Item No.:                  7a_supp_b 
Meeting Date:           January 13, 2015 
International Arrivals Facility
(IAF) 
Program update 


1

IAF 
Procurement Plan 
Program budget for procurement confirmed 
$608M 
Including $43M WA State Sales Tax 
Excluding Concourse A Sterile Corridor extension 
Request for Qualifications issued and
Statements of Qualifications received 
Positive response 
Selection of finalists in process 
Return next session to request Commission
authorization to issue RFP to finalists 
2

IAF 
Application of WA Sales Tax 
$565,000,000  Estimated Program Cost 
$43,000,000  WA State Sales Tax 
$608,000,000  IAF Program Budget 
Sales tax calculated on Design/Builder's design
services and General Conditions 
Current interpretation requires approx. $13M more
taxes paid than Design-Bid-Build delivery 
3

IAF 
Exclusion of Sterile Corridor Extension 
Cost savings measure     Planning forecasts
taking advantage of       needed soon after
Design Build delivery      IAF opening 
method             Forecast based on
Current estimated cost:     current load
$18.7M              projections 
Load projections
will change over
time 

4

IAF 
Delivery Approach Next Steps 
Design Build Team Selection 
(Q2, 2015) 
Validation Phase 
(Q3, 2015) 
Intensive verification by DB of program and existing conditions 
Guaranteed Maximum Price Development Phase 
(Q4, 2015 - Q2, 2017) 
Design and construction for initial project needs 
Overall design proceeds 
Initial and base construction 
Post GMP Phase 
(Q2, 2017  Q2, 2020) 
Final design and construction completion 
5

IAF 
Delivery Approach Cost Controls 
Design Build Team Selection 
RFP Criteria 
Management Approach 
Subcontracting Approach 
Contract Terms 
Design/Construct to Budget 
Design/Builder Reporting 
Verifiable (open book, cost based) 
Oversight by IAF Team 

6

IAF 
Delivery Approach Cost Controls 
Validation Phase 
Risk shifts to DB for validated site conditions 
Agreement on Basis of Design 
Agreement on Target Budget 
Agreement on Target Schedule 
Subcontracting Plan 
"Off-ramp" if parties cannot agree or Program
"bust" discovered 

7

IAF 
Delivery Approach Cost Controls 
GMP Development Phase 
Major design decisions made early, Port
controls 
Prequalification of subcontractors 
Best value competitive selection 
Port decides when to establish GMP 
Third party verification 
Agreement on substantial completion date 
Final Basis of Design Documents received 
8

IAF 
Delivery Approach Cost Controls 
Post -GMP Phase 
DB has discretion to complete design per the
Final Basis of Design Documents 
Guaranteed Maximum Price 
Can only be changed via Change Order 
Price confidence earlier than with DBB or GCCM, at
about 60% design 

9

IAF 
Delivery Approach Cost Controls 



10

IAF 
Delivery Approach Cost Controls 
Payment Methods 
Cost of the Work: actual reimbursable costs 
Fee: competitively bid percentage 
Fixed Fee: may be set at end of Validation Phase 
Insurance/Bonding Multiplier: competitively bid 
Personnel Multiplier: competitively bid 
Not To Exceed Sum: early trade package "mini GMP" 
Lump Sum: agreed sum for specific scope of work 
Hourly Rates: competitively bid for key personnel 
Performance Incentive Plan: periodic assessment 
11

IAF 
Future Commission Action 
Staff will return on January 27th to request
authorization to issue RFP to shortlisted
finalists in Design/Builder Team
procurement 


12