7b supp

Item No.:                   7b supp 
Meeting Date:             Dec. 2, 2014 
International Arrivals Facility 
(IAF) 
Scope and Budget
Update 

11/26/2014                                                                     1

IAF 
Key Message 
Used 3 independent estimating teams to produce
cost at 100% Planning/0% Design 
Prioritized metrics to assist in scope refinement 
Identified and evaluated 34 possible scope
changes/cost savings 
Engaged airlines in evaluation 
Identified key additions during process 
Evaluated the plan of finance 
Next step: Design/Builder team will help validate
cost and schedule, refine scope, value-engineer
and advance program 
11/26/2014                                                          2

IAF 
Agenda 
Today's Briefing 
Refined Target Metrics for IAF Operations 
Capital Budget and Funding 
Program Budget 
Cost Validation Process Over 5 Months 
Airline Input Meetings 
Notification to Design Build Teams 
Next Briefing 
Timeline for start of Design and Construction
Activities 

11/26/2014                                                          3

11/26/2014                                                          4

Evaluation of Capital Plan  IAF 
Update estimate of potential savings and underspending
with existing projects 
Evaluate new needs: 
List of "delayed approval" projects 
NSTAR  pavement replacement, other? 
Future projects: Master Plan, Part 150,other? 
Evaluate alternatives: 
Defer projects/spending 
Reduce allowances, replenish with actual savings 
Increase overall budget 
Update Plan of Finance based on changes in Capital Plan 
11/26/2014                                                          5

IAF 
IAF Funding Plan: Background & Process 
Establish cost for IAF            October 7 Budget
presentation - intent to
December briefing            absorb IAF cost increase
in existing $1.7 billion
capital budget through: 
Projected underspending
Evaluate total capital plan             on other projects 
Use of Allowance CIPs 
January briefing 
Deferral of 2015 projects 
Need to reassess due to
magnitude of IAF
Update funding plan           increase 
January briefing 
11/26/2014                                                          6

IAF 
Program Budget History 
Initial Budget     $344M ($316M Phase 1, $28M Phase 2) 
(July 2013) 
Budget Update    $631M 
(Sept. 2014) 
Program Budget  $596M 
(Dec. 2014) 

11/26/2014                                                          7

IAF 
Scope Analysis & Confirmation 
Planning Program Document 

Existing Facility Overlay 

Combine Scope

Evaluate Assumptions & Alternatives 
Involved Specialist Experts   3 Separate Estimating Teams 
Test with Airlines and Staff 
Rebuild Scope and Budget 
Tested Alternatives      Identify Target Budget Range 

11/26/2014                                                          8

IAF 
Assumptions & Alternatives 
Assumptions             Alternatives 
IAF - full service                   Reduce Primary 
Eliminate Recheck 
Eliminate SSCP 
Eliminate O&D Use of SSCP 
Eliminate Accommodation for
Growth/Capacity 
Reduce Bag Claim 
Reduce Vertical Circulation
Changes 
Sterile Corridor - elevated at        Reposition Sterile Corridor 
Concourse A                Reduce number of connected
gates 
Bridge  assembled off-site,         Construct Bridge in Place 
transported and installed in        Construct Bridge with 2-way
place                        flow 
11/26/2014                                                          9

Airline Input Meetings    IAF 
Meeting 1      Meeting 2      Meeting 3      Meeting 4 
10/15/2014     10/22/2014     10/29/2014     11/5/2014 

Delta          Delta          Delta          Delta 
Hainan        Hainan        Hainan        Hainan 
British Air 
Horizon                    British Air       British Air 
Alaska          ANA 
Emirates 
Lufthansa 
Meetings organized, chaired and recorded by Airline Technical
11/26/2014  Representative  a Port/Airlines liaison independent from the project team. 10

IAF 
Tested Alternatives 
Example: At Grade Bag Claim & Secondary Screening 


Cross section through IAF 


Rejected 
11/26/2014                                                         11

IAF 
Tested Alternatives 
Example: Bridge Construction in Place 



Assembly Area at Cargo 2 
Rejected 
11/26/2014                                                         12

IAF 
Tested Alternatives 
Example: Sterile Corridor Within Concourse A 



Cross Section of Concourse A 

Rejected 
11/26/2014                                                         13

IAF 
Program Budget 
Independent Estimator Results (Sept. 2014): $631M 
Program Alternatives Accepted (deduct):   -$ 39.7M 
Program Alternatives Accepted (add):      +$4.7M 
Resultant Target Budget:              $596M 
Cost Reduction Alternatives Rejected:    -$111.6M 

11/26/2014                                                         14

IAF 
Program Cost Reduction Alternatives
Considered & Rejected 
International Arrivals Facility: 
At grade bag claim and secondary                 -$32.0M 
Reduce size of bag claim                        -$17.7M 
Delete security checkpoint                       -$11.5M 
Eliminate new vertical circulation at GML Hall       -$9.1M 
Remove re-check ticket counter                   -$6.9M 
International Corridor: 
Corridor within Concourse A                     -$22.0M 
Bridge: 
Bridge constructed in place                      -$12.4M 
Total       -$111.6M 
11/26/2014                                                         15

IAF 
Program Alternatives Accepted 
(Deducts) 
Postpone Sterile Corridor A3-A6       -$18.7M 
Eliminate security checkpoint 
accommodation for passengers originating 
in Seattle                       -$2.9M 
Ramp to GML Hall                  -$11.8M 
Eliminate egress stair enclosures      -$6.3M 
-$39.7M 

11/26/2014                                                         16

IAF 
Program Alternatives Accepted 
(Adds) 
Future 2-way Bridge Capability        +$4.7M 




11/26/2014                                                         17

IAF 
Program Budget 
Independent Estimator Results (Sept. 2014): $631M 
Program Alternatives Accepted (deduct):   -$ 39.7M 
Program Alternatives Accepted (add):      +$4.7M 
Resultant Target Budget:              $596M 


11/26/2014                                                         18

Range of Cost Certainty    IAF 
100% Planning, 0% Design 
$596M        DB Validation             GMP
50%
40%
30%
20%
Variability 10%
0%
-10%
-20%
-30%
PLANNING         VALIDATION               DESIGN
Time
Adapted from the Association for the Advancement of Cost Engineering International
variability in estimate accuracy ranges for Building and General Construction Industry 

11/26/2014                                                         19

Current Project Scope   IAF 
Major Program Components 
IAF             FIS  per CBP Standards 
Recheck 
Security Screening Checkpoint for connecting
passengers only 
Provision for future expansion of IAF bag claim 
Maintain South GT Lot/Allow future domestic
baggage system expansion 
Maintain South Loading Dock 

Concourse A     Elevated corridor with multiple circulation cores 
Sterile Corridor     Provision for future expansion to Gates A3  A6 
Bridge          Remote assemble, transport and install 
Provision for future 2-way passenger flow 
11/26/2014                                                         20

IAF 
Notification to Design Builder Teams 
Notify prospective firms of updated cost range 
Confirm Statement of Qualifications 12/24/2014
deadline 
Proposers told to watch this commission briefing
so all have the same information on this program 


11/26/2014                                                         21

IAF 
Commission 
Next Briefing 
Timeline for start of design and construction
activities 
Update on capital budget and funding plan 
Next Action Item 
Authorization to advertise RFP to shortlisted
teams 
Questions? 
11/26/2014                                                         22

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