PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA             Item No.      6d 
Date of Meeting   November 8, 2011 

DATE:    October 27, 2011 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    Arif Ghouse, Senior Manager Seaport Security 
Kate Deaver, Capital Project Manager III 
SUBJECT:  The Transportation Worker Identification Credential Infrastructure and
Implementation Project (CIP #C800165). 
Amount of This Request:  $299,400          No. Workers Employed: 7 
Source of Funds: Seaport Security Grant Round 7 and General Fund 
Total Capital Project Cost: $2,582,490 
ACTION REQUESTED:
Request Commission authorization for the Chief Executive Officer to (1) execute a contract with
the low responsive and responsible bidder for the Transportation Worker Identification
Credential (TWIC) infrastructure and implementation at Terminal 91 and (2) expend additional
funding to complete the project. The amount of the additional funding request is $299,400, 
bringing the total authorized amount of this project to $2,582,490.
SYNOPSIS:
Since 2002, the Port of Seattle has received over $20,500,000 in grant funding from the
Department of Homeland Security (DHS) to increase security at the nation's strategic and
economically important seaports. This project provides for the automation of gates and the
integration of TWIC readers into the Port's security system to facilitate automated access to
restricted areas of Terminal 91 and enhances the Port's ability to comply with Title 33, Code of
Federal Regulations, Parts 101.514 and 105.255. Although current regulations do not require
automation of the gates and readers, Port security staff believe, based on indications from the
U.S. Coast Guard, that this will become a requirement in the future. Thus it is necessary for the
Port to proceed with this project to maintain compliance with current and future DHS security
regulations, specifically those enumerated in Title 33, Code of Federal Regulations, Parts 101
and 105. Failure to comply with these regulations would result in the Port's ineligibility to
receive certain Maritime Transportation Security Act (MTSA) regulated vessels, and would
preclude business at Terminal 91.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 27, 2011 
Page 2 of 6 

The DHS Port Security Grant Program Fiscal Year 2007 Grant (Round 7) was accepted by the
Commission in November 2007. The Commission has previously authorized a total of
$2,283,090 for in-house design work; the TWIC card reader infrastructure; the software design,
integration and configuration of the TWIC card system; construction of the necessary
infrastructure; and cameras. The additional funding of $299,400 being requested today is
required because the two lowest bids exceeded the Engineer's Estimate of $680,814 by roughly
17 to 24 percent. A fter reviewing the bids, Port staff determined the Engineer's Estimate had
not accurately priced several factors, including an anomaly to the current construction bidding
climate, the amount of paperwork and reporting associated with security grant projects, limited
access to the site and potential bidding restrictions that would potentially increase the cost of the
project. Therefore, in accordance with Resolution No. 3605, Port staff is seeking Commission
approval to execute this contract. Of the $299,400 currently requested, $225,002 will be eligible
for 75 percent reimbursement ($168,752) by the Round 7 grant and the remaining $130,648 will
be paid for by the Port. 
ADDITIONAL BACKGROUND:
On August 19, 2011, the Port bid the TWIC Implementation Round 7 Power and
Telecommunications Infrastructure as a Major Public Works Contract. The Engineer's Estimate
was $680,814. On September 20, 2011, the Port of Seattle (Port) received three bids ranging
from $794,560 to $1,156,711 (see table below).
Contractor                        Bid 
Elcon Corporation                                  $794,560.00 
The Dutton Electric Company                          $842,349.00 
Valley Electric Company                            $1,156,711.00 
Staff analyzed the Engineers Estimate of $680,814 and found the following items either were not
priced appropriately for the final scope or were not accounted for in the final estimate: 
The contractor's overhead and profit was estimated at only 10 percent based on the
assumption that the current poor economic conditions would result in contractors willing
to significantly reduce their profit and overhead costs in order to get the work. This
assumption was proven false when, after the bids were received, the project estimator
contacted several electrical and communications companies that had not submitted bids.
The overall consensus was that some of the smaller electrical contractors had already
gone out of business and that those that were still in business were all very busy bidding
other projects.
Grant projects require significantly more paperwork and reporting than normal Public
Works projects. These additional costs to the contractor may not have been adequately
considered in the Engineer's Estimate.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 27, 2011 
Page 3 of 6 
Some of the areas where the contractor will be working will have limited access and
potential scheduling restrictions. The bidders may have perceived this as a risk that was
not considered in the estimate. 
Since the two lowest bidders were within 5.6 percent of each other, their bids appear to be
representative of the current marketplace, and all three bids were above the Estimate. Therefore,
Port staff believes the low bid represents a fair and reasonable price.
During the analysis of the bid and estimates, the entire project budget was re-examined and was
found to be insufficient to complete the project. Additional funding is requested for the
following:
Additional                                   Total
Reason Additional Funding       Funding    Grant    Grant    POS    Grant    Port
Needed                    Needed    Eligible     75%     25%    Ineligible   Costs 
Higher than estimated contractor
costs                            $113,746    $113,746    $85,310    $28,437        $0    $28,437 
Construction costs including tax and
contingency associated with revised
project estimate                    $33,314     $33,314    $24,986     $8,329        $0    $8,329 
Construction management soft costs
that were previously not requested
including inspector fees, Contract
Admin, and Survey work.           $140,938    $77,942    $58,456    $19,484   $62,996   $82,480 
Port monitoring and grant reporting
costs that were not addressed in the
original estimate.                    $11,402                                 $11,402    $11,402 
Total Additional Request           $299,400   $225,002   $168,752    $56,250   $74,398  $130,648 
Of the $299,400 currently requested, $225,002 will be eligible for 75% reimbursement
($168,752) by the Round 7 Grant and the remaining $130,648 will be paid for by the Port. 
PROJECT JUSTIFICATION:
It is necessary for the Port to proceed with this project to maintain compliance with current and
future DHS security regulations, specifically those enumerated in Title 33, Code of Federal
Regulations, Parts 101 and 105. Failure to comply with these regulations would result in the
Port's ineligibility to receive certain Maritime Transportation Security Act (MTSA) regulated
vessels, and would preclude business at Terminal 91. 
PROJECT STATEMENT AND OBJECTIVES: 
Project Statement: 
This project will complete the construction and implementation of the TWIC infrastructure by
April 2012.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 27, 2011 
Page 4 of 6 
Project Objectives: 
This project will provide automated access to the Port's controlled TWIC restricted areas. 
This project will keep impacts to ongoing operations at the Facility to a minimum. 
This project will utilize grant funding and Port funding in the most economical manner. 
Project will be completed within budget 
Project will be completed within grant allowable timeframe. 
PROJECT SCOPE OF WORK AND SCHEDULE: 
Scope of Work: 
The scope of this project includes all aspects of construction, including trenching, cabling,
equipment installation, software integration, to automate the TWIC facility requirements. 
Schedule: 
Start             Finish 
Bid Document Prep              April 1, 2011        May 1, 2011 
Bid Period (bid, submittals and award)   August 1, 2011        December 1, 2011 
Construction                   December 2011       April 2012 
ICT Integration                  February 2012        April 2012 
FINANCIAL IMPLICATIONS: 
Budget/Authorization Summary 
Previous Authorizations                                   $2,283,090 
Current request for additional authorization                         $299,400 
Total Authorizations, including this request                        $2,582,490 
Total Estimated Project Cost                                $2,582,490 
CIP Cost Breakdown with Grant Funding 
DHS   Port             Port Cost
Funding    Match   Ineligible  Total Port    as a 
Grant      Project     Total Cost    75%     25%     Costs     Costs    % of Proj 
TWIC
Infrastructure
Round 7 and
Current    Implementation
Request    Construction      $299,400   $168,752   $56,250    $74,398   $130,648      44% 
T-91 TWIC
Infrastructure
Design and
TWIC
Previous   Enrollment
Request    Projects        $2,283,090  $1,221,000  $407,000   $655,090  $1,062,090      47%

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 27, 2011 
Page 5 of 6 
TWIC
Infrastructure
Round 7   and
Total      Implementation   $2,582,490   $1,389,752  $463,250   $729,488   $1,192,738       46% 
Source of Funds 
The funds for this capital project were partially included under committed CIP #C800165,
Seaport Security Grant Round 7 in the 2011 Plan of Finance. The amount not included,
approximately $1,075,000, will be available due to expected cost savings in other committed
2011 Plan of Finance projects (e.g. #C 800121 - T18 S. End Fendering). The POS cost portion
of these projects will be funded from the General Fund. 
Financial Analysis Summary: 
CIP Category           Compliance 
Project Type            Health, Safety and Security 
Risk adjusted Discount rate   N/A 
Key risk factors           Key risk factors include potential cost overruns due to project
complexity or unidentified additional changes needed 
Project cost for analysis     $2,582,490 total project ; $299,400 this request 
Business Unit (BU)        Seaport Security 
Effect on business         Additional annual depreciation of $59,880 for 5 years for this
performance           request. 
IRR/NPV            NPV: ($299,400) this request 
ECONOMIC IMPACTS AND BUSINESS PLAN OBJECTIVES: 
Proceeding with this project is in compliance with Federal Security Regulations, allows the Port
to maintain operations necessary for the cruise and other TWIC regulated areas at Terminal 91
for which the Port is responsible.
STRATEGIC OBJECTIVES: 
This project supports the Port's strategy to "Ensure Airport and Seaport Vitality" through 
enhancing safety by providing an additional level of security for Seattle waterfront operations. 
ENVIRONMENTAL SUSTAINABILITY AND COMMUNITY BENEFITS: 
The original project included extensive trenching for the installation of the infrastructure for
electrical and telecommunications. During design, wireless connectivity for the readers and
cameras was proposed and the trenching for the telecommunications installation was greatly
reduced. As a result, the risk of disturbing contaminated ground soil is minimized. 
If contaminated material is found, it will be removed and replaced with "clean" fill.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 27, 2011 
Page 6 of 6 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Alternative #1. Complete the construction for the automation of the TWIC regulated areas at
Terminal 91. This alternative allows the Port to maintain compliance with the current and
future federal regulations and reduces the cost of Port operations by limiting or eliminating
the need for manned guard gates at the TWIC-regulated areas. This is the recommended 
alternative. 
Alternative #2. Do not move forward with the construction for the TWIC areas. This
alternative would require that guards remain at all TWIC areas when they are in operation
and would not meet the future TWIC requirements. This is not the recommended alternative. 
Alternative #3. Delay construction until automation is required at the TWIC areas. Grant
funding would not be available at a later date so the full cost of construction would fall to the
Port. Additionally, the Federal Security requirements can change with very little notice and
the Port may be required to expedite the construction process to meet a short deadline
resulting in even greater costs. This alternative is not the recommended alternative. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
On November 20, 2007, the Commission authorized the acceptance, use and disbursement of
Round 7 Grant Funding. 
On July 7, 2009, the Commission authorized funding for design, TWIC integration and
configuration, and perform interagency training and exercises. 
On April 12, 2011, the Commission authorized funding to advertise for construction bids,
award and execute the contract, and construct the final phase of the Transportation Worker
Identification Credential infrastructure and implementation at Terminal 91.