PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      6a 
ACTION ITEM 
Date of Meeting     October 1, 2013 
DATE:    September 23, 2013 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   Kurt Beckett, Deputy Chief Executive Officer 
David Soike, Director, Facilities and Capital Program 
Wesley Henrie, Process Improvement Program Manager 
SUBJECT:  Process Improvement Indefinite Delivery/Indefinite Quantity (IDIQ) Contract 
Amount of This Request:            $0   Source of Funds:  Current and Future
Operating Budgets 
Est. Total Contract Value:        $750,000 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to execute a personal services
indefinite delivery, indefinite quantity contract to perform continuous process improvement
services with a total value of $750,000 and contract duration of five base years plus two
individual option years for a total of seven years. There is no funding request associated with
this authorization. 
SYNOPSIS 
On July 26, 2011, the Commission approved a request to initiate a process improvement IDIQ
contract, with Port staff ultimately selecting a consulting firm to help the Port with initial
assessment and startup of the Continuous Process Improvement (CPI) Program. 
The current contract expires in November 2013. Following standard practice from successful
Lean organizations (e.g., Virginia Mason), Port leadership recommends initiating a new
competitive process focusing on the selection of an experienced, reputable  Lean-focused
consulting firm with the background and resources to help an organization of the size and
complexity of the Port of Seattle. 
IDIQ contracts provide the Port with the flexibility to meet business requirements as they arise
by issuing individual service directives to accomplish tasks within a general pre-defined scope of
work, on an as-needed basis, for a fixed period of time, and a maximum contract amount. The
Port's Office of Social Responsibilitywill assist in identifying any small business opportunities
prior to the time of public advertisement of the IDIQ contract. Budgets to utilize this contract
will come separately from annual operating budgets. 

Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 23, 2013 
Page 2 of 4 
Competitively procured IDIQ contracts are a  widely used public sector contracting tool,
consistent with the Port's Resolution No. 3605, as amended by Resolution No. 3628, and
governed by CPO-1 policy. 
BACKGROUND 
With the support from the Commission, Port leadership took steps beginning in 2011 to initiate
and establish a CPI program. Two keys steps were completed in the fourth quarter of 2011:
hiring a full-time process improvement program manager and the selection of a consulting firm. 
With assistance from the consulting firm, the CPI program has moved forward with the
completion of baseline efforts, including introductory training to select leadership groups,
selection and training of 16 Lean Specialists, process selection across five divisions, CPI updates
to the Commission and executive team, a local site visit, and the kick-off of four team-based
process improvement efforts. 
PROJECT JUSTIFICATION AND DETAILS 
Port leadership recognizes the benefit of a process improvement program and seeks to continue
the development of the program by following standard practices from highly regarded Lean
organizations that include the use of a Lean-focused consulting firm. A Lean-focused consulting
firm will help the Port meet project objectives as outlined in the scope of work: 
Aligning CPI efforts with division strategies, objectives, and metrics. 
Analysis of processes that impact strategies and objectives, which includes "Value
Stream Mapping." 
Training of executive team and upper management on leading a CPI-focused
organization. 
Development of staff to coach and mentor CPI efforts across the Port using Lean
methodology. 
Facilitation of process improvement efforts. 
Schedule 
It is estimated that this IDIQ contract will be executed in the second quarter of 2014 with a fiveyear
base and two one-year options.
FINANCIAL IMPLICATIONS 
There is no funding request associated with this authorization. The total estimated cost for the
Process Improvement Services IDIQ will not exceed $750,000. No work is guaranteed to the
consultant and the Port is not obligated to pay the consultant until a service directive is executed.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 23, 2013 
Page 3 of 4 
STRATEGIES AND OBJECTIVES 
When carefully implemented, CPI is a powerful methodology and management philosophy that
helps an organization meet strategies and objectives in a timely and efficient manner. One of the
primary functions of the consultant is to assist Port leadership with the alignment of Port-wide
and division strategies/objectives with CPI efforts. For example, identifying processes that help 
the Aviation Division's objective to "reduce the rate of growth of recurring division-wide annual
O&M cost/sf as measured in rolling 5 year periods" can improve the efficiency of the Airport.
After identifying specific processes that impact this objective, Aviation Division leadership will
follow CPI methodology, sponsor process improvement efforts, and empower teams to bring
forth improvement ideas and implementation plans. 
TRIPLE BOTTOM LINE 
Economic Development 
There are two general economic related outcomes from CPI efforts: increased revenues and/or
reduced costs. As the Port continues the CPI journey, CPI teams will inevitably discover process
improvement opportunities that will have a positive impact on the economic development of the
Port.  When applicable, CPI teams will document these opportunities and report out to
leadership. 
Environmental Responsibility 
CPI efforts seek out the efficient use of resources including the reduction of materials, lower use
of fuels, and optimal use of equipment. When applicable, CPI teams will document savings and
report out to leadership.
Community Benefits 
A core tenet of the CPI methodology is improving value from the perspective of the customer.
The Port provides a wide range of services to a large and diverse group of customers. There will
be instances where CPI teams identify general improvements to a broad customer base such as
communities within King County. These benefits will be reported out to Port leadership. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  Maintain current status of the CPI program. The Port strives to elevate the CPI 
program by following common practices from the best Lean organizations in the region. This
alternative would not advance the program and meet the demand for CPI efforts across the Port.
This is not the recommended alternative.
Alternative 2)  Hire highly experienced Lean practitioner FTEs. Along with selecting a Leanfocused
consulting firm, this is a common practice among many Lean practitioners.  This
alternative is a good method for building expertise and know-how on the ground floor and with
middle management. However, most Lean FTEs do not have experience working at the top
levels within a company.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 23, 2013 
Page 4 of 4 

Alternative 3)  Hire an experienced, Lean-focused consulting firm. This is a standard practice
among top Lean organizations. For example, Virginia M ason selected the preeminent Lean
consulting firm in the world and has maintained this service for several years. Top notch Lean
consulting firms have the credibility, experience, and resources to guide and mentor at all levels
within an organization  from the executive team to the ground level. In addition, Aviation
intends to also add one Lean Practitioner FTE to mentor other existing employee trainees. This is
the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
Presentation slides illustrating the application of the CPI process to Aviation preventive
maintenance efforts. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
November 13, 2012  The Commission was briefed on the Metrics and Continuous
Process Improvement Initiatives. 
July 15, 2011  The Commission approved a Process Improvement IDIQ contract.