2015-011 
PORT OF SEATTLE 
MEMORANDUM 
DATE:    November 4, 2015
TO:     Port Commission 
FROM:    Theodore J. Fick, Chief Executive Officer
SUBJECT:  Notification that the Port intends to increase the value of an Indefinite Delivery
Indefinite Quantity (IDIQ), Service Agreement with the Harris Group Inc. (P-
00316324), through a Sole Source Competition Waiver. 

NOTIFICATION: 
The Port intends to increase the value of Service Agreement P-00316324 by $500,000 to
$3,500,000, through means of a Sole Source Competition Waiver to complete the design of
Phase 2 of the Electric Ground Service Equipment project.
The design for Phase 2 of the Electric Ground Service Equipment (eGSE) project was put on
hold to allow for Airline Realignment.
Increasing the value of this contract will allow us to ensure continuous service with the Engineer
of Record to complete the design for Phase 2 of the eGSE project at the Airport.
This is justified 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, "the waiver is necessary to authorize work with a contractor or
service provider who has exclusive knowledge that was provided during a prior phase of the
contract or project". 
Please see the attached Justification for a Competition Waiver memo. 




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2015-011

PORT OF SEATTLE
MEMORANDUM

DATE:   October 21, 2015

TO:     Dave Caplan, Senior Director, Ofce of Strategic Initiatives
Craig Watson, General Counsel
Nora Huey, Director, Central Procurement Management

FROM:   Ralph Graves, Managing Director, Capital Development DivisionM
Wayne Grotheer, Director, Aviation Project Management 4/89

SUBJECT: Request Sole Source Competition Waiver to increase the value an Indenite
Delivery Indenite Quantity (IDIQ), Service Agreement with the Harris Group
Inc. (P-00316324).


BACKGROUND

The Port of Seattle executed an Indenite Delivery Indenite Quantity (IDIQ) cormact with
Harris Group Inc. (HGI) on March 3, 2010, for Low Voltage Electrical Design services for a
not-to-exceed contract value of $3,000,000. The contract has a contract ordering period that
expired March 3, 2013. To date, $2,611,000 has been spent on the contract, leaving a
remaining balance of $389,000.

In accordance with CPO- 1, section 8.3.5.1, the Port will not increase the value of an IDIQ
contract unless there is an exceptional circumstance that is documented in a competition waiver.
The circumstances here justify an exceptional circumstance fora sole source competition waiver.

On October 12, 2015 the Port executed SD 1-6 for design services related to Phase 2 Electric
Ground Service Equipment (eGSE). Design work began in October of 2012 and HGI
delivered 100% design document to the Port on September 20, 2013. The Port reviewed the
100% design documents and identied a number of comments or changes that HGI needs to
review and, if appropriate, revise the design documents. Before I-IGI moved forward with
nalizing the design documents, the project was placed on hold in December, 2013 to
accommodate airline realignment projects. For the design effort for Phase 2 we have spent
$1,205,415 to date.

The Port has decided to move forward with Phase 2 EGSE project. We estimate that an
additional $889,000 is required to revise and update the 100% design documents and provide
design services during construction. Updating the design documents will involve revising the
drawings and specications to reect changes resulting from the airport realignment project,
lessons leamed from Phase 1, and to update the document to current electrical code requirements
and Port standards. With this increased cost, total cost for work performed by HCI will be
$2,094,415. To accommodate the increase cost of design, the P011 will need to amend the
contract by $500,000 for a new contract value of $3.5 million.


Page 2 01'4

2015-011


The following steps will be required to restart Phase 2:
1.  Secure approval of the Sole Source Competition Waiver and increase the maximum value
of P-003l6324.
2.  Execute a new Service Directive (SD) for the design team to evaluate and document the
changes created by airline realignment.  There have been several changes since this
project was put on hold. At this point all of the changes have not been identied by the
project team. Several airlines have moved over the last two years. The layout at each
gate may be different from the layout depicted in the design drawings. The team will
compare the current conditions with those shown on the design document. The team
must review existing site conditions and compare the current documents against existing
conditions, current codes, etc. that have changed over the last two years. The Phase 1
lessons learned will also be incorporated in the document.  The team will use the
evaluation to determine the magnitude of the effort required to bring the design back up
to 100%. Estimated value: $46,000.
3.  After the evaluation is complete the team will use the information to execute a second SD
to authorize HGI to complete the design, bid documents, and provide design support
during construction. Estimated value: $843,000.

The Port will go back to Commission in March/April of 2016 to request additional authorization
for the EGSE project for construction and to reconcile any changes in costs due to airline
realignment projects, price escalation, etc.

JUSTIFICATION

The current design is usable with minimal design modications.  HGI, as the Engineer of
Record, has exclusive knowledge gained in the earlier phase of work. Increasing the maximum
value of Service Agreement P00316324 will provide the Port with the following benets:
1.  Continuity  We complete the project with the Engineer of Record.
2.  Design liability.  Engineering rms will not accept liability for another engineer's design.
Should we contract with another engineering rm they will limit their liability, add costs to
evaluate and check design calculations and assumptions, resulting in additional risk and cost
for the Port. Changing rms at this point is not in the best interest of the Port.
3.  Exclusive knowledge  We take advantage of the exclusive knowledge HGI compiled
during the previous eGSE projects design.
4.  Lower total project costs  Starting with another engineer will most likely increase cost and
schedule.  A new rm must review all of the existing work thoroughly, complete eld
investigations, rerun all engineering calculations, and review all specications in order to
take responsibility for the design.  A rough estimate of additional design costs to move
forward with a new engineer is approximately $1,500,000 to $2,000,000. This will impact


Page 3 of4

2015-011

the project completion schedule and potentially securing a new FAA VALE grant for
$5,500,000.

Accordingly, a sole source competition waiver is justied.

REQUESTED ACTION:

In accordance with RCW 39.04.280, we request a Sole Source Competition Waiver to increase
the value of Service Agreement P-00316324 by $500,000 to $3,500,000.

' CONCURRENCE:


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Nora Huey, Director,  entraH-t'ourement Ofce                Date

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Craig Watson, General Counsel                           Dat

APPROVAL:

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Dave Caplan, Senior Director, Ofce of Strategic Initiatives          Date










Page 4 of4

Estimated Design/Support Costs for E(eGSE) PHASE 2

Service Agreement P00316324                          $3,000,000

Committed
mmmm           8,425
(31)
8,394
mmmm        293,936
(104)
293,832        293,832
mmm        143,385
(14,420)
128,965        128,965
mmmmmm        778,275
44,995

(76,259)
747,011       . 747,011
mmmmm        227,383
Subtotal                                            227,383         227,383

SD 16 - Design for eGSE Phase 2                             1,232,896
Mod 1
Su btotal                                                1,232,896        1,205,415

Totals to date                                                     2,638,481        2,611,000

Service Agreement P-00316324 current max value                             3,000,000
Total cost to date                                                       2,611,000
Remaining Capacity                                                 389,000

Mod 2 (step 2     waiver page 3)
, comp
Mod 3 (step 3 comp waiver page 3)                                       843,000
Subtotal - to complete design                                           889,000

Subtotal  to complete design                                           889,000
lDlQ remaining capacity                                               389,000
Additional lDlQ capacity needed                                          500,000

ServicesAgreement P00316324                                      3,000,000
Additional lDlQ capacity needed                                          500,000
Total lDlQ capacity needed                                        $ 3,500,000