COMMISSION 
AGENDA MEMORANDUM                Item No.       7e 
BRIEFING ITEM                   Date of Meeting    October 25, 2016 
DATE:    October 18, 2016 
TO:     Ted Fick, Chief Executive Officer 
FROM:   Jeffrey Brown, Director, Aviation Facilities and Capital Program 
Wendy Reiter, Director, Aviation Security, Airfield Security 
Wayne Grotheer, Director, Aviation Project Management Group 
SUBJECT:  Baggage Optimization Project Update 
EXECUTIVE SUMMARY 
The Baggage Optimization project increases screening capacity for greater baggage volumes,
increases flexibility to allow bags to be checked in anywhere in ticketing and be conveyed to
any makeup device, meets a minimum-connect-time goal, and increases energy efficiency. The
project was scoped in 2012 to accommodate 45 Million Annual Passengers (MAP) which was
projected to be an adequate level through 2027 based on growth projections at that time. Due
to unprecedented growth at the Airport, we now expect to hit 45 MAP this year, more than ten
years earlier than anticipated. Fortunately the project was designed to be expanded to handle
larger volumes in the future, but we now need to expand immediately.  Commission
authorization will be sought later this year to increase the project scope to design and construct
the new system capacity beyond 45 MAP. 
A major project risk includes low contractor interest and inflated pricing as contractors have
many other projects to pursue. The project team has held two contractor informational
meetings and will hold two pre-bid meetings prior to bid opening. By advertising in the fall of
2016, the project will become one of the first large baggage projects currently known in the
U.S. to seek contractors. Approximately 10-12 other large baggage projects of similar size and
scope are to be advertised throughout the U.S. over the upcoming years. 

BAGGAGE OPTIMIZATION PROJECT UPDATE 
This project will occur in four phases. Project Phase 1 was advertised for bids on October 13,
2016 and will begin construction in the second quarter of 2017. 
Small business goals were also evaluated and set for the Phase 1 construction contract. The
Small Contractors and Suppliers requirement is 5%, the Small Business Enterprise goal is 10%,
and the total requirement/goal is 15%. (Percentages of total bid amount.) 

Template revised September 22, 2016.

COMMISSION AGENDA  Briefing Item No. _7e___                    Page 2 of 5 
Meeting Date: October 25, 2016 
This project is currently within the allocated budget to provide the 45 MAP system as currently
scoped; however, growth rates exceeding forecasts at the time of the Baggage Optimization
scoping require expanding to project scope to provide a 60 MAP system. A rough order of
magnitude (ROM) cost estimate has been prepared by the designer to provide a system that
will serve between 60 and 66 MAP. The total ROM estimate is $136,000,000. The ROM estimate
was prepared to include: 
1.  Ticketing mainlines 
2.  Sortation mainlines 
3.  EDS Shunts 
4.  Additional Baggage Inspection Tables in Central Screening area 
5.  Additional conveyor queues in Central Screening area 
6.  Two South Satellite make-up devices and associated sortation lines 
7.  Two new outbound make-up devices in International Arrivals Facility 
The ROM estimate does not include: 
1.  No refurbishment of existing makeup units is included in the Baggage Optimization
project. 
2.  This scope of work will address added makeup to maximize within available space, but
the system will still have a shortage of 27 cart positions. This scope will add two makeup
devices in the new International Arrivals Facility and two makeup devices in the South
Satellite. Utilizing the South Satellite make-ups will require installation of a feed line in
South Satellite tunnel- currently a separate Status 2 project and not included in this
estimate ($14 million). 
3.  No early bag storage is included in this scope of work. 
4.  No RFID technology is included in this scope of work. 
5.  This scope of work does not include inbound baggage or claim devices. 
6.  This scope of work does not modify the current C92 system. 
7.  This scope of work does not include demolition at South Satellite or IAF screening. 
The decision to expand beyond 45 MAP is not critical to Phase 1 construction, but is critical to
subsequent phases and needs to be determined in Q2 2017. 
PROCUREMENT EXCELLENCE 
The project team had worked with the Procurement Excellence team to develop a total cost of
ownership (TCO) bid adjustment for three components of the Phase 1 baggage system. The
objective was that determining lowest bid amount would include adjustments to bid amounts
to offset increased upfront costs of lower TCO equipment. The original outcome of the TCO
analysis included adjustments which were less than 2% of the Phase 1 engineer's estimate for
any given component. The total value of the analyzed components was close to 5% of the
engineer's estimated bid amount. Staff consensus was that the bid adjustment would
negatively affect bidder interest and may not be developed sufficiently for use in public works
bidding. Because the adjustments were low relative to the estimated bid amount, the risk of

Template revised September 22, 2016.

COMMISSION AGENDA  Briefing Item No. _7e___                    Page 3 of 5 
Meeting Date: October 25, 2016 
chilling bidder interest and resulting inflated bid amounts outweighed the potential realized
cost savings. However, the project team will continue to develop the TCO adjustments for
possible use during the Phase 2 construction procurement. These adjustments will not be used
for the Phase 1 construction contract procurement. 
SCHEDULE AND BUDGET 
The Baggage Optimization Phase 1 permitting documents were reviewed and prepared for
advertisement on schedule. The design was reviewed by the Airport Building Department and
Central Procurement Office. Comments from these reviews have been received and
incorporated into the final design where appropriate. 
The current schedule shows the project occurring in four phases. Phase 1 advertised for bids on
October 13, 2016. Project bids will be due December 13, 2016. 
Demolition for the pre-work needed before the start of Phase 1 construction will begin in
October. Initial Phase 1 pre-work includes the construction of a make-up unit as well as an oddsize
baggage screening device. When complete, this pre-work will save the project five months
of time within the schedule, as well as utilize Port Construction Services, Port Maintenance, and
small businesses. 
Phase 1 Beneficial Occupancy is scheduled for Q2, 2019. The overall project is currently
scheduled for the final phase to obtain Beneficial Occupancy Q4, 2023. The Checked Baggage
Optimization project is on schedule to complete the original scope on time. 
The budget summary for the project to date is as follows: 
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 Checked Baggage Optimization project is on budget as originally scoped. 
ADDITIONAL BACKGROUND 
The highly utilized and aging baggage conveyor system is one of the most complex systems in
the Airport. All baggage screening systems were modified in rapid fashion immediately after the
events of September 11, 2001; however, there are remaining portions of the systems that are
over 25 years old.
In its current state, the Airport system is not a single system, but rather many separate systems
that bags must manually transfer between. After the events of September 11, modifying the
separate systems was the best way to rapidly increase security. At the time, each separate

Template revised September 22, 2016.

COMMISSION AGENDA  Briefing Item No. _7e___                    Page 4 of 5 
Meeting Date: October 25, 2016 
system was designed to include a nominal amount of passenger growth. Over the ensuing years
as specific airline needs emerged or as airlines were relocated, the separate systems have been
updated to meet the carriers' specific operating needs. Although various baggage projects have
been implemented to address operating needs over the years, the systems continue to have
limited capacity to meet both near and long-term growth needs of the Airport.
The Airport is faced with three problems: 1) the existing separate systems have major
subsystems, such as controls, that are aging and must be replaced; 2) there is limited ability for
the current systems to be expanded in their current configuration to adequately meet growing
passenger demands; and 3) separate systems lack interconnectivity between ticket counters
and all of the aircraft gates. The Airport is expected to see continual passenger growth and is
faced with a major and near-term baggage systems challenge due to both the need for and
complexity of keeping existing system operations on-going during construction, and major
space constraints on expanding the systems' capacity to meet future growth. 
Although the challenge is large, the Airport is fortunate that the Transportation Security
Administration (TSA) has decided to invest to improve their operations at Sea-Tac. Having
multiple screening systems in six locations results in the TSA having higher operating costs than
what they will have with a consolidated baggage system. Therefore, the Baggage Optimization
project is designing the new system to accommodate Port of Seattle needs for operational
flexibility while meeting the TSA needs for modern baggage screening equipment and reduced
operating costs for baggage screening. Airport and TSA staffs have been working cooperatively
during design and the TSA has approved the final design of the optimized system. 
Longer-term demands on the Airport's baggage program include the ability to handle
approximately 60 million annual passengers (MAP). The results of the Sustainable Airport
Master Plan (SAMP) are not yet available; however, the baggage design team is engaged and
working with the SAMP team. Should the SAMP result in a recommendation for a new north
terminal, additional baggage system improvements beyond the current scope of this Baggage
Optimization project will be required. If there is a new north terminal, we would expect that
new terminal would have its own baggage screening system, with interconnections between
the new one and the current one for transfer baggage, since the baggage transport distances
from another terminal to/from the central baggage screening location are too great to have
central baggage screening for the entire Airport and meet airline operational needs. The design
has therefore focused on capability to readily enable adding to the current design target of
supporting 45 MAP. Thus inherent in the overall design is the flexibility for later projects to add
additional conveyor and equipment to increase the capacity of the centralized TSA security
screening and search areas. SAMP may also provide relief by providing additional new space for
baggage facilities in future remote concourses, thereby relieving pressure within the
constrained footprint of the existing terminal bagwell area. 
ATTACHMENTS TO THIS BRIEFING 
Presentation slides 

Template revised September 22, 2016.

COMMISSION AGENDA  Briefing Item No. _7e___                    Page 5 of 5 
Meeting Date: October 25, 2016 

PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
July 12, 2016  Commission Authorization to advertise for construction Phase 1. 
June 28, 2016  Baggage Quarter 2 Briefing. 
May 17, 2016  Baggage Quarter 1 Briefing. 
March 8, 2016  Commission authorized the Chief Executive Officer to amend the Baggage
Optimization Design Services contract. 
January 12, 2016  Commission authorized the Chief Executive Officer to advertise, award,
and execute a major public works contract for the C60 Interim Baggage Handling System
Project in the amount of $9,823,000. 
December 4, 2015  The Commissioners authorized design for the work elements in the C60
Interim Baggage System Project; use of Port crews to self-perform work; purchase
equipment for various work elements; amend the BNP Handling System Design
Indefinite Design Indefinite Quantity (IDIQ) contract by $3,500,000; and execute a
contract to provide proprietary software services for the integration of upper and lower
level controls and software programming on the baggage handling systems, campus
wide. 
June 23, 2015  Checked Baggage Optimization Project Briefing. 
September 10, 2013  The Commission authorized the execution of an Other Transaction
Agreement (OTA) with TSA for reimbursable costs for design; construction, and to
authorize $15 million to continue from 30% to 100% design; and execute a consultant
service agreement for program management support services. 
August 20, 2013  Response to questions from Commissioners asked during August 6, 2013
Commission Meeting. 
August 6, 2013  The Commission was briefed on the near-term and long-term challenges
related to handling checked baggage at the Airport. 
January 22, 2013  The Commission authorized $5 million for staff to begin design through
30%, and to enter into an agreement to allow reimbursement from the federal
government to the Port for eligible elements of the 30% design effort. 
January 8, 2013  Baggage Systems Briefing. 
August 14, 2012  Baggage system recapitalization/optimization was noted in the 2013
business plan and capital briefing as a significant capital project not included in 2013-17
capital program. 
August 7, 2012  Baggage system recapitalization/optimization was referenced as one of
the drivers for the need to develop an Airport Sustainability Master Plan. 
June 26, 2012  The Airport's baggage systems were discussed during a briefing on terminal
development challenges. 
May 10, 2012  TSA's interest in a national recapitalization/optimization plan for all baggage
screening operations was referenced in a design authorization request for the C60-C61
Baggage Handling System Modifications Project. 


Template revised September 22, 2016.