4e memo

PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA                      Item No.         4e 
ACTION ITEM 
Date of Meeting        July 22, 2014 
DATE:     July 14, 2014 
TO:        Tay Yoshitani, Chief Executive Officer 
FROM:    Michael Ehl, Director Aviation Operations 
SUBJECT:  Contract Extensions with Flight Services and Systems, VIP Hospitality,  and
Olympic Security 
Amount of This Request:       FSS = $300,000    Source of Funds:   Airport Development
VIP = $250,000                                      Fund 
Olympic = $75,000 
Est. State and Local                       N/A    Est. Jobs Created:             None 
Taxes: 
Est. Contract Value:       $625,000 (5 months) 

ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to take the following actions
with respect to contracts for support services at the Airport's Federal Inspection Services facility: 
(1) execute a five-month contract extension with Flight Services and Systems (FSS) in the
amount of $300,000; (2) enter into a five-month contract extension with VIP Hospitality (VIP) in
the amount of $250,000; (3) enter into a four-month contract extension with Olympic Security
(Olympic) in the amount of $75,000; and (4) extend each of these contracts on a month-to-month
basis beyond the date of December 31, 2014, at which time they will be scheduled to expire.
The total amount of these contract actions is estimated at $625,000. 
SYNOPSIS 
Port staff would like to extend the contracts for FSS, VIP, and Olympic through December 2014
until a request for proposal (RFP) can be issued and a contract can be awarded competitively that
combines the services of all three suppliers under a single contract known as Centralized
International Support Services (CISS). The current contracts are set to expire and/or exceed their
current values before their expiration. These contracts are needed to maintain services in the FIS
and prevent interruption of service and airline operations. 
BACKGROUND 
The Federal Inspection Service (FIS) is currently supported by three different service contracts. 
FSS provides baggage handling support at FIS claim devices and recheck belts to maximize

Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 14, 2014 
Page 2 of 4 
capacity while capturing and recirculating baggage carts in the FIS.  VIP provides passenger 
services in Passport Control by regulating passenger flow and volume by holding flights, and
assisting passengers with kiosk usage, CBP documents, interpreting and wayfinding.  Olympic
provides access control in the non-sterile corridor.  Both the FSS and VIP contracts were
emergency contracts implemented in February 2014 after the airlines requested the Airport to
take over management of these services. Airport staff plan to issue an RFP to combine all these
services under a single contract to start on or before January 1, 2015.  Some time is required to
develop requirements in the RFP that are consistent with those described in Resolution No. 3694,
relating to employment and compensation standards for staffing and safety and security in the
Airport Operations Area. 
Both the FSS and VIP emergency contracts were authorized only through July 31, 2014, and
their expenditures are expected to exceed $300,000 each.  Contract extensions are needed for
both of these contracts. Further,  we expect the FSS contract to exceed the $300,000 limit by the
end of July and require additional authorization to meet the July services provided, as well as to
continue through December 2014.   The VIP contract  is expected to exceed $300,000 in
September and require additional authorization to continue through December 2014.  These
extensions are for five months through December 2014. The month-to-month extensions ensure
continuity of services until the RFP results in an awarded contract. 
The Olympic contract expires on August 31, 2014, and presents an excellent opportunity to align
all three services under one service provider and RFP.  Funds are already budgeted and do not
exceed $300,000 annually, though the increase through December is estimated at $75,000 (fourmonth
extension). 
PROJECT JUSTIFICATION AND DETAILS 
Centralized support services are needed for public safety and security, efficiency of airline and
U.S. Customs and Border Protection (CBP) operations, and passenger convenience. The airlines
requested that the Airport assume management of these services under a unified contract in 2013.
In February 2014, the Airport implemented emergency contracts for both FSS and VIP.  All
three services are critical for the FIS operation.  Without these services, passenger processing,
crowd control, baggage handling, and security would be unsupported, crippling the international
operation and the international airlines' operations. 
The Airport's Manager of International Operations currently oversees all three contracts with
support from one supervisor. This proposal extends the existing contracts until such time as the
RFP for CISS can be issued and competitively bid. 
Scope of Work 
Passenger Services include customer service, interpreter services, crowd control, directing
passengers into the appropriate primary inspection queues, holding flights and passengers,
controlling the flow of passengers down escalators and through the FIS, assisting passengers
with CBP documents and new automated passport control kiosks (APC) that have recently been
introduced and ensuring security of the sterile environment in the South Satellite and FIS.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 14, 2014 
Page 3 of 4 
Without these services, APC would not be supported, CBP processing rates would be slower,
there would be increased danger and liability to the passengers, aircraft would not be allowed to
deplane until space was available in the FIS primary. This would  cause delays to departures,
confusion and crowding in the primary inspection area, the international corridor, the baggage
claim and the recheck areas, and all passengers would have to exit the FIS through the TSA
checkpoint and be rescreened. 
Baggage Services include repositioning baggage at FIS carousels to maximize capacity, assisting
passengers with placing baggage on the recheck belts, and capturing and recirculating the
baggage carts.  These controls are needed to keep baggage moving into and out of the FIS
facility.   Without  these  services  the  delivery  of  baggage  to  claim  devices  would  not  be
coordinated with the arrival of passengers to claim the baggage.  The result would be jammed
claim devices and dangerous crowding in the FIS Customs Hall.  Experience has shown that
without assistance from service personnel, passengers arriving from overseas destinations are
confused between baggage recheck locations and frequently place connecting bags on conveyor
belts destined for terminating passengers and vice versa.  Without staff assistance, the South
Satellite Transit System (STS) loop would be affected as passengers attempt to carry multiple,
oversized bags and carts onto the train, slowing down the boarding process and causing
dangerous conditions on escalators after exiting the train. 
FINANCIAL IMPLICATIONS 
Budget Status and Source of Funds 
The source of funds will be expense from within Aviation Operations budget or contingency
funds. 
STRATEGIES AND OBJECTIVES 
This request supports the Port's Century Agenda objective to advance the region as a leading
tourism destination and business gateway. Specifically, continuing to provide these services for
arriving international passengers supports making the Airport the West Coast "Gateway of
Choice" for international travel and supports the goal to double the number of international
flights and destinations. This request is also essential for maintaining excellent customer service
and for keeping the FIS functioning properly in the near term. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  Do nothing.  The contracts expire and services are unfulfilled, creating
dangerous and crippling conditions for arriving international passengers and operations.  This is
not the recommended alternative. 
Alternative 2)  The Port extends the existing contracts and progresses towards issuing a
competitive RFP to centralize the services.  This option maintains existing support services and
levels of service needed for continued international operations.  This is the recommended
alternative.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 14, 2014 
Page 4 of 4 

ATTACHMENTS TO THIS REQUEST 
None. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
None.

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