PORT OF SEATTLE 
MEMORANDUM 

COMMISSION AGENDA    Item No.   5c
Date of Meeting   February 9, 2010

DATE:    January 29, 2010
TO:      Tay Yoshitani, Chief Executive Officer
FROM:   Stephanie Jones Stebbins, Senior Manager, Seaport Environmental Programs
David Kleiber, Seaport Environmental Finance Manager
Kathy Bahnick, Manger, Environmental Program Manager 
SUBJECT:  Professional Service Contracts for Environmental Finance Services
ACTION REQUESTED: 
Request Port Commission authorization for the Chief Executive Officer to execute two Port-wide
IDIQ contracts for consultant support for Environmental Finance Services (EFS) (cost
estimating, project cost controls and environmental liability and strategic support) up to
$600,000 per contract not to exceed $1,200,000 for both. No funding is associated with this
request although the work, when it is performed, will be funded out of Environmental Reserves.

SYNOPSIS 
Environmental contracts range in value from a few thousand dollars to $20+million. According
to the "CPO-1 Training Guide and Reference Manual", when service directives are in amounts
greater than $300,000, the Project Manager must prepare cost estimates before contracting for
these services. The Port does not have the internal capacity to prepare detailed cost estimates for
the remedial investigation, feasibility study and cleanup work associated with the complex
federal and state cleanup sites.  This contract will allow us to obtain external resources to
perform this cost estimating to comply with CPO-1. In addition, this cost-estimating support will
strengthen Port staff's ability to negotiate with environmental service providers for fair and
reasonable prices.
In addition to the cost estimating needs, this IDIQ procurement will also provide access by both
Seaport and Airport environmental staff to on-call consultants available to provide site strategic
planning on complex cleanup sites as well as ad-hoc financial services related to environmental
finance and accounting. Because different firms may excel at different parts of the overall scope
of the procurement, the Port will execute two contracts. The Commission has been briefed on the
Port's overall environmental program of which these contracts are a part. This is one of nine
Category III environmental IDIQ procurements initiated in 2009.

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer
January 29, 2010
Page 2 of 4

BACKGROUND 
Previously, Environmental Risk and Communications Inc. (ERCI) was contracted to use their
licensed software to provide site strategic planning support services for cleanup projects, as well
as ad-hoc financial services related to environmental finance, account and liability reporting.
In November 2009, the Commission approved a separate sole source contract with ERCI for the
software licensing and support. The site strategic planning for complex cleanup sites, as well as
ad-hoc financial services related to environmental finance and accounting services have been
unbundled. The work not associated with the ERCI sole source will now be procured through
open competition under this procurement. The cost estimating is a new service to support Port
staff in compliance with CPO-1.
IDIQ contracts provide the Port with the flexibility to meet regulatory requirements as they arise
by issuing individual Service Directives to accomplish tasks within a general, pre-defined Scope
of Work on an as-needed basis for a fixed period-of-time and a maximum contract amount.
Competitively bid IDIQ contracts are a widely used public sector contracting tool, consistent
with the Port's Resolution 3605 and governed by CPO-1 policy.
Utilizing IDIQ contracts allows a more efficient, cost effective way to respond to service
requests. This type of open order contract is commonly used among many public agencies such
as the Corps of Engineers, US Navy, Coast Guard, King County, and the Washington State
Department of Transportation.
This request is only for contracting authority  funding will generally be authorized under the
environmental reserves authorization or from the operating budget.
We are working with Office of Social Responsibility (OSR) to determine small business
availability for these contract(s).
PROJECT SCOPE OF WORK AND SCHEDULE 
The intent of this proposed professional service contract is to provide timely, cost efficient
consulting services needed to perform environmental cost estimating required for contracted
work greater than $300,000, environmental strategic analysis, ten-year cost forecasting, project
controls and other environmental finance and accounting services. The requested services and
activities include, but are not limited to:
1.  Provide Seaport Environmental Program Managers cost estimating for remediation
projects and provide negotiation support. Seaport Environmental will hire a consultant to
prepare cost estimates for Service Agreements, Amendments, Service Directives, and
Service Directive Modifications for work greater than $300,000.

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer
January 29, 2010
Page 3 of 4

2.  Provide environmental site strategic planning assistance in the selection of remedial
strategies, by providing risk quantification and analysis to achieve less costly cleanups.
The consultant will support Port staff in developing project management and cost
recovery scenarios, and evaluating alternatives that best meet the cleanup goals at the site
while supporting the Port's business interests. This includes financial forecasting of the
life cycle of environmental liabilities; financial modeling of both estimated costs and
potential cost recovery; and environmental liability exposure identification and
measurement.
3.  Assist staff in developing ten-year forecasts of estimated future cleanup costs for use in
internal communications and submittals to the Department of Ecology.
4.  Develop appropriate programmatic project control tools and systems for environmental
liabilities and cost recovery to be used by staff. Train staff on its use and implement
systematic services, tools, labor and other resources to plan, schedule, budget, and
measure the performance of a Port project or program. Provide project as well as contract
cost, budget, and schedule reviews. Support internal auditing of services provided by
professional service providers (e.g., project technical consultants), particularly focused on
monthly and quarterly utilization and invoicing efforts, provide consultant compliance,
and audit services.
5.  Provide other financial advisory services, including but not limited to claim management
support for grants and insurance.
COST ESTIMATE 
The estimated cost for this procurement is $1,200,000. This covers two contracts for a period of
three years.
ALTERNATIVES CONSIDERED/RECOMMENDED ACTION 
1.  Port staff would conduct the EFS. This is not a viable alternative, as the Port does not have
the resources to perform this work in-house.
2.  Combine the efforts of in-house resources with a consultant, resulting in lower procurement
costs. This is not a viable alternative, as the Port does not have the resources to perform any
of this work in-house. 
3.  Procure the services of consultants to conduct the EFS. This is the preferred alternative.
FINANCIAL IMPLICATIONS 
There is no funding request associated with this authorization. Individual Service Directives
(SDs) will be executed to authorize the Consultant to perform any specific work on the contract
against approved project authorizations under the Environmental Reserves Budget or from the
operating budget.

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer
January 29, 2010
Page 4 of 4

PROJECT SCHEDULE 
This authorization enables initiation of a Category III procurement process in the first quarter of
2010. After execution of the Service Agreements, individual SDs will specify schedule, scope
and budget for assigned tasks.
PREVIOUS COMMISSION ACTION
At the November 10, 2009 meeting, the Commission granted an exemption from competition for
procuring  semi-annual  environmental  liability  support  using  Environmental  Risk
Communication, Inc. Defender File or ProForm software, and authorized the Chief Executive
Officer to execute and administer a contract for the software upgrade and maintenance.