PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      6a 
ACTION ITEM 
Date of Meeting     August 5, 2014 
DATE:    July 29, 2014 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   Wayne Grotheer, Director, Aviation Project Management Group 
Michael Ehl, Director, Airport Operations 
SUBJECT:  Seattle-Tacoma International Airport International Arrivals Facility (CIP
#C800583) 
Amount of This Request:                $16,000,000   Source of  Airport
Funds:    Development 
Current Total Project Cost:         approx. $316,000,000 
Fund 
Updated Total Project Cost:           to be determined
Program Authorization Including          $24,500,000 
this Request: 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to (1) authorize additional
project funding of $16,000,000 for the new International Arrivals Facility (IAF) at Seattle-
Tacoma International Airport; (2) advertise a request for qualifications to procure a team for
delivery using the progressive-design-build (PDB) method; (3) authorize use of Port crews; and
(4) authorize procurement of the South Satellite to Concourse A Connector in the same PDB 
contract as the IAF building to be located adjacent to Concourse A.
SYNOPSIS 
Replacing Seattle-Tacoma International Airport's existing over-burdened Federal Inspection
Services (FIS) facility with a modern and efficient IAF is a critical part of realizing the Port's
Century Agenda objective to make the Airport the West Coast "Gateway of Choice" for
international travel. 
This request provides for project management, planning, and other support services to facilitate
the IAF design-build construction program and allows Port crews to perform work on the
project. This request will also authorize staff to advertise a request for qualifications (RFQ) to
procure a single PDB team for both the IAF building and the South Satellite to Concourse A 
Connector. Staff has identified a bridge as the preferred connector design. Advertising the RFQ
is the first of a two-step procurement process to select a Design Build team. Finalists shortlisted
via the RFQ process will have the opportunity to respond to a subsequent request for proposals 

Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 29, 2014 
Page 2 of 7 
(RFP). One Design Build team will be selected from those finalists for award of the IAF project
contract. 
The preliminary cost estimate for the IAF is $316 million. Staff has noted verbally in two prior
updates that the scope refinements may result in a budgetary increase. Staff currently speculates
the increase for the initial IAF build-out may range from $50 to $100 million for the project. 
Until the cost estimate is validated, it is premature to present a new number. A new cost estimate
(and schedule) is being developed and will be presented to Commission within 3 months.
BACKGROUND 
The Commission has been previously briefed on the critical need to increase FIS facility capacity
for international travelers at the Airport. International travel through the Airport has increased
significantly since 2004, especially during the mid-day peak; and this growth is expected to
continue.  The Port welcomes and encourages this growth, but the current FIS facility has
exceeded its capacity to efficiently process travelers. This has a detrimental effect on connect
times between domestic and international flights,  placing the Airport at a competitive
disadvantage with other West Coast airports. The Commission approved preliminary funds on
July 24, 2013, to program a replacement of the current aging facility with a new IAF that will
serve the Airport well into the future and facilitate the Commission's Century Agenda objective
to make the Airport the West Coast "Gateway of Choice" for international travel. 
In July 2013, the Commission approved the procurement of the IAF facility utilizing the PDB 
procurement methodology. At the time, utilization of design-build procurement for the South
Satellite-IAF connector portion of the program was excluded from the request. Now that further
analysis has been done and a preference for a bridge connector has been identified, the project
team recommends combining the connector procurement with the IAF facility procurement to
best facilitate the program's schedule and mitigate risks associated with coordinating two
separate contracts. This approach limits the risks associated with timing and coordination efforts
of the design development and construction process for the two structures. As with the main
IAF, construction costs for the bridge will be negotiated with the selected team and agreement on
costs would be reached sequentially. The initial contract would be awarded with certain agreed
cost factors, and final construction cost will be negotiated as design packages are finalized.
PROJECT JUSTIFICATION AND DETAILS 
The Airport's current international arrivals facility in the South Satellite, including FIS facilities,
opened in 1973 and has seen only minimal overall facility changes since that time, apart from an
expansion in the mid-1980s that increased capacity to 1,200 arriving passengers per hour.
Although the international arrivals facility has not grown significantly over the years, the
Airport's international air service has grown significantly and continues to grow at a rapid pace,
especially during the mid-day peak. The Airport expects announcements of new international
service in the coming years. However, the peaking nature of airline schedules is even more of a
challenge than increased traffic volume. Airlines that depart airports in Europe and Asia for
West Coast gateway airports, such as Sea-Tac, typically arrive at mid-day, resulting in congested

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 29, 2014 
Page 3 of 7 
arrival facilities. This congestion has caused capacity problems in the existing FIS today and has
discouraged some airlines from scheduling additional arrivals during the mid-day. 
This summer scheduled flight activity has exceeded the capacity of the existing facility. As an
interim measure until additional international arrivals capacity can be provided, aircraft will be
serviced on remote parking areas, and passengers will be bused to and from the terminal. This
interim measure, if sustained, will lead to connection times longer than the currently published
90 minutes to connect between international and domestic flights. Such alternate procedures as
remote parking operations, implemented in conjunction with efforts by Customs and Border
Protection, Airport Operations, and the airlines to optimize the capacity of the current facility,
are not anticipated to keep pace with projected growth. Increased connection times risk potential
loss of market share to other West Coast airports with more modern international arrivals
facilities and will handicap the Port in meeting its Century Agenda goals. 
Project Objectives 
Project Objectives for a new international arrivals facility include: 
Capacity  Accommodate current international travel growth and meet future needs. 
Customer Service  Provide passengers with a higher quality customer experience that
will make them choose Sea-Tac as their international arrival airport of choice. 
Competitive Opportunity  Create a facility that will make airlines consider Sea-Tac their
preferred West Coast gateway and reduce the minimum connect times. 
Community Image  Construct a facility that will contribute to a unique identity for the
Airport and the region. 
Scope of Work 
This program's full scope of work is still being defined and validated, but the largest individual
components will be construction of a new IAF adjacent to Concourse A and linked to the South
Satellite by a bridge connector.
Schedule 
Advertise for consultant program management services                    Completed 
Award consultant program management services contract                   Completed 
Port certification as Design-Build Owner by the State of WA                 Completed 
Begin quarterly Commission program updates                         Completed 
Master planning                                             Completed 
Connector Decision Briefing                                     Completed 
Commission authorization to advertise the RFQ for the PDB team               Q3 2014 
Advertise RFQ for PDB Team                                  Q3 2014 
Project definition complete                                          Q4 2014 
Cost and schedule validation complete                                 Q4 2014 
MII Vote (if required)                                              Q4 2014

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 29, 2014 
Page 4 of 7 
Commission authorization to advertise the RFP for the PDB team               Q4 2014 
Advertise RFP for PDB team                                    Q4 2014 
PDB team selected                                           Q1 2015 
Commission authorization to award design-build contract, begin predesign work      Q1 2015 
Commission authorization to begin design and construction 
(following design-build team scope, cost and schedule validation)        Q3 2015 
Guaranteed Maximum Price Development                           Q3 2016 
Construction Complete (depending upon earlier schedule validation listed above)     Q4 2018 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                     $316,000,000          $0   $316,000,000 
Previous Authorizations                 $8,500,000          $0    $8,500,000 
Current request for authorization            $16,000,000          $0    $16,000,000 
Total Authorizations, including this request    $24,500,000          $0    $24,500,000 
Remaining budget to be authorized             TBD        TBD        TBD 
Total Estimated Project Cost            $316 million*          $0  $316 million* 
*To be updated following scope, schedule and cost validation in October 2014 
Project Cost Breakdown                     This Request    Previous Requests 
Design and Construction (PDB Validation)           $5,600,000              $0 
Port and Consultant Project Management            $8,350,000         $5,700,000 
Technical Criteria Development                   $250,000              $0 
Port and Consultant Construction Management         $560,000         $100,000
Project Planning and Definition                         $0         $2,400,000 
Permitting                                      $0               $0 
Other Port Soft Costs                           $240,000           $270,000 
Environmental Review                                      $30,000 
Co-Location Initial Costs                       $1,000,000               $0 
State & Local Taxes (estimated)                        $0               $0 
Total                                     $16,000,000         $8,500,000 
The preliminary cost estimate for the first phase of a two-phase facility is $316 million. This is a
preliminary estimate that was developed many months ago and will be refined through a
cost/schedule validation effort expected to conclude in October 2014. At that time, a target
program budget will be established and communicated to the  Commission prior to the
distribution of the RFP to the progressive design-build finalists.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 29, 2014 
Page 5 of 7 
Budget Status and Source of Funds 
This project was included in the 2014-2018 capital budget and plan of finance within CIP
#C800583.  The funding sources for the total project budget will include the Airport
Development Fund, future revenue bonds, grants, and Passenger Facility Charges (PFCs). 
The IAF program was included as an approved project via the current signatory lease and
operating agreement (SLOA), or airline lease. Therefore, no majority-in-interest (MII) vote is
required for the project unless the program budget is estimated to exceed the amount included in
SLOA. $300,000,000 plus a 10% contingency for a total of $330,000,000 is currently included
in SLOA for the IAF program. If necessary, an MII vote to increase program funding will occur
after the IAF program's cost and schedule validation effort is completed in October 2014, but
before the RFP is issued to PDB team finalists. 
Financial Analysis and Summary 
CIP Category             Renewal/Enhancement 
Project Type              Renewal/Replacement 
Risk adjusted discount rate     N/A 
Key risk factors             N/A 
Project cost for analysis        TBD, but estimated at $316,000,000 for Phase I 
Business Unit (BU)          Terminal, FIS Cost Center 
Effect on business performance  N/A 
IRR/NPV             N/A 
CPE Impact             CPE is estimated to increase by $.35 in 2019. The amount
will be dependent upon future operating and maintenance
costs as well as the combination of funding sources for the
capital project, as PFC and grant funded costs are
excluded from airline rate base. All airline rate base costs
will be recovered by the users of the IAF through FIS
fees. 
Lifecycle Cost and Savings 
Lifecycle cost and savings will be analyzed during project design, consistent with current Port
policy on sustainable asset management. The project team will brief the Commission on the
project's sustainable strategies as part of the regular quarterly briefings. 
STRATEGIES AND OBJECTIVES 
This project addresses the Port's Century Agenda strategic objective to advance this region as a
leading tourism destination and business gateway by making Seattle-Tacoma International
Airport the West Coast "Gateway of Choice" for international travel. 
This project also addresses the Aviation Division's strategic objectives to become one of the top
ten customer service airports in the world and to operate a world-class international airport by

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 29, 2014 
Page 6 of 7 
ensuring safe and secure operations and by anticipating and meeting needs of tenants, passengers
and the region's economy. 
TRIPLE BOTTOM LINE 
Economic Development 
Construction of a new IAF facility will allow the Port to keep pace with current international air
travel growth and position the Airport to attract new international air service. International air
service has a direct positive economic impact, but also contributes to increased airport dining,
retail and other passenger-related revenues. Studies at other airports have also shown that the
addition of new international air service routes provide a substantial boost to the local economy
through increased foreign direct investment and exports of goods and services. 
Environmental Responsibility 
The IAF program gives the Port a rare opportunity to incorporate a variety of sustainable features
into the design and construction of the new facility and bridge connector that will facilitate
advancement of the Port's Century Agenda goal to meet future load growth through energy
conservation or renewable energy. The project team is targeting achieving an environmental
level for the IAF equivalent to Leadership in Energy and Environmental Design (LEED) 
Version 4. The project team  will present specific strategies to achieve this level to the
Commission during our regular quarterly and design briefings. 
Community Benefits 
This PLA project benefits the local community by creating a multitude of living-wage jobs over
the next five years.  The project team will coordinate with the Port's Office of Social
Responsibility to identify small business opportunities in the IAF program and will score PDB
finalists on their approach to solicitation of small businesses.
Additionally, arriving to a new modern IAF by travelling across a connector bridge from the
existing south satellite to the main terminal, instead of arriving to an aging underground facility,
will give foreign visitors a unique and welcoming first impression of the SeaTac area and the
Pacific Northwest region as a whole. The new facility will create added capacity for additional
international service to and from the Seattle region that will bring economic benefits to the entire
community. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  Do nothing. This alternative would put the IAF program on hold since program
funds currently authorized are expected to be spent by the end of August 2014. This alternative is
not preferred as it would delay ultimate completion of the IAF. This is not the recommended
alternative. 
Alternative 2)  Authorize additional project expenditures but defer the decision to advertise the
RFQ for a progressive design-build contract until after cost and schedule validation is complete.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 29, 2014 
Page 7 of 7 
This alternative is not preferred as it would also delay completion of the IAF, albeit to a lesser
degree than Alternative 1. This is not the recommended alternative. 
Alternative 3)  Authorize additional project expenditures and advertisement of the RFQ for the
IAF building only, but do not authorize combining the IAF building and bridge connector in a
single procurement.  This alternative is not preferred as it would take additional time and
resources to develop a separate procurement for the bridge connector. This would shift some
coordination risk between the two separate contracts over to the Port, increase costs and delay
completion of the overall IAF program. This is not the recommended alternative. 
Alternative 4)  Authorize additional project expenditures for program management, selection
of a progressive design-build team and PDB scope validation tasks. This alternative allows the
project to advertise the RFQ on schedule and proceed expeditiously on other critical path project
tasks. This is the recommended alternative. 
FUTURE COMMISSION ACTIONS ANTICIPATED 
Authorization to advertise an RFP to shortlisted PDB finalists 
ATTACHMENTS TO THIS REQUEST 
None. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
July 22, 2014  IAF Progress Briefing 
June 10, 2014  IAF Update and Quarterly Briefing. 
May 6, 2014  IAF Project Delivery Briefing. 
April 22, 2014  Capital Program Briefing. 
March 11, 2014  IAF Master Planning authorization. 
February 25, 2014  IAF Program Briefing. 
November 19, 2013  International Arrivals Facility Construction Management, testing
and inspection; surveying and locating and safety service agreements. 
July 23, 2013  International Arrivals Facility Project & Program Support; and Price
Factor Design Build Methodology authorization. 
July 9, 2013  Sea-Tac Airport International Arrivals Facility Briefing. 
July 9, 2013  Alternative Public Works Contracting Briefing. 
April 9, 2013  Sea-Tac Airport International Arrivals Facility Briefing. 
June 26, 2012  Briefing on Airport Terminal Development Challenges at Seattle-
Tacoma International Airport. 
June 14, 2011  International Air Service Growth and Future Facility briefing. 
February 2, 2010   Briefing on South Satellite Passenger Growth and Facility
Considerations, Delta's Proposed Airline Lounge and Other Possible Future Aviation
Projects.