5b Memo

PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA                 Item No.              5b 
Date of Meeting     August 3, 2010 
DATE:      July 12, 2010 

TO:         Tay Yoshitani, Chief Executive Officer 
FROM:     Raymond P. Rawe, Director, Engineering Services 

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

Amount of This Request: $0      Source of Funds: Current and Future Operating Budgets; 
Future Individual Project Authorizations 
Maximum Cumulative Value 
of IDIQ Contracts: $7,000,000 

ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to execute up to eleven 
Indefinite Delivery Indefinite Quantity (IDIQ) Service Agreements for services related to
construction management, scheduling, estimating, auditing and claims analysis in support of
Aviation, Seaport and Real Estate Division construction projects. The not-to-exceed cost for
these IDIQ contracts is $7,000,000 for three years. No funding is associated with this
authorization request. 

SYNOPSIS 
Staff anticipates issuing up to eleven IDIQ contracts to provide five different types of consultant
services to support the Port's Construction Management staff on major construction projects for
all core business units. With the fluctuating project workload, IDIQ contracts provide the Port
with the flexibility to meet business requirements as they arise by issuing individual Service
Directives to accomplish tasks within a general, pre-defined scope of work on an as-needed basis
for a fixed period of time and a maximum contract amount.  The Port's Office of Social
Responsibility will assist in identifying any small business opportunities prior to the time of
public advertisement of the IDIQ. Competitively bid IDIQ contracts are a widely used public
sector contracting tool, consistent with the Port's Resolution No. 3605 and governed by CPO-1
policy.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 12, 2010 
Page 2 of 3 

BACKGROUND 
The number of outside technical Services Agreements that the Port enters into is substantial and
there is a significant amount of effort and time required to process each agreement. As an
example, some of the administration activities required include: long lead time 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. Significant economics and
efficiencies can be obtained by reducing the number of selection processes. Over 60 total
projects are identified as having committed costs over $300,000 for the next three years.
This authorization will only authorize the execution of the contract. A Service Directive will be
issued for each project authorizing the consultant to perform a specified scope of work only after
staff has received authorization for the project in accordance with Port policies and procedures.
The not-to-exceed cost for each contract is listed below for a three-year Contract Ordering
Period.
PROJECT DESCRIPTION/SCOPE OF WORK 
In August 2010, Engineering Services plans to advertise for a series of IDIQ contracts. The goal
is to have these Service Agreements in place by the end of November 2010. 
Each contract will have a Request for Qualifications (RFQ) prepared and advertised separately.
Each RFQ will include goals for small business participation. Each contract will have a Contract
Ordering Period (during which the services may be separately authorized) of three years. The
actual contract duration may extend beyond 3 years in order to complete the work identified in a
particular service directive(s). Each RFQ has listed projects that would be included in the scope
of work for each contract. Projects not listed but that become necessary may be included in this
contract provided they are ordered via a Service Directive during the Contract Ordering Period.
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.
Service Agreements anticipated for solicitation by Engineering include: 
Construction Management                               $ 5,000,000 
Construction Scheduling                                   $ 200,000 
Construction Estimating                                    $ 400,000 
Construction Auditing Services                             $ 800,000 
Construction Claims                                       $ 600,000

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 12, 2010 
Page 3 of 3 

We anticipate executing service agreements for up to two separate firms for each consultant
service except for construction management services, where we anticipate issuing three service
agreements. 

ALTERNATIVES CONSIDERED/RECOMMENDED ACTION 
1.  Do nothing - Under this alternative the Port's Engineering Department would not proceed
with advertising and awarding IDIQ Services Agreements. This alternative 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. 
2.  Delay the advertisement and award of these ID/IQ contracts. Existing contracts are near
their contract limits or are set to expire between winter 2010 and winter 2011. D elays in
contract procurement may cause suspension of work assignments, project impacts, schedule
delays and increased costs.
3.  Advertise and execute ID/IQ Services Agreements to allow for the efficient and cost
effective use of Consultants to provide the technical services required by Engineering.
This is the recommended alternative. 
FINANCIAL IMPLICATIONS: 
Source of Funds: 
There is no funding request associated with this authorization. Individual Service Directiv es will
be executed to authorize the Consultant to perform any specific work on the contract against
approved project authorizations. 
ENVIRONMENTAL SUSTAINABILITY/COMMUINTY BENEFITS: 
These IDIQ contracts create opportunities for small businesses participation. 
PROJECT SCHEDULE: 
We estimate these IDIQ contracts will be executed in 4th Quarter 2010 through 1st Quarter 2011
and will have a 3 year ordering period. The contract durations may extend beyond that period to
allow work to be completed. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
None.

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