Item No. 11a_supp
Meeting Date: April 26, 2022
Baggage Optimization Program
April 26, 2022

Program Purpose and Scope
Purpose:
Airport wide public safety and security program that improves
customer service for both airlines and passengers by providing
flexibility, reliability, and efficiency.
Scope:
The Baggage Optimization project replaces six individual baggage
screening systems with a centralized system that optimizes the
operation and functionality of the checked baggage system. 
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Current System



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Optimized System
Centralized
Screening







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Phase 1: Construction Completed Q1 2020



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Phase 1 Contract Compliance
Small Business Enterprise (SBE) Utilization
Requirement of 15%
Total Contract: 16.28%
Training and ApprenticeshipApprenticeship                         Final Utilization
Total labor hours performed by Registered
21.63%
Apprentices
Apprentice hours by minorities                               16.58%
Apprentice hours by females                                 7.50%

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Phase 2: Construction Underway



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Phase 2 Accomplishments
Construction is 45% Complete
Change Order Rate: 1% (approx. $500k)
Over 375 Major and Complex Shutdowns Completed
Completed impactful project steps  excellent collaboration
5 Pre-Factory Acceptance Tests in Michigan completed
Women and Minority Business Enterprise (WMBE) and Apprenticeship
goals are being exceeded or on target to be met

Phase 2 Contract Compliance
Project Labor Agreement (PLA)
Women and Minority Business Enterprise (WMBE)
Goal: 2% of total contract
Current Status: Project is 45% complete, at 1.21% of total contract; on track to meet goal
Note: Due to the nature of Phase 2 scope of work primarily being highly specialized baggage conveyors and limited building work;
the WMBE goals were limited
Apprenticeship                          Current Status
Total labor hours, per craft, performed byPLA Training and Apprenticesh ip Goals     26.58%
Registered Apprentices
Apprentice hours by people of color                         28.37%
Apprentice hours by females                               8.53%
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Phase 3: Project delivery method - GC/CM



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Schedule



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Budget
Current
Phase                              Forecast at Completion   Current Authorization
Budget
Phase 1       $101,375,000              $97,488,982              $101,375,000

Phase 2       $425,675,000             $415,675,000             $425,675,000
Includes $10M Executive Director Reserve
Phase 3       $313,000,000            $400M - $500M             $13,000,000
(Design/Pre-Const)
Total       $840,050,000            $914M - $1.1B            $540,050,000

TSA contribution over $94M; Port has been reimbursed for $65M to date

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Critical Issues
1.  Supply chain
2.  Cyber Attacks
3.  Restrictive daily and seasonal construction limits and duration
4.  Minimizing operational impact as passenger growth increases
5.  Airline required baggage handling
6.  Project Coordination

Next Steps
Upcoming Commission requests:
Phase 3 project delivery method - General Contractor/Construction Management (GC/CM).
Contractor input on design and phasing consistent with audit and Airline recommendation
Program budget increase to complete Phase 3; still being determined
Increase to Design Consultant contract to complete Phase 3 design (approx. $10M)
Advertise and execute project specific Construction Management contract to provide GC/CM
expertise
Advertise and execute General Contractor preconstruction services
Memorandum of Agreement (MOA) with Transportation Security Administration (TSA) for
varying site conditions
Majority In Interest (MII) Airline vote on Phase 3
Date to be determined; discussing with Airlines

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Photos



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Appendix



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Outbound Baggage Flow



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