8e. Memo

Project Bid for the Building 161G AVM Facility Upgrade Project

AGENDA MEMORANDUM                        Item No.          8e 
ACTION ITEM                            Date of Meeting      February 8, 2022 
DATE:     January 28, 2022 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Eileen Francisco, Interim Director, Aviation Facilities and Capital Programs 
Wayne Grotheer, Director, Aviation Project Management Group 
SUBJECT:  Bldg. 161G AVM Facility Upgrade  Irregular Bid (CIP #800924) (Short Form) 
Amount of this request:                 $500,000 
Total estimated project cost:          $3,472,000 
Request Commission authorization for the Executive Director  to award and execute a
construction contract to the low bidder for an irregular bid outcome with only one bid submitted 
and increase the project budget in the amount of $500,000 to cover costs of project bid for the
Building 161G AVM Facility Upgrade Project (CIP #800924). The amount of this request is
$500,000 for a total estimated project cost not to exceed $3,472,000. 
This request is asking for authorization to proceed with awarding and executing a construction
contract on an irregular bid as required by Resolution No. 3605 Paragraph Only one bid
was received in response to the construction advertisement which qualifies the bid as irregular.
Additionally, the bid came in 24.6% over the engineer's estimate which also qualifies the bid as
irregular. The bid received was $1,563,933 which is $308,993 over the engineers estimate of
$1,255,000. The additional funds requested in this action will be used to cover the difference of
the bid amount and to ensure funds are available for project contingency. The additional funds
represent an increase of 16.6% over the original total project authorization. 
The recommendation is to accept the proposed bid. Through analysis of the received bid, the
sole bidder (Prime contractor) is a Women and Minority Business Enterprise (WMBE) and new to
leading work at the Port. This firm has committed to exceeding the project goal of 12% WMBE
participation with an aspirational goal of 20%. The project scope has been value engineered
during the planning and design process to balance the building needs for daily operation versus
the longevity of the building. Rejecting this current bid would further delay the needed
replacements and upgrades and will incur significant additional costs required to readvertise the
project that may not result in any additional bids or in lower bids. 

Template revised April 12, 2018.

COMMISSION AGENDA  Action Item No. 8e                                  Page 2 of 2 
Meeting Date: February 8, 2022 
The 161G Aviation Maintenance (AVM) Facility (known as Air Cargo 4) at the Airport is a 50-yearold
former mail sorting facility that has had minimal updates and modifications. The maintenance
groups housed in this facility operate 24 hours a day, 365 days a year, and perform critical
maintenance work to keep the airport and runways operational. This project will replace obsolete
and failing Heating, Ventilation, and Air Conditioning (HVAC) systems, replace lighting with new
energy efficient lighting, and provide essential communication connections to the building and
offices. These upgrades will provide a reliable working space for the approximately 120 Port
maintenance staff that operate from this critical facility. 
July 13, 2021  The Commission authorized construction 
November 12, 2019  The Commission authorized design 

Template revised September 22, 2016; format updates October 19, 2016.

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