San Francisco Internationl Airport
P. O. Box 8097
San Francisco, CA 94128

February 22, 1999

Welch Company
440 Davis Court #1602
San Francisco,CA 94112

Subject:  Group B Projects
Dear Welch Company:

The San Francisco International Airport has embarked on a major expansion program to meet the present and future demands of the traveling public. The first group of projects of the Airport Master Plan, with a total value of $2.4-billion, is currently under construction. Most of these projects are scheduled for completion in 2000 and 2001.

Looking ahead, the Airport is planning to construct and improve additional facilities and infrastructure. This next group of projects, known as Group B Projects of the Airport Master Plan Program, is now being developed by the Airport staff. The road to final approval and funding of these projects is long and arduous. Presently, neither the Airport Commission nor the airlines have reviewed the proposed projects, and we have not assessed the projects' environmental impact. Design services, therefore, may not commence for many months.

However, in view of the widespread interest and the lengthy process for selection of design consultants and construction managers, we believe it would be prudent to commence the selection process for design consultants now. While the proposed list of projects and their scopes are being fine tuned, we plan to establish a short-list of architects and engineers for the Group B projects. The final selection of A/E's will be made from this short-list. At a later and appropriate time, we will do the same for construction management firms.

This package contains a document entitled "Selection of Architects & Engineers for Airport Master Plan Program, Group B Projects," a preliminary draft list of the Group B projects, and a "Quick Reference Guide to Equal Benefits Compliance." Please review these documents and let me know if you want us to consider your firm for projects such as these. If so, please follow the instructions carefully.

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February 22, 1999

In case you have any objections or suggestions regarding our selection procedures, we would appreciate hearing from you as soon as possible. The time to criticize the "rules of the game" is now-not after you played the game and lost.

Before you decide to pursue the Group B projects, please allow me to call your attention to our preference for local enterprises as described in paragraph 7 in page 3 of the document describing our selection process, as well as several other "rules" if you receive a contract from the Airport:

  1. Your firm must comply with the domestic partners ordinance of the City and County of San Francisco. (See enclosed Quick Reference Guide to Equal Benefits Compliance.)

  2. You must fulfill the commitments made in your proposal to "share the pie" with your MBE/WBE/DBE prime partners and subconsultants, even if your firm is an MBE/WBE/DBE. (When you are short-listed, you will be required to submit an organization chart and schedule showing the roles, the periods of participation, and the fees for the MBE/WBE/DBE members of your team.) Any deviation must be approved by the Airport as well as the Human Rights Commission. Fees payable to you may be withheld or deducted for non-compliance with commitments to MBE/WBE/DBE members of your team.

  3. As a client, the Airport is quite aggressive in pursuing professional errors and omissions liabilities. (See paragraph 5, page 3, of the document describing our selection process.)

  4. We will retain 10% of your invoice in a trust account. We may not release this retention until the completion of your services.

  5. Payment of your fees will be prorated in such a way that you may receive more fee for the construction administration phase of the project than normal, and less fee for the earlier phases, particularly the conceptual and preliminary phases.

  6. As we point out in paragraph 4 under "What We Look For" in the document describing our selection process, your contract will be a lump-sum contract. You must assume certain risks in completing all required services to produce a workable end product for a fixed price.

  7. If your project requires Art Commission approval, you are required to design and re-design your structure to the satisfaction of the Art Commission at no additional cost to the Airport.

  8. You will be prohibited from seeking work from the tenants of your project for the duration of the project.

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February 22, 1999

If you have any questions or suggestions regarding the selection process, please call Jason Yuen at (650) 737-7700. Please note that your telephone conversation with Jason may be recorded and presented to the A/E Selection Panel.

Thank you for your interest in the San Francisco International Airport. Group B projects of the Airport Master Plan Program will be exciting and challenging. I hope you will join us in our search for the best qualified architects and engineers.


Mr. Thomas L. Kardos
Deputy Airport Director