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Memorandum
Page 1 of 1

PORT OF SEATTLE
MEMORANDUM

DATE:   December 12, 2014

TO:     Port Commission
Theodore J. Fick, Chief Executive Ofcer

FROM:   Ralph Graves, Managing Director Capital Development Division
Kurt'Beckett, Deputy Chief Executive Ofcer

SUBJECT: Notification that the Port intends to increase the value of Service Agreement
P000317908 with Mercator International by an additional $125,000.

NOTIFICATION

This Memo serves as notication that the Port approved a Second competition waiver to amend
an agreement with Mercator InternatiOnal by an additional $125,000 for a new contract total of
$400,000.
The work Mercator has performed to date helped to facilitate the formation of an Alliance with
the Port of Tacoma and the Port of Seattle. The work of this amendment will support the needs
of the Alliance in strategic planning, due diligence and decision making and, support submittals
to the Federal Maritime Commission.
Executing this amendment will increase the contract value above the $300,000 authority limit.
The need to have Mercator International perform work is critical and immediate. The approval
of this action is justied under Resolution 3605 Section 4.2.3.7 Authorization for Critical Work
which reads, in part, ".
.
.the Commission authorizes the CEO to spend up to Five hundred
Thousand Dollars.
.
.The CEO shall have authority to spend the funds if. . .(ii) any delay in
addressing the situation will likely result in signicant cost increases or adverse schedule
impacts to the Port, other public agencies or private property owners, and, (iii) where prior
Commission authorization cannot, even on an expedited basis, be obtained..." Per the
procedures of Resolution 3605, staff will present a memorandum to ratify this action at the
January 6, 2015 Commission meeting.
The amendment is justied under Resolution 3605, Section 6.5 Competition Waivers. This
section reads, in part, "The CEO is authorized to approve competition waivers consistent with
applicable federal and state laws andinternal Port policies..." The condition that applies here is
Condition (iv) which states, in part, "has exclusive knowledge that was provided during a prior
phase of the contract or project..."
Please see the attached Competition Waiver for additional details.

Per the requirements of RCW 53.19.060 Commission is also notied that this amendment will
increase the contract in excess of 50% of its original value.

Memorandum
Page 1 of 2 

PORT OF SEATTLE
MEMORANDUM

DATE:   December 12, 2014

TO:     Ralph Graves, Managing Director, Capital Development Division
Craig Watson, General Counsel
Nora Huey, Director, Central Procurement Ofce

FROM:   Kurt Beckett, Deputy Chief Executive Ofcer

SUBJECT: Requesing a second competition waiver to amend Service Agreement P-
00317908 with Mercator International by an additional $125,000.

JUSTIFICATION FOR INCREASING SERVICE AGREEMENT VALUE

This is a second competition waiver to amend an agreement with Mercator International by
$125,000 for a new contract amount of $400,000. A competition waiver was previously
requested on August 21, 2014 (attached) to amend the contract by $76,000, which increased the
value to $275,000.

The Ports entered into a contract with Mercator International, LLC to analyze the current
international container situation, the competitive landscape, and consider ways in which the
Puget Sound Ports can position themselves to retain and grow their market share of the
international container business.

The work Mercator has performed to date helped to facilitate the formation of an Alliance with
the Port of Tacoma and the Port of Seattle. The work of this amendment will support the needs
of the Alliance in strategic planning, due diligenance and decision making and, support
submittals to the Federal Maritime CommissiOn. Mercator's tasks in support of the Alliance may '
include, as needed, presentations to the executive leadership of the both Ports, updates to
nancial modeling, nal preparation of nancial model documentation, and continued question
and answer support on the model.

This project requires quick action by Mercator to complete activities supporting timesensitive
negotiations between the Port of Tacoma and Port of Seattle and'support preparations for
presentations to the Federal Maritime Commission. Mercator is uniquely qualied to perform
this work because of prior knowledge and work done to date with the initial reporting and
analysis, and their understanding of the proposed arrangement. Mercator is in the best position
to complete the work expeditiously.

Memorandum
Page 2 of 2

REQUESTED ACTION/RECOMMENDATION

We request a second competition waiver to amend the agreement with Mercator International by
$125,000 for a new contract total of $400,000.

CONCURRENCE WITH RECOMMENDATION:




7  f 
MM i/2' ' 6W0     02' if; [1
alph Graves, Managing Director Capital Development Division Date

Attachments: . August 21, 2014 Competition Waiver

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PORT OF SEATTLE
MEMORANDUM

DATE:   December 12, 2014

TO:     Port of Seattle Commission
Theodore J. Fick, Chief Executive Ofcer

Port of Tacoma Commission
John Wolfe, Chief Executive Ofcer

FROM:   Kurt Beckett Port of Seattle Deputy Chief Executive Ofcer
Julie Collins, Port of Tacoma Chief External Affairs Ofcer
Nora Huey, Director Central Procurement OfceW
Mark Little Director Contracts and Purchasing

SUBJECT: Notication Per RCW 53.19.060 of the Ports' Intent to Amend Service
Agreement P~00317908 by $125,000 for a new total of $400,000.00
'
NOTIFICATION

Per the requirements of RCW 53.19.060, the purpose of this memorandum is to notify the Port of
Seattle and Port of Tacoma Commissions of our intention to amend Service Agreement P
00317908 for an amount not to exceed $125,000. With the new amendment, the total contract
value would be $400,000 and is in excess of 50% of its original contract value.

This memorandum will be placed on le for public inspection at the Port's Bid Desk.

BACKGROUND:

The Ports entered into a contract with Mercator International, LLC to analyze the current
international container situation, the competitive landscape, and consider ways in which the
Puget Sound Ports can position themselves to retain and grow their market share of the
international container business.

The work Mercator has performed to date helped to facilitate the formation of an Alliance with
the Port of Tacoma and Port of Seattle. The work of this amendment will support the needs of
Alliance in strategic planning, due diligence and decision making. Mercator will make
presentations to the executive leadership of both Ports, update a nancial model, and provide
documentation and ongoing support for the model. Mercator will also be called upon, as needed
to assist with preparations for presentations to the Federal Maritime Commission

For the Port of Seattle, please contact Kurt Beckett (206) 787 3241, beckett.k@portseattle.org or
Nora Huey, (206) 7873408, huey.n@portseattle.org with questions regarding this amendment.

For the Port of Tacoma, please contact Julie Collins (253) 428 8609 jcollinngportoftacomacom
or Mark Little, (253) 383-9453, mlittlengortoftacomacom with questions regarding this
amendment.

CC: Port Commission, Larry Ehl
Port Bid Desk
Contract File

Page 1 of 1

JOILLOH
PORT OF SEATTLE
MEMORANDUM

DATE:   August 28, 2014

TO:     Port of Seattle Commission
Tay Yoshitani, Chief Executive Ofcer

FROM:   Ralph Graves, Managing Director Capital Development DivisionW
Jaw/"fi-
Kurt Beckett, Deputy Chief Executive Ofcer
SUBJECT: Notication that the Port intends to increase the value of a CAT 11 Service
' Agreement with Mercator International. (P-00317908) above the Category limit
of $199,999 in accordance with CPO-l 9.3.2 through a Competition Waiver

NOTIFICATION

This. Memo services as notication that the Port executed a Competition Waiver to amend a
Category II (less than $200,000) Service Agreement by $76,000 for a total contract amount of
$275,000.

Increasing the value of this contract will allow Mercator International to complete work.
Mercator is uniquely positioned to complete this work due to prior knowledge gained during the
initial study and analyses.
This? amendment is justied under Resolution 3605, Section 6.5 Competition Waivers. This
section reads, in part, "The CEO is authorized to approve competition waivers consistent with
applicable federal and state laws and internal Port policies... ".The condition that applies here is
Condition (iv) which states, in part, "has exclusive knowledge that was provided during a prior
phase of the contract or project.
Please see the attached Competition Waiver for additional details.









Page 1 of1
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Memorandum '
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DATE:   August 25, 2014
.










' TO:       Ralph Graves, Managing Director, Capital Development Division
Craig Watson, General Counsel -
Nora Huey, Director, Central Procurement Ofce

FROM:   Kurt Beckett, Deputy Chief Executive Ofcer 7%?

SUBJECT: Request for competition waiver to increase the value of a CAT II Service
'
Agreement Mercator International. (P-00317908) above the Category limit of
$199,999 in accordance with CPO-1 9.3.2

JUSTIFICATION FOR INCREASING SERVICE AGREEMENT VALUE

The Port intends to increase the value of a contract with Mercator International by $76,000 for
a
'total contract amount of $275,000. The original contract was procured
as a Category II contract,
which is limited to a maximum price of $199,999.

The Ports entered into a contract with Mercator International LLC to analyze the current
international container situation the competitive landscape, analyzing strategic gateways
1n N.
America, and consider ways in which the Puget Sound Ports can position themselves to retain
and grow their market share of the international Container business. The initial contract value
was $85,000 and amended on May 1, 2014 to add $114,000 for continued work. The
purpose of
this amendment is to add scope and funding for Mercator to nalize the project and provide
additional consultation and advice to the executive leadership of the Port of Seattle and Port of
TaComa               '
'

This project requires quick action by Mercator to complete activities supporting time-sensitive
negotiations between the Port of Tacoma and Port of Seattle. Mercator is uniquely qualied to
perform this work because of prior knowledge and work done to date with the initial reporting
and analysis, and their understanding of the proposed arrangement. Mercator is in the best
position to complete the work expeditiously.

REQUESTED ACTION/RECOMMENDATION

We request a competition waiver to amend the Service Agreement with Mercator International
for an additional $76,000 for a new contract total of $275,000.

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CONCURRENCE WITH RECOMMENDATION:

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