Approval of Professional Services Agreement with Miller & Company to submit an application with the United States Customs and Border Protection to provide supervision for the User Fee Airport and Foreign Trade Zone.
The Gallup Trade Port project has gone through a series of meetings that has led to the approval of a Resolution with the City Council on November 8, 2022, then secured a grant awarded by The New Mexico Department of Transportation for $1,000,000 with no city match requirement that was approved by the City Council on June 13, 2023 and progressing to the next steps is to submit an application by said vendor and funds.
The application to the United States Customs and Border Protection is a tool to obtain User Fee Airport Approval by CBP. In other words, a User Fee Airport (UFA) is a mechanism to create a Foreign Trade Zone (FTZ) in Gallup, but a UFA and FTZ are two distinct concepts. FTZs are operated under the supervision of USCBP. The nearest CBP port of entry is Albuquerque, New Mexico, which is too far for CBP to provide supervision at an FTZ in Gallup. With a completed UFA, a CBP personnel are placed on site at the airport, who can in-turn provide supervision over an FTZ project.
A Request of Proposal (RFP) was published September 22, 2023 and the city received proposal responses. The RFP evaluation Committee evaluated the proposals and met on October 16, 2023 to score the proposals using criteria developed and included in RFP No. 2023/2024/04/P. The evaluation Committee recommends Miller & Company as the successful provider and therefore seeks approval of award to RFP.
Immediately following the approval of Miller & Company, they will complete the application service agreement with the US Customs and Border Protection. The cost of proposal to complete the application is $80,000 plus tax and up to $14,000 for contingencies to total $100,000 out of the $1 million grant. The funds will also be used to plan for the required FTZ/User FEE Airport Facilities to be located at the Gallup Municipal Airport.
Executed Document will follow.
- Fiscal Impact:
- A Revenue and Expenditures budget of $1 million is already set-up in Fund 308 with project AP2402. No city match is required.
- Staff requests approval of Miller and Company’s agreement to submit the UFA/FTZ application.
- Speaker's Name
- Robert Hamblen