Item No. 9c_supp 
Meeting Date: February 26, 2019 
Baggage Optimization 
Fourth Quarter Briefing and
Project Update

AGENDA 
Project Overview 
2018 Quarter 4 Update 
Budget 
Schedule 
Challenges 
Accomplishments 
Progress 
Sustainability 
Baggage Optimization Project                                                                            2

PROJECT OVERVIEW 
Replaces six individual baggage
screening systems with a centralized
system that optimizes the operation
and functionality of the checked
baggage system 
Key elements: 
60 Million Annual Passengers (MAP) 
Reliability 
Redundancy 
Security 

Complete Overhaul of Outbound System                                                             3

2018 Q4 Update 
Schedule 
Contractor Fell Behind on Submittals and Fabrication 
Phase 1: 
Contractor Maintaining Two Work Shifts (Mon. through Sat.) 
Conveyor Installation is ongoing (Critical Path) 
Phase 2: 
100% Design Documents completed 
Permit set has been submitted to Building Department 
Developing Phase 2 Bid Documents & estimate 

Phase 1 Schedule Concerns                                                                           4

FINANCIAL PROGRESS REPORT 
Authorization Summary                Capital      Expense        Total 
$450
Current Budget                      $444.90 M       $0.15 M    $445.05 M 
Millions   $400                                                                                    Current Authorization                $136.16 M       $0.15 M    $136.31 M 
$350                                                                  Amount Remaining to be          $308.74 M        $0 M   $308.74 M 
Authorized 
$300
$250
$200                                                                           Total Project (Capital + Expense) 
$150                                                                                      Budget     Spent to   Forecast at   Variance 
Date    Completion 
$100
Soft Cost               $64.99 M      $23.20 M      $64.99 M        $0 M 
$50                                                                  Construction        $359.43 M     $41.41 M    $359.43 M       $0 M 
$-                                                                                  Management          $20.63 M         $0 M      $20.63 M        $0 M 
Management Reserve Remaining       Construction Remaining            Reserve 
Construction Spent                     Soft Cost Remaining
$445.05 M     $64.62 M     $445.05 M        $0 M 
Soft Cost Spent

Financial Breakdown                                                                                    5

FUNDING CONTRIBUTION 
(Port Contribution to
Date $33.7M) 
Port 
$351M 
(TSA Contribution to
79% 
Date $30.9M) 
TSA 
$94M 
21% 
Total Project Budget                        $445,050,000 
Total TSA Contribution                       $94,043,296 
Total Port Contribution                      $351,006,704 
Amount Spent to Date                    $64,621,035 
TSA Reimbursement to Date              $30,899,397 

TSA OTA/LOI Reimbursement                                                                      6

SCHEDULE 




Contractor Delay Extends Overall Completion Date                                                        7

SMALL BUSINESS/APPRENTICESHIP UTILIZATION 
SCS/SBE                                  APPRENTICESHIP 
Overall
SBE Const                                             (15%)
(15%)
Women
(10%)
SCS Const                                           Minority
(5.0%)                                               (15%)
0.0%  50.0% 100.0% 150.0% 200.0%
0.0%     50.0%    100.0%    150.0%    200.0%
Goal     Actual                               Goal   Actual

Tracking Close to or Exceeding Goals  status as of January 2019                                             8

CHALLENGES 
Phase 1 Construction Schedule
Baggage Handling/Steel Market Conditions for Phase 2 Bid 
Operational Impacts Through Construction 
IAF Coordination - Must be operational prior to Phase 2 SSAT
construction 
Project Coordination  Have coordinated with 60+ projects so far 

Overcoming Challenges                                                                              9

COST INCREASES SINCE 2013 ESTIMATE 


15% Increase (Adjusted for Inflation) in Domestic Baggage Projects
(Estimate from Baggage Designer) 
Material Cost of Structural Steel and Metals Increased 25% in 2018, as a
Reaction to the Tariffs 
Construction Market Escalation Averaged 5% per year since 2013
(Approximately 25% Over 5 Year Period) 
Cost / Market Conditions                                                                                 10

ACCOMPLISHMENTS 
All conveyor equipment delivered and stored at warehouse. 
Phase 2 permit set has been submitted to Building Department. 
Structural steel on Central Terminal bump out has been completed. 
Purchased and received baggage handling network equipment. 
Conveyor Factory Acceptance Retest conducted and successful. 
Continued construction on conveyors, utilities and infrastructure. 

Baggage Optimization Construction Progress                                                             11

SUSTAINABILITY 
Energy Conservation                          Water Conservation 
Optimized system is projected to result          No opportunity 
in up to 30% energy savings 
Working Environment 
Improved ergonomics 
Waste Reduction 
Contractual requirement to recycle
demolished material when possible 

Opportunity in Energy Conservation                                                                     12

T106 Warehouse Space                                                                          13

New Conveyor Sections                                                                             14

Structural steel on Central Terminal Bump Out                                                             15

Factory Acceptance Testing Facility Detroit, MI                                                              16