MOTION TO APPROVE increase in Allowance Accounts for Agreement No. Z1368002C1 with Munilla Construction Management, LLC for the Terminal 4 Eastern Expansion at Broward County’s Fort Lauderdale-Hollywood International Airport, for additional work, in the maximum not-to-exceed amount of $7,000,000, increasing the allowance amount from $14,000,000 to $21,000,000, increasing the total Agreement amount from $127,147,431 to $134,147,431; and authorize the Mayor and the Clerk to execute same.
ACTION: (T-11:18 AM) Approved. (See the Yellow-Sheeted Additional Material, dated Tuesday, April 10, 2018, submitted at the request of the Aviation Department.)
VOTE: 9-0.
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THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.
This action will amend the Agreement to increase the Agreement’s Allowance Accounts for the T4 Eastern Expansion (“T4E”) project: Allowance Account (Line No. 1); Regulatory Agencies/Owners changes, and Allowance Account (Line No. 2); Unforeseen Conditions.
This item supports the Board’s Value for "Ensuring economic opportunities for all people and businesses in Broward County," its Goal to "Increase the economic strength and impact of revenue-generating County enterprises balancing economic, environmental, and community needs" and its Objective to increase passenger facilities in T4 at FLL.
The Office of Economic and Small Business Development (“OESBD”) established a County Business Enterprise (“CBE”) goal of 24% for this project. Munilla Construction Management, LLC (“MCM”) committed to 24.47% CBE participation. To date, MCM has been paid $83,995,592 and has paid CBE firms $13,143,629, for 15.65% CBE participation (Exhibit 1).
On October 13, 2015 (Item No. 17), the Board approved an Agreement with MCM for the T4E Expansion project, in the amount of $128,150,000, which included allowances in the potential not-to-exceed amount of $14,000,000 and incentive completion bonuses in the not-to-exceed amount of $2,250,000. The contract price exclusive of incentive completion bonuses was $125,900,000; the subsequent Purchase Order issued to MCM was in the amount of $125,900,000.
On January 28, 2016, the Director of Aviation approved Change Order No. 1 to the MCM Agreement in the amount of ($1,002,569), for a deduction in the amount of Builder’s Risk Insurance, as purchased by the County versus MCM, for a revised contract price exclusive of incentive completion bonuses, in the amount of $124,897,431, and a revised total Agreement amount of $127,147,431. Special Provision 4A of the Agreement allows the County to obtain the Builder’s Risk insurance and deduct from the contract amount, when the County’s price is determined to be less than the premium quoted by the Contractor.
The T4E project will add approximately 196,850 square feet to the eastern portion of T4 for an estimated total square footage of 363,240. The project will add eight new aircraft parking gates, associated passenger holdrooms, new concession shell space and airline support space. The project will also demolish the existing Concourse H and will construct new offices for Broward County Aviation Department (“BCAD”) staff.
During the course of construction, higher than anticipated changes occurred. The primary changes resulted from construction associated with the adjacent T4 Federal Inspection Services ("FIS") facility, reconfiguration and infrastructure changes, and unforeseen conditions. Examples of these changes include required foundation changes, telecommunications, fiber optics and Florida Power and Light changes, emergency power revisions, security enhancements, and required changes to the areas governed by U.S. Customs and Border Protection (“CBP”) and Transportation Security Administration.
Six Domestic/International swing gates were completed and opened under the T4E project. As construction progresses, similar conditions are expected to occur during the remaining work which includes two additional swing gates and demolition of Concourse H. To mitigate construction delays, additional funds are required in order to expeditiously address future changes.
Therefore, this action will increase the following Allowance Accounts:
Regulatory Agencies and Owner’s Allowance (Line No. 1): This allowance provides for permit fees and additional changes to the work. The increase request is for $4,000,000 for a revised total allowance amount of $10,000,000.
Unforeseen Conditions Allowance (Line No. 2): This allowance provides for changes related to unknown or unplanned conditions including costs for time-related impacts resulting from the Dispute Avoidance Panel (“DAP”) process. The increase request is for $3,000,000 for a revised total allowance amount of $11,000,000.
The Allowance Accounts will be utilized for pending and potential items including time-related impacts associated with the DAP, relocation of the virtual ramp camera system, hardening of the CBP interview room, reconfiguration of the BCAD offices, a temporary generator, the incorporation of service animal relief areas, upgraded signage, relocation of various kiosks and the sterile connector bridge.
Approval of this action increases Lines No 1 and 2 in the Agreement’s Allowance Accounts in the maximum not-to-exceed amount of $7,000,000, for a revised total Agreement amount of $134,147,431. The increase will enable the Construction Price Element Adjustment Memorandum (“CPEAM”) to be issued by the Contract Administrator, per the terms of the Agreement. The monies will be issued by a CPEAM as the Contract Administrator deems necessary, and MCM is not entitled to the full amount of the increase. Any remaining unexpended funds in the Allowance Accounts will revert to the County’s project budget. The requested increase is within the overall budget for the T4 project.
The proposed action has been reviewed and approved by the Office of the County Attorney and the Risk Management Division.
The amounts referenced in this agenda have been rounded to the nearest whole dollar. Vendor payments will be based on the maximum amount payable under this Agreement.
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