6d Memo

PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA                   Item No.         6d 
Date of Meeting     December 7, 2010 
DATE:      December 1, 2010 
TO:         Tay Yoshitani, Chief Executive Officer 
FROM:     Ralph Graves, Managing Director, Capital Development Division 
Diane Summerhays, Director Aviation Community Development 
SUBJECT:   Job Order Contract (JOC) for Remaining Noise Remedy Sound Insulation and
Safety Window Replacement Projects (CIP #200093 and CIP #200035). 

Amount of This Request: $2,497,395         Source of Funds: Airport Development Fund 
State and Local Taxes Paid: $213,600                    Estimated Jobs Created: 20 
Total Project Budget: $4,947,395
ACTION REQUESTED: 
Request Port Commission authorization for the Chief Executive Officer to advertise and execute
a Job Order Contract for sound insulation services for up to 40 single family residential
properties and for 37 single family residential properties requiring replacement windows in the
Safety Program located in the existing Noise Remedy Program boundary around Seattle-Tacoma
International Airport (STIA). Estimated value for the work under this contract is $3,830,448 and
includes funding from the previously authorized Window Safety project and the new funding
authorized by this request. The amount of this request for the Single Family Insulation Program
is $2,462,751, bringing the total authorization to date to $4,947,395. In the event JOC resources
are unavailable, the Port will contract the work via lump sum bids utilizing small works
contractors. 
SYNOPSIS: 
The purpose of the single family home insulation program is to provide sound rated windows,
doors, and ventilation designed to reduce interior noise levels in single-family homes by a
minimum of 5 decibels as per Federal Aviation Administration (FAA) standards. These
renovations are available to eligible homeowners within the 1985 Noise Remedy Program
boundary. Homeowners will be required to sign an updated avigation easement to participate in
the program. Staff recommends using a Job Order Contract to perform this work. JOC is an
alternative construction delivery method used primarily for small-to-medium sized renovation,

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
December 1, 2010 
Page 2 of 7 
remodel and repair projects. This is the first time the Port has used the JOC contracting method,
but JOC's have been successfully used by a number of state agencies and local municipalities
throughout Washington.
In the early stages of the Noise Remedy Program, many homes were sound insulated by adding
additional storm windows to the interior or exterior of existing single pane windows. In
February 1998, a home insulation retrofit process was implemented to remove all the secondary
storm windows and re-fit the homes with new standard Sound Transmission Class windows.
This action was a result of rising homeowner complaints regarding post-insulation safety that
was identified through inspection by local building officials. The se inspections indicated that the
application of secondary storm windows over existing windows, particularly in bedrooms, did
not meet safety code requirements. 
The current contracting method used in the Noise Remedy Program consists of utilizing Port
Construction Services as small works contract to individually manage each sound insulation
project. In order to improve the contracting efficiency, the Central Procurement
Office has identified a method called Job Order Contract.  Establishing the JOC creates a
contracting vehicle for cost-effective and timely noise sound insulation contracting services for
the remaining eligible residential properties within the current Noise Remedy Program boundary
before the existing program concludes on December 31, 2011. Further, since only 10% of the
work can be self-performed, a Job Order Contract enables greater participation by small and
MWBE contractors than is normally possible under the small works / lump sum contracting
method. 
BACKGROUND: 
The STIA noise mitigation program, under Federal Aviation Regulation Part 150 (Part 150), was
established by the Port Commission in 1985 as one of the first such voluntary airport noise
mitigation programs in the country. In 1985, the Part 150 study recommended a sound
mitigation program based upon an estimate of future noise impacts through the year 2000. 
Establishment of the program was reflected in Commission Resolution No. 2943 (approved
January 8, 1985) authorizing the Port to conduct an ongoing noise remedy program consisting of
insulation of homes and public buildings located in the airport vicinity. The Port Commission
authorized staff to take actions to implement the Part 150 recommendations, including periodic
evaluation of the program and budgeting for future continuation. 
The Noise Mediation Agreement (Resolution No. 3062) further authorized the implementation of
a number of noise reduction measures, including acceleration of the program and transitioning
from a cost-sharing system between the Port and the homeowner to a fully Port funded standard
insulation package.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
December 1, 2010 
Page 3 of 7 
Resolution No. 3212 (approved August 1, 1996) committed to fulfill additional noise reduction
measures in accordance the Puget Sound Regional Council Resolution A-96-02 associated with
approval of the 3rd runway. 
Port staff identified approximately 10,000 residential homes within the Noise Remedy boundary
area eligible for noise sound insulation work. The current program is scheduled to conclude at
the end of 2011. As of this date more than 9,300 eligible homes have participated in the STIA
Noise Remedy program.
JOC is an alternative construction delivery method used primarily for small to medium sized
renovation, remodel and repair projects. The JOC contracting process was signed into law by the
Washington State Legislature in 2003. Although never used before at the Port, JOC's have been
successfully used by a number of state agencies and local municipalities throughout Washington.
The JOC contractor is selected on a competitive basis that takes into account price (multiplier),
qualifications and other responsibility criteria. The JOC contractor is statutorily required to
subcontract out 90% of the work and provide a subcontracting plan that encourages the use of
small businesses. JOC contractors rotate the work among subcontractors thereby providing
opportunities for many smaller firms to perform the work. The JOC process differs from a
traditional low bid or lump sum construction contract award in that the JOC Contractor is
selected before construction contract documents are created.
Under the JOC, each sound insulation renovation project is assigned to the Contractor as a
unique job order. For each job order, the JOC contractor will provide an estimate based on the
unit price book identified in the contract and apply the multiplier. The POS will scrutinize the
estimate and make certain the unit quantities are reasonable, the appropriate unit prices and
coefficient are applied consistent with the contract requirements. The job order will be finalized
as a fixed price.
The JOC contractor will subcontract out most of the actual work. JOC's are a good tool for the
sound insulation program and promotes utilization of small businesses to actually perform the
work. Currently, sound insulation construction work is provided via the Small Works/Lump
Sum contracting model. This limits the Port's ability to perform the work for several homes
under one contract. The need to complete these remaining projects in a timely manner becomes
more critical as the end of the Part 150 Study approaches. All future sound insulation projects
will be recommended based upon the outcome of the Part 150 process. 
Implementing a JOC provides the Noise Remedy Program with a pre-approved and cost-
effective 'on-call' contractor, thus providing a timely response to the Noise Remedy Program's
ongoing noise mitigation construction needs. This contracting method is scheduled to conclude
at the end of current Noise Remedy Program. While in the procurement process for a JOC
contractor, if the Port has additional houses ready for sound insulation, the Port may continue to
use the small works process to accomplish that work.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
December 1, 2010 
Page 4 of 7 
PROJECT DESCRIPTION/SCOPE OF WORK: 
Noise Remedy: 
The goal of the Noise Remedy Program is to meet the requirements of the various Commission
resolutions detailed in the Background section. Significant interior noise reduction is achieved
primarily through the replacement of existing doors and windows with sound rated units and
making associated modifications to Heating Ventilation and Air Conditioning systems.
In 1993, the Port identified 167 homes as having potential safety egress problems associated with
storm windows that were installed in the beginning of the Noise Remedy Program. Since then,
the Port has replaced over 130 homes with new windows. There are approximately 37 additional
homes remaining for replacement. 
The Port will provide funding, staff, oversight, and administration of the program to provide
sound insulation to eligible participants within the Noise Remedy Program boundary. Airport
Noise Programs estimates that up to 40 home may be eligible to participate in the existing Noise
Remedy Program before it concludes at the end on 12/31/2011. After completion of the current
program, the STIA Noise Remedy Program boundary will be re-drawn to reflect data from the
most recent Part 150 Noise Study currently in progress.
STRATEGIC OBJECTIVES: 
This project supports the following Port strategies: 
Enhancing Public Understanding and Support of the Port's Role in the Region is
achieved by fostering active community involvement through the noise mitigation
work in homes in the neighborhoods surrounding the Airport.
Environmental Stewardship through our Actions is exhibited by significantly
reducing indoor noise levels in the homes renovated under this project.
FINANCIAL IMPLICATIONS: 
Single Family Sound Insulation CIP #200093 
Budget/Authorization Summary 
Original Budget                      $ 2,450,000 
Budget Increase                      $ 2,497,395 
Revised Budget                     $ 4,947,395 
Previously Authorized                $ 2,450,000 
CIP Cost to Date                     $ 1,546,151 
Amount for Projects in Progress       $ 309,204 
Authorization Remaining in CIP      $ 594,645 
Total Project Cost-Current Request    $ 3,092,040 
Current Authorization Request        $ 2,497,395

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
December 1, 2010 
Page 5 of 7 
Average Cost            Total Authorization for 40 
Estimated Cost Breakdown             Per Unit                  Remaining Homes 
Construction Costs              $ 43,500                  $1,740,000 
Regulated Materials Survey     $ 2,500                  $ 100,000 
Other Materials                  $ 3, 250                  $ 130,000 
Administrative Costs            $ 15,861                  $ 634,440 
Contingency (10%)             $ 6,850                 $ 274,000 
WSST (9.5%)                $ 5,340               $ 213,600 
Total                           $ 77,301                  $3,092,040 
Source of Funds: 
This project was included in the 2011  2015 capital budget and plan of finance under CIP
#C200093 with a budget of $2,450,000. The budget increase of $2,497,395 will be deducted
from the Aeronautical New Projects CIP, resulting in no change to the total Aviation CIP. The
funding source will be the Airport Development Fund. 
Financial Analysis: 
The following impacts have been calculated based on the increase in the budget. 
CIP Category                     Compliance Project 
Project Type                       Environmental 
Risk Adjusted Discount Rate        N/A 
Key Risk Factors                   N/A 
Project Cost for Analysis            $2,497,395 
Business Unit (BU)                Airfield 
Effect on Business Performance     Increase NOI 
IRR/NPV                     N/A 
CPE Impact                      Will increase CPE by $0.01 by 2013. However,
since the budget increase will be deducted from
the Aeronautical New Projects CIP, there will be
no net increase in CPE. 
CIP #200035 Safety Window Replacement was authorized by commission on January 11, 2005. 
There is no budget or funding request associated with this authorization. Funding for the Safety
Window Replacement program is currently fully authorized. 
ECONOMIC IMPACTS AND BUSINESS PLAN OBJECTIVES: 
Implementing the program will reduce noise impacts on airport neighbors while increasing land
use compatibility around the airport. The construction work associated with this project will also
bolster economic activity via the purchase of materials as well as providing contracting job

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
December 1, 2010 
Page 6 of 7 
opportunities in the local community. Through building a supportive community, the Port can
impart a positive economic vitality to the local region. 
ENVIRONMENTAL SUSTAINABILITY/COMMUNITY BENEFITS: 
There are no negative environmental impacts anticipated as a result of this project. Interior noise
levels in renovated home will be up to 5 decibels quieter. Upgrades will be constructed using
carefully chosen materials with demonstrated long life and durability in a residential application.
Materials with pre and post consumer recycled material will be evaluated and used wherever
appropriate and available in this project.
TRIPLE BOTTOM LINE SUMMARY: 
The Community Development Department and Airport Noise Programs support the airport
strategy to develop and maintain a supportive community by working closely with local and
regional leaders and residents to develop and implement mutually beneficial land use
compatibility agreements, sound insulation programs, property acquisition for noise and
construction impacted areas and noise reduction programs. This program also helps to stimulate
the local economy in an environmentally-friendly manner. 
PROJECT SCHEDULE: 
Action                     Begin                  Finish 
JOC Solicitation               December 2010           January 2011 
JOC Negotiation              January 2011            February 2011 
JOC Award                March 2011            March 2011 
Project Design                 January 2011             August 2011 
Construction                  April 2011                February 2012 
Project Close out               February 2012            May 2012 
ALTERNATIVES CONSIDERED/RECOMMENDED ACTION: 
Alternative #1: Establish a Job Order Contract for up to 40 additional Single Family Sound
Insulation projects and 37 homes in the Safety Window Replacement project. This is the
recommended alternative. 
Alternative #2: Small Works / Lump Sum is the contracting method that has been used since
2007 for these projects. The time required to put multiple small works / lump sum contracts will
make it difficult to complete the desired number of sound insulation projects by the December
31, 2010, end date.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
December 1, 2010 
Page 7 of 7 
Alternative #3: Major Contract / Unit Cost are another contracting alternative to the JOC.
Again, the long lead time required to put this type of contract into place would make it difficult
to complete the desired number of home renovations by the end of the current Noise Remedy
program.
PREVIOUS COMMISSION ACTIONS: 
Resolution No. 2943  January 8, 1985 
Resolution No. 3062  May 8, 1990 
Resolution No. 3212  August 1, 1996 
Authorization to implement a program to provide sound insulation to residential homes
located within the existing Noise Remedy Boundary for an estimated cost of
$2,450,000.00 dated March 27, 2007.

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