PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      7a 
STAFF BRIEFING 
Date of Meeting     January 13, 2015 
DATE:    January 6, 2015 
TO:     Ted Fick, Chief Executive Officer 
FROM:    Frederick Robinson, Program Leader, Aviation Project Management Group 
Michael Ehl, Director, Aviation Operations 
Dave Soike, Director, Aviation Facilities and Capital Programs 
SUBJECT:  Update on the Airport's International Arrivals Facility Program 
SYNOPSIS 
Replacing Seattle-Tacoma International Airport's  existing overburdened Federal
Inspection Services (FIS) facility with a modern, efficient International Arrivals Facility 
(IAF) is a critical part of realizing the Port's Century Agenda objective to accommodate
growth of international traffic, improve the level of service for Airport users, and increase
competitiveness with peer airports. 
The Capital Development Division will brief the Commission on the following project topics: 
Overall budget  budget has risen to include additional state sales tax 
Near-term schedule steps ahead  a request to select, but not yet contract with, a 
design-build team 
Cost control tools  several techniques will be employed to contain costs as the
project moves forward 
The Airport Division will brief the Commission on the following topics: 
Adjustments to the capital budget to accommodate the cost increase of the IAF 
Update on Airport-wide plan of finance and financial implications 
Policy issue inherent in the allocation of funding sources by cost center and the
resulting impact on airline rates 
On December 24, 2014, the Port received statements of qualifications (SOQs) from
design-build teams pursuing the IAF design build contract. Port staff will return on
January 27, 2014, to request authorization by the Commission of the next step in the Port's
procurement of that contract  issuing a request for proposals (RFP) to a short list of
finalists selected from those who submitted SOQs. 



Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
January 6, 2015 
Page 2 of 4 
BACKGROUND 
The IAF program consists of a single capital project for design and construction of a new
IAF located landside of Concourse A to replace the existing facility at the South Satellite.
This project will also construct a secure International Corridor at Concourse A for arriving
international flights and a bridge for passengers to walk from the existing International
Corridor at the South Satellite to the new facility. 
TOTAL PROGRAM BUDGET 
At the December 2, 2014, Commission meeting, the IAF total program budget was
presented as $596 million. That reported figure must be revised based on resolution of
applying Washington state sales tax to this progressive design build (PDB) contract and is
set at $608 million. The increase is necessitated by a legal interpretation that design
service fees would be taxed under this project. While under traditional design-bid-build
models design services are not taxed, they are taxed under the design-build model because
design is so integral to the construction process. Direct construction cost is taxed under
either type of delivery model.
This briefing will also provide an answer to the question raised during the December 2
Commission meeting discussion, whether the IAF program should include extension of
the Concourse A Sterile Corridor in order to meet the forecasted increase in international
services in the foreseeable future.  Owing to the flexibility provided by the PDB
contracting approach and the unsure nature of the forecast, staff recommends not
including the sterile corridor extension in the current program. I t is not included in the
$608 million budget.  Instead, staff has identified the sterile corridor extension as a
potential scope addition later as the design progresses and as more becomes known about
the likelihood of additional international services at peak hour.
STAKEHOLDER SUPPORT 
The airlines have participated in confirmation of the IAF program definition as described
to the Commission in the December 2, 2014, briefing. In a meeting with the Airport and 
Airline Affairs Committee on December 17, 2014, the Airport noted that the budget
increase for the IAF will require a majority-in-interest vote that is anticipated to occur in
the first few months of 2015 prior to the Commission approving any contractual
agreement with the final selected design builder.
The Port has confirmed participation and support from critical stakeholders, most notably,
U.S. Customs and Border Protection (CBP). CBP is working with the IAF team to define
a pilot program that will empower the project to explore innovative technologies in design
and establish protocols that will support and facilitate a successful PDB project delivery
approach.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
January 6, 2015 
Page 3 of 4 
PROCESS & COST CONTROLS SPECIFIC TO PROGRESSIVE DESIGN BUILD 
The progressive design build project delivery approach has unique cost control methods.
Those controls are established in the contract and the management of it. Since this is the
first large-scale Port project to be contracted using this approach, the Port has engaged a
qualified and experienced program management team and an expert contracting support
consultant with PDB specialization.
The management controls outlined in the attached Risk Allocation Memorandum from
Thaxton Parkinson LLC are framed as part of the design-build team selection process,
defined and established in the validation phase and practiced in the phases marked as preand
post-agreement on the guaranteed maximum price. 
CAPITAL BUDGETING AND FUNDING RELATED TO THE IAF 
An update outlining the most recent discussion with airlines, and description of
recommended changes to the existing five-year capital budget to make room for increases
in the IAF cost estimate will be presented. The update to the Airport plan of finance
(including funding of the IAF project) is very complex in that it includes many variables,
each of which will have effects upon several categories of Airport rates and charges.
Therefore, multiple scenarios will be developed and presented in order to underline the
pros and cons of different approaches to updating the plan of finance. Staff will give a
verbal update on the progress of this in-depth work; but as of the time of this writing, it is
not anticipated that staff will have sufficient time to fully engage the airline stakeholders
in order to present a full and finished analysis by the time of this briefing. Therefore, a
second public Commission briefing will be made when the analysis is ready but prior to
the Commission having to take action that will commit further funding to the project.
ATTACHMENTS TO THIS BRIEFING 
Aviation Capital Budget Update slide presentation 
CDD IAF Program Update slide presentation 
Risk Allocation Memorandum from Thaxton Parkinson LLC 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
December 2, 2014  IAF Scope and Budget Update. 
October 28, 2014  IAF Q3 Quarterly Briefing. 
August 19, 2014  IAF Q2 Quarterly Briefing. 
August 5, 2014  IAF RFQ Advertisement. 
July 22, 2014  IAF Progress Briefing. 
June 10, 2014  IAF Update and Quarterly Briefing. 
May 6, 2014  IAF Project Delivery Briefing. 
April 22, 2014  Capital Program Briefing. 
March 11, 2014  IAF Master Planning authorization.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
January 6, 2015 
Page 4 of 4 
February 25, 2014  IAF Program Briefing. 
November 19, 2013  International Arrivals Facility Construction Management,
testing and inspection; surveying and locating and safety service agreements. 
July 23, 2013  International Arrivals Facility Project & Program Support; and
Price Factor Design Build Methodology authorization. 
July 9, 2013  Sea-Tac Airport International Arrivals Facility Briefing. 
July 9, 2013  Alternative Public Works Contracting Briefing. 
April 9, 2013  Sea-Tac Airport International Arrivals Facility Briefing. 
June 26, 2012  Briefing on Airport Terminal Development Challenges at Seattle-
Tacoma International Airport. 
June 14, 2011  International Air Service Growth and Future Facility briefing. 
February 2, 2010  Briefing on South Satellite Passenger Growth and Facility
Considerations, Delta's Proposed Airline Lounge and Other Possible Future
Aviation Projects.