PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.       6f 
ACTION ITEM 
Date of Meeting     March 8, 2016 
DATE:    February 19, 2016 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Ralph Graves, Senior Director, Capital Development 
Wayne Grotheer, Director, Aviation Project Management Group 
SUBJECT:  Baggage Optimization Design Service Agreement 
Amount of This Request:       $6,000,000- 
contract
amendment only 
Est. Total Contract Cost:        $18,000,000 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to amend the Baggage
Optimization  Design Services contract, P-00317641, to increase  the contract value by
$6,000,000 for a new not to exceed value of $18,000,000. No new funding is associated with
this request. 
SYNOPSIS 
The Commission authorized $20,000,000 for design of the Baggage Optimization Project. A
Service Agreement was issued to the design consultant at a not-to-exceed amount of $12,000,000 
to complete the 100% design required for Transportation Security Admistration (TSA) review.
At that time the Port did not allocate all budgeted money into the contract, as a cost control
mechanism. We now need to increase the Service Agreement by $6,000,000 to finish design
efforts per the original plan.  This increase is not due to project scope or cost growth.
Specifically the consultant will split the design into four bid packages so the Port can bid and
construct the overall program in phases. The remaining $2,000,000 previously authorized by
Commission has covered soft-costs to-date. 
Commission authorization for construction and design support through construction will be
requested in 2nd Quarter of 2016. 
BACKGROUND 
The Port of Seattle executed a project specific contract with BNP Associates Inc. on January
27, 2014, for Baggage Design services for a not-to-exceed contract value of $12,000,000.
100% design documents have been completed and submitted to TSA and this work has cost
nearly the full $12,000,000 contract value. Various contracting options, for the construction

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
February 19, 2016 
Page 2 of 4 
phase of the project, have been examined and breaking the project into multiple phases has been
determined to be the best approach. Phasing the project increases bidder competition by reducing
the amount of bonding capacity required by contractors, reducing the retainage held from those
contractors, gives the Port an opportunity to apply lessons learned from earlier phases to improve
future phases, and gives the Port the opportunity to specify new technology in future phases. 
The design work required to break the comprehensive package into phases will require an 
increase to the existing Service Agreement. 
Action requested does not require a budget increase; rather it is a design contract amendment
within the current Commission authorized budget. This action is necessary because the Port did
not fully fund the current contract  P-00317641. Resolution  3628  requires commission
authorization of amendments over $300,000 and increases to the contract value of more than 50
percent of the original contact require Commission notification. This request is for commission
authorization and notification of both conditions. This memorandum will be placed on file for
public inspection at the Port's bid desk. 
PROJECT DETAILS 
Scope of Work 
Finalize design efforts. 
Schedule 
Commission Authorization to increase contract value               1st Qtr 2016 
Complete Design Phase 1                               2nd Qtr 2016 
Commission Authorization for Construction Phase 1               2nd Qtr 2016 
Construction Phase 1 Complete                            3rd Qtr 2019 
FINANCIAL IMPLICATIONS 
The current Baggage Optimization project budget is sufficient to cover the increase to the
Service Agreement. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  Status Quo  Suspend design effort and not proceed with this project. 
Cost Estimate: $0 
Pros: 
No additional capital expenditure 
Cons: 
Airport is left with aging baggage system that cannot keep up with current passenger
volumes and anticipated growth. 
Current design would be expensed at a cost of approximately $14,000,000 
Airport will not receive the benefits of the new baggage system.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
February 19, 2016 
Page 3 of 4 
Defaulting on Other Transaction Agreement (OTA) with TSA. 
This is not the recommended alternative. 
Alternative 2)  Request only enough authorization to increase the Service Agreement to
complete phase 1 bid package. 
Cost Estimate: $2,000,000 
Pros: 
Commits less money to design effort. 
Cons: 
Requires future commission actions for subsequent contract value increases. 
This is not the recommended alternative. 
Alternative 3)   Request authorization to increase the value of SA P-00317641 by $6,000,000 
to complete multiple bid packages. 
Cost Estimate: $6,000,000 
Pros: 
Requires only one Commission action to amend the Service Agreement. Subsequent
Service Directives will authorize additional work within the contract value authorized
by the Commission. 
Cons: 
None 
This is the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
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.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
February 19, 2016 
Page 4 of 4 
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.