Item No. 10b_ supp
Meeting Date: June 25, 2024

Post IAF Airline Realignment Construction
Authorization (CIP# 801158)

June 25, 2024

  Project Purpose:
Relocate United Airlines’ domestic only operations to Concourse B
and thus increase international gate capacity on Concourse A.
Scope of Work:                                                 CONCOURSE B




CONCOURSE A


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                  Requested Action
Request Commission authorization for the Executive Director to approve
(1) a total project budget of $154,500,000 and to allocate $85,800,000 of that
budget for the Post IAF Airline Realignment Project at Seattle-Tacoma
International Airport and
(2) to execute the Maximum Allowable Construction Cost Contract
Amendment, any related project change orders, amendments, work
authorizations, purchases, contracts, and to take any actions necessary to
support and deliver the project within the approved budget.
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                  Cone of Certainty
- 202406
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                Cost Breakdown
Cost Estimate/Authorization Summary
Current Budget                                                         $102,000,000
Budget Range per January 2024 Action                                $102M - $140M
Revised Budget                                                      $154,500,000
Budget Increase                                                        $52,500,000
Previous authorizations                                                       $55,100,000
Current request for authorization                                              $85,800,000
Total authorizations, including this request                                     $140,900,000
Remaining amount to be authorized
$13,600,000
(United Airlines Lounge remaining budget)

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             Reasons for Budget Increase
Greater than anticipated Design budget
•  Additional design packages to accelerate enabling work, incorporate building and accessibility code
deficiencies, and decouple Concourse B mechanical upgrades from delivery of airline realignment
scope.
•  A/E Negotiated Level of Effort includes weekly on-site coordination during the RFI and Submittal
process to mitigate schedule delays.

Greater than anticipated Construction budget
•  Temporary provisions to maintain existing operations, uncovered since Project Notebook, have been
identified through site investigation and design development.
•  Market conditions with bids received reflected higher costs than estimated at 60% design
development and can be attributed to increases in material and shipping costs, shortages in the
labor market and the complexity of the phased work.

             Reasons for Budget Increase
Greater than anticipated Construction costs ($36M)
•  Additional construction to address building and accessibility code deficiencies, aging infrastructure
and current Port Standards.
•  More temporary provisions to maintain existing operations
•  Bids received indicate changed market conditions with higher costs due to increases in material and
shipping, shortages in the labor market and the complexity of the phased work. Undesirable size of
bid packages created less bidder interest.
Greater than anticipated Design and other Soft costs ($16M)
•  Additional design packages to start enabling work sooner, address code deficiencies, and occupy
Concourse B offices sooner using temporary air handlers.
•  Additional on-site design staff to address early construction submittals and questions to mitigate
schedule delay risk.
•  Complexity of construction requiring additional resources

             Phased Schedule Delivery
Activity
Enabling Work Construction Start                           2024 – April 18
Airline Realignment Construction Authorization              2024 – June 25
Airline Realignment Construction Start                       2024 – September
In-use Date Concourse B offices and Concourses A&B gates  2025 – Quarter 3
In-use Date Concourse A offices                             2026 – Quarter 1


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             Concourse B Cross Section

                   Concourse B Ramp




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              Sustainability Framework
•  Environmental Regulatory               EQUITY STRATEGIES
Compliance Tier 2 Project             •  Gender Neutral Restrooms (non-public facing)
•   New safe & accessible interior corridor
•   Improved employee access to daylight at ramp
•  Met with Sustainability,
CARBON/ENERGY STRATEGIES
Environment, and Climate (SEAC)      •  Improved efficiency with updated controls
Committee on 05.08.24              •  Gas water heating replaced with electric
•   Exterior envelope thermal improvements
•  Equity, Carbon/Energy and              MATERIALS STRATEGIES
•   Polyvinyl chloride (PVC) material removed from
Materials Strategies incorporated        specifications
into design and included in            •  Emphasis on recycled materials that meet high
construction costs.                       standard of durability
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                     Project Risks
RISK                           DESCRIPTION                      PROBABILITY    IMPACT                  MITIGATION PLAN
Unforeseen Existing Potential impacts to underground utilities and other                                    Demolition activities for enabling scope have
Conditions          existing systems.                                                                    commenced in advance of the airline realignment
scope to allow more time for resolution of impacts
M       H
identified. Additionally, 3D modeling coordination is
ongoing to resolve conflicts in Mechanical and
Electrical scope.
Impact to           Construction activities take place in and adjacent to                                    Detailed phasing and operations discussions with
Airport Operations  existing operations.                                                                   Port Facilities and Infrastructure, airlines and other
L              M      stakeholders have informed the design and
construction schedule to avoid impacts from project
work.
Electrical             Electrical and mechanical component lead times may be                                     The project team has identified these components
Component Lead   long and need to be ordered at an appropriate time to          L            L     and accelerated design and procurement to facilitate
Times             efficiently maintain schedule.                                                   delivery to meet current construction schedule.
Complex Phasing    Project in coordination with multiple projects including                               Cross project coordination will be on-going
Airfield Improvement Program, Baggage Optimization            L             M      throughout construction. The GCCM has included
Program, and CHIRRP                                                              float in the schedule to mitigate this risk.

         QUESTIONS/DISCUSSION


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