8g. Memo

GCCM External Audit Services RFQ

AGENDA MEMORANDUM                        Item No.          8g 
ACTION ITEM                            Date of Meeting      January 25, 2022 
DATE:     January 14, 2022 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Glenn Fernandes, Director, Internal Audit 
SUBJECT:  Solicitation of External Audit Services for 2022 through 2027 
Amount of this request: Not-to-Exceed $600,000 
Request Commission authorization for the Executive Director to execute an indefinite delivery,
indefinite   quantity   (IDIQ)   contract   for   external   audit   services   for   General
Contractor/Construction Manager (GCCM) capital projects, for a total not to exceed $600,000, 
with a contract ordering period of not-to-exceed five years. 
The Port of Seattle (Port) utilizes the GCCM delivery methods for a number of our capital
projects.  In accordance with RCW 39.10.385, an independent audit must be conducted of
subcontractor costs to assure proper accrual of costs. This audit work will be performed by
external consultant auditors under Internal Audit's supervision. The services required under this
contract include construction cost-of-record auditing, in support of any part of the construction
project. Most of the work will involve audits of the projects, to comply with RCW 39.10.385,
paragraph 11. 
Audits  are  typically  performed  at  the  consultant's  place  of  business  and  consist  of
determination of the prime contractor's, subcontractors',  and suppliers' costs of record, 
including,  but  not  limited  to,  direct  and  indirect  charges,  overhead,  benefits,  markups,
subcontract,  and supplier payments. Consultant may also have to perform work at the
Contractor's place of business and attend the Port's Audit Committee meetings in person. 
Currently, Internal Audit anticipates using this IDIQ contract for the following GCCM contracts: 
Post IAF Airline Realignment 
Main Terminal Low Voltage System Upgrade 
C-1 Building Expansion (Construction Phase) 

Template revised April 12, 2018.

COMMISSION AGENDA  Briefing Item No. 8g                                  Page 2 of 2 
Meeting Date: January 25, 2022 
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 and for a maximum contract amount. With a
five-year ordering period, the Port may authorize work during the ordering period, provided 
there are sufficient funds in the contract, to cover work associated with the project.
Funding for these services will be capitalized and included in the respective capital project; 
however, costs will also be reflected in Internal Audit operating budget but will be zeroed out
when capitalized. 
Internal Audit is working with the Diversity in Contracting Department, to determine the
appropriate women-and-minority-owned business enterprise (WMBE), aspirational goal. 

Template revised September 22, 2016.

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