Title
Airport PSA Hangar Addition
Action
Action:
A. Award a contract in the amount of $1,255,650 to the lowest responsive bidder Encompass Building Group, Inc. for the construction of PSA Hangar Addition,
B. Approve a lease amendment with American Airlines for additional costs associated with construction of the PSA maintenance hangar, and
C. Adopt a budget ordinance appropriating $1,255,650 from the Aviation Discretionary Fund to the Aviation Community Investment Plan Fund.
Body
Staff Resource(s):
Jack Christine, Aviation
Explanation
* The Airport built an aircraft maintenance hangar for MESA Airlines, Inc. in 2006 and subsequently leased it to MESA Airlines, Inc.
* American Airlines recently negotiated a contract with PSA Airlines, Inc. for PSA to replace MESA Airlines, Inc. as one of its American Eagle carriers.
* PSA Airlines, Inc. began limited operations in the hangar in December 2014 and has requested a loading dock and an additional 7,500 square feet of hangar space for parts storage and an engine repair shop.
* On June 22, 2015, the City Council awarded a contract to Baker LPA Architects, PC in the amount of $188,475 for the design of the hangar addition.
* On November 6, 2015, the City issued an Invitation to Bid for construction services; seven bids were received from interested service providers.
* Encompass Building Group, Inc. was the lowest responsive, responsible bidder.
* For the construction of the PSA Hangar, 100% of the costs will be captured in the monthly lease payments through the end of the term of the main hangar lease expiring December 2024, and any extensions; or if early termination, American will reimburse the Airport for any remaining unamortized value of the final construction cost.
Reject Low-Bid Explanation
* The apparent low bidder, EVS Construction & Development, Inc. did not meet the established SBE goal of 15%, proposing a total SBE utilization of 6.11% for the project.
* The apparent lo...
Click here for full text