COMMISSION 
AGENDA MEMORANDUM                        Item No.          6e 
ACTION ITEM                            Date of Meeting       April 23, 2019 
DATE:     March 18, 2019 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Stuart Mathews, Director, AV Maintenance 
Erik Knowles, Senior Manager AV Maintenance 
SUBJECT:  Contract to supply Baggage Source Messaging (BSMs) 

Total estimated project cost:          $2,045,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to execute a contract to supply
Baggage Source Message  data  (BSM) in support of baggage systems at  Seattle-Tacoma
International Airport for a ten-year duration for a total estimated cost of $2,045,000. 
EXECUTIVE SUMMARY 
The Port of Seattle currently uses multiple data feeds from multiple BSM providers to sort
baggage to airlines based on airline, flight and destination data. This is a standard process for
baggage processing at most major airports. The new contract will replace the existing contract
that expires on December 31, 2019. 
The purpose of this request is to implement a system to receive reliable BSM data service from
the successful proposer for the baggage systems at the Airport. Without BSM data, the baggage
sortation systems at the Airport will be unable to sort bags to the appropriate airline make-up
devices. This lack of capability could cause substantial operational and financial impacts to most
of the airline customers as well as loss of passenger confidence. 
With the pending completion of both Phase 1 of the Baggage Optimization project in 2019 and
the International Arrivals Facility (IAF) baggage re-check system  in 2020, the timing is
appropriate to implement a multi-year contract. Implementing such a contract will provide
continuity of service through the three phases of construction that Baggage Optimization will
require until completion in 2025.
JUSTIFICATION 
A Baggage Source Message (BSM), which includes flight and passenger information, is sent by
an airline's departure control system to the Sea-Tac baggage handling systems via a third-party 

Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. 6e                                  Page 2 of 6 
Meeting Date: April 23, 2019 
vendor. This electronic message is used to auto-sort baggage for airlines that utilize more than
one baggage makeup. 
With the expected  start-up of both the IAF baggage system and Phase 1 of Baggage
Optimization, there is a need for a unified system throughout the implementations of these
projects. Because there are multiple additional phases to Baggage Optimization, a multi-year 
agreement will provide consistency in connecting these baggage systems with the appropriate
BSM data feeds. 
DETAILS 
All airlines and all major airports share electronic information that uniquely identifies each
checked bag and its planned route through airports, all the way to its ultimate destination. This
electronic information allows Sea-Tac's baggage system to efficiently manage the flow of
departing and transferring bags annually. In 2018, 10.7 million bags were processed using
BSMs.
The new contract will provide BSM electronic data in a standard format that is consistent with
the International Air Transport Association (IATA) format and requirements. This format assures
that electronic information is compatible with all airlines and airports that use it. 
Implementation of a new BSM vendor is estimated to cost $295,000 based on a previous effort
similar in scope. There is a risk that the selected vendor implementation is more complex,
requiring additional budget. The small capital implementation project will be funded through
the AV IT Small Capital CIP, C800066. 
The cost for each year of the contract is budgeted within the annual Aviation Division operating
budget. The estimated value of this contract is $1,750,000 over a ten-year period. The contract
will be executed for a five-year period, with up to five one-year renewal years. ICT capital
project costs are estimated to be an additional $295,000.  Total value is estimated at
$2,045,000. 
Although there will be limited subcontracting opportunities for this procurement, AV and CPO
will be coordinating with the Diversity in Contracting Department to maximize outreach to
potential MWBE firms capable of performing these services. 
Scope of Work 
The scope of work for this procurement incorporates the successful proposer providing the 
necessary hardware, software and data delivery processes to ensure the following data flow
to/from the Airport baggage systems. The Port will require the successful proposer to provide
BSM connectivity to all Port baggage system sortation software, configure equipment, test the 
BSM data flow prior to go-live and provide all hardware and software necessary to successfully
connect the systems. 

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

COMMISSION AGENDA  Action Item No. 6e                                  Page 3 of 6 
Meeting Date: April 23, 2019 

The specific items required are as follows: 
(1)   BSM (Bag Source Message) 
(2)   BTM (Bag Transfer Message) 
(3)   BPM (Bag Processing Message) 
This will enable airline baggage to sort properly across all Airport baggage systems for timely
loading of baggage on departing aircraft. 
Schedule 
The goal of this procurement will be to bid, award, test and implement a new BSM contract by
January 1, 2020. 
Activity 
Commission authorization                      2nd Quarter 2019 
RFP out to bid                                    2nd Quarter 2019 
RFP awarded                                3rd Quarter 2019 
Contractor begins installation and testing         3rd Quarter 2019 
In-use date                                       1st Quarter 2020 
Cost Breakdown                                     This Request           Total Project 
Project Management  ICT                                $295,000              $295,000 
BSM contract x 10 years                                  $1,750,000             $1,750,000 
Total                                                         $2,045,000              $2,045,000 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
The first two alternatives listed below are both viable but have inherent risks to the Port of
Seattle. Airlines have an expected level of BSM service that has been met with a high degree of
reliability but is not believed to be sustainable over an extended period of time. 
Alternative 1  Extend the current contract on a year-by-year basis. 
Cost Implications: Estimated range of $75,000 - $160,000 per year for a maximum of 2 more
years. 
Pros: 
(1)    The current vendor is a known entity having provided consistent service since 2015. 
(2)    The current vendor is familiar with our system sortation software, as they installed the
software under another competitive bid contract. 
Cons: 
(1)    The current contract does not include all necessary features that are needed for the
new baggage systems under construction through the Baggage Optimization Project
and the IAF. An amendment to the current contract would need to be negotiated to

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

COMMISSION AGENDA  Action Item No. 6e                                  Page 4 of 6 
Meeting Date: April 23, 2019 
incorporate those necessary changes. Changes include adding BSMs for two major
airlines not currently provided through the existing contract: Alaska Airlines and
Southwest Airlines. 
(2)    Due to the lack of a competitive process, this alternative may not be the most costeffective
option. 
(3)    The Baggage Optimization project and the IAF baggage system project will require
updated architecture or data feed requirements. A new testing period will also be
required.
This is not the recommended alternative. 
Alternative 2  Require airlines to provide their own BSM data connection to the Airport
baggage systems. 
Cost Implications: Estimated $100,000 annual cost for Port of Seattle additional FTE support.
Airline costs unknown. 
Pros: 
(1)    There would be very minimal ongoing costs to the Port for the BSM feed/service. No
common use BSM feed contract would be needed. 
(2)    Airlines would be responsible for their BSM feed/service. 
Cons: 
(1)    A large number of independent data feeds from Airlines would be required (25+).
Management of the 25+ independent feeds could become unwieldy. 
(2)   Potentially significant cyber-security issues and management challenges could result
due to the large number of entities involved. This could increase AV/Maintenance,
InfoSec and ICT costs to manage the multiple data feeds. 
(3)    Airlines may choose not to participate or may be unable to support their own BSM
feed, which could result in improper bag sortation and disruption to other Airlines and
airport operations. 
(4)    Requiring a BSM feed from each Airline may be a technological and financial barrier
for the Airline. 
(5)   Port would not have access to the data stream that provides significant information
for passenger and baggage operational effectiveness monitoring. 
This is not the recommended alternative. 
Alternative 3  Execute an RFP process to procure a BSM feed system and services for the next
10 years.
Cost Implications: $2,045,000 over 10 years, inclusive of Port ICT capital project costs. 
Pros: 
(1)    Port staff will be able to test the marketplace to determine the most cost-effective 
qualified provider available. Several known companies can provide a similar service for
BSMs. 

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

COMMISSION AGENDA  Action Item No. 6e                                  Page 5 of 6 
Meeting Date: April 23, 2019 
(2)    Port will have access to the data stream that provides significant information for
passenger and baggage operational effectiveness monitoring. 
(3)    Port staff will be able to schedule the transition, if necessary, to provide an overlap of
service. This will ensure no interruption in performance to our customers. 
(4)    Implementation will allow all current baggage systems and projects to operate under
a single contract. 
(5)    This  implementation  will  assure  commonality  throughout  the  construction  and
commissioning of the Baggage Optimization projects and the IAF baggage project. 
Cons: 
(1)    There is a risk that a new contract will exceed the existing contract pricing, increasing
costs to the Port. 
(2)    Implementation of a new contract with a new vendor may require a temporary
extension of the existing contract to ensure no service disruption. 
(3)    The Baggage Optimization project and the IAF baggage system project will require
updated architecture or data feed requirements. A new testing period will also be
required. All requirements are outlined in the RFP. 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary               Capital        Expense           Total 
COST ESTIMATE 
Original estimate                                   $295,000      $1,750,000      $2,045,000 
AUTHORIZATION 
Previous authorizations                                    0                0                0 
Current request for authorization                  $295,000      $1,750,000      $2,045,000 
Total authorizations, including this request                  0                0                0 
Remaining amount to be authorized              $295,000     $1,750,000     $2,045,000 
Annual Budget Status and Source of Funds 
The annual cost of $105,000 was included in the Aviation Division's operating budget. The cost
for each year of the contract is budgeted within the annual Aviation Division operating budget.
The funding source is the Airport Development Fund. The costs are fully recovered from airlines
through fees for use of the baggage system. 
Future Revenues and Expenses (Total cost of ownership) 
The 2019 forecast expenditure for Baggage Source Messaging (BSM) is $159,000. Future year
budget values will be based on the results of the RFP process going forward. If additional
funding is required in future years, the Aviation Division will be presenting a budget request for
the additional costs. The funding for BSMs will remain within the Aviation Maintenance
expense budget and the funding source will be the Airport Development Fund. 

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

COMMISSION AGENDA  Action Item No. 6e                                  Page 6 of 6 
Meeting Date: April 23, 2019 

ADDITIONAL BACKGROUND 
Early years (2005-2010) of BSM service experienced individual BSM feed failures that resulted
in  both  Alaska  Airlines  and  Delta  Airlines  choosing  to  install  redundant  BSM  feeds.  This
procurement will allow for provision of BSMs for all airlines and will provide the redundancy
required to minimize risk of sortation failure. 
ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
June 23, 2015  Item 4b  The commission authorized execution of a contract to supply
baggage source message data for a three-year duration. 













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