PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      5d 
ACTION ITEM 
Date of Meeting    February 25, 2014 
DATE:    February 18, 2014 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   Michael Ehl, Director, Airport Operations 
Wayne Grotheer, Director, Aviation Project Management Group 
SUBJECT:  Federal Inspection Services (FIS) Short Term Improvements project at Seattle-
Tacoma International Airport (CIP #C800426) 
Amount of This Request:         $208,000   Source of Funds:  Airport Development
Fund 
Total Authorized Project       $1,912,000 
Cost Including this Request: 
Est. State and Local Taxes:         $90,700 

ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to 1) increase the budget for
the FIS Short Term Improvements project by $208,000 and 2) execute a major public works
construction contract with the low responsible bidder, notwithstanding the low bid exceeding the
engineer'sestimate by more than 10 percent. The new authorized total project cost will be
$1,912,000. 
SYNOPSIS 
The Commission authorized advertisement for bids for the FIS Short Term Improvements project
on December 10, 2013 and recently authorized an increase to this project's budget on January
28, 2014 to account for higher than anticipated project costs identified late in design. However,
when the five contractor bids received were opened on January 29, 2014, the lowest responsible
bid, from Skanska USA, exceeded the engineer's estimate by nearly 20%. This represents a bid
irregularity requiring further Commission action prior to contract award in accordance with
Section 4.2.3.4 of Resolution No. 3605, as amended by Resolution No. 3628. The additional
authorization of $208,000 represents the difference between the engineer's estimate and the
lowest bid, plus sales tax, construction contingency amounts, and added staff costs. 
Port staff has carefully reviewed the project scope in light of these increased costs and has
determined that this project remains critical to effective management of international air
operations until the new International Arrivals Facility is built in 2018. Recent installation of
Automated Passport Control kiosks have increased throughput for Customs Declaration

Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 18, 2014 
Page 2 of 6 
processing, but this has moved the bottleneck down to the FIS exit. The Airport's current
Federal Inspection Services (FIS) facility will still exceed capacity in Summer 2014.  The
wayfinding walls, queue management and public address system installed as part of this project
will help mitigate some capacity issues by moving passengers more efficiently as they exit the
facility. 
BACKGROUND 
On July 24, 2012 the Port of Seattle Commission authorized design of the FIS Short Term
Improvements project with a total budget of $1,041,000. On December 10, 2013 the
Commission authorized construction and a revised total budget of $1,141,000. Budget changes
between these two actions were the result of scope revisions and updated estimates based on
design progression. On January 10, 2014 the project was advertised for construction bids based
on a 90% design estimate in an effort to accelerate the project for a pre-Summer rush
completion. A pre-bid meeting and site tour was held on January 16, 2014 with several prime
contractors in attendance.  On January 28, 2014 the Commission authorized an additional
$563,000 for additional direct construction costs and soft costs identified in the final estimate
received while bid documents were being prepared.
Five construction bids were received and opened on January 29, 2014 with Skanska USA
identified as the apparent lowest responsive bidder with a bid of $614,000. The Port's engineer's
estimate for the project was $513,000. The difference between the engineer's estimate and the
low bidder exceeds 10%, necessitating this Commission authorization request. The remaining
four bids received ranged from $711,000 to $860,000.  Adding sales tax and construction
contingency to the difference between the engineer's estimate and the low bidder plus associated
project management and construction management soft costs brings the request to $208,000. 
Port estimating staff have reviewed the engineer's estimate and identified some factors that may
have contributed to the bid difference, including, but not limited to, underestimated costs for: 1) 
demolition work in a confined, below-grade area of the South Satellite, 2) custom wall panel
fabrication, and 3) contractor mobilization and de-mobilization associated with closing up and
protecting the work area after each shift since the work occurs in an active area of the airport. In
light of the number of bids received (five bids represents a significant response from the
construction "marketplace") and the range of their prices, Port staff believes the bid price
received from Skanska USA to be fair and reasonable. Staff also considered whether any scope
could be deleted or if all bids should be rejected, but has determined that all scope will be critical
to effective management of international air operations starting in Summer 2014 and that the bids
received accurately reflect the cost of the work. 
PROJECT JUSTIFICATION AND DETAILS 
The Port Commission recently authorized additional funds for project costs that were not
adequately represented in the construction authorization approved by the Commission in
December 2013. Now that construction bids have been received the project team now believes
that our January 28, 2014 request did not include sufficient direct construction costs for

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 18, 2014 
Page 3 of 6 
demolition work, custom wall panels or daily contractor mobilization and de-mobilization. The
lowest responsive bid received by Skanska USA is the basis of this request for additional
authorization. 
Project Objectives 
The project scope has not changed since it was advertised for bid and includes minor facility
improvements at the FIS international corridor, passport control and baggage claim levels of the
South Satellite to increase throughput and improve conditions for waiting passengers. 
Major Contract Scope of Work 
Improvements to way-finding and passenger traffic control in the bag claim level of the FIS at
the secondary inspections exit to the TSA checkpoint and the Satellite Transit System.
Improvements include new and revised exit path guide walls with exiting graphics, a new ceiling
soffit and lighting additions along the exit path. 
Small Works Scope of Work 
Installation of fixed-to-floor stanchions throughout the international corridor; 
Installation of a new public address system in the international corridor and an upgrade of the
existing public address system in the passport control area; 
Addition of minimal seating or a leaning rail in the international corridor for waiting passengers. 
Schedule 
Begin Design                              3rd Qtr 2012 
Begin Construction                          1st Qtr 2014 
Small Works Construction Completion             2nd Qtr 2014 
Major Contract Construction Completion            3rd Qtr 2014 
Project Close Out Completion                   1st Qtr 2015 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                     $31,700,000          $0   $31,700,000 
Previous Budget Decrease              ($30,559,000)         $0  ($30,559,000) 
Previous Budget Increase                  $470,000      $93,000     $563,000 
Current Budget Increase                  $208,000          $0     $208,000 
Revised Budget                     $1,819,000      $93,000    $1,912,000 
Previous Authorizations                 $1,611,000      $93,000    $1,704,000 
Current request for authorization              $208,000          $0      $208,000 
Total Authorizations, including this request     $1,819,000       $93,000    $1,912,000 
Remaining budget to be authorized               $0          $0          $0 
Total Estimated Project Cost              $1,819,000      $93,000    $1,912,000

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 18, 2014 
Page 4 of 6 
Project Cost Breakdown               This Request     Previous  Total Project 
Authorization 
Construction                          $146,000      $994,000    $1,140,000 
Construction Management                $30,000     $160,700     $190,700 
Design                                 $0     $275,000     $275,000 
Project Management                    $19,000    $188,000     $207,000
Permitting                                $0       $8,600       $8,600 
State & Local Taxes (estimated)              $13,000      $77,700      $90,700 
Total                                $208,000    $1,704,000    $1,912,000 
As originally envisioned, this project would have expanded the capacity of the existing FIS in
order to bridge the gap unti1 a new international arrivals facility could be built at some time in
the future. Because the Airport's new International Arrivals Facility will be completed more
quickly than first anticipated, the need to expand the existing FIS has diminished. Therefore, the
scope of this project has been reduced to include only elements deemed absolutely necessary to
expand throughput of the existing facility while the new facility is built. Previous authorizations
included approval of design fees on a scale for a larger ($37 million) project that will not be
necessary for this much smaller project. 
Budget Status and Source of Funds 
The FIS Short Term Improvements CIP #C800426 was included in the 2014-2018 capital budget
and plan of finance with a budget of $1,141,000. A budget increase of $208,000 (in addition to
the previously approved increase of $470,000) is necessary due to higher than anticipated
construction bids for major contract work. The budget increase will be transferred from the
Aeronautical Allowance CIP #C800404 resulting in no net change to the Airport capital budget.
The funding source for this project is the Airport Development Fund. 
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        $1,912,000 
Business Unit (BU)          Federal Inspection Services (FIS) Cost Center 
Effect on business performance  NOI after depreciation will increase 
IRR/NPV             N/A 
CPE Impact             CPE will increase by $.03 in 2015. All costs will be
recovered through increased FIS rate paid by airlines
using FIS facility.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 18, 2014 
Page 5 of 6 
Lifecycle Cost and Savings 
The improvements will be amortized over a relatively short period (four years) reflecting a 2018
completion date for a new International Arrivals Facility (IAF). These improvements will not
result in any significant changes to ongoing maintenance costs. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  Re-bid the project as currently scoped. Port staff's analysis of the engineer's
estimate and the five bids received indicate that it's likely we'd receive similar high bids if the
project was advertised for bid for a second time. Re-bidding the project would also further delay
completion beyond the end of the busy 2014 summer season. This is not the recommended
alternative. 
Alternative 2)  Reduce project scope to meet previously authorized budget. Project staff
reviewed all aspects of the project scope after the high bids were received and determined that,
although there were a few scope areas where efficiencies could be gained, the project as
currently scoped represents the minimum improvements needed to facilitate efficient
international air operations until the new IAF can be built. The team will carefully monitor
budgets and soft costs as work progresses. This is not the recommended alternative. 
Alternative 3)  Authorize an additional $208,000 and award the major construction contract to
Skanska USA, the lowest responsible bidder. This alternative preserves all necessary project
scope and best facilitates the project schedule. This is the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
None. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
January 28, 2014  Additional authorization and $563,000 in funding for the FIS Short
Term Improvements project. 
December 10, 2013  Authorization to advertise a major contract for the FIS Short Term
Improvements project 
November 5, 2013  Automated Passport Control (APC) Kiosks project authorization 
July 23, 2013  Sea-Tac International Airport International Arrivals Facility (IAF)
Preliminary Authorization for $3,500,000. 
July 9, 2013  Sea-Tac International Airport IAF Briefing. 
July 9, 2013  Alternative Public Works Contracting Briefing. 
April 9, 2013  Sea-Tac International Airport IAF Briefing. 
July 24, 2012  Authorization of Short Term FIS Improvements design for $284,000. 
June 26, 2012  Airport Terminal Development Challenges at Seattle-Tacoma
International Airport. 
June 14, 2011  International Air Service Growth and Future Facility.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 18, 2014 
Page 6 of 6 
January 25, 2011  Authorization of planning, pre-design work and execution of a design
contract for the FIS Mid-Term Improvements Phase 1 for $475,000. 
February 2, 2010  Briefing on South Satellite Passenger Growth and Facility
Considerations, Delta's Proposed Airline Lounge and Other Possible Future Aviation
Projects.