternative Project Delivery Contract for the Airport Terminal Expansion Project, following State law MCA 18-2-501.  The process to select a General Contractor/Construction Manager (GC/CM) included first going through a Request for Qualifications (RFQ) and then a Request for Proposals (RFP), an interview process, and finally the selection committee's selection of a general contractor for this project.  The benefits of utilizing a GC/CM on this complicated project include having the contractor participate in the project planning, construction phasing, and project cost pricing, resulting in less time for construction, less change orders, and shorter duration of disruption to the Terminal Building operations.  Additionally, at the end of the design/preconstruction phase, the GC/CM will provide the City with a Guaranteed Maximum Price (GMP) for the construction of the Terminal Expansion Project for City Council approval at a later date.  The Contract Council is considering tonight is for both the preconstruction work and the actual construction work, should the Council approve the GMP at a later date.  If the Council desires to not approve the GMP, the Contract allows for the GC/CM relationship to be severed and the City could then proceed with other options to construct the project. Staff will provide those recommendations at that time.   A copy of the draft agreements are available for review at the City Clerks office.
 
During the RFQ process, seven companies submitted their qualifications for consideration.  Of the seven, one withdrew its submittal and two were eliminated through the evaluation process.  Four companies were asked to submit a final proposal.  Those companies included QD Construction and Martel Construction who proposed a combined team effort, Swank Enterprises, Langlas & Associates who teamed with Jacobs CH2M, and Sletten Construction Company.  The selection committee opted to interview QD/Martel, Swank, and Sletten. 
 
After each of the selected companies had an opportunity to do their presentation, the majority of the 10 member selection committee identified Sletten Construction Company as the best contractor for this project.

ALTERNATIVES ANALYZED

City Council may:
  • Approve, the GC/CM selection committee's recommendation for the GC/CM Contract with Sletten Construction Company; or
  • Disapprove the selection of Sletten Construction Company as the GC/CM, delaying the benefits of having a GC/CM on the design team, and advise staff on how to proceed.

FINANCIAL IMPACT

The financial impact for the services of Sletten Construction Company to proceed as the GC/CM for the preconstruction phase work will be $72,775.  At the end of the preconstruction phase work, the GC/CM will provide the City with a GMP for the construction of the Terminal Expansion Project to approve or not approve.

RECOMMENDATION

Staff recommends that the City Council approve the Contract with Sletten Construction Company to provide the GC/CM services for the preconstruction phase work and the construction work, which will be subject to the approval of the GMP at a future date.

APPROVED BY CITY ADMINISTRATOR