COMMISSION 
AGENDA MEMORANDUM                       Item No.          8g 
ACTION ITEM                            Date of Meeting     August 10, 2021 
DATE:     July 22, 2021 
TO:        Steve Metruck, Chief Executive Officer 
FROM:    Erik Knowles, Senior Manager, Aviation Maintenance 
Stuart Mathews, Director, Aviation Maintenance 
SUBJECT: Chiller Maintenance Service Contract 
Amount of this request:               $600,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to prepare,   advertise,   award,
and execute appropriate contract  documents  to  procure  a  Chiller  Maintenance  Service
agreement for 14 chillers at Seattle-Tacoma International Airport. The agreement would be
structured to execute a two-year contract with three one-year service options to be determined
annually  by  the  Port.  Total  contract cost  over  the requested  five-year  period is not to
exceed $600,000. 
EXECUTIVE SUMMARY 
The Port of Seattle has 14 total Chillers, eight which reside in the Central Mechanical Plant (total
capacity of 14,150 tons), four that reside in the Pre-Conditioned Air Plant (1200 tons), and two
more in the Airport Office Building (60 tons each). 
Chillers provide cold water for the HVAC systems, which in turn provide cool air for critical
equipment, planes, passengers, tenants, and employees throughout SEA. 
Chiller maintenance and repairs require the services of specially trained and licensed technicians
. The maintenance work associated with this equipment is highly specialized and lies outside the
skillset of our internal workforce. This work has historically been performed by a maintenance
contractor  specializing  in  chiller maintenance  and repair,  which  is standard  practice in
the industry. 
The current contracting of Chiller Maintenance was paired with a $300,000 Small Works Repair
contract, work performed by the same provider. The Port would like to bifurcate the Maintenance
from the Repairs in efforts to provide a better check and balance between the two contracts by
potentially using two different service providers. This procurement is only for the Maintenance
portion.

COMMISSION AGENDA  Action Item No. _8g                                  Page 2 of 4 
Meeting Date: August 10, 2021 

JUSTIFICATION 
The objective of this Chiller Maintenance Service Agreement is to allow the Aviation Maintenance
Department to contract to maintain the Airport's chiller systems in an effective and efficient
manner, ensuring the Airport's HVAC system continues to operate as designed. 
SCOPE OF WORK 
The scope of work for this RFP is to provide preventive, predictive, corrective, and emergency
maintenance and repairs on the 14 chillers presently installed and operational at SEA. 
The contractor shall be responsible for the reliability of the system, to operate in a 24/7/365
environment. All work shall be performed in a manner so as not to disrupt daily operations. 
All work to be performed according to published manufacturer specifications. 
SCHEDULE 
A new RFP will be issued once approved by the Commission in Q3 of 2021. The current agreement
ends October 3, 2021. A new agreement is anticipated in Q3, 2021, prior to contract expiration.
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Three different variations of the new service contract are proposed below. 
Alternative 1  Procure a one (1) year service contract. 
Cost Implications: Estimated $165,000 for 2022 Expense Cost. 
Pros: 
This is will allow us to continue to have chiller service support in 2022, while providing a 12-
month timeframe to negotiate a subsequent service contract. 
A 5-year Heavy Preventive  Maintenance  work scope element would  be reinstated and
performed during this catch-up year. 
This option does not commit the Port to a long-term contract. 
Cons: 
This alternative commits the Port to a 1-year expense of $165,000, the highest annual cost
of the alternatives.
This alternative does not allow for cost averaging over a longer term, causing a 1-year
contract to be much higher in cost. Some PMs are on a 5-year cycle and we would want those
performed in Year 1 of the contract.

COMMISSION AGENDA  Action Item No. _8g                                  Page 3 of 4 
Meeting Date: August 10, 2021 

The contract will require a significant portion of the one-year duration getting a new
contractor up-to-speed with the assets before performing meaningful maintenance on the
assets. 
This is not the recommended alternative. 
Alternative 2  Procure a service contract for a duration of three (3) years. 
Cost Implications: Estimated $400,000 Expense Cost for a 3-year service contract duration. 
Pros: 
This alternative allows us to balance maintenance work over a 36-month period. 
A 3-year contract allows some adjustment time for a contractor to become familiar with the
assets and developing intimate knowledge of performance and any deficiencies.
A 5-year Heavy Preventive  Maintenance  work scope  element would  be reinstated and
performed during the first year of the contract. 
Cons: 
This alternative commits the Port to an average annual expense of $133,000 per year for the
next three years, roughly twice our current rate. 
This alternative allows for better cost averaging over 3 years but still a higher annual cost
than a longer term. Some PMs are on a 5-year cycle and we would want those performed in
Year 1 of the contract. 
This is not the recommended alternative. 
Alternative 3  Procure a service contract for a duration of five (5) years. 
Cost Implications: Estimated $600,000 Expense Cost for a 5-year service contract duration. 
Pros: 
This alternative allows us to balance maintenance work over a 60-month period. 
A 5-year contract allows intimate knowledge of chiller performance and operations. 
A 5-year Heavy Preventive  Maintenance  work scope  element would  be reinstated and
performed throughout the life of the contract. 
Average annual costs are reduced to $120,000 per year. The reason for the decrease is
that scheduling  of  the 5-year Heavy  Preventive  Maintenance scope  will  be  cost
averaged over the term of the contract.

COMMISSION AGENDA  Action Item No. _8g                                  Page 4 of 4 
Meeting Date: August 10, 2021 
Cons: 
This option commits the Port to a longer contract term. 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
The cost of this service agreement  is included  in the  annual  Aviation  Maintenance expense
budget. Anticipated costs of the maintenance contract are estimated at $600,000 over a five-year
period. 
Annual Budget Status and Source of Funds 
Contract payments are included as a specific line item in the Aviation Maintenance expense 
budget, account 64770. 
ADDITIONAL BACKGROUND 
Until October 2011, the Port of Seattle contracted this work with Carrier Corporation under a 
competition waiver agreement. The competition waiver was in place as the chillers were covered
under an extended warranty program. All warranties on the chillers have expired and, as such, 
Aviation Maintenance wishes to procure these maintenance and repair services through a 
competitive process. 
Since 2011, the Port has bid and procured these services via MacDonald-Miller and Johnson
Controls, the current contract holder. The current contract expires October 2021. 
Each of the major manufacturer's equipment is somewhat proprietary, but not to an extent that 
would exclude other service providers from submitting a competitive proposal. All major service
providers for chiller maintenance (Trane, Carrier, York, and others) have access to each other's 
components. The Airport possesses chiller equipment from all three manufacturers. 
ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
In 2015 - The Commission authorized a two- year service agreement with MacDonald-Miller
for Chiller maintenance. 
In 2017 and 2019  The Commission authorized two- year service agreements with Johnson
Controls for Chiller maintenance