JC Commercial Awarded Contract for U.S. Customs Facility and Airport Offices at Addison Airport

At its August 27 meeting, Council awarded a contract in the amount of $6,223,949 to JC Commercial for the construction of the U.S. Customs and Border Protection facility combined with the Addison Airport Administration offices at 4545 Jimmy Doolittle Road at Addison Airport.

On December 11, 2018, Council approved the issuance of $7 million in Certificates of Obligation (CO) for the construction of the combined Customs and Airport offices facility. 
These bonds are self-supporting and the obligation will be funded through airport operating revenues.

This project was bid twice and both times, the lowest qualified bid exceeded the estimated budget. After the bidding process was initiated the second time, the architectural design consultant firm, Page Southerland Page, Inc., notified Town staff that they had made a significant error in the cost estimate for the facility. This mistake, combined with current conditions in the construction market, resulted in bids that exceeded both the project estimate and budget. Staff and their design consultant Page Southerland Page (Page) met with JC Commercial, who was the lowest qualified bidder in the second bid process, in an attempt to reduce the cost of the construction.  The contract approved by Council reflects those reductions.

After subtracting the cost reductions and adding additional funding identified by staff, there is still a project deficit of $110,939. Sunland Group, who provided cost estimating services under a contract with Page, refunded the fee of $51,260 for their work on this project. This reimbursement will be used to help close the gap, leaving a final deficit of $59,679 that will be closed by shifting funds from the Airport's Fiscal Year 2020 operating budget. 

While the $6,223,949 for the proposed construction contract with JC Commercial is the largest component of the U.S. Customs and Airport Administration Office project, it does not represent the total cost of the project. The total project cost is currently estimated to be $9,182,505. Additional funding for the balance of the total project costs have been identified in the Airport Operating fund and will be brought before Council for consideration at a future meeting. 

You can watch Council’s discussion on the U.S. Customs Facility Contract here.