PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.       4j 
ACTION ITEM 
Date of Meeting      July 12, 2016 
DATE:     July 5, 2016 
TO:       Ted Fick, Chief Executive Officer 
FROM:    Jeffrey Brown, Director AV Facilities and Capital Program 
Wendy Reiter, Director, Aviation Security and Emergency Preparedness 
Wayne Grotheer, Director, Aviation Project Management Group 
SUBJECT:   Baggage Optimization Authorization for Construction Phase 1 (CIP #C800612) 

Amount of This Request:      $115,000,000   Source of Funds:  Airport Development
Fund, TSA Federal 
Est. Total Project Cost:        $319,050,000 
Funding and revenue
bonds 
Est. State and Local Taxes:       $8,788,000 

ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to (1) advertise and execute a
contract for the first phase of construction for the Baggage Optimization Project at Seattle-
Tacoma International Airport at an estimated cost of $115,000,000; (2) amend Service
Agreement P-00317641 in the amount of $3.5 million for a total contract value of $21,500,000 to
include construction support; (3) execute contracts for the purchase of equipment and TSA
baggage inspection tables; and (4) utilize Port crews and small works co ntracts to perform
construction work. 
SYNOPSIS 
This project will optimize the outbound baggage handling system at the Airport and allow the
Airport to meet current and future growth needs. The Commission earlier authorized design
work, which has now been broadly completed. This is the first construction request, of fou r
requests over the next five years, to advertise construction bids to modernize the aging baggage
system at the airport. This work is necessary to provide good customer service to both the 50,000
plus travelers who depart through the airport each day and to our growing airline partners. The
airlines have earlier approved this project via a Majority and Interest vote totaling $317 million
for the scope of work identified. Airline representatives have continuously participated in the
design process. No additional airline approvals are necessary. 


Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 5, 2016 
Page 2 of 9 
Today's request seeks authority to advertise and execute the first construction contract, to amend
a baggage consultant agreement to include construction phase services now that the construction
work has been defined, and to make equipment purchases and perform preliminary enabling
work to clear areas and speed work for the coming contractor activities. 
Baggage projects are often behind the scenes from traveler areas in the airport terminal. In order
to make the baggage authorizations more transparent, staff has progressively briefed the
Commission several times, in addition to earlier design authorizations  the most recent ones
being May 17, and June 28 with another planned before bids are opened. 
The completed project will provide operational flexibility for the airport to send outbound bags
from any ticket counter to any gate while saving on energy usage for every section of conveyor
and motor. The project will also provide greater efficiency for the Transportation Security
Administration (TSA) in ensuring that bags are safe to load on the aircraft. TSA staff has 
reviewed designs multiple times and have approved  the designs for construction. Our
cooperation with the TSA includes their $93 million grant toward the total project cost. TSA
Leaders have earlier traveled to Seattle to testify before the Commission to voice their support
for the project. 
This request to advertise for bids is the culmination of work since 2012 to get this long-range 
project underway in order to meet the consecutive year double-digit traveler growth at our
airport. The huge growth will ultimately drive more baggage needs, and those will be part of
later separate authorizations and part of the master planned additional future concourses to serve
additional aircraft gates. 
BACKGROUND 
The highly utilized and aging baggage conveyor system is one of the most complex systems in
the Airport. All baggage-screening systems were modified in rapid fashion immediately after the
events of September 11, 2001; however, there are remaining portions of the systems that are over
25 years old.
In its current state, the Airport's baggage system is not a single system, but rather many separate
systems. After the events of September 11, modifying the separate systems was the best way to
rapidly increase security. At the time, each separate system was designed to include a nominal
amount of passenger growth. Over the ensuing years as specific airline needs emerged or as
airlines were relocated, the separate systems have been updated to meet the carriers' specific
operating needs. Although various baggage projects have been implemented to address operating
needs over the years, the systems continue to have limited capacity to meet both near and longterm
growth needs of the Airport.
The Airport is faced with three problems: 1) the existing separate systems have major
subsystems, such as controls, that are aging and must be replaced; 2) there is limited ability for
the current systems to be expanded in their current configuration to adequately meet growing
passenger demands; and 3) separate systems lack interconnectivity between ticket counters and

Revised March 28, 2016

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 5, 2016 
Page 3 of 9 
all of the aircraft gates. Passenger growth is expected to continue. This is a major and near -term
challenge for the Airport due to both the complexity of keeping operations on going during
construction and major space constraints on expanding the systems' capacity to meet future
growth. 
The Airport is fortunate that the TSA invested to improve their operations in Sea-Tac, yet having
multiple screening systems in six locations results in the TSA having higher operating costs than
what they will have with a consolidated baggage system. Therefore, the Baggage Optimization
project is designing the new system to accommodate Port of Seattle needs for operational
flexibility while meeting the TSA needs for modern baggage screening equipment and reduced
operating costs for baggage screening. Airport and TSA staffs have been working cooperatively
during design. The TSA has approved the 100% design of the optimized system and is a costshare
partner. 
The comprehensive design incorporates a single centralized screening area that is located in the
middle of the existing terminal. The central screening area will occupy 21,000 square feet of the
existing basement level and 28,000 square feet of the existing apron level, with the necessity to
construct a building extension for an additional 3,800 square feet. The optimized design is based
upon a common use outbound system where any bag can be inserted anywhere in the system,
screened, sorted, and sent to any destination. This provides Aviation Planning and Operations
flexibility since any airline can be relocated anywhere within in the ticketing lobby and among
aircraft gates without requiring baggage system changes. 
PROJECT JUSTIFICATION AND DETAILS 
The checked baggage optimization project replaces the six individual baggage-screening systems
with a centralized system that optimizes the operation and functionality of the baggage system.
The purpose of this project is to optimize the baggage system to achieve the maximum outbound
baggage capacity within the current airport footprint. 
When complete, this project will have achieved the following outcomes: 
Increased outbound system capacity to 45 MAP 
Increased system reliability, redundancy, and security 
Flexibility in Airline ticket counter use and related gate assignments 
Reduced minimum connect times where possible 
Long term energy savings 
This is the first of four phases of construction for the Baggage Optimization project. The
majority of this work will be complete by a major public works construction contract, advertising
in the fourth quarter of 2016 and beginning construction in the second quarter of 2017. By
completing work in phases, the project can use the lessons learned from one phase and apply
them to the next. The construction contracts are also priced in the ranges where contractors that
do this type of work are able to secure bonding and insurance. 

Revised March 28, 2016

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 5, 2016 
Page 4 of 9 
The project team has identified elements of work that Port crews and small works contractors
can perform prior to the major contract. By completing this "pre-work" construction, the project
will be able to meet this accelerated schedule. 
TSA is funding a $93,220,422 reimbursement through an Other Transaction Agreement (OTA)
for the total project. The project team has estimated the approximate OTA reimbursement for
Phase 1 will be $40,000,000. 
The Port has contracted with BNP Associates for design of the baggage optimization project. It is
necessary to amend this contract to add an additional $3.5M for design construction support
during construction from 2016 thru 2019. This Service Agreement increase is within
Commission authorized project spending. In accordance with RCW 53.19, the Commission is
notified that this amendment exceeds 50 percent value of the original contract and this
memorandum will be made available for public inspection. 
Project Objectives 
Replace Explosives Detection System (EDS) equipment that has reached the end of its
useful life. 
Meet TSA federal mandates for Electronic Baggage Screening Program. 
Leverage federal improvements to provide expandable capacity to meet Airport longterm
growth needs. 
Incorporate sustainability, including energy efficiency, into our baggage system. 
Minimize impact to airlines throughout construction. 
Scope of Work 
The following work has been designated for Port Construction Services to perform in order to
accelerate the project schedule. By performing this work ahead of the major contract, the project
is able to accelerate the schedule by approximately 5 months. 
This "pre-work" will consist of the following items: 
Install new makeup device MKN3 and associated conveyor feed lines to the device. 
Complete demolition of existing conveyor in the right of way. Consisting of Claim 13
feed and C1-TX4 transfer input conveyors. 
Complete testing, activation, TSA equipment relocation, and miscellaneous demolitions
items. 
Renovate existing C88 odd size conveyor system to provide new north odd size 
subsystem. 
Port will purchase all necessary conveyor equipment and bid programming and controls
contract for the pre-work package. 
Assist Horizon Airlines in moving operational equipment to the new make-up device. 

Revised March 28, 2016

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 5, 2016 
Page 5 of 9 
The Baggage Optimization Phase 1 package will be contracted as a major construction contract
and will consist of the following items: 
Demolish C94 conveyor and make-up subsystems 
Install 8 new EDS machines. 
Construct new building extension and associated structure in front of Central Terminal. 
Construct new centralized Check Baggage Resolution Area (CBRA) for TSA. 
Construct new conveyor systems to feed the new EDS machines. 
Connect existing ticket counter zones to the new Check Baggage Inspection System
(CBIS) 
Install temporary baggage sortation and manual encoding operations. 
Provide new upper and lower level controls system for the baggage handling systems. 
Construct new Maintenance breakrooms and locker rooms. 
Construct new TSA breakrooms. 
Construct new elevator pits and structural modifications in coordination with ADR
program. 
Install new baggage handling control room. 
Modify existing ramp to new concession storage area. 
Modify the electrical infrastructure to meet new demands. 
Modify the mechanical infrastructure to meet new demands. 
Perform testing, activation, and TSA required certifications. 
Schedule 
Commission Authorization Construction Phase One:                 3rd Quarter 2016 
Construction Complete Phase One:                           3rd Quarter 2019 
Substantial Completion entire project:                            4th Quarter 2023 

FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                      $4,850,000     $150,000    $5,000,000 
Budget Increase                     $312,150,000          $0   $312,150,000 
Budget Transfer from C800638            $3,400,000         $0    $3,400,000 
Pending Budget Transfer back to C800638    ($1,500,000)         $0   ($1,500,000) 
Revised Budget                    $318,900,000     $150,000   $319,050,000 
Previous Authorizations                $20,225,000     $150,000   $20,375,000 
Current request for authorization           $115,000,000          $0   $115,000,000 
Total Authorizations, including this request   $135,225,000      $150,000   $135,375,000 
Remaining budget to be authorized        $183,675,000          $0   $183,675,000 
Total Estimated Project Cost            $318,900,000     $150,000   $319,050,000 


Revised March 28, 2016

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 5, 2016 
Page 6 of 9 
Project Cost Breakdown                     This Request       Total Project 
Design Phase                             $7,303,000        $29,095,219 
Construction Phase                         $98,909,000       $268,029,930 
State & Local Taxes (estimated)                  $8,788,000        $21,924,851 
Total                                    $115,000,000        $319,050,000 
Budget Status and Source of Funds 
This project, C800612, was included in the 2016  2020 capital budget and plan of finance. The
funding sources will include the Airport Development Fund, TSA funding ($93,220,422) and
future revenue bonds. 
Financial Analysis and Summary 
CIP Category             Renewal/replacement 
Project Type              Renewal/replacement 
Risk adjusted discount rate     N/A 
Key risk factors             N/A 
Project cost for analysis        $227,550,000 (total less $93 million from TSA) 
Business Unit (BU)          Terminal, Baggage Handling Systems 
Effect on business performance  N/A 
IRR/NPV             N/A 
CPE Impact             .71 by 2023 
Lifecycle Cost and Savings 
Standardizing certain equipment through the four phases of the project is necessary in order to
reduce the total cost of ownership (TCO). The project team has been engaged with the
Procurement Excellence Team to define critical components for possible standardization and
developing procedures to solicit and evaluate bids based on TCO. These methods may increase
the initial cost of equipment but save money over time through fewer repairs, less costly 
maintenance, reduced inventory, and better functionality. This process has allowed Maintenance
and Operations to provide critical input as well as enable the evaluation of environmental goals. 
STRATEGIES AND OBJECTIVES 
This project promotes the Port's Century Agenda objectives to make Sea-TacAirport the West
Coast "Gateway of Choice" for international travel, meet the region's air transportation needs at
Seattle-Tacoma International Airport for the next 25 years, and encourage the cost-effective
expansion of domestic and international passenger and cargo services. 
Currently, there is a unique opportunity with TSA reimbursing the Airport for $93,220,422: 
This project will modernize Airport baggage systems, allowing the Airport to grow
efficiently and foster business and leisure travel. 
After optimization, TSA equipment and ongoing costs will be reduced. 

Revised March 28, 2016

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 5, 2016 
Page 7 of 9 
New system will allow for all airline growth and flexibility to relocate within the terminal
in the future. 
Environmental Responsibility 
Optimization allows for fewer machines, which results in decreases to energy demand at the
Airport. It also allows opportunities to improve controls and add high efficiency conveyor
components for additional energy savings. The design will provide opportunities to reduce
Airport lifecycle costs, improve operational efficiency, shorten passenger connecting time
between flights, and minimize energy consumption.
In the past 10 years, the baggage industry has made major strides in energy efficiency. These
efficiencies can save upwards of 30 percent in energy consumption. These energy savings are
based on high-efficiency drives, improved belting materials, and smarter control algorithms. For
example, using variable frequency drives eliminates the use of high-maintenance clutch brake
drive systems for energy and labor savings. High-efficiency gearboxes will further decrease
energy consumption as well as lengthen replacement intervals further reducing our
environmental footprint.  Smart controls will increase operational efficiency by starting
conveyors and subsystems only when needed.  By using higher efficiency motors, energy
consumption can be reduced by two methods; first by reducing energy consumption with higher
output torques and second by giving the ability to size smaller motors to run larger conveyor
subsystems. 
Community Benefits 
This project will help enable airline activity to grow at the airport, and that helps increase vitality
across neighboring communities.
Increased reliability and decreases in the instances of missed bags will improve customer
service with the Airlines. 
Optimizing baggage systems will better serve the region's transportation needs at Sea-
Tac as the Airport continues to grow. 
The project team is working with the Port's Economic Development Division's Small
Business team to establish an appropriate small business requirement on the construction
contract.
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1 - Suspend project effort and not proceed with this project. 
Cost Estimate: $15.7 million (expense) 
Pros: 
No additional capital expenditure. 
Cons: 
Airport is left with aging baggage system that cannot keep up with current passenger
volumes and anticipated growth. 
Current design would be expensed at a cost of approximately $15.7 million. 

Revised March 28, 2016

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 5, 2016 
Page 8 of 9 
Loss of the remaining TSA OTA funding of $87.6 million. 
Defaulting on current OTA agreement with TSA. 
This is not the recommended alternative. 
Alternative 2 - Do not phase construction, and bid comprehensive design as one package.
Include design construction support, and PCS/ Small Works pre-work. 
Cost Estimate: $320 M 
Pros: 
Eliminate need to standardize equipment across multiple construction contracts. 
One contractor would complete all four phases, ensuring consistency, reducing
mobilization costs and schedule impacts, and eliminating the learning curve between
contractors as one would become familiar with all phases. 
Reduced procurement costs due to only one bid. 
Cons: 
Likely reduced number of bidders  in June 2015, potential bidders stated they may
not have bonding capacity for a project of this magnitude and duration. 
The project will need more time to prepare for advertisement as it is currently
prepared to advertise only for Phase 1 work. 
Missed opportunity to implement lessons learned between phases. 
Limits flexibility to make design modifications between phases. 
This is not the recommended alternative. 
Alternative 3 - Authorize Phase 1 construction, PCS pre-work, and amend service agreement for
construction support. 
Cost Estimate: $115 M 
Pros: 
PCS Pre-work can be completed to accelerate project completion. 
Designer's intent can be communicated throughout submittals, RFI responses and
change orders by allowing Engineer of Record to provide construction support. 
Phasing the project allows for the greatest number of potential bidders. 
Opportunity to incorporate lessons learned into future phases. 
Cons: 
Creates the possibility of four different contractors (and four different equipment
types), standardization of some baggage system components will be necessary. 
This is the recommended alternative. 

Revised March 28, 2016

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 5, 2016 
Page 9 of 9 
ATTACHMENTS TO THIS REQUEST 
Computer slide presentation. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
June 28, 2016 Baggage Program Briefing. 
May 17, 2016  Checked Baggage Optimization Project Briefing. 
March 8, 2016  Commission authorization for the Chief Executive Officer to amend the
Baggage Optimization Design Services contract. 
June 23, 2015  Checked Baggage Optimization Project Briefing. 
September 10, 2013  The Commission authorized the execution of an Other Transaction
Agreement (OTA) with TSA for reimbursable costs for design; construction, and to
authorize $15 million to continue from 30% to 100% design; and execute a consultant
service agreement for program management support services. 
August 20, 2013  Response to questions from Commissioners asked during August 6,
2013 Commission Meeting. 
August 6, 2013  The Commission was briefed on the near-term and long-term
challenges related to handling checked baggage at the Airport. 
January 22, 2013  The Commission authorized $5 million for staff to begin design
through 30%, and to enter into an agreement to allow reimbursement from the federal
government to the Port for eligible elements of the 30% design effort. 
January 8, 2013  Baggage Systems Briefing. 
August 14, 2012  Baggage system recapitalization/optimization was noted in the 2013
business plan and capital briefing as a significant capital project not included in 2013-17
capital program. 
August 7, 2012  Baggage system recapitalization/optimization was referenced as one of
the drivers for the need to develop an Airport Sustainability Master Plan. 
June 26, 2012  The Airport's baggage systems were discussed during a briefing on
terminal development challenges. 
May 10, 2012  TSA's interest in a national recapitalization/optimization plan for all
baggage-screening operations was referenced in a design authorization request for the
C60-C61 Baggage Handling System Modifications Project. 





Revised March 28, 2016