8b. Memo
Passenger Flow Metrics Project
COMMISSION AGENDA MEMORANDUM Item No. 8b ACTION ITEM Date of Meeting April 26, 2022 DATE: April 15, 2022 TO: Stephen P. Metruck, Executive Director FROM: Laurel Dunphy, Airport Operations Director Krista Sadler, Technology Delivery Director SUBJECT: Passenger Flow Metrics Project (CIP #C801188) Amount of this project request: $630,000 Total estimated project cost: $630,000 Service Fee Contract Value $3,000,000 ACTION REQUESTED Request Commission authorization for the Executive Director to 1) proceed with the Passenger Flow Metrics project, 2) utilize Port Staff, and 3) execute contract(s) for software, equipment, vendor services, and ten years of software license and maintenance fees in the amount of $630,000 and a service fee contract value of $3,000,000. EXECUTIVE SUMMARY This project will procure a system(s) that will collect anonymized information from a mix of new and existing technologies and systems to determine average passenger flow measurements for 1) arriving passengers from the clock tower on the main drive through a security checkpoint and 2) internationally arriving passengers from their gate on the South Concourse to a connecting flight on the North Concourse. Timing for these two travel paths is a key Seattle-Tacoma International Airport (SEA) metric supporting Aviation Customer Experience objectives and will be used to identify and measure improvements, assess impacts from future construction projects, and alert SEA Operations on emerging issues. The system(s) selected may utilize existing Port wireless technology, smart phone location services, or roadway cameras to determine passenger flow times. In every case, data will be anonymized so that no personally identifiable information (PII) is collected nor stored. Information and Communication Technology, Aviation Operations, Business Intelligence, and Aviation Maintenance will partner to complete this project with a vendor selected via a competitive procurement. The capital project was included in the 2022-2026 capital budget and plan of finance in the amount of $630,000. This authorization also includes a contract for Template revised January 10, 2019. COMMISSION AGENDA Action Item No. 8b Page 2 of 5 Meeting Date: April 26, 2022 recurring software license and maintenance fees for up to ten years, estimated at $3,000,000. Recurring costs will be budgeted in the Aviation operating budget. JUSTIFICATION A critical impact to SEA Customer Experience long-term goals is how smoothly passengers flow from arrival to the airport through security checkpoints or the International Arrival Facility to their gate. While flow measurements exist in certain legs of these journeys there are several unmeasured areas and no comprehensive metric to evaluate progress against the goals. In the next few years, several construction projects will disrupt normal passenger routes on the roadways and through the terminal and reliable information on passenger flow will help identify adjustments for key choke points and alert staff to issues for quicker resolution. Diversity in Contracting Project staff will work with the Diversity in Contracting Department to determine if a direct women-and-minority-owned business enterprise (WMBE) aspirational goal should be assigned. Typically, subcontracting opportunities under technology projects are limited. DETAILS Scope of Work (1) Competitively procure a system(s) to gather and consolidate average passenger flow measurements. (2) Install limited equipment, if needed, to support anonymized measurement tracking. (3) Integrate with existing systems that can provide flow data in areas along the measured paths. (4) Develop reports that integrate with Aviation Business Intelligence platform. Schedule Procurement Complete 2022 Quarter 4 Roadway Metrics 2023 Quarter 4 Terminal Metrics 2024 Quarter 4 Cost Breakdown This Request Total Project Equipment $30,000 $30,000 Software and Vendor Services $200,000 $200,000 Port Labor $400,000 $400,000 Total $630,000 $630,000 Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA Action Item No. 8b Page 3 of 5 Meeting Date: April 26, 2022 ALTERNATIVES AND IMPLICATIONS CONSIDERED Alternative 1 Procure and implement a solution(s) to provide extensive data for detailed passenger movement throughout the terminal. Cost Implications: Capital Project - >$2,000,000; Ten Year Recurring Costs: >$5,000,000 Pros: (1) Robust capabilities to understand passenger movement can provide additional benefits from targeted services and more comprehensive coverage. (2) Future stakeholders could leverage technology with a smaller investment. Cons: (1) This alternative is significantly more expensive primarily due to the likelihood of significant construction for additional sensors or cameras and more proprietary equipment. (2) The schedule to complete the installation would be significantly longer than the recommended alternative. This is not the recommended alternative. Alternative 2 Leverage future terminal and roadway projects to install technology. Cost Implications: $0 Pros: (1) Resources and funding available for other projects. Cons: (1) There is no measurement to determine progress on key Aviation goals. (2) The impact on passenger flow from future terminal and roadway projects is not supported by actionable data. (3) Identification of emerging issues is a manual effort. This is not the recommended alternative. Alternative 3 Procure and implement a solution that gathers and consolidates average passenger flow measurements using a mix of new and existing technologies and systems. Cost Implications: Capital Project-$630,000; Ten-Year Recurring Costs: $3,000,000 Pros: (1) This alternative provides passenger flow measurements to identify problem areas, understand customer experience trends, and react to emerging issues for a more modest investment than the alternative. (2) Investment in existing technology and systems that provide supporting data is utilized. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA Action Item No. 8b Page 4 of 5 Meeting Date: April 26, 2022 (3) Comprehensive reports will provide progress against a key Customer Experience goal on passenger flow times. Cons: (1) Detailed information about passenger movement would be unavailable for other potential targeted services. This is the recommended alternative. FINANCIAL IMPLICATIONS Cost Estimate/Authorization Summary Capital Expense Total COST ESTIMATE Original estimate $630,000 $0 $630,000 AUTHORIZATION Previous authorizations $0 0 $0 Current request for authorization $630,000 0 $630,000 Total authorizations, including this request $630,000 0 $630,000 Remaining amount to be authorized $0 $0 $0 Annual Budget Status and Source of Funds This project was included in the 2022-2026 capital budget and plan of finance for $630,000. The project will be funded with the Airport Development Fund and revenue bonds. Financial Analysis and Summary Project cost for analysis $630,000 Business Unit (BU) Terminal Building Effect on business performance (NOI after NOI after depreciation will increase due to depreciation) inclusion of capital (and operating) costs in airline rate base. IRR/NPV (if relevant) N/A CPE Impact Less than $.01 in 2024 Future Revenues and Expenses (Total cost of ownership) Annual recurring service, license, or maintenance fees, estimated at $300,000 per year, will be budgeted in annual operating budgets beginning in 2023. The estimated total over a ten-year contract term is $3,000,000 in addition to the vendor costs for implementation. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA Action Item No. 8b Page 5 of 5 Meeting Date: April 26, 2022 ATTACHMENTS TO THIS REQUEST (1) Presentation slides PREVIOUS COMMISSION ACTIONS OR BRIEFINGS None Template revised June 27, 2019 (Diversity in Contracting).
Limitations of Translatable Documents
PDF files are created with text and images are placed at an exact position on a page of a fixed size.
Web pages are fluid in nature, and the exact positioning of PDF text creates presentation problems.
PDFs that are full page graphics, or scanned pages are generally unable to be made accessible, In these cases, viewing whatever plain text could be extracted is the only alternative.