COMMISSION 
AGENDA MEMORANDUM                        Item No.          8e 
ACTION ITEM                            Date of Meeting      March 26, 2019 
DATE:     March 21, 2019 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Ralph Graves, Senior Director, Capital Development 
Greg Carey, Capital Program Leader 
SUBJECT:  Agreement with Transportation Security Administration (TSA) for Replacement
Computer Tomography X-Ray (CTX) Machines 

Amount of this request:                        Up to $4,000,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to execute an agreement with the
Transportation Security Administration (TSA) for two replacement Computer Tomography XRay
(CTX) explosive detection machines for the Baggage Optimization Phase 1 construction
project, to reimburse TSA or their supplier for up to $4,000,000 from public expense funds as
necessary and to pursue reimbursement from the construction contractors for the cost. 
EXECUTIVE SUMMARY 
Baggage Optimization is an airport-wide project that improves customer service for both
airlines and passengers. This is a long-term, 3-phase project that is scheduled to be completed
in 2025. Phase 1 is currently under construction, and TSA has provided CTX machines to be
incorporated into the system. On March 5, two of the machines were damaged in the course of
construction  work.  This  threatens  further  to  delay  the  project.  TSA  will  provide  two
replacement machines once the Port signs an agreement ensuring that TSA will be reimbursed
for the cost. TSA may direct that payment be made directly to the manufacturer of the
machines. While staff is confident of eventual payment from the construction contractor 
and/or its insurer, the Port may need to provide initial payment in the interim to mitigate
further costs/delays and thereafter seek reimbursement from contractors who damaged the
machines or their insurers. 
JUSTIFICATION 
The Baggage Optimization project is an essential element in meeting the air transportation
needs of the region. The CTX machines screen all checked baggage for indications of potential
security risks. TSA provides them but retains ownership and control. The two machines in
question had been supplied and positioned within the Phase 1 construction project. On March
5, the fire protection subcontractor on the Baggage Optimization project was testing a newly

Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. 8e                                  Page 2 of 2 
Meeting Date: March 26, 2019 
installed sprinkler system when a coupling failed and spilled approximately sixty gallons of
water on conveyor equipment and the two CTX machines. TSA's contractor inspected the
machines and declared that they need to be replaced. TSA has identified two available
machines in Dallas to be delivered to the project once the Port signs an agreement ensuring
they will be reimbursed for the approximately $3.6 million combined cost. The authorization
request for $4 million provides contingency for unanticipated variation in the amount. 
The project before the accident was already running more than 90 days behind schedule and 
replacing the water-damaged elements is expected to add another 60 days of delay. Receiving
the CTX machines promptly is essential to minimizing the delay and promptly completing this
phase and the overall program. 
DETAILS 
The construction contract holds the general contractor and subcontractors liable for damage
they cause. The Port has formally notified the general contractor of their liability for costs
associated with the accident, including replacement of the CTX machines, and staff is confident
of eventual recovery of damages. 
TSA is in the process of preparing the Memorandum of Agreement. They have informed Port
staff  that  it  will  promise  release  of  the  two  CTX  machines  in  return  for  assurance  of
reimbursement. Depending on the timing of the required reimbursement, the Port may need to
pay TSA before we receive payment from the construction contractor. 
FINANCIAL IMPLICATIONS 
The Port has the capacity to finance the $4 million cost while seeking reimbursement. For
accounting purposes, the costs would be categorized as Public Expense to acquire public assets
not owned by the Port  purchase of a publicly-owned machine from the government. The
funding source will be the Airport Development Fund. Other Public Expense actions by the Port
include the Lander Street overpass owned by City of Seattle, and aviation's rental car facility
entrance to State Route 518 freeway. 
ATTACHMENTS TO THIS REQUEST 
None. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
None. 



Template revised September 22, 2016; format updates October 19, 2016.