Consideration and Approval of Construction Manager at Risk (CMAR) Contract: Design Phase Services with Fann Contracting, Inc.: Runway 3-21 Mill and Overlay  Project.

This project consists of pre-construction design services, including generating a Guaranteed Maximum Price (GMP), for the mill and overlay of the runway and improvements to the runway shoulders of Flagstaff Pulliam Airport that is currently under design. The final construction work will include milling of the existing runway, excavation and disposal of existing soils, constructing sub-base, base within the shoulders, seal coating of the blast areas, new asphalt pavements, pavements markings, and signage improvements, and other related work. A seven (7) day runway closure is needed in mid-June, 2017 to complete the improvements.

The project is budgeted in FY 2017 account number 221-07-222-3332-0 in the amount of $ 3,277,685. The City has received a letter of commitment to the project from the FAA (attached), however the federal funding/grant award has not been received and is anticipated to be awarded around February 2017. Therefore, due to the critical nature of the project and tight timeline to complete work this summer, this is a City/Airport initiative to perform the work activities prior to Congressional Release of funds. If federal discretionary funds are not authorized, the City would use our federal entitlement funds to cover this work initiative. Based on bids, the FAA grant will provide 91.06% of total project funding, ADOT grant will provide 4.47% of funding, with the City grant match of 4.47% at the time of grant award.

Repair and replace maintain infrastructure (streets & utilities)

On June 15, 2012, Council approved an engineering design contract with Kimley-Horn and Associates for the project.

1) Approve the CMAR Design Phase Services contract as presented. This will allow timely execution of the project.
2) Reject approval of the contract and direct staff to pursue traditional design-bid-build project delivery. This would effectively delay progress on the project by one year and jeopardize the grant funding.

On May 19, 2015, City Council approved Supplemental Agreement Number 3 for Consulting Services with Kimley-Horn and Associates to provide design phase services for the Runway 3-21 Mill and Overlay Project. Design is currently under way and is scheduled to be complete in February of 2017.  Pursuant to the CMAR agreement for design phase services, Fann Contracting will provide pre-construction design services, including confirmation of the constructability of the Kimley-Horn plans, development of the schedule for construction, and generation of the GMP.

In recent years, the Arizona State Legislature has authorized the use of Alternative Project Delivery Methods (APDM) in lieu of the traditional Design-Bid-Build method of project delivery. The Federal Aviation Administration has also authorized use of APDM. These alternative methods allow a contracting agency the opportunity to select a construction team utilizing a Qualifications Based Selection process to procure construction services from a firm deemed most qualified to perform the work.

On October 9 and 16, 2016, a Request for Statements of Qualifications (RSOQ) for Construction Manager at Risk (CMAR) services was published in the Arizona Daily Sun, and was posted on the Purchasing PlanetBids web site on October 7, 2016. On November 3, 2016, the City of Flagstaff received two Statements of Qualifications that were responsive to the requirements of the RSOQ for providing CMAR services for this project. A selection committee of five members independently reviewed and evaluated those statements in accordance with the evaluative criteria established in the RSOQ. The evaluation committee consisted of four City staff and one local contractor. Based on numerical evaluation of the statements received, and interviews conducted with both firms, Fann Contracting, Inc. received the highest ranking and was deemed the most qualified among those submitting proposals to provide CMAR services.

 

Firm	Evaluation Score	Interview Score	Total
Fann Contracting	498	378	876
FNF Construction	496	262	758

The project consists of mill and overlay of the runway and improvements to the runway shoulders of Flagstaff Pulliam Airport. Work will include milling of the existing runway; excavation and disposal of existing soils; constructing sub-base, base within the shoulders, seal coating of the blast areas, new asphalt pavements, pavements markings, and signage improvements; and other related work. The CMAR Design Phase Services are scheduled to begin immediately upon approval of the Agreement. Construction is scheduled to begin in June of 2016 and be complete in August, 2016.

The existing asphalt runway has been found to have severe pavement distresses that need mitigation. The current asphalt pavement surface is an Asphalt Concrete Friction Course (ACFC) that is an open graded asphalt mix that allows water (liquid) to penetrate the surface and run off to the shoulders. These pavements have reached the end of their useful life and are in need of complete replacement. The current Federal Aviation Administration (FAA) design standards no longer recommend ACFCs to be constructed in areas similar to ours (due to freeze-thaw). This project will remove all of the ACFC on the runway and replace with a dense graded asphalt with transverse grooves to improve friction between the runway and airplane tires.

Funding for CMAR Design Phase Services is to be provided by the Airport’s operating budget 221-07-222-3339-0-4421 until reimbursed by the Federal Entitlement and Discretionary grant funds from the U. S. Department of Transportation, Federal Aviation Administration and ADOTModal department. The project is budgeted in FY 2017 and FY 2018 in account number 221-07-222-3332-0 in the amount of $ 10,000,000. Based on bids the FAA grant will provide 91.06% of total project funding, an ADOT grant will provide 4.47% of funding with the City grant match of 4.47%.  In the event that federal discretionary funds are not authorized, the City will use federal entitlement funds to cover the cost of the CMAR Design Phase Services agreement.

Construction of the project will increase the utility and safety of operations at the airport. These asphalt improvements to the runway will extend the overall life of the pavement structure for years. Use of the CMAR method of project delivery will eliminate the need for an advertisement/bid/award process and will cut approximately two months off the project development schedule. In addition, value engineering, constructability reviews and design input conducted as part of this service agreement have the potential to realize significant construction cost savings over the traditional design-bid-build delivery method.

Involve – The project will require a continuous seven (7) day runway closure to allow for paving operations to be completed. The project will require multiple nighttime runway shutdowns leading up to, and past the 7-day full runway shutdown. These nighttime closures will not interrupt / interfere with scheduled operations with the current tenants and airline. The project will require that tenants will not have access to their hangars during construction. To minimize that inconvenience, the project will be constructed in three phases, with access restrictions limited to several hangars in each phase. Tenants will be notified of the upcoming work by mail prior to construction. In addition, mass e-mails will be sent to all tenants and airline carrier advising of the upcoming work. During construction, weekly updates regarding construction progress will be posted on the City web site.

1. Approve the CMAR Design Phase Services contract as presented. This will allow the project to move forward in a timely manner and accelerate commencement of construction.
2. Reject approval of the contract and direct staff to pursue traditional design-bid-build project delivery. This would effectively delay progress on the project by twelve months and jeopardize the grant funding.