On February 12, 2018, City Council approved a Resolution for an Alternative Project Delivery Contract for the Airport Terminal Concourse Expansion project.  Staff subsequently advertised a Request for Qualifications (RFQ) for a general contractor to submit their qualifications followed by a Request for Proposals (RFP) from the general contractors who were pre-qualified, all for the opportunity to be selected to become the General Contractor/Construction Manager (GC/CM) for the Terminal Concourse Expansion project.  After going through this process, on August 27, 2018, City Council approved a contract with Sletten Construction Company to be the GC/CM for the design work and for the Council to approve a Guaranteed Maximum Price (GMP) for the Terminal Construction work at a later date.  The advantage of utilizing the GC/CM process on this complicated project is the ability to have the general contractor involved in the design process, project planning, construction phasing, and project cost pricing.  This alternative project delivery method should result in less time for construction, fewer construction surprises, subsequently resulting in fewer change orders and hopefully a shorter disruption time to the Terminal operations.
 
Phase One of the Terminal Concourse Expansion project has been designed and Sletten has been soliciting pricing for the Phase One work from its sub-contractors.  Currently, the Phase One work is scheduled to begin on September 23, 2019, and includes the construction of a new west end stair tower for the Essential Air Service provider (Cape Air) to continue their ground loading operations.  Additionally, a number of support columns will be constructed in the center of the building, running from the basement to the roof level, in order to support the new roof that will extend over the new screening area during the Phase Two portion of the project.  And finally, there will be some remodel work in the basement of the B Concourse to house a temporary Holdroom, which will be needed when all the airlines, other than Cape Air, are operating out of the B Concourse during the construction of the new west concourse.  Sletten, as the GC/CM, has determined a GMP of $3,359,848 for this Phase One work.  Phase One is the only portion of the project that has been fully designed and subsequently, the only portion of the project that Sletten can provide a GMP for at this time.
 

City Council may:

• Approve to accept the GMP from Sletten Construction Company for Phase One work for the Airport Terminal Concourse Expansion; or
• Disapprove the GMP from Sletten Construction Company and advise staff on how to proceed.

Sletten Construction Company has provided a GMP for $3,359,848 for the Phase One work.  This will be funded with local capital funds, which are available in the Airport's capital account.  Additionally, the Airport could receive Federal Airport Improvement Program (AIP) funds for this work through the AIP Discretionary funding pot.  These funds are competitively allocated by the Federal Aviation Administration (FAA) based on availability and need.  The Airport does not expect to hear whether any of these Discretionary Grant funds will be available for the Phase One work until late August.  Subsequently, the Airport is prepared to cover the full construction cost of Phase One with its available capital dollars.
 

Staff recommends that the City Council approve the GMP of $3,359,848 from Sletten Construction Company for the Phase One work for the Airport's Terminal Concourse Expansion project.