Posting Language
Title
Authorize an amendment to a contract for continued building management services at the new Public Safety Campus for Austin Facilities Management with BDN Management Inc. d/b/a BDN Management, to extend the term by one year and increase the amount by $700,000 for a revised total contract amount not to exceed $2,167,784. Funding: $662,378 is available in the Fiscal Year 2026-2027 Operating Budget of Austin Facilities Management. Funding for the remaining contract term is contingent upon available funding in future budgets.
Body
Lead Department
Austin Financial Services.
Client Department(s)
Austin Facilities Management.
Fiscal Note
Funding in the amount of $662,378 is available in the Fiscal Year 2026-2027 Operating Budget of Austin Facilities Management. Funding for the remaining contract term is contingent upon available funding in future budgets.
Procurement Language:
Contract Amendment.
MBE/WBE:
This contract is exempt from the City Code Chapter 2-9B (Minority-Owned and Women-Owned Business Enterprise Procurement Program); therefore, no subcontracting goals were established.
Prior Council Action:
April 24, 2025 - Council approved a contract for building management services with BDN Management Inc. d/b/a BDN Management.
For More Information:
Direct questions regarding this Recommendation for Council Action to Austin Financial Services - Central Procurement at: FSDCentralProcurementRCAs@austintexas.gov or 512-974-2500.
Additional Backup Information:
The contract will provide continued property management services for the Public Safety Campus. Council approved the acquisition of the Public Safety Campus located at 1501 and 1601 South Mopac Expressway on October 24, 2024, and the Real Estate Division of the Financial Services Department completed the final acquisition of the facility in November 2024. G&I VII Barton Skyway LP, the prior owner of the property, executed the contract with BDN Management, Inc., and the City assumed the contract with this acquisition.
The contractor continues to provide personnel to work with the service contractors that impact operations at the property, perform inspections, and maintain the quality of the building for its tenants. BDN Management, Inc. has managed the Public Safety Campus property from the time the building was purchased by the City.
This amendment will continue building management services for one additional year. The current authorization of $1,467,784 covers the existing term only. The requested $700,000 is based on the current monthly management and salary fee of approximately $57,991, or about $696,000 for twelve months. The contract will not be replaced, and Austin Facilities Management plans to assume responsibility for the property.
Austin Facilities Management does not currently have the staff to manage the Public Safety Campus directly. The campus includes two four-story office buildings with about 391,000 square feet of rentable area, two five-level parking garages, and a 13.83-acre site, and private tenants continue to occupy part of the space. Taking on this property would add a large facility to the portfolio the department already manages, and current staff cannot cover it without reducing service at those other facilities. The City also plans to renovate the campus for public safety operations, with construction scheduled to begin in February 2027.
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Contract Details: |
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Contract Term |
Length of Term |
Contract Authorization |
Requested Additional Authorization |
Revised Total Authorization |
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Initial Term Ratification Contract Amendment Extension Option 1 Proposed Amendment |
6 months 6 months 1 year 1 year |
$347,946 $347,946 $76,000 $695,892 |
$700,000 |
$347,946 $347,946 $76,000 $695,892 $700,000 |
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Total |
3 years |
$1,467,784 |
$700,000 |
$2,167,784 |
Note: Contract Authorization amounts are based on the City’s estimated annual usage and may be more or less in the initial term and in each exercised optional extension; however, the total contract amount will not exceed $2,167,784.