of Seattle'

COMMISSION
AGENDA MEMORANDUM                       Item No.        4e

CORRECTED ACTION ITEM                      Date of Meeting    February 28, 2017

DATE:    February 28, 2017

TO:       Dave Soike, Interim Chief Executive Officer

FROM:   Wayne Grotheer, Director, Aviation Project Management Group W

SUBJECT:  Project Management Services IDIQ Contract

Amount of this request:                       $0
Maximum value of contracts:        $15,000,000

ACTION REQUESTED

Request Commission authorization for the Chief Executive Officer to execute three professional
services  indefinite  delivery,  indefinite  quantity  (IDIQ)  contracts  for  Project  Management
Services in the amount of $5,000,000 per contract for a total of $15,000,000. There is no budget
request associated with this authorization.

EXECUTIVE SUMMARY

The Aviation  Project Management Group (AVPMG)  utilizes  IDIQ contracts to meet  highly
variable  workload  projections  for  project  management  services.  The  existing  project
management IDIQ contracts, valued at $5,000,000, have been fully committed. This request will
provide the necessary project management services to meet AVPMG needs for the next 5
years.

The workload demands on AVPMG are increasing; the Airport is adding approximately twenty-
four new capital projects each year. To support the increasing and  dynamic business
requirements of Sea-Tac Airport the project management group requires flexibility. The IDIQ
contracts  provide flexibility through  project specific service  directives that  allow  project
management services to be provided on an as-needed basis for a fixed period and a maximum
contract amount.

Competitively  procured  IDIQ  contracts  are  widely  used  public-sector  contracting  tools,
consistent with the Port's Master Delegation of Authority contained in Resolution No. 3605, as
amended by Resolution No. 3628, and governed by CPO-1 policy. The solicitation will include
requirements to utilize small businesses.

COMMISSION AGENDA - Corrected Action Item No. 4e                         Page 2 of 3
Meeting Date: February 28, 2017
JUSTIFICATION
Representative needs for contract project management services include: Terminal & Tenant
projects,  Airport  Dining &  Retail  tenant  Projects,  Landside,  NorthStar  and  Infrastructure
projects through 2019. We expect that other unidentified projects will come forward between
2017 and 2022 requiring the use of contract Project Managers.

DETAILS

Each contract will have a three year duration with two one-year options for a total ordering
period of up to five years. Service directives may be issued at any time during the contract-
ordering period. The total value of all service directives issued on a contract will not exceed the
$5,000,000 contract value.

Budgets to utilize these contracts will come separately from either annual operation budgets or
individual project authorizations.

ALTERNATIVES AND IMPLICATIONS CONSIDERED

Alternative 1  Status Quo  Do not hire additional Project Managers

Cost Implications: $0

Pros:
(1)    No costs
Cons:
'
(1)    Unassigned projects have to be prioritized & wait for staff availability

This is not the recommended alternative.

Alternative 2  Hire new full time Project Managers as needed to meet workload forecasts.

Cost Implications: $803,000 f0' one PM3 over a 5 year period

Pros:
(1)    Allows incorporation of pending AV staffing analysis (results expected 4/17)
(2)    Institutional knowledge is built by Port Staff
Cons:
(1)    Inability to rapidly match AVPMG  capacity with Airport requirements and  provide
timely completion of projects
(2)    Unassigned projects have to be prioritized and wait for staff availability
(3)    Limited knowledge of future projects at time of annual budgeting means mid-year
budget adjustments may be required

This is not the recommended alternative.

COMMISSION AGENDA - Corrected Action Item No. 4e                         Page 3 of 3
Meeting Date: February 28, 2017
Alternative 3  Prepare a single procurement to contract with three project management
services firms.

Cost Implications: $15,000,000 (5 year not to exceed contract)

Pros:
(1)    Ability to balance AVPMG skills and  capacity with Airport  requirements,  providing
timely completion of projects
(2)    Single contract procurement decreases administrative costs
(3)    Highest level of flexibility - PMs are added or removed as needed to meet demand
(4)    Provides more opportunities to management services firms
(5)    Provides opportunities to small businesses
(6)    Allows incorporation of pending AV staffing analysis
Cons:
(1)    Contract rather than Port Staff build institutional knowledge.
(2)    Cost is higher for consultants than staff with comparable experience
0   One Port FTE PM3 over a 5 year period cost $803,000 $183,000

0   One consultant PM3 over a 5 year period cost $2,255,000

This is the recommended alternative.

FINANCIAL IMPLICATIONS

The total estimated cost for project management services will not exceed $15,000,000. Each
contract will have a not-to-exceed threshold of $5,000,000. No work is guaranteed to the
consultants and the Port is not obligated to pay the consultant until a service directive is
executed.  After receiving authorization  for each  project in  accordance with the  Master
Delegation of Authority, the actual work will be defined and the Port will issue individual
project-specific service directives.

ATTACHMENTS TO THIS REQUEST

0   None

PREVIOUS COMMISSION ACTIONS OR BRIEFINGS

- September 22, 2014  The Commission authorized the execution of two professional
services IDIQ contracts for project management services. Total estimated cost was
$5,000,000
0   March 8, 2011 The Commission authorized the execution of two professional services
IDIQ contracts for project management services. Total estimated cost was $3,000,000