Item 8b Memo

PORT OF SEATTLE
MEMORANDUM 

COMMISSION AGENDA            Item No.     8b
Date of Meeting    January 13, 2009
DATE:   December 31, 2008
TO:     Tay Yoshitani, Chief Executive Officer
FROM:   Michael Ehl, Director, Airport Operations
SUBJECT: Award of Contract for Janitorial Service for Seattle-Tacoma International
Airport, RFP 08-26 Contract for Janitorial Services
REQUEST
Request for Port Commission authorization to execute a contract for the provision of
janitorial services to Seattle-Tacoma International Airport (Airport), for a three-year
period effective February 1, 2009 through January 31, 2012, for an initial annual contract
amount of $7,988,737, and a total estimated value of $39,943,685 for the five-year term.
SYNOPSIS
The Airport has historically contracted with a third-party vendor for the provision of
janitorial services. This contract award covers the main terminal complex and satellites,
comprising approximately 94 percent of total janitorial expenditures. This contract
includes a requirement that the prime contractor subcontract a minimum of 25 percent of
the work to small businesses. For purposes of this contract, small businesses are those
whose annual revenue does not exceed $7,500,000, which is 50 percent of the maximum
annual revenue used by the U.S. Small Business Administration (SBA) to define a small
business. This requirement results in approximately $2,000,000 per year value of work
being performed by small business firms within this contract. The successful bidder is
ABM Industries Incorporated (ABM).

BACKGROUND 
Prior to 2008, all janitorial service to the airport was provided by a single supplier.
In September 2007 a Request for Proposals (RFP) was issued for janitorial services that
contained two major changes from the previous agreement. It separated the services into
one major and two minor contracts; and it reserved the two minor contracts for Small
Business Enterprises (SBEs). Following the notice of award to the three selected
vendors, two protests were received. One was received from an unsuccessful bidder in
the main contract and the other from one of the two minor contract proposals. An
internal Port of Seattle panel reviewed the protests and evaluated the selection process.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer
December 31, 2008
Page 2 of 3
The major contract protest was partially upheld on the basis that the evaluation of bids
had been performed in a manner inconsistent with the RFP. The minor contract protest
was denied. Both the smaller contracts were awarded.
The panel recommended two courses of action on the major contract: Either the bids
should be re-evaluated or all bids should be rejected and the contract re-bid. Port staff
decided that it would be best to re-bid the contract. As a result of the protest and Port's
decision to re-advertise these services, the Port executed an amendment in December
2007 extending the then-current contract for another year (through December 31, 2008).
Discussions between Airport Operations, Central Procurement Office, Legal and the
Office of Social Responsibility (OSR) resulted in recommendations for the new package,
the most significant being to lower the eligible small business revenue threshold to
$7,500,000 or 50 percent of the SBA definition. The second recommendation was to
include a mandatory requirement that the prime contract include a minimum of 25
percent SBE subcontracting. The contract was re-bid in September 2008 with the OSR
sending bid notices to 29 organizations within the local community. The RFP process
included a SBE/prime contractor job fair at the Airport, followed by a mandatory preproposal
conference and tour. This conference attracted 15 would-be prime contractors
and 20 SBE sub-contractors.
Eight prime janitorial contractors responded to the bid. An evaluation committee
reviewed the bids and the Central Procurement Office informed the successful bidder that
their proposal was accepted pending Commission authorization and execution of contract
documents by both parties. The successful bidder is ABM Industries Incorporated
(ABM).
To allow completion of the selection, contract award, and the transition to a new
agreement an amendment was issued extending the contract through January 31, 2009.
Pending Commission approval of this request, a new agreement will be signed effective
February 1, 2009.
PROJECT DESCRIPTION/SCOPE OF WORK 
Project Statement: This project is to deliver janitorial services to the Passenger
Terminal Buildings.
Project Objectives: The janitorial services shall be such as to provide and maintain a
level of cleanliness ordinarily associated with the highest industry standards for major
airports.
Scope of Work: The furnishing of all labor, equipment, supplies and materials required
to provide complete janitorial services for the Passenger Terminal Buildings.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer
December 31, 2008
Page 3 of 3
STRATEGIC OBJECTIVES 
Small Business Participation. If this contract is awarded, SBE companies
contributing to janitorial work under this contract through their work as
subcontractors will amount to 25 percent of the total value of the work performed.
This is the first time the amount of SBE involvement has been formally tracked.
Environmental. The successful bidder's cleani ng program has received the United
States Green Building Council's Leadership in Energy and Environmental Design
(LEED) certification, ensuring that all products and procedures used will comply with
the most environmentally friendly standards, consistent with the Port's "greenest"
objective.
FINANCIAL IMPLICATIONS 
To meet overall Aviation Division budget targets for 2009, the janitorial budget was
reduced by approximately 10 percent from 2008. Strict oversight of the contract will be
required to maintain standards as close as possible to current levels.
The resulting reduction of janitorial expenditures is approximately $900,000 in 2009.
This is equivalent to a reduction in Cost Per Enplanement of approximately $0.06.
The contract exceeds the amount allocated in the total 2009 janitorial budget by $205,147
or 2.48 percent. Variations in numbers of passengers traveling, and changes in areas
leased by airlines, such as gate holding lounges, typically lead to periodic changes in
janitorial service level. Such changes during 2009 are anticipated to result in the contract
falling within budget by the end of 2009. If such changes do not happen, the cost of the
variance will be paid from the expense contingency fund of the Airport Director's Office.
The total value of the three-year contract, plus provision for two one-year extensions, is
$39,943,685.
PROJECT SCHEDULE
The new janitorial service contract is effective February 1, 2009 for a period of three
years, with the provision for two one-year extensions.
PREVIOUS COMMISSION REVIEW/ACTION 
This contract was last awarded on January 1, 2003.

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