Council holds first reading on airport procurement change to allow build–operate–transfer delivery for fuel system work

The Michigan City Common Council on March 4 held a first reading of an ordinance to add the procurement method in Indiana Code 5-23 (commonly known as build–operate–transfer) to the municipal code so the airport can use a qualifications-based selection for an upcoming fuel-system replacement.

Councilwoman Moldenhauer, sponsor of the ordinance, said Airport Manager Jessica Ward could not attend and that Paul Schaffer of Butler, Fairman & Seufert joined the meeting to explain the method. Schaffer said the procurement approach is commonly used for complex, pre-engineered systems such as aviation fuel systems because it permits evaluation on qualifications in addition to price.

"These fuel systems come as pre engineered, package systems, and we want to make sure that the contractors who are bidding on them are highly qualified to do the work," Schaffer told the council. He said the planned fuel-system project would replace equipment about 20 years old and provide safety and environmental improvements.

Schaffer also explained that the statute allows a wide range of delivery options — the build, operate and transfer portions are discretionary — and that because the Federal Aviation Administration does not allow a third-party operator for projects using FAA funds, the city does not plan to use the "operate" portion for this fuel-system work. Under the proposed approach, the contractor would build the system and transfer it to the city at project completion.

Council members asked whether an advisory committee would evaluate proposals; Schaffer said the aviation board (board of aviation commissioners) would score and recommend contract awards. The ordinance includes only a first reading; councilmembers held the item for a future meeting when the airport manager can attend and provide further detail.

No city funds were requested with the ordinance on first reading.