More Secure Airport a Boon to Local Subs

Work Begins on Oakland International's Terminal Expansion

The addition of 10 security checkpoints, new baggage-handling systems and other components of a $110 million terminal expansion will put more local subcontractors to work in Oakland. As of the end of July, 90 percent of the contacts let for terminal work involved local businesses. And 17 percent of that number included small businesses that don't often get a chance to bid on such large projects.

By Thomas York

Oakland port officials are now airborne with the $110-million Terminal Two expansion project at Oakland International Airport. The port operates the airport, second busiest in Northern California.

	Photos courtesy of Turner Construction Co.

The Oakland office of Turner Construction Co. is the construction manager at risk for the design-build effort, which will increase the number of gates from seven to 12 and bring the total amount of space to 300,000 sq. ft.

David McAneny, senior project manager for the Port of Oakland, said most of the work during the summer focused on ripping out old foundations and preparing for new ones.

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McAneny said the expansion would add 10 addition security checkpoints and enable screeners to speed check-ins at peak travel periods.

McAneny said in this era of post-Sept. 11 airport construction security precautions are more important than ever. His office has to coordinate security requirements with six different federal agencies before each step of work can proceed.

"It takes a lot more planning," he added. "It's part of my job is to see to it that any of those delays get mitigated before we get to that point."

The major expansion will feature construction of a new baggage-handling system, the addition of a centralized food and beverage and retail shopping areas. The expanded terminal project should be completed by November 2006.

McAneny said construction would begin in early 2005 on a $245-million, seven-story garage that will feature 6,000 parking spaces. The terminal expansion and garage will total $500 million.

Security requirements include checking credentials and screening backgrounds of all construction workers who have access to the aircraft, baggage handling areas and runways and tarmacs.

In some instances, the agencies restrict work hours or limit the number of workers within certain areas.

Steven Rule, senior project manager for Turner, said security officials have agreed to let Turner fence off chunks of the site from airport operations so work can proceed in non-secure areas. That allows subcontractors to use local workers who might not otherwise be able to work because of past criminal backgrounds.

"This helps," Rule said.

Meanwhile, McAneny said replacing the existing terminal is a much more complicated process than building a terminal from scratch.

"We have to replace most of the systems, while maintaining passenger loads," he added.

He said that the existing terminal couldn't handle the increasing numbers of passengers using the airport. The number is expected to jump to 18 million in 2008 from 13.5 million in 2003. The terminal was built to handle just 8 million a year.

The port required Turner to farm out 45 percent of the work to subcontractors in Oakland and nearby cities.

Bernida Reagan, the port's direct of social responsibility, said Turner greatly exceeded the goal. As of the end of July, 90 percent of the contacts let for terminal work involved local businesses, she said. And 17 percent of that number included small businesses that don't often get a chance to bid on such large projects.

"Turner has been very creative in terms of breaking up the contracting packages so that more small firms can participate," Reagan said. "Some local firms that have wanted to do contract work for the port over a long time have been able to get involved in this project."

Many of the firms are local small businesses that perform such services as cabling and wiring electrical support services.

Joe Haraburda, president and CEO of the Oakland Metropolitan Chamber of Commerce, said members were supportive of the efforts Turner has made to include so many local businesses.

The architects for the project include Carter Burgess in Oakland; Greg Roja & Associates in San Francisco; and MWM/YHLA, a joint venture, with offices in Oakland.

Architect Greg Roja, whose firm is designing the façade of a utility building next to the terminal, said it's good that the port required Turner to break up the contract.

"The airport has a mandate to help local impacted businesses and distribute the work," he added. "For us, that's good; otherwise, it could have been just one architect involved and we would not have had a chance to do any of the design."