5b mem

PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA            Item No.     5b
Date of Meeting        July 7, 2009
DATE:   July 1, 2009
TO:     Tay Yoshitani, Chief Executive Officer
FROM:   Ralph Graves, Managing Director, Capital Development Division
SUBJECT: Change Order Number 2 for the Stage 1 Mechanical Energy Conservation project,
Contract Number: MC-0313811

ACTION REQUESTED:

This memorandum requests Commission approval for the Chief Executive Officer to issue
Change Order Number 002 for the Stage 1 Mechanical Energy Conservation project to add the
additional days required (138) days to complete the project.

SYNOPSIS:
This mechanical energy conservation project is the fifth in a series of lighting, energy, and water
conservation projects that have enabled the Port to save energy and reduce water use. The Port
partnered with the State of Washington Department of General Administration to contract for the
work with one of their pre-approved consultant/contractors to implement the work at the airport.
The energy savings achieved both reduce overall demand for additional power in the entire
region, and save operating costs for the airport. The energy savings from this particular project
are estimated to be approximately $133,900 annually. In addition, the Port will receive
approximately $490,000 of one-time incentives from Bonneville Power in the form of a power
bill credit and cash. The additional time required to perform the work on this contract did not
diminish the long term annual savings from this project.
The project was delayed by the default of the manufacturer in delivering the Variable Frequency
Drives (VFD). The VFD's drive the fan terminal units at varying speeds so that only the needed
amount of air is supplied to each space, increasing the efficiency of the entire HVAC system.
An equivalent VFD was identified and accepted. Unfortunately the replacement VFD units could
not be delivered until after the contract completion date of March 30, 2008. There are no
Liquidated Damages associated with this project. A Change Order is required to extend the
contract completion date for this delay.

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer
July 2, 2009
Page 2 of 2

CHANGE ORDER DESCRIPTION AND JUSTIFICATION: The following information
relates to the pending change order scope and cost:
Change Order No. 002 
Scope of work: The original contract completion date was March 30, 2008. This was a
POS/Siemens negotiated contract under the State of Washington Energy Conservation
program (Interagency Agency Agreement (IAA) dated February 16, 2001. The initial
VFD manufacturer suspended deliveries on their equipment for 6 months in November
2007. The contractor found replacement equipment for this project from another
manufacturer that the POS deemed acceptable. These VFD's did not arrive until after the
contract scheduled completion date. This precipitated delays in receipt of O&M manuals,
testing, adjusting, and balancing and the final commission reports. Substantial
Completion was achieved on August 15, 2008.
Justification: This delay was caused by a supplier suspending delivery of VFD
components. As a result, the contractor could not perform per original schedule. There
were no Liquidated Damages included in this negotiated contract.
Consequences of not proceeding: The project documentation would be incomplete to
provide justification for the contractor exceeding the contract completion date.
FINANCIAL ANALYSIS: This is a non-compensatory Change Order.
CONTRACT INFORMATION: The following information relates to the contract and
competitive award:
CONTRACT TIME: 
Contract Award date:                                   April 30, 2007
Original period of performance                  April 30, 2007 to March 30, 2008
Original Contract Completion date                           March 30, 2008
Previous contract extensions                                     0 Days
Previous Contract Completion Date                         March 30, 2008 
This request Change Order No. 002                              138 days
Final Contract Completion Date                        August 15, 2008
CONTRACT PRICE: 
Original Contract amount:                                 $2,770,025.00
Previous Change Order No. 001                              $15,581.00
Current Contract Amount                                $2,785,606.00
This Change Order No. 002                                    $0.00
Final Contract Amount                                   $2,785,606.00

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