AGENDA* Regular Commission Meeting Hillsboro Civic Center Auditorium 150 E. Main Street; Hillsboro, Oregon March 13, 2019 9:30 a.m.
Minutes
Approval of Minutes: Regular Commission Meeting – February 13, 2019
Executive Director
Approval of Executive Director’s Report – February 2019
Public Comments
Consent Item
1. RENTAL CAR FACILITY AGREEMENTS – PORTLAND MACHELLE CAMPBELL INTERNATIONAL AIRPORT Requests approval to enter into four new rental car remote service facility lease agreements.
Action Items
2. HILLSBORO AIRPORT MASTER PLAN UPDATE ADOPTION STEPHEN NAGY Requests approval to adopt the findings of the Hillsboro Airport Master Plan Update (including the Airport Layout Plan), and to submit them to the Federal Aviation Administration for its review and approval.
3. PERSONAL SERVICES CONTRACT AMENDMENT AND PUBLIC GEORGE SEAMAN IMPROVEMENT CONTRACT AMENDMENT – TERMINAL CORE REDEVELOPMENT PROJECT – PORTLAND INTERNATIONAL AIRPORT Requests approval of two contract actions related to the Terminal Core Redevelopment project at Portland International Airport.
4. PUBLIC IMPROVEMENT CONTRACT – DEICING VAULT MARCEL HERMANS REHABILITATION, PUMP STATIONS A, C, E, F AND J – PORTLAND INTERNATIONAL AIRPORT Requests approval to award a public improvement contract for deicing vault rehabilitation services for Pump Stations A, C, E, F and J, to Stellar J Corporation for the Deicing Vault Rehabilitation project at Portland International Airport.
*Certain discussion, consent and agenda items may contain forecasts/estimates. Actual results may differ. Commission Agenda March 13, 2019 Page 2
5. PUBLIC IMPROVEMENT CONTRACTS – ON-CALL GENERAL CHET THOMAS CONTRACTING SERVICES – PORT OF PORTLAND FACILITIES Requests approval of five public improvement contracts to provide on-call general contracting services on an as-needed basis for an initial term of three years.
Agenda Item No. 1
RENTAL CAR FACILITY AGREEMENTS – PORTLAND INTERNATIONAL AIRPORT
March 13, 2019 Presented by: Machelle Campbell Concessions Development Manager
REQUESTED COMMISSION ACTION
This agenda item requests approval to enter into new rental car remote service facility lease agreements with the four entities listed below.
• Avis Budget Car Rental, LLC • The Hertz Corporation • EAN Holdings, LLC • Todd Investment Company
BACKGROUND
On November 14, 2018, the Port of Portland (Port) Commission approved five new long-term rental car (RAC) concession leases and operating agreements (New RAC Agreements) that will commence upon the opening of the Parking Additions and Consolidated Rental Car Facility (PACR), which is anticipated to open in November 2021. The four remote service facility leases (New Facility Agreements) will commence contemporaneously with the New RAC Agreements and allow the entities listed above to provide maintenance, storage of motor vehicles, and administrative functions in support of their overall operations at Portland International Airport (PDX). Avis Budget Car Rental, LLC; EAN Holdings, LLC; The Hertz Corporation; and Todd Investment Company each have existing facility leases at PDX (Old Facility Agreements). The Old Facility Agreements will remain in effect until PACR is open and operational, and then automatically terminate. Sixt Rent a Car, LLC, a new rental car company at PDX, is the fifth entity with a New RAC Agreement and will not lease a remote service facility at this time.
The existing premises, occupied under Old Facility Agreements, are Port-owned facilities along Frontage Road. The New Facility Agreements will collectively encompass substantially the same footprint, while also providing the opportunity for adjustments to the sites between the RACs to more closely align with Market Share as shown in the diagram below. The New Facility Agreements are intended be co-terminus with the New RAC Agreements, but also afford the Port the ability to terminate the New Facility Agreements early, relocate, or further adjust the sites if there is a requirement for future development or expansion of properties during the 20- to 30-year term of the New RAC Agreements.
In addition to the Old Facility Agreements, the RACs own, operate and maintain underground and aboveground storage tanks on the existing sites under separate Underground and Aboveground Storage Tank Agreements (UST and AST Agreements), which are scheduled to terminate contemporaneously with the Old Facility Agreements. In lieu of separate UST and AST Agreements, the New Facility Agreements incorporate terms addressing the ownership and operation of existing underground and aboveground storage tanks, which will streamline and consolidate agreement terms to the benefit of both the Port and the RACs.
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Any service agreements the RACs enter into with third-parties to service RAC vehicles, provide supplies or provide other administrative functions at the premises covered by the New Facility Agreements will be required to meet the Airport Concession Disadvantaged Business Enterprise Program (ACDBE) participation goals established under the New RAC Agreements.
Existing premises – Total of 21.658 acres
Initial proposed adjustments based on Market Share – Total of 22.69 acres
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KEY BUSINESS TERMS
Initial Term: 20 years; commencing upon opening day of PACR and running concurrently with the term of the RAC Agreement Extension Term: 10 years; at the Port’s sole discretion Termination Rights: Port retains the option, in its sole discretion, to terminate leases early or relocate premises if, during the term, it is necessary to do so in connection with future PDX development Year-10 Rebid/Negotiation Option: Port reserves the right to rebid or renegotiate the agreements on the same schedule as the RAC Agreement Facility Rent: $11.00 per square foot per year, adjusted annually by Consumer Price Index (CPI) Land Rent: $0.83 per square foot per year, adjusted annually by the Port’s option of Fair Market Rental Rate or CPI Percentage Rent: 15% of annual gross receipts derived from, or arising out of, the provision of services to third-parties Security Deposit: Provided through the RAC Agreement Insurance: Port standard limits and requirements Improvements: Improvements at RAC cost and expense Improvements at Termination: Improvements revert to the Port, provided the Port reserves the right to require removal of all improvements constructed by tenant during term of either the Old Facility Agreements or New Facility Agreements Utilities: All utilities to be paid by RACs Environmental: Initial audit completed prior to commencement date Hazardous Substance Any approved aboveground or underground storage tanks Storage Tanks: will be owned, operated and maintained by the RACs; will never revert back to the Port Existing Hazardous RACs remain liable for future Port costs; RAC must Substance Release: receive Department of Environmental Quality No Further Action determination for any known existing contamination within 6 months of lease commencement date ACDBE Requirement: Goal of 2.1% established by Disparity Study; goal tracked through New RAC Agreements
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EXECUTIVE DIRECTOR'S RECOMMENDATION
The Executive Director recommends that the following resolutions be adopted:
BE IT RESOLVED, That approval is given to enter into new rental car remote service facility lease agreements at Portland International Airport with Avis Budget Car Rental, LLC; EAN Holdings, LLC; The Hertz Corporation; and Todd Investment Company, consistent with the terms presented to the Commission; and
BE IT FURTHER RESOLVED, That the Executive Director or his designee is authorized to execute the necessary documents on behalf of the Port of Portland Commission in a form approved by counsel.
Agenda Item No. 2
HILLSBORO AIRPORT MASTER PLAN UPDATE ADOPTION
March 13, 2019 Presented by: Stephen Nagy Sr. Manager, General Aviation
REQUESTED COMMISSION ACTION
This agenda items requests approval to adopt the findings of the Hillsboro Airport Master Plan Update (including the Airport Layout Plan) and to submit them to the Federal Aviation Administration (FAA) for its review and approval.
Hillsboro Airport and Vicinity
BACKGROUND
In 2017, the Port of Portland (Port) initiated an update to the 2005 Hillsboro Airport Master Plan called, HIO Master Plan Update: Planning a Shared Future (Master Plan). The Master Plan provides a roadmap for the development, operation and investment at Hillsboro Airport (HIO or airport) over the next 20 years. The study was designed to assist the Port in determining what role the approximately 900-acre airport will play in meeting the Port’s mission.
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PLANNING PROCESS
The HIO master planning process included comprehensive stakeholder and public involvement. The centerpiece was the 18-member Planning Advisory Committee (PAC), composed of a diverse group of community members, airport businesses and agency representatives. Two ex- officio members represented the community (PAC Chair Jerry Willey) and the Port (Stephen Nagy, Sr. Manager, General Aviation). In addition to nine PAC meetings, community input was solicited through a broad range of outreach and methods that coincided with key phases of the project. Community engagement focused on a multimedia approach, including online and live open houses, videos and over 30 community events and quarterly tenant meetings. Based on an understanding of the local community, the Port emphasized Latinx community outreach including Spanish language translation for various outreach events.
The plan that has emerged over this nearly two-year planning process was guided by sustainability principles, with the goal of cost-effectively managing aviation demand while considering potential environmental and socioeconomic impacts. The plan began with an investigative phase to describe existing conditions, the airport’s role, and a 20-year forecast of aviation demand. The second, analytical phase addressed facility requirements and described three development scenarios. Evaluation criteria were developed to guide the review and analysis of the different alternatives and select a preferred alternative. The criteria included:
• Community planning compatibility • Environmental factors • Financial factors • Operational safety and efficiency • Seismic resilience • Social equity
The planning effort investigated several areas of special interest (seismic resiliency, stormwater management, community access opportunities, noise/air quality issues and focused site planning), a 50-year Land Supply Analysis, a Cornell Road Market Study, and an investigation by Portland State University Masters in Real Estate Development students on private redevelopment potential in the airport terminal subarea. Together, these studies built understanding and informed the development of the preferred alternative. The preferred alternative was further reviewed to develop conceptual capital projects and phasing options.
FINAL REPORT AND RECOMMENDATION
The HIO Master Plan Update Summary Report1 summarizes the work and feedback from the community. The community input to the Master Plan has been substantial and mainly supportive of the preferred development alternative. The community has also expressed concern regarding noise and air quality impacts from airport operations. The preferred alternative represents a plan with broad public input and support that is incremental, flexible and affordable, and meets the long-term needs of the airport and the community.
1 Hard copies are available upon request. Electronic versions are available on the Port’s website.
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EXECUTIVE DIRECTOR'S RECOMMENDATION
The Executive Director recommends that the following resolutions be adopted:
BE IT RESOLVED, That approval is given to submit the findings of the Hillsboro Airport Master Plan Update (including the Airport Layout Plan) to the Federal Aviation Administration for its review and approval; and
BE IT FURTHER RESOLVED, That the Executive Director or his designee is authorized to execute the necessary documents on behalf of the Port of Portland Commission in a form approved by counsel.
Agenda Item No. 3
PERSONAL SERVICES CONTRACT AMENDMENT AND PUBLIC IMPROVEMENT CONTRACT AMENDMENT – TERMINAL CORE REDEVELOPMENT PROJECT – PORTLAND INTERNATIONAL AIRPORT
March 13, 2019 Presented by: George Seaman Engineering Project Manager
REQUESTED COMMISSION ACTION
This agenda item requests approval of two contract actions related to the Terminal Core Redevelopment (TCORE) project at Portland International Airport (PDX):
• Design. Amend the existing personal services contract with ZGF Architects LLP (ZGF) in the amount of $5,721,317 to provide for design development services for the relocation of Horizon Air to the end of Concourse C and provide for construction administration services for the Concourse B extension.
• Construction. Amend the existing public improvement contract with Hoffman Skanska LLC (Hoffman-Skanska) in the amount of $38,336,191. This amendment covers work associated with the preparatory construction work activities for the Concourse B extension as well as the main TCORE project, and will also cover related capital improvements at PDX in the TCORE project area.
BACKGROUND
In 2010, the Port began developing a comprehensive strategy to reconfigure the core terminal at PDX. Based on thorough, ongoing planning and analysis, the Port has developed the TCORE project, which is intended to ensure: 1) the most effective and efficient passenger processing possible; 2) the best possible passenger experience; 3) the maximization of concession revenues; and 4) a long-range plan that is sustainable, affordable and adaptable. As detailed in earlier Commission agenda items, TCORE project work includes the following:
• Expanding the terminal core area by constructing a seismically-resilient addition extending the existing building footprint approximately 180 feet to the west. • Relocating the security checkpoints into the newly-constructed addition. • Constructing a seismically-resilient “clear span” roof structure from the curbside to the westward edge of the existing ticket lobby, spanning the entire terminal building east to west and opening up the building functionally and architecturally. • Removing the existing roof and mezzanine over the terminal building. • Relocating and reconstructing the post-security concession nodes further to the west to better align passenger flow with the newly-constructed addition. • Extending Concourse B and demolishing Concourse A to improve passenger experience and seismic resiliency of the ground-load facility at PDX.
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TCORE project contracts approved by Commission to date include a September 2015 design services contract with ZGF (the Design Contract), a pre-construction support services contract with Turner Construction Company, and a May 2018 Construction Manager/General Contractor public improvement contract with Hoffman-Skanska (the Construction Contract). The scope of the Construction Contract was initially limited to preconstruction support services during design development, but it may be amended to add construction work as the project progresses.
To simplify the construction activities associated with the demolition of Concourse A and the extension of Concourse B and to provide a safe environment for the traveling public, the Horizon Air ground load operations at Concourse A will be relocated to the west end of Concourse C. This item requests an amendment to the Design Contract to provide for design development services for this relocation and to provide for construction administration services for the Concourse B extension.
This item also requests an amendment to the Construction Contract to facilitate the relocation of Horizon Air operations to the deplaning level of Concourse C, development of occupant safety plans associated with the Concourse B construction, preparation activities for the development of a logistics center and the early involvement of subcontractor trade partners for TCORE construction. This item also requests authorization for funds for additional work that requires close coordination with TCORE construction activities. The work scopes covered by the requested amendment are described in more detail below.
Project Location
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Concourse B Addition
Concourse B Interior – View from Ground Load Holdrooms
DESIGN CONTRACT AMENDMENT SCOPE OF WORK
As discussed in previous agenda items, the Design Contract was contemplated to be awarded in phases as the project timeline advanced. To date, the Design Contract scope of work includes concept selection, conceptual design development, schematic design development and final design development of the Concourse B expansion. Port staff has now negotiated an amendment to the Design Contract to provide final design development for the relocation of Horizon Air to the end of Concourse C and provide for construction administration services for the Concourse B expansion in the amount of $5,721,317.
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Final design development of the remainder of the TCORE project will commence within the next month and is anticipated to require about three years to complete. To obtain final design development services, the Port intends to engage ZGF under an amendment to the Design Contract. Provided the Port and ZGF can agree on mutually acceptable terms, the Commission will be asked to grant additional contracting authority to award the final design amendment at a future Commission meeting.
As discussed in previous agenda items, the Design Contract provides for payment on an hourly basis at negotiated rates, plus expenses, subject to a not-to-exceed maximum. The small business participation goal for the Design Contract is 10.3%.
To date, the Design Contract has been amended as follows: Original contract amount $2,760,936 Concept design amendment $7,804,530 Rate adjustment* $102,297 Ticket lobby simulations $28,000 Terminal expansion evaluation $830,131 Simulations funded by the PDX Terminal $20,000 Balancing project Extend conceptual design $483,597 AAAC ballot support/option development $495,767 Schematic design $33,782,595 Concourse B detailed design $6,975,528 Conceptual antenna study $36,300 Hydrogeology analysis and Wi-Fi design $352,769 This Amendment $5,721,317 New total contract amount $59,383,719
*The Design Contract allows ZGF to request a rate adjustment annually, to reflect actual increases in the cost of performing the services.
Working with the Port’s Purchasing and Legal departments, Port staff have determined that this amendment is permissible under applicable Port contracting rules, and is consistent with the terms of the Design Contract. Commission approval is required to grant the necessary contracting authority based on the dollar amount of the amendment.
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CONSTRUCTION CONTRACT AMENDMENT SCOPE OF WORK
During the preconstruction services phase of the Construction Contract, Hoffman-Skanska has closely collaborated with the design team and prepared construction cost estimates, provided value engineering analysis and constructability recommendations, developed phasing plans and schedules, analyzed manpower and materials availability and made recommendations on potential early bid packages.
Port staff have worked with Hoffman-Skanska to develop the amendment described in this item, which is based upon the early bid packages for Concourse B and the completion of the TCORE main project schematic design. This amendment includes the following key scopes of work:
• Concourse B enabling bid packages implementing relocation of Horizon Air support staff to Concourse C. • Inclusion of additional design assistance development from key subcontractor trade partners. • Design development of prefabrication logistics center for roof fabrication and project laydown area.
This amendment will also facilitate the delivery of other capital projects that are logically related to TCORE and located within the TCORE project area. These additional work scopes include the replacement of passenger boarding bridges (PBB) on Concourses B, C and D, and the expansion of the North TSA security checkpoint lanes. These work elements are being delivered with this contract as part of TCORE but will be funded via other project budgets.
Port staff have negotiated with Hoffman-Skanska for an amendment to increase the previously- established guaranteed maximum price (GMP) by $38,336,191 to facilitate this phase of the work. The proposed amendment includes a proportional adjustment to Hoffman-Skanska’s fixed fee at the rate of 2.97% of the contract price, for an updated total fee of $1,152,963.
To date, the Construction Contract status is as follows: Total Contract TCORE-Funded Value Portion of Contract Original contract amount $5,637,076 $5,637,076 This amendment (including related projects: PBB; North checkpoint) $38,336,191 $20,551,793 New GMP $43,973,267 $26,188,869
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Amending the Construction Contract to facilitate the delivery of planned-for work is consistent with the Construction Contract’s terms. Port staff have determined that amending the Construction Contract to facilitate the delivery of the additional, related capital improvements described above is permissible under applicable Port contracting rules. Commission approval is required to grant the necessary contracting authority based on the dollar amount of the amendment.
SCHEDULE
Preliminary planning November 2014 – December 2014 Consultant selection January 2015 – July 2015 Commission action (approve award of Design Contract August 2015 and preconstruction support services contract) Conceptual plan selection phase September 2015 – February 2016 Commission action (approve contract amendments for April 2016 conceptual design and pre-construction support services) Conceptual design development phase April 2016 – April 2017 Commission action (approve Design Contract December 2017 amendment, exempt Construction Contract from competitive bidding) Contractor selection (Construction Contract) December 2017 – February 2018 Schematic design development phase January 2018 – December 2018 Commission action (approve Design Contract April 2018 amendment) Commission action (approve award of Construction May 2018 Contract) Commission action (approve Design Contract March 2019 amendment, Construction Contract amendment) Detailed design development phase February 2019 – November 2021 Construction April 2019 – October 2024
SMALL BUSINESS PARTICIPATION
In October 2018, Commission approved a recommendation that the Port require Hoffman- Skanska to negotiate a project labor agreement (PLA), binding all PLA-signatory contractors, subcontractors and labor unions for all trades on the TCORE project. The Port will term the TCORE PLA a Community Benefits Agreement (CBA). The CBA, which is still being
PERSONAL SERVICES CONTRACT AMENDMENT AND PUBLIC IMPROVEMENT CONTRACT AMENDMENT – TERMINAL CORE REDEVELOPMENT PROJECT – PORTLAND INTERNATIONAL AIRPORT March 13, 2019 Page 7 negotiated, is intended to establish a 20% Small Business Enterprise subcontractor utilization goal based on construction costs, with a sub-goal of 8.5% for Minority Business Enterprises. Goals matching those set in the CBA will also be fixed in the Construction Contract, under the amendment being approved with this item. Port staff will continue to track Hoffman-Skanska’s progress toward the goals.
RISKS
Risk: Adverse impacts to stakeholders. Mitigation Strategies: • Develop phasing plans early in the TCORE project to determine potential impacts. • Develop phasing plans that allow relocation of a large portion of ticketing and security functions at PDX in a single move. • Communicate TCORE project goals, directions and plans to the various stakeholders affected by the TCORE project throughout the planning and design phases. • Work with Hoffman-Skanska during the schematic design and design development phases to develop construction plans and complete constructability analyses.
Risk: Construction cost greater than anticipated. Mitigation Strategies: • Have independent estimates performed by ZGF, Turner and Hoffman-Skanska during the conceptual design development and final design development phases. • Develop the construction schedule and approach during the conceptual plan selection phase and update it throughout the TCORE project design phase. • Utilize GMP compensation methodology in the CM/GC public improvement contract to enhance cost certainty. • Provide for early engagement of key subcontractors under trade partner agreements that allow greater input into design and constructability decisions. Risk: Changing conditions of the global aviation industry. Mitigation Strategies: • Phased approach allows the Port to delay TCORE project phases in response to external conditions. • Design the PDX terminal modifications to allow for flexibility as future passenger processing options evolve. • Coordinate TCORE project concept activities with airline technical representative (J. A. Watts, Inc.).
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BUDGET
At this time, the Airport and Airline Affairs Committee funding approval for the TCORE project includes only the initial phase shown below. In the future, staff anticipates engaging the airlines to request funding approval for the remainder of the total TCORE project, including the PDX ticket lobby remodel, reconstruction of the existing north and south post-security concession nodes and the baggage claim area. Initial Phase Remainder Total Project of Project Consultant design services $109,000,000 $10,000,000 $119,000,000 CM/GC services (including $582,000,000 $361,000,000 $943,000,000 construction) Procurements/equipment $31,000,000 $14,000,000 $45,000,000 Port staff/contracted services $50,000,000 $14,000,000 $64,000,000 Permits $10,000,000 $6,000,000 $16,000,000 Contingency $170,000,000 $51,000,000 $221,000,000 Total Project $952,000,000 $456,000,000 $1,408,000,000
The project contingency shown above, representing 22% of the current cost estimate for the initial phase of TCORE, is considered reasonable given the stage of the TCORE project, the nature of the work and the risk profile for the project.
TCORE project funding and contract costs will be funded by the Airline Cost Center, composed primarily of revenues from the Port’s commercial airline service business lines.
EXECUTIVE DIRECTOR'S RECOMMENDATION
The Executive Director recommends that the following resolutions be adopted:
BE IT RESOLVED, That approval is given to amend the existing personal services contract with ZGF Architects LLP for the Terminal Core Redevelopment project at Portland International Airport, consistent with the terms presented to the Commission; and
BE IT FURTHER RESOLVED, That approval is given to amend the existing public improvement contract with Hoffman-Skanska LLC for the Terminal Core Redevelopment project at Portland International Airport, consistent with the terms presented to the Commission; and
BE IT FURTHER RESOLVED, That the Executive Director or his designee is authorized to execute the necessary documents on behalf of the Port of Portland Commission in a form approved by counsel.
Agenda Item No. 4
PUBLIC IMPROVEMENT CONTRACT – DEICING VAULT REHABILITATION, PUMP STATIONS A, C, E, F AND J – PORTLAND INTERNATIONAL AIRPORT
March 13, 2019 Presented by: Marcel Hermans Engineering Project Manager
REQUESTED COMMISSION ACTION
This agenda item requests approval to award a public improvement contract for deicing vault rehabilitation services for Pump Stations A, C, E, F and J, to Stellar J Corporation for the Deicing Vault Rehabilitation project at Portland International Airport (PDX) in the amount of $1,078,000.
BACKGROUND
The PDX deicing system collects and processes surface water runoff from paved surfaces that may be treated with pavement deicing/anti-icing agents or may be exposed to deicing/anti-icing agents applied to aircraft. Runoff is collected in wet wells and pumped from the pump stations to the processing facilities.
The deicing infrastructure was built in two distinct phases which are commonly referred to as the “legacy” system and the “enhanced” system. The overall system is composed of 13 pump stations (PS) consisting of wet wells and pumping equipment, including 21 submersible pumps.
The Deicing Vault Rehabilitation project focuses on rehabilitation of the “legacy” system, which was completed in 2003. The project aims to address deterioration of the concrete in various wet well and vault structures and of mechanical systems, as well as the required rehabilitation and servicing of the system’s main pumps.
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CONTRACT SCOPE OF WORK
This contract includes the following scopes of work for Pump Stations A, C, E, F and J:
• Dewatering, cleaning, and repair of concrete as well as installation of thrust blocks or walls for the vaults and wet wells. • Removal and re-installation of the main pumps (the rehabilitation of these pumps will be performed under separate contracts; see below). • Replacement of pumps used for material sampling. • Cleaning, recoating and/or refurbishing of valves and associated items. • Electrical work, including new generators, a motor control center and two variable frequency drives.
Contracts for the rehabilitation of the main pumps from these pump stations are being awarded separately from this contract, under delegated authority, through the authorized service providers for the respective pump manufacturers.
SCHEDULE
Preliminary design July 2017 – March 2018 Airport Airline Affairs Committee approval July 31, 2018 Design April 2018 – January 2019 Commission approval (award public March 13, 2019 improvement contract) Construction April 2019 – September 2019
CONTRACT SOLICITATION
Solicitation Results
The Port procured this public improvement contract utilizing a competitive sealed bidding solicitation under Oregon Revised Statutes, Chapter 279C. The solicitation was advertised on January 3, 2019 and bids were opened on January 29, 2019. Stellar J Corporation submitted the lowest responsive bid.
The bids were as follows: 1. Stellar J Corporation $1,078,000 2. JR Merit, Inc. $2,024,327 3. Engineer’s Estimate $902,000
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Small Business Participation
Based on an availability analysis, the Port’s small business enterprise (SBE) program participation goal for this contract was 21 percent of the total amount bid. The lowest responsive bid identified a 29.9 percent participation level. SBE includes firms certified by Oregon or Washington as minority, women, or service disabled veteran-owned, or as an emerging small business.
RISKS
Risk: Delays in completion of critical infrastructure could impact deicing operations and/or regulatory compliance. Mitigation Strategies: • Clear communication of schedule requirements to contractor. • Active management and controls of construction work.
Risk: More work needed on pump rehabilitation than anticipated. Mitigation Strategies: • Remove some pumps early to get ahead of the schedule. • Include additional contingency funds.
BUDGET
Public improvement contract (PS A, C, E, F and J) $1,078,000 Pump rehabilitation contracts $435,000 Personal services contracts (design) $400,000 Port staff and contracted services $615,000 Contingency $572,000 Total budget $3,100,000
The contingency, representing 21 percent of the project cost, is considered reasonable given the risk profile for the project, the status of the project and the complexity of the work site.
The project costs will be funded by the Airline Cost Center, which is composed primarily of revenues from the Port's commercial airline service business lines.
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EXECUTIVE DIRECTOR'S RECOMMENDATION
The Executive Director recommends that the following resolutions be adopted:
BE IT RESOLVED, That approval is given to award a public improvement contract for the Deicing Vault Rehabilitation, Pump Stations A, C, E, F and J project at Portland International Airport to Stellar J Corporation, in accordance with its bid; and
BE IT FURTHER RESOLVED, That the Executive Director or his designee is authorized to execute the necessary documents on behalf of the Port of Portland Commission in a form approved by counsel.
Agenda Item No. 5
PUBLIC IMPROVEMENT CONTRACTS – ON-CALL GENERAL CONTRACTING SERVICES – PORT OF PORTLAND FACILITIES
March 13, 2019 Presented by: Chet Thomas Project Manager Innovation & Special Projects
REQUESTED COMMISSION ACTION
This agenda item requests approval of five public improvement contracts to provide on-call general contracting services on an as-needed basis for an initial term of three years.
BACKGROUND
The Port of Portland (Port) awards numerous public improvement contracts each year to accomplish a wide array of construction projects, ranging from small to large building improvements, system modifications, equipment installations, pavement-related civil projects and various other capital improvements. Public contracting laws typically require agencies to award contracts by conducting a competitive solicitation for each project. Competitive solicitations generally require weeks or months to conduct, and require many steps to award.
For some projects, construction must commence quickly to meet operational or other business needs. In those cases, the time necessary to conduct a competitive solicitation conflicts with schedule demands. The Port seeks an alternative project delivery method that allows the Port to engage construction contractors more quickly for certain types of work.
In January 2019, the Commission approved an exemption from competitive bidding, allowing the Port to use a competitive Request for Proposals (RFP) process to select multiple contractors for an on-call general contracting services program. Under this program, separate competitive solicitations will not be required to award contracts for qualifying projects; instead the Port may issue a “project order” under one or more of the on-call contracts. The RFP has been advertised, proposals have been evaluated and the Port is ready to award the contracts.
As described more fully in the exemption request, the Port will use the on-call program to deliver limited types of work. Projects delivered under this class of contracts will primarily be small- scale (up to approximately $1 million construction contract value), with limited complexity and/or risk.
These on-call contracts will provide support in the following disciplines: architectural (building), civil, demolition, electrical/IT, fencing, landscape, mechanical, roofing and others. The services will be utilized for projects across all Port facilities.
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SCHEDULE
Commission approval (exemption from January 9, 2019 competitive bidding) Request for Proposals January 2019 – February 2019 Commission action (approve on-call general March 13, 2019 contracting services contracts) Finalize contracts March 2019 Contract term starts March 2019 Initial contract term ends March 2022
CONTRACT SOLICITATION
Solicitation Results
The Port issued an RFP on January 10, 2019, seeking qualified general contractors to provide the required services. Twelve firms submitted proposals, which were evaluated by a panel. The panel obtained input from representatives of the Port’s small business development program for its evaluation. Proposals were evaluated against the following criteria:
• Pricing • Conformance to RFP requirements • Qualifications and experience • Small business participation • Social equity considerations
The committee unanimously selected the following contractors:
• Andersen Construction Company of Oregon, LLC • Fortis Construction, Inc. • IN LINE Commercial Construction, Inc. • Portland Commercial Construction, LLC • Viking Engineering & Construction, LLC
Small Business Participation
The RFP development team made a concerted effort to maximize small business participation in the program, including community outreach efforts. Two of the five firms selected are certified small businesses. The program also enables the Port to modify bonding and insurance requirements, when appropriate, to help increase small business participation.
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Furthermore, as outlined in the exemption from competitive bidding, all project orders are subject to a small business participation goal. For project orders of $500,000 or more, the Port’s small business development program will set a project-specific small business participation goal, based on an availability analysis. Project orders under $500,000 will be subject to the Port’s 20% overall small business participation goal.
Social Equity Considerations
The social equity evaluation criterion referenced above includes the following considerations:
• Commitment to company social responsibility. • Workforce demographics and measurable steps to ensure a diverse internal workforce. • Commitment to community involvement.
CONTRACT TERMS
Each contract has an initial term of three years, with a $5 million not-to-exceed limit over that term. Work will be performed under individual project orders, each limited to approximately $1 million. Each project order will specify the scope of work, schedule, dollar amount, bonding and insurance requirements and other details. The Port may extend the contracts for up to two additional years, but Commission approval will be required to increase a contract’s not-to- exceed limit in excess of delegated authority. Each project order will be funded under the applicable project budget.
EXECUTIVE DIRECTOR'S RECOMMENDATION
The Executive Director recommends that the following resolutions be adopted:
BE IT RESOLVED, That approval is given to award a public improvement contract for on-call general contracting services to each the following firms, consistent with the terms presented to the Commission: Andersen Construction Company of Oregon, LLC; Fortis Construction, Inc.; IN LINE Commercial Construction, Inc.; Portland Commercial Construction, LLC; and Viking Engineering & Construction, LLC; and
BE IT FURTHER RESOLVED, That the Executive Director or his designee is authorized to execute the necessary documents on behalf of the Port of Portland Commission in a form approved by counsel.