Turner Construction Co. selected as Prime Builder: Firm to manage $1.4 billion Oakland International Airport Terminal Expansion

Port Commission votes 6-0

For Immediate Release
Contact: Harold Jones
Director of Communications
Port of Oakland
(510) 627-1564
hjones@portoakland.com

OAKLAND, Calif, (May 6, 2003) - The Board of Port Commissioners voted 6-0 to select Turner Construction Company as its choice for Prime Builder for the Oakland International Terminal Expansion (TEx) program.

Turner’s cumulative score of its proposal, which included construction and design management experience, price proposals and local business utilization plans, was first among the three firms – including Hensel Phelps Construction and the joint-partnership of Austin Commercial/Swinerton - competing for first phase of the $1.4 billion project.

The multi-year Tex program, to be built in two phases, includes the construction of a new main terminal, a renovated and extended south terminal concourse, 12 new aircraft gates and a 6,000 space multi-level automobile parking garage. Phase 1 includes the construction of the garage and the Terminal 2 renovation at an estimated $225 million in construction costs.

“We are pleased with the selection of Turner as our Prime Builder, “ said Frank Lobedan, TEx Program director for the Port of Oakland. “We look forward to a productive relationship as we move forward with building an improved Oakland International Airport.”

Turner, one of the nation’s leading construction firms, has an extensive 35-year Bay area history. The company helped build the Oakland City Center, the Lake Merritt Plaza and completed the seismic retrofitting of City Hall and the downtown Pac Bell building.

“We look forward to realizing the dream of Oaklanders, to build a world-class airport that in the near future will be the airport of choice for Bay area residents and visitors,” said Kavinder Singh, business manager of Turner’s Oakland office.

“In addition, being an Oakland business, we look forward to maximizing opportunities for local and small local businesses as a matter of prudent business practice versus a mandate,” he said.

The anticipated selection of a prime builder construction firm is the first step toward Phase 1 construction. The Port and Turner now begin a two-part negotiation phase to finalize Phase 1’s guaranteed maximum price, program schedules and other project details.

As part of its local outreach efforts and its stated goals of using significant percentages of small and local businesses sub-contractors and consultants, Turner is hosting a project-oriented business meeting for interested parties Thursday, May 22, 2003 at the Scottish Rites Temple, 12547 Lakeside Drive, in Oakland at 6 p.m.

The highly-anticipated Request for Qualifications for the airport Prime Builder was issued in January with dozens of interested firms requesting materials. Five companies submitted by the March deadline; and the Port’s staff and aviation committee have tabulated their interview and submittal scoring sheets and narrowed the field to three.

Those three firms and were ranked and submitted to the Board of Port Commissioners for selection at the regular May 6 board meeting.

Turner as the prime builder will provide pre-construction and design management services and will handle 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 provide guarantees in price and schedule.

The Terminal Expansion Program will be completed in two separate phases. Phase 1 includes:

• new baggage- and passenger-security screening systems;
• a 6,000-space multi-level automobile parking garage;
• a renovated-and-extended concourse in Terminal 2;
• six additional aircraft gates

Phase 2 includes the design and construction of a new main terminal and modern, centralized food, beverage and retail shopping area. In addition, the Bay Area Rapid Transit Authority (BART) plans to build a light-rail system connecting the Airport to the Hegenberger/Coliseum BART station.

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.