Third increase would take Port design contract to $16.1 million

The Anchorage Assembly votes Tuesday on a third increase to the design contract for the Port of Alaska's Terminal 1 replacement, which would push design and construction support costs to as much as $16.1 million, roughly 50% above the original 2023 award. The $2.1 million is change-order authority, headroom for work added after a contract is signed.

The authority goes to GHD-WSP JV, designer of record. The municipality awarded the contract April 11, 2023, for $10,752,851, with $1,075,285 in change-order authority, about 10% of the base. Twelve change orders and amendments brought the net value to $13,949,641.50. Approval would set the total possible amount at $16,145,889 and leave $2,196,247.50 in authority.

The Assembly approved $717,753 on Nov. 6, 2024, and $1.5 million on March 3, 2026.

Port Director Terry Umatum previewed the request at the Assembly's Infrastructure, Enterprise and Utility Oversight Committee on Aug. 20. "Every year I got to come back and ask for change order authority," he said.

The money would pay GHD-WSP JV through the rest of the 2026 season and through 2027 to review requests for information and submittals, evaluate contractor proposals to cut costs by changing materials or methods, and provide quality assurance on testing, site visits and as-built drawings. The proposal is still pending. "The requested authority is intended to ensure that necessary services can be authorized and performed in a timely manner as conditions are identified during construction," Jacobs PAMP Program Manager Eric Adams wrote in AM 595-2026.

The replacement puts a seismically capable berth 140 feet seaward. The port's plan of finance says the more seaward location should reduce sedimentation and improve room for berthing ships, and the terminal will support ship-to-shore cranes that shippers and terminal operators need.

Construction on Cargo Terminal 1 began March 16 and finishes in 2029, part of the $2.8 billion Port of Alaska Modernization Program. The plan cites a report finding the port serves about 90% of Alaskans. The cargo surcharge funding it rises from $8.05 to $22.76 per ton Jan. 1, 2027. The $2.1 million comes from a fiscal 2023 State of Alaska designated legislative matching grant, not surcharge revenue.