PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      6b 
ACTION ITEM 
Date of Meeting      June 23, 2015 
DATE:    June 1, 2015 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Ralph Graves, Managing Director Capital Development Division 
David Brush, Program Leader, Capital Development Division 
SUBJECT:  International Arrivals Facility (IAF) Authorization to Execute a Progressive-
Design-Build Contract (CIP #C800583) 
Amount of this Request:              $0  Source of Funds: Airport Development 
Amount Authorized to Date:     $24,500,000               Fund, Passenger
Facility Charges, and
Est. Total Project Cost:        $608,400,000                 future Revenue Bonds 
Est. State and Local Taxes:      $43,500,000 

ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to negotiate and execute a
design-build contract with a design-build team for the Airport's International Arrivals Facility
Program and authorize commencement of contract Validation Period work not to exceed
$6,000,000 of previously authorized funding. 
SYNOPSIS 
This authorization will allow the IAF project to remain on schedule by enabling the CEO to
authorize work (team mobilization and program validation) as soon as selection of the Design-
Builder is complete. This authorization will allow the party most qualified, the selected designbuilder
, to study and validate the programming work completed to date in order to provide the
Commission with the most accurate overall cost estimate and schedule to date. Today's
authorization allows team mobilization and validation work.
Today's authorization does not allow final design or construction work to begin, and these later
efforts will be the subject of future requests to the Commission for authorization. Today's
authorization does not affirm the total estimated cost of $608,400,000 shown above. However, 
the Validation Period will produce the estimated Target Budget and Target Schedule for the
program which should be available at year end. Retaining the design-builder now will help
answer earlier Commission questions regarding the magnitude of the investment.


Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
June 1, 2015 
Page 2 of 7 
While today's authorization allows the CEO to enter into contract with the design-builder, the
design-builder's initial work directive will be limited to only the mobilization and validation
work. This work will be contracted for a not-to-exceed amount of $6,000,000 and will be paid
for utilizing existing $24,500,000 funding previously approved by the Port Commission on
August 5, 2014. No additional authorization is being requested at this time.
Assuming the Commission authorizes execution of the contract, the Design-Builder will be
selected on June 24, 2015. This selection comes at the conclusion of a rigorous selection process
that was based on qualifications (80% of score) and certain price factors (20% of score). That
selection process began with a Request for Qualifications, issued on August 7, 2014, followed by
a Request for Proposal issued to a shortlist of finalists on February 13, 2015. The design build 
team finalists have toured the airport facilities, presented their key team members and engaged in
proprietary meetings with staff to discuss management approach, design excellence, and contract
terms.
BACKGROUND 
In July 2013, the Commission approved preliminary funds to program a replacement of the
existing under-sized and aging Federal Inspection Services (FIS) facility in the South Satellite
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 (PDB) 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,
bond) as an additional selection factor.
Acting under the authority of Commission approvals, staff has advanced the PDB procurement,
has ranked the design-build team finalists, and is prepared to enter into contract negotiations with
the selected design-build firm.  The contract with the design-build firm will be comprised of 
three distinct periods: the Validation Period, the Guaranteed Maximum Price (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).
Port staff will seek Commission approval prior to proceeding with each of the three contract
periods: 
1.  Validation  Period: Approval today will provide action to move forward with the
Validation Period.  Within the Validation Period, Port staff will complete a State
Environmental Policy Act environmental review. Based on the results of the Validation
Period and that environmental review, if appropriate, staff will return to Commission for
authorization to proceed with the project and the remaining two contract periods: GMP
Development and GMP Execution.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
June 1, 2015 
Page 3 of 7 
2.  GMP Development Period: At completion of the Validation Period, Port staff will present
the Target Budget and Target Schedule for approval. The Target Budget and Target
Schedule are benchmark commitments by the design-builder that, together with staff, will
continue to be refined through development of the IAF design during this period. With
the Commission's grant of authorization to proceed with this period of contract
performance, design and construction of early work packages will start. 
3.  GMP Execution Period:  After the GMP has been negotiated with the design-builder,
staff will present the GMP for Commission authorization to enter into the final period of
contract performance and complete the new IAF. 
This request will authorize staff to proceed with the first contract period as depicted in the
following graphic showing the Design-Build Contract Lifecycle: 







PROJECT JUSTIFICATION AND DETAILS 
The IAF Program is the Port's first project using the PDB delivery method. This method brings
the designer and contractor together under one contract to deliver the project. A key benefit of
this delivery method is that the Design-Builder can work collaboratively with the Owner to
compress the overall project schedule and reduce the total project duration. By authorizing staff
to execute a PDB contract, staff will begin that partnership with the awarded Design-Builder and
enter the first contract period, the Validation Period. 
During the Validation Period, the Design-Builder will critically assess the Port's IAF planning
and programming documents, validate all assumptions and existing site conditions, create three
design concepts based generally on the current plan, define their management approach in order
to establish an Initial Basis of Design, and produce a Target Budget and Target Schedule. The

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
June 1, 2015 
Page 4 of 7 
Port and Design-Builder will subsequently use the Target Budget and Target Schedule to guide
the evolution of the design during the second phase of the contract, the GMP Development
Period. 
Scope of Work 
This authorization will permit staff to advance delivery of the new IAF as follows: 
The execution of the design-build contract and the authorization of Validation Period
activities will produce the following deliverables: 
Three design concept variations based on the current IAF plan 
Program Definition Document Validation Report 
Initial Basis of Design 
Target Budget 
Target Schedule 
GMP Development Plan 
Program and Site Specific Safety Plans with Job Hazard Analysis 
Contractor Access Plan 
Project Management Work Plan 
Small Business Participation/Inclusion/Outreach Plan 
BIM Model and Implementation Plan 
QA/QC Plans 
Security Plan 
Schedule 
Commission authorization                          June 2015 
Validation Period start                               July 2015 
Validation Period complete                          November 2015 
Present Target Budget and Target Schedule               December 2015 
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                  $0          $0          $0 
Total Authorizations, including this request           $0          $0       $24.5M 
Remaining budget to be authorized               $0          $0     $583.9M 
Total Estimated Project Cost                    $0          $0      $608.4M

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
June 1, 2015 
Page 5 of 7 
Budget Status and Source of Funds 
The cost estimate for the IAF, as currently defined, is $608.4 million. The project estimate was
included in the 2014-2018 capital plan and the plan of finance within CIP #C800583. This
project was approved by the airlines with the signing of the Signatory Lease and Operating
Agreement (SLOA III) with a budget of $300 million.
An updated plan of finance is being developed to account for the difference between the
SLOAIII approval and the current budget. Funding sources for the updated budget will include
the Airport Development Fund, future revenue bonds, grants, and Passenger Facility Charges
(PFCs). This finance plan will be reviewed during the Commission's requested 90 day review
period.
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 contract will provide the Port the opportunity to take advantage of the PDB
delivery method to validate the earlier programming work while considering three design
concept variations in order to produce a target budget and schedule. This work will support a
Commission resolution relating to the project.  Performing the validation work as soon as
possible will later enable compression of the overlapping design and build processes to speed
completion of the IAF to better support growing international traffic.
TRIPLE BOTTOM LINE 
Economic Development 
Executing a contract with a Design-Build team to commence the Validation 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 is high on the priority list for the
Design-Builder in this first period of contract performance, the Validation 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. All IAF sustainability goals and objectives will be presented to the Commission in a
project briefing at Validation Period completion.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
June 1, 2015 
Page 6 of 7 

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 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)  Postpone approval of authorization to award a design-build contract and
conduct Validation Period work. This is not the recommended alternative. 
PROS: 
Permits Port and key stakeholders including senior-level representatives of all
signatory airlines to complete joint airport/airline planning review of the IAF
Program before any further major action. 
CONS: 
Denies Port and key stakeholders the benefit of the Design-Builder's input in the
planning review, project scope and funding discussion. 
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 2)  Approve authorization to award a design-build contract and conduct Validation
Period work. This is the recommended alternative. 
PROS: 
Advances this critically needed project through completion of the Validation Period. 
Maintains current schedule. 
Permits the IAF team to develop the project definition to the next level of cost
certainty  from 0% design to pre-conceptual design with commitment on cost and
schedule by our Design-Build partner. 
CONS: 
Commits the Port to financial expenditures in order to gain the receipt of the Design-
Builder's Target Budget commitment at the end of the Validation Period.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
June 1, 2015 
Page 7 of 7 
ATTACHMENTS TO THIS REQUEST 
Computer slide presentation. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
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. 
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.