Port Hosts Public Networking Meeting for Local Businesses and Airport Contractor Candidates

FOR IMMEDIATE RELEASE

Contact: Marilyn Sandifur
Media and Public Relations Manager
msandifur@portoakland.com / 510.627.1193

January 27, 2003 (Oakland, CA) - The Port of Oakland is convening a special public meeting January 29 at the Hilton Oakland Airport to distribute business information about the first phase of its $1.4 billion airport Terminal Expansion (TEx) Program.

The 6:15 p.m. meeting, at 1 Hegenberger Road in Oakland, will allow prospective prime builder candidate firms the opportunity to network with the local business community. On Wednesday, January 22, the Port released a Request for Qualifications (RFQ), the first step in its process to select a Prime Builder to construct Phase 1 of the TEx Program.

“We are encouraging members of the local business and construction industry to attend this meeting to learn more about the selection process for the Prime Builder,” said Frank Kiang, president of the Board of Port Commissioners. “We will also discuss the timeline for the selection and the preliminary process for local businesses to solicit work opportunities,” he said.

After weighing construction and design management experience, price proposals and local business utilization plans, the Board of Port Commissioners is expected to select the Prime Builder firm in May. The Prime Builder contract calls for the construction of the Terminal 2 project – an extension and renovation of the existing concourse - and to design and build the six-story parking garage and customer services building. The potential respondents will have 40 days from the RFQs issuance to submit their statement of qualifications.

“The release of this RFQ and impending selection of a prime builder highlights a significant time in our airport development program,” said Frank Kiang, president of the Board of Port Commissioners. “After years of planning, review, conceptual and schematic designs, we are now readying for construction,” he said.

Once selected, the prime builder will provide pre-construction and design management services and will handle the procurement of final parking garage design and overall construction subcontracts. Due to its limited experience with building large, complex projects like TEx, the Port developed the non-traditional prime builder delivery method to centralize management responsibility and to provide guarantees in price and schedule.

“We promote Oakland International Airport as the airport of convenience,” said Steve Grossman, the Port’s director of aviation. “During our expansion, we intend to remain open and convenient with minimal disruptions to our passengers and our aviation tenants.”

Plans for the Terminal Expansion Program, to be built in two separate phases, include - the design and construction of a new main terminal, a renovated-and-extended south terminal (Terminal 2) concourse, 12 additional aircraft gates, a 6,000-space multi-level automobile parking garage, installation of new baggage-and-passenger-security screening systems and a modern, centralized food, beverage and retail shopping area.

Additionally, the Bay Area Rapid Transit Authority (BART) is planning to build a light-rail system to connect the airport to the Hegenberger/Coliseum BART station and the entire regional BART system.

The program, which is being financed through Port-issued municipal bonds, passenger facility charges, airline fees and federal airport improvement funds, is expected to generate more than 4,000 new construction and aviation-related jobs and generate nearly $2 billion in business revenue, $600 million in personal income and $76 million in additional annual state and local tax revenues.

When the prime builder is selected by the Board of Port Commissioners, a second meeting will be held to allow the prime builder the opportunity to directly share its sub-consulting and preliminary trade sub-contracting procurement plans and opportunities with interested firms.

“The Port remains committed to ensuring that local and small local companies have the opportunity to compete for a fair share of the TEx project’s subcontracts,” said Port Executive Director Tay Yoshitani.

Board President Kiang further explained the Port’s actions to support that commitment.

“During the summer of 2002, the Board amended the Port’s existing Non-Discrimination Local Business Utilization (NDLBU) policy to mandate minimum participation goals for the prime builder to follow,” he said. “The policy requires the prime builder to be creative in developing strategies for increasing the capacity of local and small local firms, and, to the largest extent possible, maximizing their utilization.”

The guidelines mandate 30 percent of all work must be completed by Port-certified businesses from the local impact area of Alameda, Emeryville, San Leandro and Oakland; and those within the local business area of Alameda and Contra Costa counties. Some 15 percent of all work must be awarded to small local businesses (those with annual gross revenues totaling no more than $30 million during the past three years). In addition, small local trucking companies and/or local independent operators must perform 50 percent of all trucking work.

Another opportunity for local residents to find TEx work is through the social justice provisions of the 2000 Maritime and Aviation Project Labor Agreement, ratified with the local building trade unions for use on all Port aviation and maritime projects.

Individuals without prior trade experience will be afforded the opportunity to gain trade experience while still earning a paycheck; 50 percent of all the project labor force must come from the local impact area cities of Alameda, Emeryville, San Leandro and Oakland and 20 percent of the project labor force must be apprentices from those cities.

“After years of planning, we are on the verge of finally breaking ground,” Kiang said. “We’re thrilled about the prospect of seeing our vision to expand the value and convenience of Oakland International become a tangible reality.”

For more information about the Prime Builder RFQ or media and photo opportunities at the January 29th Port of Oakland public meeting for the local business community, please contact Marilyn Sandifur, 510.627.1193 or Alonza Robertson, 510.627.1656.