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Committee approves forwarding contract modification to expand AGS project-management work at SFO international terminal
Summary
The committee voted 3-0 to recommend a resolution increasing AGS Inc.'s project management contract for the San Francisco International Airport International Terminal Phase 2 by $2.85 million, bringing the not-to-exceed total to $12.5 million and extending the contract to Dec. 31, 2026.
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The Budget and Finance Committee on Sept. 10 voted to forward to the full Board of Supervisors a resolution to approve Modification No. 5 to a contract between the San Francisco International Airport (SFO) and AGS Incorporated for project-management support on the International Terminal Phase 2 project.
The modification increases the contract by $2,850,000 for a new not-to-exceed total of $12,500,000 and extends the contract term by roughly six months, moving the contract end date to Dec. 31, 2026. Committee staff said the contract stems from a 2019 competitive request-for-proposals process and that AGS was the highest-scoring proposer.
An airport representative said AGS will provide project management, design and construction management services, project controls, contract administration, cost estimating and field inspections for work that includes redoing the federal inspection area as part of the terminal’s Phase 2. The airport noted an 18% LBE subcontracting participation requirement, which AGS exceeded at 18.5%.
Nick Menard of the Budget and Legislative Analyst’s office said the contract is funded by airport revenue bonds and recommended approval; the BLA reported the contract is roughly 4.2% of the estimated $292 million capital project budget and that there are no performance issues documented in the formal evaluation period (September 2024–February 2025).
There were no public speakers on the item. The committee voted 3–0 (Dorsey, Chen, Chan) to forward the resolution with a positive recommendation to the full board.
