Title
Approval of Services Agreement No. AGR 26-809 with Mick Rich Contractors Inc. in the Amount of $1,818,444.26 plus Applicable Gross Receipts Tax for Construction of an 8-Unit T-Hangar at Los Alamos Airport, Establish a Project Budget in the Amount of $2,665,000, and Approve Related Budget Revision 2026-03
Recommended Action
I move that Council approve Services Agreement No. AGR 26-809 with Mick Rich Contractors Inc. in the Amount of $1,818,444.26 plus applicable Gross Receipts Tax for Construction of an 8-Unit T-Hangar at Los Alamos Airport, establish a Project Budget in the Amount of $2,665,000, and Approve Related Budget Revision 2026-03.
County Manager's Recommendation
The County Manager recommends that Council approve the motion as presented.
Body
The Los Alamos Airport Master Plan (LAAMP) adopted by County Council on May 10, 2013, outlines Airport development strategies and priorities aligned to satisfy projected user’s needs, future aviation needs, and recent changes in the Federal Aviation Administration design standards. One of five specific development strategies proposed in the LAAMP is the removal and relocation of the existing west-end hangars adjacent to the Taxiway to facilitate taxiway access and improve safety to the Runway threshold and increase hangar development space and airfield capacity.
Given their outdated condition, the removal and relocation of the existing west-end hangars is a critical first phase in the implementation of the LAAMP development strategies, but requires building a new hangar to relocate existing hangar tenants.
In November 2023, the County hired the services of Delta Airport Consultants, Inc. to design an 8-Unit T-Hangar building to replace the existing and outdated west-end hangars. These services were procured utilizing on-call services agreement AGR23-54 through Task Order 1. The scope of work of Task Order 1 includes engineering services from schematic design, construction documents and project bidding. Delta Airport Consultants, Inc. has been the consultant engineer of record for Los Alamos Airport in projects such as the rehabilitation of Runway 9-27 (July 2011) and the development of the current LAAMP in association with Coffman Associates, Inc.
During the design phase, the design team and county staff established that the most efficient location for the new 8-Unit T-Hangar building will be the tie-down space between the Terminal building and the existing T-Hangars buildings east of the Airport lot.
The project was advertised for competitive bid. However, responses were much higher than the project budget and award was not recommended. The County’s Chief Purchasing Officer, Capital Projects staff and the Airport Manager determined that Price Agreement No. 2024-08-123-ALL with the Cooperative Education Services (CES) offers the most economical and advantageous method to procure this project. The elements supporting this determination include: i) CES functions as a cooperative procurement agency established through a Joint Powers Agreement, permitted under Section 11-1-1 and related laws of the New Mexico Statutes Annotated from 1978, ii) The County, as a Participating Entity in the CES Cooperative Purchasing Agreement, has committed to the follow CES's cooperative procurement processes, iii) the CES agreement standards and specifications for construction services meet those required by Los Alamos County, and iv) This price agreement provides competitive pricing and turnkey solutions to Modular Portable Factory-Built & Pre-Engineered Buildings Delivery, Installation and Related services.
Mick Rich Contractors, Inc., a participant in Price Agreement No. 2024-08-123-ALL and provided a cost proposal for this project. After review, County staff found the proposal responsive in providing all labor, equipment, and materials required to build the 8-Unit T-Hangar. In addition, Mick Rich Contractors, Inc., is a well-established New Mexico contractor, with 40 years of experience, and with all qualifications to successfully complete the project. Therefore, County staff prepared Agreement AGR26-809 (Attachment A). Upon approval of AGR26-809, County staff will issue Mick Rich Contractors, Inc. a notice to proceed with the project. Completion of construction is anticipated by May 2026. All construction activities will be confined in the space between the Terminal Building and the hangars to the east of the Airport parking lot. No significant disruptions to Airport operations or to hangar access is anticipated. The fuel farm will also continue providing regular service during this time.
Delta Airport Consultants will provide construction administration services for this project. These services will also be procured under on-call services agreement AGR23-54 under Task Order 2. The 8-Unit T-Hangar building will be 189 feet long and 54 feet wide with 4 hangars on each side. Each hangar will contain bi-fold hangar doors 12 feet in height and 41 feet-6 inches of door clearance. Residual spaces at the building corners will be enclosed for use as storage. Upon project completion, the tenants currently occupying the west-end hangars can be relocated into the new 8-Unit T-Hangar building.
Alternatives
Council could choose not to approve the agreement and postpone or cancel the project. However, any cancellation or delay may result in forfeiture of a $1,500,000 grant from the New Mexico Department of Transportation. This grant is set to expire on May 30, 2026. Other potential consequences of delaying the work could include continued escalation of construction costs and limited contractor availability. Cancellation of this project will significantly delay in the implementation of the development strategies outlined in the LAAMP and the County’s eligibility for future Airport Improvement Program (AIP) funding sponsored by the Federal Aviation Administration.
Fiscal and Staff Impact/Planned Item
On August 29, 2023, Council approved a grant with the New Mexico Department of Transportation - Aviation Division in the amount of $1,500,000 for the design and construction of an 8-Unit T-Hangar.
A Budget Revision in the amount of $1,165,000 from the General Fund is requested to fully fund the project that includes a contingency for unanticipated changes or field conditions. The total requested budget including the budget revision is $2,665,000. See Project Budget Spreadsheet (Attachment B) and Budget Revision (Attachment C) for additional details.
The County has been informed that NMDOT intends to award an additional $400,455 in funding for this project and an additional grant request to the New Mexico Department of Finance Administration for the same dollar amount is also in process. If these additional grant funds are awarded, the General Fund transfer amount will be reduced accordingly at year-end.
Attachments
A - AGR26-809 with Mick Rich Contractors Inc.
B - Project Budget Spreadsheet
C - Budget Revision 2026-03