COMMISSION 
AGENDA MEMORANDUM                        Item No.          6e 
ACTION ITEM                            Date of Meeting     November 28, 2017 
DATE:     October 16, 2017 
TO:        Dave Soike, Interim Executive Director 
FROM:    James Schone, Director, Aviation Commercial Management 
Dawn Hunter, Senior Manager, Airport Dining and Retail 
SUBJECT:  Airport Dining and Retail Consulting IDIQ Contract 
Amount of this request:               $1,000,000 
Total estimated project cost:          $1,000,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to execute a consulting contract
for Airport Dining and Retail consulting services for up to five (5) years and a total amount not
to exceed $1,000,000. 
EXECUTIVE SUMMARY 
The purpose of this request is to procure Airport Dining and Retail (ADR) consulting services 
(Consultant) to augment Port staff in the continued redevelopment of the ADR Program at
Seattle-Tacoma International Airport  (Airport).  The Consultant  will support Port  staff in
implementing the ADR Master Plan through assistance with research regarding ADR industry
trends and policy issues, design of optimal lease group structures, outreach to small, local and
disadvantaged businesses, analysis of information submitted in proposals by prospective ADR
tenants, preparing for lease negotiations as well as assessing opportunities for improving the
ADR Program. The solicitation will include a small business goal in support of the Port's goal to
increase small business utilization. 
JUSTIFICATION 
The redevelopment of the Airport Dining and Retail Program offers an excellent opportunity to
advance the Port's Century Agenda goals by enhancing the Airport's profile as the preferred
gateway to the Pacific Northwest, by promoting job growth, by creating new opportunities for
small, local and disadvantaged businesses and by meeting the expectations of the travelling
public for quality food service, retail products and personal services. 


Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 6e                                  Page 2 of 4 
Meeting Date: November 28, 2017 
In November 2014, the Commission established goals for the redevelopment of the ADR
Program. These include: 
Grow sales per enplanement by 40 percent; 
Reach and remain within the top 10 North American airports as ranked by sales per
enplanement; 
Grow gross revenues to the Port by 50 percent; 
Grow employment by 40 percent; 
Grow the share of sales generated by small, disadvantaged, and/or local businesses to
40 percent; and 
Create an aspirational objective of increasing ACDBE gross sales to 25 percent of total
sales. 
The redevelopment of the ADR Program is well underway with significant progress towards
these goals.  Leases have been signed for the first three lease groups and the evaluation
process for Lease Group 4 is underway.  Port staff expects that there will be additional lease
groups during the next several years, all of which are in support of the ADR Master Plan
objective to reach a consistent level of phased lease expirations. 
As the implementation of the ADR Master Plan progresses, there continues to be need for
outside consulting services to augment Port staff resources, both from a work-load standpoint
and from an industry-wide perspective.  Procurement of this service is vital to the on-going
implementation of the ADR Master Plan. The current ADR consulting  services contract,
previously approved by Commission on July 26, 2011, expires on December 31, 2017.
DETAILS 
The primary objectives for the Consultant will include, but may not be limited to, : 
1.  Assisting ADR staff in evaluating the current ADR Program with a continued focus on
opportunities for improvement.  Potential topics for this work include increasing sales
and revenue, best practices for leases and the optimal tenant mix to meet passenger
needs.
2.  Assisting ADR staff with planning and conducting outreach to prospective tenants. The
outreach will primarily be directed to small, local, and ACDBE businesses to introduce
them to leasing  opportunities  at the Airport as well as to  educate them on the
competitive solicitation process for these opportunities; 
3.  Assisting ADR staff with conducting feasibility studies related to implementing the ADR
Master Plan and achieving the goals set for the redevelopment of the ADR Program by
the Commission; 


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

COMMISSION AGENDA  Action Item No. 6e                                  Page 3 of 4 
Meeting Date: November 28, 2017 
4.  Assisting  ADR  staff  with  conducting  market  analysis  and  research  as  well  as
benchmarking with other airports to both identify passenger needs and trends as well as
to inform Port staff and the Commission about policy issues affecting the ADR Program;
5.  Assisting ADR staff with conducting analysis of proposals submitted to the Port by
prospective tenants; 
6.  Assisting ADR staff in preparing for lease negotiations. All aspects of the Consultant's
work will be directed by ADR staff and all work done in support of the ADR Program will
be reviewed and approved by the ADR staff. 

ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1 - Status Quo  Do not approve contract and utilize existing FTEs. 
Cost Implications: $0 
Pros: 
(1) $1.0M saved could be used for other organizational priorities. 
Cons: 
(1) There will not be sufficient resources to adequately manage both day-to-day
operations of the ADR Program as well as implementation of the ADR Master Plan. 
(2) There will insufficient resources available to provide industry-wide perspective on
passenger trends or benchmarking with other airports.
This is not the recommended alternative 
Alternative 2 - Procure additional ADR staff to meet Consulting needs. 
Cost Implications: $ 150,000/year (salary and benefits) for 1 FTE for 5 years for a total of
$750,000 
Pros: 
(1) This would provide dedicated staff for the scope of work previously mentioned. 
(2) There would be a cost savings to the Port relative to outside consulting services. 
Cons: 
(1) It will likely be difficult to find staff with the industry-wide knowledge base and
abilities required to provide the Port with the broadest possible  view of ADR
industry trends, challenges, innovations and policy issues. 
This is not the recommended alternative 

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

COMMISSION AGENDA  Action Item No. 6e                                  Page 4 of 4 
Meeting Date: November 28, 2017 

Alternative 3 - Procure an IDIQ contract with a single firm for five years. 
Cost Implications: $1.0 million 
Pros: 
(1) A single procurement with a small business goal participation goal. 
(2) Greater likelihood gaining industry-wide experience and knowledge. 
(3) Can easily adjust consultant workload as necessary to match demand for service. 
Cons: 
(1) This will likely cost more than if a single FTE could be hired for all the services
included in the scope of work. 
This is the recommended alternative 
FINANCIAL IMPLICATIONS 
The costs incurred by this contract will be accounted for as operating costs.  AS such, the
funding source is the Airport Development Fund. The costs roll up as non-aeronautical costs so
there is no impact on passenger airline cost per enplaned passenger (CPE). The ADR Consulting
Service expense is included in the 2018 budget pending approval; the request is for $200,000
per contract year. 
ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
July 26, 2011  Commission approved Procurement for Concessions Planning and Leasing
Services for a maximum value of $3,000,000 







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