PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.     6c_attach_a 
ACTION ITEM 
Date of Meeting    December 8, 2015 

Attachment A 

Subject: International Arrivals Facility (IAF) Guaranteed Maximum Price (GMP)
Development Period Authorization 
(CIP #C800583) 
SYNOPSIS 
The Port contracted a Design-Build team to design and construct a new IAF at Sea-Tac 
using, for the first time, Progressive Design Build (PDB) as the delivery method. On
November 17, 2015 the IAF Design-Builder completed the project validation work
contracted for during the first 120-day phase of the Design-Build Contract. During that
Validation Period, the Design-Builder reviewed existing conditions, tested program
assumptions, quantified risks, and developed three key deliverables: the Early Schematic
Design that evolved from numerous concept options studied by the Design-Builder while
working to find one that best satisfied the project requirements as set forth in the Project
Definition Document (PDD), a Target Budget (for design and construction) and a Target
Schedule.  In order to advance the project to the next phase, staff is requesting
authorization to execute the Post-Validation Amendment and one or more Early Work
Amendments to allow design and preliminary construction work contemplated during the
GMP Development Period (December 2015 to 4Q16) to proceed. In order to secure
flexibility as to when specific design services and preliminary work are authorized, Port
staff is requesting the authority to execute these amendments as well as subsequent
change orders to allow individual elements of the scope identified in this memo to
proceed, all within the revised budget limit. Design work will proceed immediately, but
construction work will not proceed until March 6, 2016 as permitted under the terms of
the of the negative MII vote provision of the Signatory Lease and Operating Agreement
(SLOA III). This amendment would increase the current $24.5M authorization by
$275.5M for a total of $300M, provide an eighteen-month extension and amend the
previous Commission Authorization for the IAF validation contract not-to-exceed to
include sales tax for the estimated amount of $570,000. 
Staff also requests authorization to execute a contract for construction auditing services
as provided in the Design-Build Agreement between the Port and Clark/SOM. 


Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
December 2, 2015 
Page 2 of 7 
BACKGROUND 
In July 2013, the Commission approved preliminary funds to program a replacement of
the existing under-sized and aging FIS facility in the SSAT with a new IAF that will
serve the Airport well into the future and facilitate the Port's Century Agenda objective to
make the Airport the West Coast "Gateway of Choice" for international travel. The
Commission also authorized use of an alternative project delivery method called
Progressive Design Build for the IAF program. This method is newly available for use
by public agencies in Washington State and allows the Port to select a design-build team
based mainly on their qualifications with competitive pricing on certain commercial
terms (e.g., fee, insurance, bond) as an additional selection factor.
Acting under the authority of follow-on Commission approvals, staff contracted with the
firm of Clark/SOM as the Design-Builder to undertake and successfully deliver this
project.   The contract with Clark/SOM is a phased contract covering three distinct
periods: the Validation Period,  the GMP Development Period (including some
preliminary base building construction e.g., site utilities and footings and the purchase of
long lead items e.g., steel), and the GMP Execution Period (full build). 
Subsequent to the signing of the Design-Build Contract the Commission passed a motion
on May 26, 2015 calling for the following: 
The Commission will work with the airport staff to engage key stakeholders,
including senior level representatives of all signatory airlines, in a transparent joint
airport/airlines planning review to be held over 90 days to discuss key issues and
work towards a solution to concerns raised about the project scope and funding.
Such work will include outside subject matter experts with knowledge of large airport
capital projects to provide input and guidance. 
As part of that review, technical discussions between airline and airport representatives
were held on July 15 and July 29 and Commission hearings were held on July 14, 28 and
August 11. 
On November 17, 2015, the IAF Design-Builder delivered the Target Budget and Target
Schedule, the two critical Validation Period deliverables, along with the many other
reports and plans required under the terms of the contract. The Design -Builder is now
prepared to advance to the second phase of the contractthe Guaranteed GMP 
Development Periodduring which design commences and certain preliminary
construction work may, to the extent specifically authorized, proceed. During this period,
the Design-Builder will continue to work to improve on the Target Budget and Target
Schedule in order to establish the GMP.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
December 2, 2015 
Page 3 of 7 
PROJECT DETAILS 
Scope of Work 
This authorization will permit design to commence immediately and will provide that
preliminary construction work can proceed once the terms of the MII provision of the
SLOA III are met. 
Once the GMP has been negotiated, staff will return for Commission authorization to
execute the third (and final) phase of the IAF Design-Build Contract. 
Schedule 
Validation Period complete                     November 17, 2015 
Finalize Target Budget and Target Schedule          1Q16 
GMP Development Period start                  December 9, 2016 
Begin Design activities                 December 9, 2016 
Begin Construction activities                     (per terms of SLOAIII) 
Establish GMP                           4Q16 (Estimated) 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                     $603,800,000    $4,600,000      $608.4M 
Previous Authorizations                $24,500,000          $0      $24.5M 
Current request for authorization           $275,500,000          $0     $275.5M* 
Total Authorizations, including this request   $300,000,000          $0       $300M 
Remaining budget to be authorized        $308,400,000          $0     $308.4M 
Total Estimated Project Cost            $603,800,000    $4,600,000      $608.4M 
*Includes state sales tax 
Budget Status and Source of Funds 
The cost estimate for the IAF, as currently defined, is $608.4 million. The project
estimate is included in the 2015-2019 capital plan and the plan of finance within CIP
#C800583. This project was originally approved by the airlines with the signing of
SLOA III with a budget of $300 million. It should be noted that the $300 million cost
figure, identified in early 2013, was based on 0% design.  As the planning and
programming work progressed and the overall scope of the project was better understood,
the costs have increased primarily due to an additional 75,000 square feet of space
required by CBP in the FIS, refined definition of vertical circulation at the sterile corridor
and the width of the bridge, and addition of enabling projects required to be undertaken in
order to execute the IAF program within the constraints of the existing airport facilities
and operations.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
December 2, 2015 
Page 4 of 7 
An updated plan of finance will be developed upon completion of the validation period.
Funding sources for the updated budget will continue to include the Airport Development
Fund, future revenue bonds, and Passenger Facility Charges (PFCs) as presented during
Commission briefings in July 2015 and consistent with the funding principles included in
the May 26, 2015 motion. The funding plan will continue to be modified as needed based
on changing circumstances (e.g., project costs, number of deplaning international
passengers, FIS rates at other airports, terms of future airline agreement, etc.). 
STRATEGIES AND OBJECTIVES 
This project addresses the Port's Century Agenda strategic objective to advance this
region as a leading tourism destination and business gateway by making Seattle-Tacoma
International Airport the West Coast "Gateway of Choice" for international travel. 
Execution of the Post-Validation Period Amendment to the Design-Builder's contract
will enable the Port to commence the second phase of the contract; the GMP
Development Period and speed completion of the IAF to better support growing
international traffic at Seattle-Tacoma International Airport. 
TRIPLE BOTTOM LINE 
Economic Development 
Executing the Post-Validation Period Amendment with the Design-Builder to commence
the GMP Development Period creates an opportunity for economic development through
contracting and with the employment of the staff that will manage this work. 
Environmental Responsibility 
Construction of a new international arrivals facility at the Airport gives the Port unique
opportunities to incorporate sustainable features into the design and construction of the
building. Identifying sustainability goals and objectives for the new IAF will continue to
be a priority for the Design-Builder in this second period of contract performance, the
GMP Development Period. If the Airport is to meet the Century Agenda energy goal of
meeting future load growth through conservation or renewable energy, this new facility
must meet or exceed current building codes for energy efficiency to advance our progress
towards this goal. The project team will later seek commission direction in whether to
certify the IAF with a Leadership in Energy and Environmental Design (LEED) rating as
one opportunity to meet the Airport's sustainability goals.
Community Benefits 
Arriving at a new modern IAF, instead of to an aging over-crowded facility, will give
foreign and returning US visitors an improved impression of the SeaTac area and the
Pacific Northwest region as a whole. The new facility will accommodate existing

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
December 2, 2015 
Page 5 of 7 
operations, facilitate passenger movement, and provide a higher level of service for
international passengers.
Additionally, in the course of delivering the project, the IAF team and the Port's Office
of Social Responsibility will work together collaboratively to establish small business
participation opportunities, in accordance with small business Resolution No. 3618.
ALTERNATIVES AND IMPLICATIONS CONSIDERED 

Alternative 1  Approve authorization to further fund this project and commence GMP
Development Period work with design proceeding immediately and construction
proceeding not before expiration of the SLOAIII prescribed 180 day waiting period for a
MII ballot rejection. This is the recommended alternative. 
PROS: 
Advances this critically needed project from the first of three contract phases
to the second contract phase, the GMP Development Period. 
Maintains project momentum. 
Permits the IAF team to develop the project definition to the next level of cost
certainty  from 0% design to GMP with our Design-Build partner. 
CONS: 
- 
Alternative 2  Postpone approval of authorization to further fund this project. This is
not the recommended alternative. 
PROS: 
- 
CONS: 
Delays current schedule and curtails current project momentum. 
Strains the Airport's ability to sustain international service in a manner
consistent with the Port's Century Agenda. 
Increases final project cost due to escalating labor and material costs. 
Risks the loss of some key members of the Design-Builder's team who would
likely be deployed to other active projects. 
Alternative 3  Approve authorization to fund an amendment allowing the Design-
Builder to proceed with design only. This is not the recommended alternative. 
PROS: 
Permits the IAF team to develop the project definition to the next level of cost
certainty  from 0% design to GMP with our Design-Build partner. 
Provides opportunity for additional airline/airport debate. 
CONS: 
Delays current schedule and curtails current project momentum.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
December 2, 2015 
Page 6 of 7 
Strains the Airport's ability to sustain international service in a manner
consistent with the Port's Century Agenda. 
Increases final project cost due to escalating labor and material costs. 
Constrains a key beneficial feature of the PDB project delivery method; early
collaboration between designer and constructor to identify and quantify risk
concurrent with design development. 
Risks default of the current Design-Builder procurement. 
Risks the loss of some key members of the Design-Builder's team who would
likely be deployed to other active projects. 
ATTACHMENTS TO THIS BRIEFING 
Attachment A  PowerPoint presentation 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
November 10, 2015  IAF Update. 
August 11, 2015  Special Meeting, Roundtable with Airline Representatives. 
July 28, 2015  IAF Forum. 
July 14, 2015 - IAF Forum. 
June 23, 2015  Authorization to Execute a Design-Build Contract. 
May 26, 2015  IAF Preliminary Funding Plan Motion. 
April 28, 2015 - Service Agreement for Commissioning Services. 
April 28, 2015  Request Authorization to Execute Lease Agreement with
SEATAC VENTURES 2010 LLC for International Arrivals Facility (IAF)
Program Management Office Space near Sea-Tac International Airport. 
February 24, 2015  Service Agreement for IAF Consultant Program Leader. 
January 27, 2015  IAF Funding Plan. 
January 27, 2015  IAF RFP Advertisement. 
January 13, 2015  IAF Update. 
December 2, 2014  IAF Scope and Budget Update. 
October 28, 2014  IAF Q3 Quarterly Briefing. 
August 19, 2014  IAF Q2 Quarterly Briefing. 
August 5, 2014  IAF RFQ Advertisement. 
July 22, 2014  IAF Progress Briefing. 
June 10, 2014  IAF Update and Quarterly Briefing. 
May 6, 2014  IAF Project Delivery Briefing. 
April 22, 2014  Capital Program Briefing. 
March 11, 2014  IAF Master Planning Authorization. 
February 25, 2014  IAF Program Briefing. 
November 19, 2013  International Arrivals Facility Construction Management,
testing and inspection; surveying and locating and safety service agreements.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
December 2, 2015 
Page 7 of 7 
July 23, 2013  International Arrivals Facility Project & Program Support; and
Price Factor Design-build Methodology authorization. 
July 9, 2013  Sea-Tac Airport International Arrivals Facility Briefing. 
July 9, 2013  Alternative Public Works Contracting Briefing. 
April 9, 2013  Sea-Tac Airport International Arrivals Facility Briefing. 
June 26, 2012  Briefing on Airport Terminal Development Challenges at Seattle-
Tacoma International Airport. 
June 14, 2011  International Air Service Growth and Future Facility briefing. 
February 2, 2010  Briefing on South Satellite Passenger Growth and Facility
Considerations, Delta's Proposed Airline Lounge and Other Possible Future
Aviation Projects.