Item No. 7e_Supp
Date of Meeting    October 25, 2016 
Seattle- Tacoma International
Airport 
Baggage Program 
October 25, 2016

Baggage Optimization Elements 
Replace the 6 aging
baggage systems with a
single system 
New system configured for
expandability to meet
passenger growth needs 
Provide interconnectivity
for all ticket counters 
Any bag anywhere 
The Baggage Optimization project has three main objectives. 
2

Outbound Baggage System Flow 


Optimization allows customers' bags to reach any gate. 
3

Q3 Financials 
Total Project Budget                                     $ 319,050,000 
Total TSA Contribution                                            $ 93,220,422 

Total Commission Authorization to Date                                $ 135,375,000 

Amount Spent to Date (as of 10-4-16)                                  $ 17,627,471 

TSA Design Reimbursement to Date (as of 10-4-16)                         $ 5,671,476 



The project is within budget as originally scoped. 
4

Baggage Optimization Baseline Schedule 



Project as originally scoped is on schedule. 
5

Bidder Interest/ Plan Holder Status 
A major project risk includes low interest and inflated
pricing as contractors have many other projects to pursue.
The Port proactively held two contractor informational
sessions and will hold two pre-bid meetings in November. 
Advertising for bids on October 13, 2016 allowed the
project to be one of the first large baggage projects
currently known in the US to seek contractors. 

The Airport is aware of 10 - 12 major baggage projects scheduled to bid in 2016 or 2017. 
6

Phase 1 Small Business Goals & Requirements 
SCS Requirement: 5% 
SBE Goal: 10% 
Specialized Baggage, Controls, and
Electrical equipment installation is not
heavily represented in the Small Business
Community. 
Total Goal + Requirement: 15% Small Business 
7

Phase 1 Pre-work 
Install a new makeup device and
a new odd-size device in the
North end of the bagwell. 
Equipment supply contract was
competitively bid and awarded. 
Work to be completed by PCS,
Port Maintenance, and Small
Works. 

Completion of pre-work will save the project an estimated 5 months from the project schedule. 
8

Total Cost of Ownership (TCO) 
Project team has worked with Procurement Excellence to
create an adjustment on bid form to offset increased
upfront costs of lower TCO equipment 
This method will not be used during Phase 1 
Concern that the bid adjustments were not developed sufficiently
for use in public works bidding 
Concern that the concept would make the project less attractive to
bidders 
Plan to continue to develop data for potential use in later phases
and other contracts 
Total Cost of Ownership takes into account the lifecycle costs of each product, not just first cost. 
9

Scope Addition (From 45 to 66 MAP) 
Current project scope includes
capacity to 45 MAP, which the
airport will reach this year 
A scope addition would increase the
system capacity to 60  66 MAP for
an estimated cost of $136M 
Interim baggage projects, bag
bosses, and bag porters keep the
system operational during peak
times above current system
capacity. 
Unprecedented Growth has created a requirement for increased capacity in the baggage system. 
10