COMMISSION 
AGENDA MEMORANDUM                        Item No.          9c 
BRIEFING ITEM                            Date of Meeting       June 12, 2018 
DATE:     May 25, 2018 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Jeffrey Brown, Director AV Facilities and Capital Program 
Wendy Reiter, Director, Aviation Security 
Wayne Grotheer, Director, Aviation Project Management Group 
SUBJECT:  Baggage Optimization Project Update C800612 
EXECUTIVE SUMMARY 
The Baggage Optimization project replaces six individual baggage screening systems with a
centralized system that optimizes the operation and functionality of the checked baggage 
system at Seattle-Tacoma International Airport. The purpose of this project is to optimize the
baggage system to achieve the maximum outbound baggage capacity within the current airport
footprint. The project increases screening capacity for greater baggage volumes, increases
flexibility to allow bags to be checked in from any ticket counter and be conveyed to any
makeup device, meets  a minimum-connect-time goal, and increases  energy efficiency. 
Additional benefits include increased reliability, redundancy, and security. Meeting travelers'
baggage needs will significantly contribute to increased customer service, and address growing
demands of the region. The project is currently scoped to accommodate 60 million annual
passengers (MAP), and will be implemented through three phases of construction. 
The project is currently on budget but has recently experienced schedule setbacks of two to
three months. The biggest risks to the project are schedule delays and baggage handling market
conditions during Phase 2 and 3 bids. 
PROJECT UPDATE 
Phase One 
Notice to Proceed was issued to the Phase 1 prime contractor, PCL Construction Services Inc.,
on May 26, 2017, and construction is currently underway, including the following activities: 
(1)   Demolition of Central Terminal ramp has been completed 
(2)   New Central Terminal ramp construction is approximately 80% complete 
(3)   Conveyor installation began in March 2018 
(4)   Maintenance breakroom in Concourse B is 80% complete 
(5)   Construction on utilities and infrastructure continues 

Template revised September 22, 2016.

COMMISSION AGENDA  Briefing Item No. _9c___                              Page 2 of 4 
Meeting Date: June 12, 2018 
(6)   Baggage screening machine installation at the "North Oversize" location was
completed and is in use 
Upcoming  critical  elements  include  conveyor  deliveries  and  installation,  computer
programming, purchase of network equipment for baggage handling system, and factory
acceptance test to be conducted.
On-going stakeholder coordination continues to be essential, particularly with other projects,
Aviation Maintenance, and airport tenants. Work on Phase One is estimated at 38 percent
complete. 
The contractor has been maintaining two work shifts, Monday  Thursday. As of the latest April 
pay application, 66,130 work hours have been reported and work complete is estimated to be
38%. 
Contracting requirements (status as of May 2018) 
Program                 Requirement/Goal       To-Date 
Small Business Enterprise (SBE)       15% of total contract      15.28% 
Small Contractors & Suppliers (SCS)   5% of SBE                 11.84% 
Apprenticeship                      15% of total hours        20.32% 
Phase Two 
The Port of Seattle and the design consultant continue to develop the bid documents for Phase
2. The consultant has been working on separating the Phase 2 design from the comprehensive
100% design package; holding working construction sequencing meetings, and developing
construction documents for the scope increase to bring the new baggage system to a capacity
of 60 MAP. 
Bi-weekly  coordination  meetings  are  underway  with  the  consultant  and  internal  Port
departments.  Critical upcoming activities include detailed review meetings for construction
sequencing and for the additional capacity scope.  Design review meetings on the Phase 2
documents will begin in Quarter 3. 
SCHEDULE AND BUDGET 
The Baggage Optimization project will be implemented in three construction phases. 
Schedule 
Based on the most current contractor schedule, Phase 1 is one month behind schedule (based
on baseline schedule set in April 2015). Holding this schedule would place Phase 1 Substantial
Completion in 2019 Quarter 3. However, the contractor has fallen  behind on conveyor
submittals and fabrication.  The Port has requested and received a mitigated schedule that
indicates the project will be completed on time.  The contractor continues to miss key start

Template revised September 22, 2016.

COMMISSION AGENDA  Briefing Item No. _9c___                              Page 3 of 4 
Meeting Date: June 12, 2018 
dates and mitigates by shortening schedule durations to show on-time completion. While it is
still possible for the project to complete on time, the continued submittal and conveyor
delivery delays leave on-time completion unlikely. To mitigate this schedule concern, The Port
Baggage Team has conducted additional design review meetings and on-site submittal reviews
to help expedite the required submittals. The team has sent staff to Denver to participate in a
submittal meeting with the contractor and designer to help streamline the submittal approval
process.  The  project's  managers  and  department  directors  have  met  with  the  prime
contractor's executives to discuss project concerns. The team has also met with Baggage
Handling subcontractor executives to brainstorm ways to keep the project on track and recover
schedule delays. The team continues to work toward on-time completion without sacrificing
the quality of the new baggage system. 
Phase 2 design efforts started on October 31, 2017. The overall project is currently scheduled
for Phase 3 (the final phase) to obtain Substantial Completion in 2025 Quarter 1 (contingent
upon on-time Phase 1 completion). 
Phase 1 Substantial Completion                 2019 Quarter 3 
Phase 2 Substantial Completion                 2022 Quarter 2 
Phase 3 Substantial Completion                 2025 Quarter 1 
Budget 
The Baggage Optimization project is on budget as currently scoped. 
The budget summary for the project to date is as follows: 
Total Project Budget                                     $445,050,000 
Total TSA Contribution                                    $94,043,296 
Total Commission Authorization to Date                 $136,312,200 
Amount Spent to Date (as of 05/24/18)                   $46,508,989 
TSA Reimbursement to Date (as of 05/24/18)             $20,324,244 
ADDITIONAL BACKGROUND 
The Baggage Optimization project was scoped in 2012 to accommodate 45 MAP with an
expandable design to accommodate future growth. At the time, growth forecasts were flat and
predicted that 45 MAP would be adequate through 2027. The decision was made to proceed in
building an expandable 45 MAP system with the expectation that an expansion would occur in
the future in time to accommodate growth up to the 60 MAP level. Due to unprecedented
growth at the airport, the 45 MAP threshold was met in 2016, over ten years earlier than
anticipated. In June 2017, the Commission authorized the project to incorporate a capacity
expansion of the Baggage Optimization project in order for the new outbound baggage system
to accommodate 60 MAP. The additional capacity will be incorporated into Phases 2 and 3, and
added 14 months to the overall project schedule, and a net budget increase of $126 million.
The $126 million increase is included in the overall budget of $445 million.

Template revised September 22, 2016.

COMMISSION AGENDA  Briefing Item No. _9c___                              Page 4 of 4 
Meeting Date: June 12, 2018 
ATTACHMENTS TO THIS BRIEFING 
(1)   Presentation slides 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
January 9, 2018  Baggage Optimization Quarter 4 Project Briefing 
September 26, 2017  Baggage Optimization Quarter 3 Project Briefing 
June 27, 2017  Commission authorization to (1) authorize additional design and project
management funds to expand the capacity to 60 million annual passengers (MAP); (2) use
Port crews and small works contracts to perform additional construction work; and (3)
amend Service Agreement P-00317641 to add $10,160,000 
October 25, 2016  Baggage Optimization Quarter 4 Project Briefing 
July 12, 2016   Commission authorization to advertise and execute a contract for
construction Phase 1 
June 28, 2016 Baggage Program Briefing 
May 17, 2016  Checked Baggage Optimization Project Briefing 
March 8, 2016  Commission authorization for the Chief Executive Officer to amend the
Baggage Optimization Design Services contract 
June 23, 2015  Checked Baggage Optimization Project Briefing 
September 10, 2013  The Commission authorized the execution of an Other Transaction
Agreement (OTA) with TSA for reimbursable costs for design; construction, and to authorize
$15 million to continue from 30% to 100% design; and execute a consultant service
agreement for program management support services 
August 20, 2013  Response to questions from Commissioners asked during August 6, 2013
Commission Meeting 
August 6, 2013  The Commission was briefed on the near-term and long-term challenges
related to handling checked baggage at the Airport 
January 22, 2013  The Commission authorized $5 million for staff to begin design through
30%, and to enter into an agreement to allow reimbursement from the federal government
to the Port for eligible elements of the 30% design effort 
January 8, 2013  Baggage Systems Briefing 
August 14, 2012  Baggage system recapitalization/optimization was noted in the 2013
business plan and capital briefing as a significant capital project not included in 2013-17
capital program 
August 7, 2012  Baggage system recapitalization/optimization was referenced as one of
the drivers for the need to develop an Airport Sustainability Master Plan 
June 26, 2012  The Airport's baggage systems were discussed during a briefing on terminal
development challenges 
May 10, 2012  TSA's interest in a national recapitalization/optimization plan for all
baggage-screening operations was referenced in a design authorization request for the C60-
C61 Baggage Handling System Modifications Project 

Template revised September 22, 2016.