By Paul Thompson

Northeast News

May 31, 2017

KANSAS CITY, Missouri – Burns & McDonnell won’t be receiving a no-bid contract for a new privately-financed single terminal airport, after all.

The single terminal debate took yet another turn on Tuesday, May 30, as the City of Kansas City, Missouri announced that it would be soliciting bids from qualified companies interested in submitting competing proposals to privately finance the modernization of Kansas City International (KCI) airport. The announcement was made during a 2:00 p.m. press conference at City Hall.

KCMO Mayor Sly James said during the May 30 press conference that the decision to open up the bidding process stemmed in part from a letter the City received from Los Angeles-based company AECOM on the afternoon of Thursday, May 25. In the letter, AECOM requested the opportunity to submit a bid to compete with the private financing proposal already submitted by Burns & McDonnell.

“Actually, this is a big win for Kansas City,” James said. “Our airport is the most vital investment that we’re going to make in order to share our city with the entire world. And now we know that firms are ready to compete to make our airport as world-class, as our city is.”

A Request for Qualifications/Proposals (RFQ/P) was issued on May 30, kicking off a three-week period during which competing proposals will be solicited from any interested parties. Proposals will be accepted until June 20, and formal presentations are scheduled to be delivered to the selection committee on June 22. From there, the City will award a contract to reconstruct the 35-year-old airport.

City Manager Troy Schulte indicated that the winning proposal will still have to develop a Memorandum of Understanding (MOU) to be approved by City Council, just as Burns & McDonnell has done.

“This RFQ/P requires delivery of all the elements we want in a new terminal – convenient, close parking, better pickup and drop-off lanes, more seating in passenger waiting areas and other conveniences,” Schulte said.

The RFQ/P includes a number of proposal requirements, including disclosures of any past work performed for the City or at KCI; a description of relationships with local subcontractors, labor organizations, minority-owned and women-owned businesses; and any details relating to previous work that’s led to sustainable improvement in the participation of Minority Business Enterprises (MBE), Women Business Enterprises (WBE), Disadvantaged Business Enterprises (DBE), and Small Local Business Enterprise (SLBE).

The Request for Qualification/Proposal also asks potential bidders to provide details about previous private/public partnerships, airport projects, experience complying with ADA and LEED Gold requirements and projects that have met 1% for Art Program standards. Importantly, the RFQ/P asks bidders to describe their anticipated rate of MBE, WBE, DBE, and SLBE participation, their willingness to offer a Community Benefit Agreement Guarantee, and how they will utilize competitive processes in hiring construction partners.

Additional information requested by the City include items that have previously been requested of Burns & McDonnell by the City Council and members of the public alike. Those include the identification of private equity partners and the anticipated rate of return for those investors. The City is also asking bidders to provide a timeline for proposing the design for the new terminal, a guaranteed maximum price for construction, an anticipated date for completing the financing documents, and finally, a specific expected date for the completion of the terminal.

City leaders further indicated that public hearings will continue in the coming days and weeks.

“We will continue to have public hearings to keep our residents engaged in this community dialogue,” 4th District Councilwoman and Airport Committee Chair Jolie Justus said. “Throughout this process we want to keep listening to our residents and to keep answering their questions.”

The May 30 announcement followed a frenetic week of airport discussions that featured two public hearings with Burns & McDonnell representatives and a Thursday, May 25 introductory meeting between City Council and the outside counsel hired for $475,000 to vet the no-bid Burns & McDonnell proposal.

During that May 25 meeting, which occurred at a City Council business session, it was agreed that the outside counsel would prepare an initial overview of the MOU with Burns & McDonnell by June 6. The overview was scheduled to come just over a week before the June 15 legislative session, during which City Council had planned to make a decision on the Burns & McDonnell proposal. While outside counsel will still be inspecting the MOU, a final decision on a single terminal construction contract will now wait until other entities have the opportunity to bid.

One member of the outside legal team, Charles Renner of Husch Blackwell, indicated after the May 25 meeting that City Council was taking necessary steps to ensure that taxpayers got a fair deal on the modernization of KCI.

“I think what the public should have confidence in is that the Council has asked us to assist it in doing its diligence before it enters into an agreement,” Renner said.

At the public input hearing earlier that morning, constituents offered a wide range of opinions on the Burns & McDonnell MOU. Missouri Representative Dan Stacy of the 31st District wondered about the financing group that is backing the Burns & McDonnell proposal, stating his belief that the investors should be individually named to the public before any agreement is reached. Stacy also criticized the no-bid deal.

“There’s no one aware of any project like this – a billion dollar project – that has gone out without an RFP,” said Stacy.

Meanwhile, President of the Hispanic Chamber of Commerce Chris Gomez came to the public input session to state his support for the single terminal plan proposed by Burns & McDonnell.

“We are also here in support of the MOU before you. Burns & McDonnell does an incredible job of working with MBE/WBE,” said Gomez. “A window of opportunity is before us; let’s not let it close.”

Also at the public input session, Burns & McDonnell counsel David Frantze laid out the expected timeline for the firm’s single terminal plan, assuming the City Council meets the August 24 deadline to get language on the November 7 ballot and the measure is approved by voters.

According to Frantze, all of the agreements between the City and the investment group would be completed by March 2018. Meanwhile, an agreement between City and the airlines would be expected to be finalized by June 2018, financing completed by September 2018, and the project breaking ground by the end of 2018.

James noted during the May 30 press conference that the City still intends to get the single terminal airport measure onto the November 7, 2017 ballot. What remains to be seen, however, is which firm will be attached to project when it reaches the Kansas City, Missouri voting public.