8f. Memo
Airport wide Window Cleaning Contract
COMMISSION AGENDA MEMORANDUM Item No. 8f ACTION ITEM Date of Meeting May 14, 2024 DATE: March 4, 2024 TO: Stephen P. Metruck, Executive Director FROM: Mike Tasker, Director, Aviation Maintenance Jinah Kim, Senior Manager, Aviation Maintenance SUBJECT: Airport-wide Window Cleaning Contract Amount of this request: $ 9,000,000 Total estimated project cost: $ 9,000,000 ACTION REQUESTED Request Commission authorization for the Executive Director to; 1) increase the value of the existing service contract for Airport-wide Window Cleaning at Seattle-Tacoma International Airport by $2,000,000 to complete the initial 5-year contract and 2) procure a new up-to 5-years contract starting in March 2025 for an estimated cost of $7,000,000. This commission authorization will allow the Executive Director to execute an up-to five-year window cleaning service contract through competitive procurement process at Seattle-Tacoma International Airport through February 2030. EXECUTIVE SUMMARY In 2019, Commission authorized a contact value of $3,000,000 for the airport-wide window cleaning services to be selected through a competitive procurement process. The 5-year contract was signed with a small minority business enterprise with an annual service cost to spend up to $1.2M. The authorization took place before the service was procured. With the service being new, the percentage of the work being completed in a year was unknown at that time. Moreover, the window cleaning contract started in March 2020 when the world went into the COVID-19 pandemic; therefore, there were significant budget cuts in the beginning of the contract term. The department negotiated and lowered the budget by 96% in 2020, and 75% in 2021 with full cooperation from the contractor. Template revised January 10, 2019. COMMISSION AGENDA – Action Item No. 8f Page 2 of 8 Meeting Date: May 14, 2024 A full-service year started in 2022, the contractor’s been successfully fulfilling the service up to 75-80% of the work annually since then. This request, for a contract authorization increase of $2M, will carry us through 2024, and until February 2025 to fulfill the full contract term commitment. The service will be advertised for a competitive procurement after that. Currently the annual cost is included in the Aviation Maintenance Department operating budget and captured in the department budget baseline; this request is for a contract authorization increase only. The requested commission authorization of $9M would support the following essential aspects of the service contract. 1. This request, for a contract authorization increase of $2M, will carry us until Feb. 2025 to fulfill the contract commitment for a small minority business enterprise. 2. Advertise, award, and execute Airport-Wide Window Cleaning Service contract in Q3 2024 competitively. The proposed pricing is expected to be higher due to inflation, an 8.66% increase in minimum wage since 2023, and cost of living increases. 3. The estimated cost captures the new facility coming online in the next 2 years such as North Main Terminal Renovation, Concourse A Building Expansion for Delta Sky Club, Concourse C expansion, Fire Station, and South Satellite Renovation. JUSTIFICATION Approval of this request will allow the Port to fulfill the contract obligation to the current small minority business enterprise. Approval of this request will allow the Port to procure market value Window Cleaning Service contract through a competitive process. Cleanliness of the Airport is one of the key areas of focus for the Aviation division, in its efforts to improve the overall experience of our customers, position SEA as a premier airport and advance the region as a leading tourism destination. One of the key elements of terminal cleanliness is the cleanliness of the large glass curtain wall systems in Central Terminal, IAF and IAF Suspended Bridge windows, Gina Marie Lindsey Arrival Hall, North Satellite, Exterior of Airline Lounges, and other parts of the airport that provide access to interesting and incredible views of the airport, airplanes, and surrounding region. As such, keeping those windows clean is an important component of this overall effort. The service includes not only the airport terminal buildings but also Airport Office Building (AOB) and other 16 standalone outlying facilities. New procurement of the service contract based on the current cleaning schedule and frequency based contracting model used, while adjusting the contracting authority to better align with actual costs experienced, will aid the Airport in meeting the standards set under increasing customer demands, the Port’s customer experience, economic growth and the women- and minority- business enterprise (WMBE) aspirational goals. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA – Action Item No. 8f Page 3 of 8 Meeting Date: May 14, 2024 Approval of this request will allow the Port to procure market value service in accordance with the Washington State’s prevailing wage structure will create more jobs, aid the Airport in meeting the standards set under increasing customer demands, the Port’s customer experience, Continuous Process Improvement (CPI), economic growth and the women- and minoritybusiness enterprise (WMBE) aspirational goals. Diversity in Contracting Aviation Maintenance Facility Service Contact Management staff is working with the Diversity in Contracting Department regarding setting the women- and minority- business enterprise (WMBE) aspirational goals for contracted work. A 35% WMBE goal has been set by the Diversity in Contracting Department for Airport-wide window cleaning service contract, based on that determination we anticipate achieving a similar aspirational goal in the new procurement. DETAILS The facility needs to be clean and well maintained to meet the Port’s customer experience expectations in support of the Port’s Century Agenda goal to advance as a leading tourism and business gateway of choice on the West Coast. The window cleaning at the airport is a high-risk task involving heavy equipment such as lifts, and boson’s chairs suspended from the roof anchoring system. The Port recognizes that high bay window cleaning was a unique specialty and decided to separate this service from the custodial contracts in 2017. The work requires multiple department coordination delivering lifts through from the Landside into Airside and airline cooperations to be on the Ramp with lift and the window cleaning staff is at the airport daily to complete annual cleaning cycle from 1 to 4 cycles based on customer demands. Port staff anticipate incorporating Labor Harmony language into the RFP for the service contract. Aviation Maintenance staff has been coordinating with Labor Relations staff and Legal staff on the specific language as each RFP is developed for the service contracts and will coordinate the same effort throughout the process. Scope of Work Increase contracting authority to fulfill the remaining work to support until February 2025. Advertise, award, and execute five-year Airport-Wide Window Cleaning service contract through a competitive process in Q3 2024 and begin a new service in March 2025 at Seattle-Tacoma International Airport to continue enhancing customer experience. New facilities that are underway, North Main Terminal Renovation, Concourse A Building Expansion for Delta Sky Club, Concourse C expansion, Fire Station, and South Satellite Renovation will be added to the scope of work as they become online in the next couple of years. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA – Action Item No. 8f Page 4 of 8 Meeting Date: May 14, 2024 Schedule The following schedule represents the key areas and current frequency of the window cleaning service at the airport. Cleaning Facilities / Locations Square Footage Frequency MAIN TERMINAL 82,072 CONCOURSE A: 118,749 A Concourse windows (AOB included) 104,094 x2 Delta Sky Club Lounge, Exterior only 8,865 x4 United Club Lounge, Exterior only 960 x4 Club at SEA, Exterior only 960 x4 A20 Hardstand Slopped Walkway 3,870 x4 CONCOURSE B: 40,189 B Concourse windows 35,593 x2 Centurion Lounge, Exterior only 960 x4 B20 Hardstand Walkway 3,636 x4 CONCOURSE C: 83,714 C Concourse Windows 78,421 x2 Alaska Airlines Lounge, Exterior only 1,351 x4 C2, C10/12 & C14 Hardstand Sloped Walkways 3,942 x4 CENTRAL TERMINAL: 24,505 CT Windows 4,432 x2 Central Terminal Window Curtain Wall 15,753 x4 Central Terminal above Checkpoint 3 (POSPD) 4,320 x4 CONCOURSE D: 26,659 D Concourse windows 19,673 x2 Alaska Airlines Lounge, Exterior only 2,072 x4 D6 Hardstand Sloped walkway 4,914 x4 SOUTH SATELLITE: 31,577 SSAT windows 17,784 x2 Delta Sky Club/British Air Lounge, Exterior only 2,605 x4 Club at SEA, Exterior only 1,536 x4 S1 Sloped Walkway 4,185 x4 S16 Sloped Walkway 2,492 x4 International Corridor 2,975 x4 Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA – Action Item No. 8f Page 5 of 8 Meeting Date: May 14, 2024 D HARDSTAND ANNEX 21,841 x4 NORTH SATELLITE: 104,137 NSAT Windows 95,220 x2 Alaska Airlines Lounge, Exterior only 8,917 x4 INTERNATIONAL ARRIVALS FACILITY 67,849 x2 AIRPORT GARAGE: 9,089 8th Floor Garage Elevator Lobby 1,906 x4 4th Floor Light Rail Walkway - Lexan Glass 2,877 x4 3rd Floor Garage - Tree Glass 2,275 x4 3rd Floor Shuttle Bus Stops - Tree Glass 1,401 x4 1st Floor NE Cruise Lot Lobby 630 x2 OUTBUILDINGS: 18,567 Air Cargo 4 1,515 x1 Air Cargo 4E 1,308 x1 Air Cargo 4S 640 x1 Bus Maintenance Facility (BMF)/Airport Transit Operations (ATO) 1,200 x1 Central Procurement Office (CPO) Logistics Trailer 658 x1 Customs Border Protection (CBP) 300 x1 Distribution Center (DC) 240 x1 Engineering (Water Tower) 270 x1 Fire Department 3,360 x2 Gate E-045 648 x2 Gate E-125 588 x2 Industrial Waste Treatment Plant (IWTP) 1,500 x1 Learning Center 1,800 x1 North Employee Parking Lounge 2,000 x2 Toll Plaza 1,870 x2 West Field Office / Survey Trailer 670 x1 TOTAL Window Square Feet 628,948 Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA – Action Item No. 8f Page 6 of 8 Meeting Date: May 14, 2024 The table below shows continuation of the exiting contract and new service start date: Commission Contracting authorization for 2024 Quarter 2 existing contract Existing Contract Continues 2024 Quarter 2 – Feb. 28, 2025 In-use date for New Window Cleaning March 1, 2025 Contract Cost Breakdown This Request Total Project Increase in Contracting Authority from Q2 $2,000,000. $2,000,000. 2024 - Feb 2025 New Contracting Authority from Mar. 2025 $7,000,000. $7,000,000. – Feb. 2030 Total $9,000,000. $9,000,000. ALTERNATIVES AND IMPLICATIONS CONSIDERED Alternative 1 – Suspend the service until new contract is advertised, awarded and executed. Cost Implications: $7,000,000.00 Pros: (1) This alternative saves the Port estimated cost of $2M for the next year and reduces workload for the Airport staff. Cons: (1) This alternative could allow legal issues and negative outcome in contracting. (2) This alternative would allow negative outcome in customer experience. (3) Thei alternative would allow contracted employee in a risk of losing jobs. This is not the recommended alternative. Alternative 2 – Request for contracting authority only for the new contract procurement and start a new service procurement immediately. Cost Implications: $7,000,000.00 Pros: (1) This alternative saves the Port $2M now. Cons: (1) This alternative does not save the Port in a long run. (2) New procurement under the current cost increase and lasting fear of inflation could cost the Port more than the fixed cost for the next year. (3) This alternative could take longer than 3 months the Port may need to suspend the service more than anticipated. (4) This alternative could potentially lay off contracted employees. This is not the recommended alternative. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA – Action Item No. 8f Page 7 of 8 Meeting Date: May 14, 2024 Alternative 3 – Approval on Contracting Authority increase by $2M for uninterrupted service and Approval on $7M Contracting Authority to Advertise, award and execute new 5-year contract in Q3 2024 for the new service to start on March 1, 2025. Cost Implications: $9,000,000.00 Cost Breakdown This Request Increase in Contracting Authority from Q2 $2,000,000. 2024 - Feb 2025 New Contracting Authority from Mar. 2025 $7,000,000. – Feb. 2030 Total $9,000,000. Pros: (1) This alternative allows for the Port to fulfill the existing contract with a small minority owned business enterprise. (2) This alternative allows the Port to continue the service without interruptions for customer experience. (3) This alternative provides opportunities to revise the current contract terms. Cons: (1) None. This is the recommended alternative. FINANCIAL IMPLICATIONS Cost Estimate/Authorization Summary Capital Expense Total COST ESTIMATE Original estimate for the 1st 5-year Svc Contract $0 $3,000,000 $3,000,000 Increase existing contract through February 2025 $0 $2,000,000 $2,000,000 New Contract March 2025 through February 2030 $0 $7,000,000 $5,000,000 Total Estimate through February 2030 $12,000,000 $12,000,000 AUTHORIZATION Previous authorizations for the 1st 5-year contract $0 $3,000,000 $3,000,000 Current request for authorization $0 $9,000,000 $9,000,000 Total authorizations, including this request $0 $12,000,000 $12,000,000 Remaining amount to be authorized after this $0 $0 $0 request Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA – Action Item No. 8f Page 8 of 8 Meeting Date: May 14, 2024 Annual Budget Status and Source of Funds The window cleaning service costs of $1,011,000 were included in the approved 2024 Aviation Maintenance’s annual operating budget. The funding source will be the Airport Development Fund. Future Revenues and Expenses (Total cost of ownership) N/A. ADDITIONAL BACKGROUND N/A. ATTACHMENTS TO THIS REQUEST (1) Presentation PREVIOUS COMMISSION ACTIONS OR BRIEFINGS March 26, 2019 – The Commission authorized the Executive Director to execute the Airport- Wide Window Cleaning for Seattle-Tacoma International Airport. Template revised June 27, 2019 (Diversity in Contracting).
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