Port Authority Commission Considers Contract Awards and Amendments for Bayport, Security, Electric Power, Other Matters

Business Wire,  Sept 19, 2003  

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Business Editors

HOUSTON--(BUSINESS WIRE)--Sept. 19, 2003

The Port of Houston Authority (PHA) Commission will consider several recommendations involving contract awards, bids and proposals, professional services and general administrative and operational matters during its meeting at 2 p.m. on Monday, Sept. 22. Chairman Jim Edmonds will preside in the 4th floor board room of the PHA Executive Office Building, 111 East Loop North (exit 29 off Loop 610).

Bayport Matters

The commission will consider recommendations to award contracts to Cherry Demolition Inc. and JWD Group for work related to the proposed Bayport Container and Cruise Terminal.

Cherry Demolition is being considered for a contract to clear the site for Phase 1A of the Bayport project. If approved, the estimated amount of the contract would be $310,591.

JWD Group is being considered for an estimated $1,462,200 contract to provide architectural and engineering services for the development of the marine terminal gate facility at Bayport, including topographic and geotechnical surveys and the development of designs for road pavement, drainage, gate and support facilities. If awarded the contract, JWD would also be expected to prepare the request for proposals (RFP) documents for the Bayport gate control system.

"Although no work will be performed and no spending will be authorized until and unless the U.S. Army Corps of Engineers approves the project, executing these contracts now will save time when we are authorized to begin construction," stated Chairman Edmonds.

The commission will also consider a recommendation to approve a proposal that would grant Lockwood, Andrews & Newnam Inc. an extension on its program management contract for Bayport Phase 1A. Because of project delays since the contract was awarded last November, LAN has only completed 35 percent of its scope of work, which mainly involves providing technical support for Bayport's legal, planning and environmental issues. As a remedy, LAN has submitted a proposal to add four months to the contract and reallocate funds to cover the costs of the extension.

The corps released its Bayport FEIS on May 16, opening an initial public comment period that closed on July 16. In August, the corps issued a new public notice with a 30-day public comment period on two new components of PHA's mitigation plan involving the preservation of 456 acres on the lower San Jacinto River and 500 acres on the Katy Prairie. In response to previous comments from resource agencies and citizens, PHA expects these additions to fully compensate for habitat and other ecological values that are perceived to exist on the Bayport property. The public comment period closed Sept. 12.

Later this month, the corps is expected to complete its record of decision, which will determine whether the Bayport permit will be issued or denied. The corps' permit decision is expected to be announced in October.

Security Matters

The commission will consider a recommendation to amend CH2MHILL's contract to conduct a security risk assessment. CH2MHILL has requested an additional $19,500 to expand its present scope of work to include modifying PHA's security plans to conform with recent changes in U.S. Coast Guard regulations. Additionally, CH2MHill will conduct an assessment of PHA's Galveston Container Terminal.

Under its $300,000 contract awarded last year, CH2MHILL is assessing and making recommendations related to physical risk, entry/exit controls, building access controls, property protection, site safeguards, security plans, policies and procedures for protection strategies at all PHA facilities. PHA allocated part of a $1.8 million grant from the U.S. Transportation Security Administration (TSA) and the Maritime Administration (MARAD) to cover the cost of the assessment. The remaining $1.5 million was allocated toward the initial design and development of PHA's state-of-the-art emergency command center.

In a related matter, the commission will consider a recommendation to award the command center construction contract to BAE Systems. If approved, the estimated $3,786,220 contract cost is expected to be covered by forthcoming security grants from the U.S. Department of Homeland Security (DHS) and the Office of Domestic Preparedness. The grants were announced in June. PHA had originally applied for approximately $13 million in port security grant funds for a cohesive security program involving surveillance, technology, infrastructure, personnel training, rapid response, and communications equipment to secure the port.

Purchase of Deregulated Electric Power

The commission will consider a recommendation for PHA to execute a contract to purchase deregulated electric power from with the Texas General Land Office (GLO) at an estimated cost of $9 million for up to three years.

Previously, the commission had authorized the negotiation and execution of a three-year power contract with Cirro Energy. During the final pricing period, however, Cirro revoked the agreement because it could not provide the required financial security. TXU Energy Services and the GLO, respectively, were the electric providers with the next proposals offering the best value. After negotiations with TXU failed, PHA successfully negotiated a contract with the GLO.