PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.       6f 
ACTION ITEM 
Date of Meeting    September 27, 2016 
DATE:    September 27, 2016 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Lance Lyttle, Managing Director, Aviation Division 
Stuart Mathews, Director Aviation Maintenance 
SUBJECT:  Contract for Janitorial Services at Sea-Tac Airport 
Amount of This Request:       $80,000,000   Source of Funds:   Airport Development
Fund 
Est. Total Cost:              $80,000,000 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to execute up to four
contracts for janitorial services for Seattle-Tacoma International Airport. The resultant contracts
have an estimated value of $80 million over a five year period. 
SYNOPSIS 
Janitorial services provide a key element of the customer experience at the Airport. Developing
and implementing an effective and efficient set of janitorial services contracts is necessary to
satisfy customer expectations. The initial three-year term of the current janitorial contract ends
January 31, 2017. The Port has the opportunity to execute two one-year options to extend the
current contract. However, the current contract is not an effective tool to generate the results
desired for the Airport. 
Due to the recent rise in traffic, our current janitorial services contract covering the entire Airport
has been facing challenges primarily from a quality perspective, though costs have been rising as
well. We believe that our current contract does not offer the Port the outcomes we desire, nor
does it offer our contractor a platform to succeed. With January 2017 marking the end of the
initial three year term of our current agreement, there is an opportunity to redesign and update
our contract. 
We intend to initiate a new competitive procurement and execute up to four new contracts in
order to: 
Create contracting opportunities that would serve as a win-win-win for the Airport,
passengers, and the contractor. We are striving to: 
o  Improve quality. 
o  Increase competition. 

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 27, 2016 
Page 2 of 7 
o  Control costs. 
o  Increase small and disadvantaged business participation. 
o  Recognize and support the need for labor harmony. 
Put the onus of quality performance on the contractor. 
Give the Port ability to make minor adjustments in scope to tackle quality issues. 
Provide a mechanism to adjust the contract due to changing conditions.
BACKGROUND 
This contract was previously bid out in early 2013, with the entire scope of janitorial services at
the Airport (all terminals, office spaces, and remote operational areas) awarded to ABM, our
current contractor. Despite the Port and ABM's best efforts, a sharp and unexpected rise in traffic
has led to cost and quality issues. Costs have gone up by 23% in the last two years, while our
Airport Service Quality (ASQ) scores are not on par with some of the Airport's peers. 
The current contract is not structured in a manner that provides the Port or the contractor with the
means to effectively deliver the quality expected at an appropriate cost. In addition, increased 
passenger traffic requires a new contracting framework to allow the Port to influence ASQ scores
positively while simultaneously working to slow the rate of growth of the costs of these services. 
REQUEST JUSTIFICATION AND DETAILS 
Authorization will allow staff to proceed with the RFP process. This will be the first step in
allowing the Port to engage partners for janitorial services at Sea-Tac Airport that will strive for
higher standards of performance, increase contract management capabilities and service levels,
and maximize opportunities for small business participation. 
After speaking to staff at peer Airports that excel in quality scores and after studying many more
Airport janitorial contracting methods, staff believe that the best quality and cost outcome for the
Port will be achieved by making changes in the way this contract will be managed going
forward. Key components of these changes include: 
Setting a consistent cleanliness target the Port staff can monitor and the contractors can
work towards 
Creating a quality management system and incentives within the contract that drive
accountability and problem solving to achieve this cleanliness and performance target. 
Our contract with ABM today is budgeted at $13.7 million for 2017, incorporating increases in
prevailing wages. One significant option for consideration with a new RFP would be the creation
of multiple zones. We expect that creating zones will offer some potential benefits: 
Allow the Port to manage quality  through competition,  by gaining institutional
knowledge and diversifying operational risk. 

Revised March 28, 2016  pjw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 27, 2016 
Page 3 of 7 
Allowing for a more competitive environment. Many contractors wish to work with the
Airport  the Port received a high level of interest during the last RFP (10 responses) and
has since had multiple inquiries from contractors on any upcoming janitorial contracts. 
Narrower scopes will allow more businesses to compete for work, resulting in a robust
selection process. In particular, smaller businesses will be able to compete for zones. 
This results in more oversight & management responsibilities for the Port, which must be
weighed when making this decision. 
Project Objectives 
The purpose of this project is to create a partnership and contract structure that focuses on quality
outcomes in a manner that is clear and transparent for the Port and the contractors and
accomplishes the following objectives: 
Achieve our quality vision  being "Opening Day" fresh every day at 4 a.m. and
maintaining positive customer experience. 
Contracting for these services at or near our current costs, which are in line with peers. 
Incorporates an environmental stewardship program to align with the Port's Century
Agenda goals. 
Incorporates workforce development through the use of a Small Business Enterprise
goal of 35% overall for the combined contracts in the form of direct contract or
subcontracts and through the supply chain. 
Support the Commission's Quality Jobs initiative by maintaining labor harmony
provisions in our contractual relationship with prospective bidders where appropriate. 
Scope of Work 
This scope of work includes nearly all janitorial services at the Airport. This includes all
janitorial services in the public facing terminal areas as well as office and operational areas that
are all the responsibility of the Port. 
Schedule 
We will conduct the search for partners in a three phased process. The schedule for that process
is: 
Supplier Outreach                                          July 2016 
Publish RFQ                                   September 29, 2016 
Publish RFP                                      November 4, 2016 
Select Vendors                                         January 2017 
Execute Contracts                                      February 2017 


Revised March 28, 2016  pjw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 27, 2016 
Page 4 of 7 
FINANCIAL IMPLICATIONS 
Budget Status and Source of Funds 
The annual janitorial contract will be included in the annual Operating Budget. 
Lifecycle Cost and Savings 
Estimated costs of these services over the potential five-year life of the contract range between
$73 million and $80 million. These estimates are based on a range of growth in annual contract
value between 0% contract growth and approximately 2% contract growth. Factored into this
range is the potential for improved efficiencies as well as potential labor and material cost
increases consistent with recent growth. 
STRATEGIES AND OBJECTIVES 
This project will support the following Century Agenda and Aviation Strategic Goals. 
Advance this region as a leading tourism destination and business gateway by making
Seattle-Tacoma International Airport the Gateway of Choice for international travel 
Meet the region's air transportation needs at Sea-Tac Airport for the next 25 years 
Position the Puget Sound region as a premier international logistics hub 
Lead the U.S. Airport industry in environmental innovation and minimize the Airport's
environmental impact. 
Use our influence as an institution to promote small business growth and workforce
development. 
Customer satisfaction is a key component of the Port's strategic goals. Customers (both internal
and external) who are not satisfied with the quality of the facility may choose to take their
business to our neighboring competitor airports. Increasing customer satisfaction is a key
strategy put forth within the High Performance Organization Long Range Plan. Improving the
quality of our janitorial services in a cost-effective manner is a key component to achieving that
customer satisfaction. 
Environmental stewardship requirements will continue to be incorporated in the contracts to
ensure materials and methods used by the janitorial services contractors meet the environmental
stewardship goals of the Port. Seven distinct elements are being incorporated into the RFP to
holistically approach the Port's environmental goals. These include environmentally preferred
products, contractor environmental certifications, a sustainable packaging component, and a
requirement to support Airport waste minimizing goals. 
The Port is developing the solicitation and will include specific small business utilization
requirements and labor harmony. 


Revised March 28, 2016  pjw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 27, 2016 
Page 5 of 7 
In order to help facilitate networking between prime contractors, Small Business Enterprise
(SBE) contractors and Small Contractor Suppliers (SCS), the Port held a networking event in
July of 2016.
In addition, the Port will be limiting the number of zones any one contractor can be awarded.
The intent of this limitation will be to promote competition and provide flexibility for the Port
going forward. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Conduct an RFP process for janitorial services with a single provider for the
entire scope of work and execute a single contract. The single contract will have small business
requirements. The single contract will require labor harmony. 
Cost Implications: Estimated annual cost $14.0 Million for 2017. Anticipated 5 year costs
between $75 and $80 Million. 
Pros: 
(1)  One provider has total responsibility, making the contract easier to manage on day
to day basis. 
(2)  The successful bidder will likely be a large firm with strong standard operating
procedures. 
(3)  Overhead and equipment purchases would likely see some benefits of scale. 
Cons: 
(1)  Port dependent upon one provider. This reliance may impact the Port's ability to
drive performance. 
(2)  Limits competiveness of firms due to size of scope 
This is not the recommended alternative. 
Alternative 2  Conduct an RFP process with three scopes of work, breaking the facility into
distinct zones, execute up to three contracts resulting from the RFP. All three scopes of work will
have small business utilization requirements. All three scopes of work will require labor
harmony. 
Cost Implications: Estimated annual cost $12.0 -$14.0 Million for 2017. Anticipated 5 year costs
between $73 and $80 Million. 
Pros: 
(1) Offers the chance to build a robust operation in which the Port can create competition
among multiple providers based on performance. 
(2) Given the smaller sized contracts, this option may allow more firms to bid on the
work, potentially driving cost efficiencies and improved quality due to increased
competition. 

Revised March 28, 2016  pjw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 27, 2016 
Page 6 of 7 
(3) This option creates multiple opportunities for small business enterprises to bid, either
as the prime contractor or as subcontractors in partnership with a larger provider. 
(4) With one zone being inclusive of the non-secure portion of the facility, fewer
personnel and materials will need to travel between secure and non-secure portions of
the terminal. 
Cons: 
(1) Requires incrementally more oversight and management by Port staff to manage
quality and compliance. 
(2) Multiple contracts may limit the benefits of scale that can be realized from a single
larger contract. 
With the zone alternatives, the Port will be limiting the number of zones any one contractor can
be awarded. The intent of this limitation will be to continue to promote competition once
contracts have been awarded, and provide flexibility for the Port going forward. 
This is not the recommended alternative. 
Alternative 3  Conduct an RFP process with four scopes of work, breaking the facility into four
distinct zones, execute up to four contracts resulting from the RFP. One of the four zones will be
secured specifically for a small or disadvantaged business enterprise. All four scopes of work
will have small business requirements. All four scopes of work will require labor harmony. 
Cost Implications: Estimated annual cost $12.0 -$14.0 Million for 2017. Anticipated 5 year costs
between $73 and $80 Million. 
Pros: 
(1) Offers the chance to build a robust operation in which the Port can create competition
among multiple providers based on performance. 
(2) Given the smaller sized contracts, this option may allow more firms to bid on the
work, potentially driving cost efficiencies and improved quality due to increased
competition. 
(3) This option creates multiple opportunities for small business enterprises to bid, either
as the prime contractor or as subcontractors in partnership with a larger provider. 
(4) With one zone being inclusive of the non-secure portion of the facility, fewer
personnel and materials will need to travel between secure and non-secure portions of
the terminal. 
(5) Provides an opportunity for a small business to grow in capacity as a prime contractor
rather than a subcontractor. 



Revised March 28, 2016  pjw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 27, 2016 
Page 7 of 7 
Cons: 
(1) Requires incrementally more oversight and management by Port staff to manage
quality and compliance. 
(2) Multiple contracts may limit the benefits of scale that can be realized from a single
larger contract. 
(3) Designating one zone specifically for a small business entity may risk labor harmony. 
In alignment with Alternative #2, the Port will be limiting the number of zones any one
contractor can be awarded. The intent of this limitation will be to continue to promote
competition once contracts have been awarded, and provide flexibility for the Port going
forward. 
This is the recommended alternative. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
August 23, 2016  Commission Briefing "Contract for Janitorial Services at Sea-Tac
Airport. 











Revised March 28, 2016  pjw