The TKW Audi t Recommendations
In May 2007, the audit firm of Talbot, Corvola, and Warwick completed a limited scope performance 
audit focusing on the Port of Seattle's Capital Project Delivery Costs and Small and Disadvantaged 
Business Enterprise Opportunities within its Capital Improvement Program. (This was before the 
creation of the Capital Development Division as a separate division within the Port.) Since that time, 
there has been on ongoing effort to respond to the recommendations contained in the attached report.
The summary recommendations regarding the first area involved this objective:
"How do the Port's capital project delivery costs compare to other organizations of similar complexity 
and size? If Port project costs generally exceed those of comparable organizations, what are the causes 
of the Port's higher costs and what opportunities are available to reduce costs?" 
This is the subject of the reportback from Ray Rawe, Director of Engineering Services and Chief 
Engineer, as he updates the Committee on recent progress on implementing the recommendations 
listed below from the TKW Audit. 
Recommendation #1     We recommend the Port of Seattle
? develop a historical database that will support
estimating and project management groups.
? improve functionality of existing project
reporting systems to support benchmarking of
key performance indicators and detailed data
analysis.
Recommendation #2     We recommend the Port of Seattle:
? define an organizational structure that fosters
innovation, teamwork, supports accountability
and defines roles, responsibilities, and
expectations.
? document the organizational structure and
communicate lines of authority Agency-wide.
? maintain up to date organization charts.
Recommendation #3     We recommend the Port of Seattle update existing
procedures and senior management ensure
implementation and adherence.
Recommendation #4     We recommend the Port of Seattle focus upon
consistency in content, quality, and updating of project
notebooks.
Recommendation #5     We recommend the Port of Seattle require consistent
input of "lessons learned" into a centralized agency
database.
Recommendation #6     We recommend the Port of Seattle:
? integrate best practice risk management
activities into the project cost/schedule delivery
cycle.
? develop procedures that provide guidelines for

project risk assessment and application of tools. 
Recommendation #7     We recommend the Port of Seattle:
? appoint an estimating subject matter expert.
? develop written Estimating Standard
Operating Procedures (SOPs) that are
supported by training.
? investigate past performance and incorporate
lessons learned into new Standard Operating
Procedures.
? implement a standardized structure for
estimates and deliverables that include direct
construction costs.
? integrate cost/schedule risk analysis practices
into the estimating process.
? investigate launching an enterprise level
estimating software.
? develop the capability to produce trending
reports for key performance indicators.
Recommendation #8     We recommend the Port of Seattle:
? develop the reporting capability to
demonstrate whether the Port maintains a
competitive award environment for
Professional Services Agreement (PSA's).
? ensure that Invitation for Bid (IFB's) have an
appropriate level of pricing breakdown to
allow comparison against Engineer's
Estimates.
Recommendation #9     We recommend the Port of Seattle pursue a
performance contracting strategy for applicable
projects.
Recommendation #10     We recommend the Port of Seattle investigate further
opportunities to have a single enterprise level
application which meets all of the Port's reporting
needs. 
Recommendation #11     We recommend the Port of Seattle maintain change
source reports, including bid item overruns, contractor
generated changes and claims, to understand trending
of cost growth categories.