SIOUX CITY – City staff are asking the Sioux City Council to reject bids received for the SUX Aviation Center project, after the lowest bid exceeded the city’s estimate by approximately 47%. engineer.
In July, the board entered into a lease and development agreement with Oracle Aviation, LLC to build, lease and operate a new hangar at Sioux Gateway Airport. The facility will house the Oracle Aviation Center, which includes a flight academy established in partnership with Morningside University, as well as other aviation-related operations.
According to city documents, three local contractors were contacted about the project. Two offers were received before the March 15 deadline. L&L Builders Co. submitted the lowest bid of $12,950,584.50. The engineer’s estimate for the project is $8,794,186.25.
RS&H Iowa, PC, which provides architectural, engineering and consulting services, said in a letter to Deputy City Manager Mike Collett that uncertainty over the post-COVID supply chain and pricing energy due to the crisis in Eastern Europe, as well as a significant amount of work in Siouxland were factors contributing to the offers.
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“RS&H Iowa, PC and city staff have reviewed the bids and believe that re-bid of the project with a design change would be in the best interest of the city,” the city documents state.
The new building was originally slated to be 35,000 square feet and include two hangars located on either side of an unfinished 10,000 square foot split-level office building. Site improvements were to include a new parking lot, driveway, apron, landscaping and related amenities.
The project, which currently has an available balance of $9.7 million, is primarily funded through general bonds. A $1 million grant from the U.S. Department of Commerce’s Economic Development Administration will also contribute to the cost of construction.