Title
Award of Bid No. 24-22 in the Amount of $2,669,659.00 plus Applicable Gross Receipts Tax to Meridian Contracting for Construction of the Airport Fuel Farm Project, Establish a Project Budget in the Amount of $3,550,000; and Approve Related Budget Revision 2024-38.
Recommended Action
I move that Council Award of Bid No. 24-22 in the Amount of $2,669,659.00 plus Applicable Gross Receipts Tax to Meridian Contracting for Construction of the Airport Fuel Farm Project, Establish a Project Budget in the Amount of $3,550,000; and Approve Related Budget Revision 2024-38.
County Manager's Recommendation
The County Manager recommends that Council approve the motion as presented.
Body
On October 5, 2023, the County advertised a formal competitive solicitation for project construction through Invitation for Bid No. 24-22. Three (3) responses were received on November 28, 2023, with one bid considered responsive. The evaluation committee recommends an award to Meridian Contracting.
The Airport Fuel Farm is a project included in the 2013 LAM Airport Master Plan. Project design has been completed by WSP USA, Inc. through an on-call engineering services task order. The design includes the construction and installation of two 12,000-gallon above ground steel double-walled fuel storage tanks for aviation jet fuel and aviation gasoline including all necessary site work, traffic control management, utility infrastructure, storm water management, spill containment and emergency shut-offs. The fuel farm will be located on the north side of the Airport property on the concrete apron east of the Airport terminal building, see Project Area Map (Attachment A). This location offers a convenient location to pilots while improving safety as it will be further away from the runway and nearby roadways than the current fueling facility. Once the fuel farm is commissioned and operational, the temporary fuel storage tanks that serve Classic Air Medical at the south side of the Airport near NM 502 will also be removed. Currently, jet fuel sales are not available at the Airport and the completion of this project will provide a self-service point-of-sale fuel dispensing system for both jet fuel and aviation gasoline. Adding jet fuel service will contribute to the self-sufficiency of the Airport and will be especially important for future emergency situations such as forest fires. Additionally, this service may improve visitation to the Los Alamos area and help make the airport more viable for any future airline service.
During construction, the contractor will utilize a staging area located within the airport parking lot. Upon Council approval, the Notice of Award will be sent to the contractor and the Pre-Construction Meeting will be scheduled for early January 2024. The contract includes a substantial completion date of September 1, 2024; a final completion date of September 29, 2024, and liquidated damages for late completion. The Public Works Department and the engineering team from WSP USA, Inc. will provide construction management and oversight of the project.
Upon receipt of a schedule from the contractor and subsequent approval by the County, the schedule and aircraft traffic impacts will be shared with local aviation community monthly or more frequently as conditions dictate. Aircraft traffic impacts will be minimized to the greatest extent possible during construction with the county providing a thorough review of traffic control plans. Staff will also monitor all work control installations daily and ensure proper air traffic notifications, also known as Notice to Air Missions (NOTAMs), are submitted to FAA as required.
Alternatives
A deductive alternate was proposed that would delete the secondary containment feature reducing costs in the amount of $198,022. Given the minimal cost savings and the benefits a secondary containment structure provides in the event of fuels spills, this deductive alternate is not recommended.
Council could choose to award the bid; choose to not approve the award and request staff re-advertise the project for bids; or cancel or postpone the project until some future date. Potential consequences of delaying the work could include continued further escalation of construction costs, limited contractor availability, and the loss of grant funds.
Fiscal and Staff Impact/Planned Item
Funding for the project is comprised of two New Mexico Department of Transportation Aviation grants totaling $3,300,000. Council approved the first grant in the amount of $1.9M on June 28, 2022, and the second grant in the amount of $1.4M on August 29, 2023. Both grants require no County matching funds. See Project Budget Spreadsheet (Attachment B). A Budget Revision (Attachment A) is required to transfer $250,000 from the General Fund to cover the construction budget contingency.
Attachments
A - Budget Revision Form 2024-38
B - Project Budget Spreadsheet
C - Project Area Map