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Consider a memorandum/resolution approving Change Order No. 2 and Change Order No. 3 to the Corporate Hangar Phase II Contract with NASCO, Inc., in the amount of $521,166.30.
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DATE: June 4, 2024
TO: Kent Cagle, City Manager
FROM: Mike Wilson, Executive Director of Aviation
SUBJECT: Change Order No. 2 and Change Order No. 3 to the Corporate Hangar Phase II Contract with NASCO, Inc.
BACKGROUND AND FINDINGS:
On September 13, 2022, the City Council accepted a FAA Military Airport Program (MAP) Grant in the amount of $4,553,070 to fund eligible portions of the Corporate Hangar II Project at the Killeen Regional Airport (KRA). The grant match and the ineligible costs of this project is funded by the Aviation Capital Improvement Project (CIP) Fund.
On February 28, 2023, the City Council awarded a contract to NASCO, Inc. in the amount of $5,335,019.32 for the construction of a second Corporate Hangar at KRA.
The original project scope did not include the finish out of the second floor of the office area, because the KRA did not have a demonstrated need for the extra space during the design phase. CSI Aviation has since signed a letter of intent to lease the new hangar. During initial discussions of the lease, CSI indicated that it is in the process of expanding its operations in Killeen. Which, when completed, would add a significant number of jobs and the need for more space. CSI agreed to lease the second-floor office space, if the City would finish it out.
Change Order No. 2 to the NASCO contract would complete the second floor finish out. This change order will generate additional revenue for the Aviation Fund and provide additional job opportunities for the City. The amount of this change order is $330,585.16 and will be funded thru the Aviation Department's Customer Facility Charge (CFC) Fund.
With the ongoing addition of CSI employees and the additional second floor build out; extra parking is required. Change order No. 3 to the NASCO con...
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