7a. Response to Member Questions Re: Baggage Optimization

October 12, 2021 
Glenn Fernandes, CPA, Director, Internal Audit 
Port of Seattle 
2711 Alaskan Way 
Seattle, WA. 98121 
Reference:   Project:         Baggage Optimization Project - Phase 2 
Contract No:     MC-0319501 
Work Project:    U00424 
Subject:     Response to Commissioner Cho 
Mr. Fernandes: 
The Project team is responding to Commissioner Cho's question regarding the impacts of the
negative Majority In Interest (MII) vote regarding increasing the budget to accommodate the
high bid on the Baggage Optimization Phase 2 project. 
November 19, 2019 - The Baggage Optimization Phase 2 project received two bids that
were higher than the Engineer's Estimate. Hensel Phelps had the lowest bid that was 
$114,780,000 over the Engineer's Estimate. Due to the increase a MII vote was
requested from the Airlines to increase the program budget to accommodate the
January 28, 2020  Commission voted to approve the program budget. 
February 9, 2020 - MII ballots came in with a negative vote to support the increase. 
February 13, 2020  Siemens and Hensel Phelps agreed to a 30 day bid extension. 
February 14, 2020  Original schedule for signing of contract 
March 5, 2020  COVID Stay at Home Order 
March 18, 2020  Hensel Phelps agreed to a second 30 day bid extension. 
July 7, 2020  180 day negative MII period ends 
July 8, 2020  Hensel Phelps signed contract for Baggage Op Ph 2 
Based on our evaluation of the Contractor's baseline schedule and the historically low
passenger counts during the 180 day MII vote delay, we are comfortable stating that the
below items are opportunities missed to save +/- 6 months on the overall project duration
which would be a saving of approximately $4.9M savings. 
o Re-sequence/combine steps on the C1 and C92 conveyor systems due to minimal capacity
needed to continue operations. 
o Early demolition of the C96 system and advancement of the new Conveyor shop build, due
to this system being unused.

Page 2 of 2 

Potential Savings  There are additional items that have been identified as potential
savings and/or risk, however difficult to quantify: 
o Through re-sequencing described above, the project could have avoided purchasing and
installation of temporary conveyors. This includes approximately 50 conveyors, at an
additional installed cost of $4.5M. 
o The negative vote delayed the contract start date into the time by which national and global 
supply chain impacts chain due to COVID impacted the project. 

If you would like to discuss this further, please do not hesitate to call me at (206) 787-5829.

Ed Weitz 
Baggage Program Leader 
Attachment: None 
cc:   Lance Lyttle, Aviation Managing Director | Jeffrey Brown, AV Chief Operating Officer | Wayne Grotheer,
Director AVPMG | Wendy Reiter, Director AV Security | Stuart Mathews, Director AV Maintenance | Chris
Sherwood, Construction Manager | Janice Zahn, Asst. Director Eng.

Limitations of Translatable Documents

PDF files are created with text and images are placed at an exact position on a page of a fixed size.
Web pages are fluid in nature, and the exact positioning of PDF text creates presentation problems.
PDFs that are full page graphics, or scanned pages are generally unable to be made accessible, In these cases, viewing whatever plain text could be extracted is the only alternative.