PORT OF SEATTLE
MEMORANDUM

'
COMMISSION AGENDA . item No.        5d
ACTION ITEM                     Date of Meeting   December 1], 2012

DATE:     December 4, 2012

T0:        'I'ay Yoshitani, Chief Executive Ofcer
IQ
FROM:    Raymond P. Rawe, Director, Engineering Services    v
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' Janice Zahn, Assistant Director, Engineering Se vices (/72,

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1
Alan Norris, Manager, Construction Safety           0

SUBJECT:  Engineering Construction Management Support, Cost Estimating, Scheduling,
Auditing, Claims Analysis Services and Construction Safety Monitoring IDIQ.

Amount ofThis Request: $0      Source of Funds: Current and Future Operating Budgets;
'

- Future Individual Project Authorizations
Maximum Cumulative Value
of IDIQ Contracts: $8,100,000

ACTION REQUESTED:
Request Commission authorization for the ChiefExecutive Ofcer to execute up to 13 indenite
delivery, indenite quantity (IDIQ) service agreements for services related to construction
management, scheduling, estimating, auditing, claims analysis, and safety monitoring in support
ofAviation, Seaport, and Real Estate Division Construction projects in an amount not to exceed
$8,] 00,000, with an ordering period ofthree years. No funding is associated with this
.
authorization request.

SYNOPSIS:

Staff anticipates issuing up to 13 IDIQ contracts to provide six different types of consultant
services to support the Port's Construction Management and Construction Safety staffon major
construction projects for all core business units. ,With the uctuating project workload, ]DIQ
contracts provide the Port with the exibility to meet business requirements as they arise by,
issuing individual service directives to accomplish tasks within a general, predened scope of
work on an as-needed basis for a xed period of Lime and a maximum contract amount.  The
Port's Ofce of Social Responsibility will assist in identifying any small business opportunities
prior to the-time ofpublic advertisement ofthe IDIQ contracts.
Competitivelybid IDIQ contracts are a widely used public sector contracting tool, consistent
With'the Port's Resolution No. 3605, as amended, and governed by CPO-1 policy.

COMMISSION AGENDA
Tay Yoshitani, Chief Executive Ofcer
December 4, 2012
Page 2 of 4

BACKGROUND :

The number of outside technical services agreements that the Port enters into is substantial, and
there is a signicant amount of time and effort required to process each agreement. As an
example, some ofthe administration activities required include long-leadtime advertisements,
consultant interviews, consultant selection and negotiation, contract preparation, and insurance
requirements. These activities inhibit rapid response and reduce the management and staff time
available for other engineering and construction activities.  Signicant economic efciencies can
be obtained by reducing the number of selection processes.
This authorization will only authorize the execution of the contracts. A service directive will be
issued for each project authorizing the consultant to perform a specied scope of work only after
staff has received authorization for the project in accordance with Port policies and procedures.
The not-toexceed cost for each contract is listed below for a threeyear contract ordering period.

meager DESCRIPTION/scorn OF WORK:

Within the next three years, over 60 projects are identied as having construction costs over
$300,000 for an overall estimated total construction cost of over $500 million, the majority for
the Aviation division. To support the construction management of these projects, six requests
for proposals (RFPs) would be issued to execute a number of IDIQ agreements, allowing
consultants to support construction management services, cost estimating, construction
scheduling, construction auditing, construction claims, and construction safety monitoring. The
goal is to have the rst ofthese service agreements in place by the beginning of July 2013 and
stagger the advertisement and execution ofthe remaining contracts through November 2013.

Each contract will have a request for qualications (RFQ) prepared and advertised separately.
Each RFQ will include goals for small business participation. Each contract will have a contract
ordering period of three years during which the services may be separately authorized. The
actual contract duration may extend beyond three years in order to complete the work identied
in a particular service directive.  The Port will not issue service directives in excess of each
contract's value.

The types, numbers, amounts, and durations of consultant services are established based on
projected needs of the Capital Improvement Programs for Aviation, Seaport, and the Real Estate
divisions. The individual selection committees can award multiple smaller service agreements
within the requested amounts listed below based upon the consultant submittals and Port goals
for small business opportunities.

COMMISSION AGENDA
Tay Yoshitani, Chief Executive Ofcer
December 4, 2012
Page 3 of4

Service Agreements anticipated forsolicitation by Engineering include:

Construction Consultant Service     Dollar Value     Number of Contracts
Construction Management                $ 5,000,000            3
Construction Scheduling                   $ 500,000            2
Construction Estimating                   $ 500,000             2
Construction Auditing Services             $ 500,000             2
Construction Claims                      $ 1,000,000            2
Construction Safety Services                $ 600,000             2
Total                                  83 8,100,000           13
Depending on the response to the RFQS, staff anticipates executing sewice agreements for up to
two separate rms for each consultant service except for construction management services,
where three service agreements are anticipated.

ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS:

1.  Do nothing  Under this alternative the Port's Engineering Department would not proceed
with advertising and awarding IDIQ services agreements. This altemative would require the
lengthy and costly process of selecting consultants for each task, thus requiring increased
lead time, additional management oversight, additional administrative preparation, and
increased advertising fees. This is not a viable alternative if the Port is committed to best
practices for capital project delivery and meeting our business sponsor needs.
Delay the advertisement and award of these IDIQ contracts.  Existing contracts are near their
contract limits or are set to expire between December 2013 and November 2014. Delays in
contract procurement may cause suspension of work assigmnents, project impacts, schedule
delays, and increased costs.
Advertise and execute IDIQ services agreements to allow for the efcient and cost effective
use of consultants to provide the technical services required by Engineering. This is the
recommended alternative.

FINANCIAL IMPLICATIONS:

Source ofFunds:

There is no inding request associated with this authorization.  Individual seivicc directives will
be executed to authon'ze the Consultant to perform any specic work on the contract against
approved project authorizations.

TRIPLE. BOTTOM LINE:

These lDIQ contracts create opportunities for small businesses participation.

COMMISSION AGENDA
Tay Yoshitani, Chief Executive Ofcer
December 4, 2012
Page 4 of4

PROJECT SCHEDULE:

It is estimated these IDIQ contracts will be executed in the second Quarter of 201 3 through the
fourth Quarter 017201 3 and will have a three-year ordering period. The contract durations may
extend beyond that period to allow work to be completed.

OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST:

None.

PREVIOUS COMMISSION ACTIONS 0R BRIEFINGS:

None.