Port:
of Seattle

TKW Audit Report Summary

2/3/2009

1. We recommend the   The Port agrees that cost data,
Port of Seattle:          that is readily retrievable and
specific to the need at hand, is
Develop a historical   always beneficial. This data
database that will     would help in understanding
support estimating    construction cost trends and
and project         serve as input to estimates for
management groups.  future projects.
Improve functionality    la. The Port will analyze the  1a. COST DATABASE. Analyze          Maruska
of existing project       requirements, feasibility,    requirements, feasibility, initial cost, ongoing
reporting systems to    initial cost, ongoing cost and  cost, and benefits of construction cost data
support            benefits of different levels of  and management.
benchmarking of key    construction cost data
performance        collection and management.
indicators and         This wilt include looking at
- detailed data      tracking costs in a CSI
analysis.             format.
lb. ThePort willreview our Ib. Reviewkey performanceindicators to Chamberlin
Key Performance Indicators, validate; evaluate reporting system; analyze
to confirm that they are still   costs, benefits, and life of system.
valid and comprehensive.
We will evaluate what it
would take to make the
reporting systems more
capable and user friendly.
The analysis will include
costs, benefit and the
-
expected life for a revised
system.


3. We recommend the   The Port agrees that the     3a. PROCEDURES. Review PMG Manuals  MarstersICurtis    12131I07   Completed 1116/09.
Port of Seattle update    Aviation Project Management  and Procedures aswell as review CA and
existing procedures and   Procedures Manual and      CM Manuals and Procedures with project
seniormanagement    Seaport Project Management  delivery team.
ensure implementation   Controls Guidelines should be
and adherence.       updated.               3b. Incorporate lessons learned.         MarstersICurtis     Ongoing    Completed 1116/09.
3c. Ensure adherence.                RileyIChamberllain   Ongoing





5. We recommend the     The Port concurs with the      5a. LESSONS LEARNED. Implement a       Gerry G             Ongoing     Completed; It was noted that when the Port transitions from Hummingbird
Port of Seattle require    recommendationproposed by     lessons learned system.                                        to a new documentmanagement system, the lessons learned will require
consistent input of       the auditor that there will be                                                               revising. 1/I6/09.
"lessons learned" into a   consistent input of "lessons
centralizedagency      learned" into a centralized    5b. Review what other agencies use (BMP).   Gerry G         18131I07    Completed 1116/09.
database.           database." The information
contained in this            5c. Clarify purpose, scope, tasks, and       Gerry G           9131107     Completed 1116/09.
documentationwill then be       resources.
integrated into the planning
stages of future projects.      5d. Org resources for development of       Gerry G           12131I07    Completed 1/I6/09.
database, schedule, potential problems
and opportunities.
5e. Create a database, documentation, and   Gerry G          12131I07    Compteted 1116/09.

retrieval of info and process.








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Estmating Standard                  mL.

Operating Procedures benefit return.
(SOPS)that are
supported by training.    7a. The Port will re-evaluate 7a. ESTIMATING. Evaluate in-house versus  Maruska          9/30/07     Add attachments. 1/21/09
the cost effectiveness of    consultant expert for cost estimating and data
providing an in-house      collection.
lnvestigate past        subject matter expert for
performance and      cost estimating and data
incorporate lessons     collection. The analysis will
learned into new       consider the factors listed
Standard Operating    above and the feasibility of
Procedures.         hiring a Port employee to fill
this function.
Implement a
standardized        7b. The Port will develop    7b. Develop standard operating procedures;   RileyIStahlacker
structure for           formal standard operating   incorporate into PM and CM Manuals; and
estimates and        proceduresfor cost       provide training to staff.
deliverables that       estimating and publish them
include direct          in the Project Manager's
construction costs.      Procedures Manuals. The
Port will provide training for
Project Managers and
-'
Integrate
cost/schedulerisk      appropriate engineering
analysis practices into   staff on how to use the cost
the estimating        estimating procedures.
process.
7c. The Port will use       7c. Adjust procedures based upon lessons    RileyIStahlacker
Investigate launching    lessons learned to adjust    learned.
an enterprise level      the estimating procedures
estimating software.     similar to the way the
existing estimating
Develop the capability   templates have been
to produce trending     adjusted over time.
- reports for key
performance        7d. The Port will evaluate   7d. Evaluate and develop std templates for   RileyIStahlacker
indicators.            alternatives for           estimates.
standardizing the way
consultant estimators
structure their estimates of
direct costs. The selected
format will be included in
the estimating procedure
and will include a standard
template for direct
construction costs.
7e. The Port will look for     7e. Strengthen interface of cost/schedule risk,  PMEC            311I08      Completed 1/21/09
ways to strengthen the     cost estimating, and cost trending.
connection between

cost/schedule risk analysis
practices and cost
estimating and cost trending
procedures.
7f. In conjunction with      7f. Investigate enterprise level software for    Maruska/Riley/Curtis 311I08      Minor edits required. 1/21/09
Accounting and         cost estimating and cost trending.
Procurement
Services, Information and
Communications
Technology, we will
investigate a enterprise
level software for cost
estimating and cost
trending.
7g. We will identify and     7g. Identify and review current performance   Dakota           9/30/07     Add attachment. 1/21/09
review the current        indicators and provide definitions.
performance indicators and
provide definitions for each.
7h. As no additional       7h. Solicit, review, and evaluate performance  Marsters          12131I07    Add attachment. 1I21I09
performance indicators     indicators in AV industry.
were provided in the
report, we will solicit and
review performance
indicators utilized within the
aviation.
7i. Same as 7h for seaport   7i. Solicit, review, and evaluate performance   Curt S                          Add attachment 1I21I09
industries and evaluate their  indicators in SEA industry.
appropriateness for the
Port.
7j. We wilt examine the     7j. Evaluate expansion of trend indicators.    Zahn            12/31I07
expansion of our existing
trend reports to include
other performance
indicators that may be
beneficial.

9. We recommend the   The Port concurs with the    9a. PERFORMANCE CONTRACTING. Port  Maruska        Annually
--Port of Seattle pursue a     recommendationand will          rep to work with CPARB on contracting
performancecontracting  continue to work with the     methodologies.
strategy for applicable    CPARB and legislators to
projects.              provide performance         9b. Incorporate contracting methodologies    Powell            I213I107    Completed I121109.
contracting methods.        selection and processes into PM and CA
manuals.



II.Werecommendthe The Port concurs with the  IIa. C.O.TRACKING. Review unit   Zahn    7131107
Port of Seattle maintain   need to incorporate unit      pricelquantity trending and recommend
change source reports,   pricelquantity items in the     standards and procedures for reporting.
including bid item       current trend log in order to
overruns, contractor     improve the trending system   IIb. Investigate and review processesand   Eileen           12131107    Completed I121109.
generated changes and   and better standardization.    documentation of costs, schedule, risk and
claims, to understand    The Port also will consider    narrative reporting (Gray Book).
trending of cost growth    including a monthly narrative
categories.            with the cost, schedule and
risk analysis, similar to the
Washington DOT Gray Book
or previous Port monthly
project status reports that used