8i. Memo

Meet Me Room

AGENDA MEMORANDUM                        Item No.          8i 
ACTION ITEM                            Date of Meeting    September 13, 2022 

DATE:     September 6, 2022 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Keri Stephens, Director, Aviation Facilities and Capital Programs 
Eileen Francisco, Director, Aviation Project Management 
SUBJECT:  Meet Me Room Irregular Bid (CIP# C800762) 
Amount of this request:               $2,000,000 
Total estimated project cost:         $21,700,000 

Request Commission authorization for the Executive Director to 1) award and execute a Design
Build construction contract; 2) increase the project budget for the Telecommunication Meet Me
Room (MMR) in the amount of $2,000,000. This request is for $2,000,000 for a revised total
estimated project cost of $21,700,000. 

This request is for authorization to proceed with awarding and executing a design build
construction contract as required by resolution No. 3605 Paragraph Both proposals that
were received in response to the Request for Proposal (RFP) exceeded the engineers estimate by
10% or greater. Since both proposals exceeded the engineers estimate, the selection team
followed the procedure outlined in the RFP Section and awarded the contract to the
proposer that is highest technically rated and has offered a fair and reasonable price. 
The selected team scored Good or Outstanding in each of the selection criteria and provided
improvements to the building scope. The proposal shows an early completion of approximately
2 months, an additional 200 square feet of space, and a solution to increase the HVAC usage as
more service providers move into the space. In addition to those benefits, the selected team is
committing to a 53% total WMBE inclusion. The WMBE inclusion goal for this RFP was 12%.
The selection team conducted proprietary site walks and held proprietary meetings with each
proposer during the RFP phase. After those meetings, the team issued an addendum based on a
value engineering effort to remove scope and provide cost savings. Both proposals offered value

Template revised January 10, 2019.

             COMMISSION AGENDA – Action Item No. _8i_                                Page 2 of 6
Meeting Date: September 13, 2022 
engineering opportunities which can be further investigated during the design phase to
determine need vs costs to the project. However, the collective opportunities would not have
brought the proposals within the Engineer’s estimate and maintain the building functionality.
Diversity in Contracting 
There are multiple elements within the scope of this project that will provide WMBE business
opportunities. The Design Build effort will have a goal of 12% WMBE participation rate. The
selected team has committed to exceeding this goal with a total inclusion commitment of 53%. 
This commitment is also split between three companies, so the burden is not solely on one
Scope of Work
The Telecommunication Meet Me Room project will consist of: 
(1)   Design and construct a 1,200 square foot (approx.) single story structure. 
(2)   Enhanced  on-site  security  to  ensure  secure  operations  without  requiring  service
providers to access the Security Identification Display Area (SIDA). Building location is
outside of the SIDA. 
(3)   Install underground structures, and conduit pathways to intercept the International
Arrivals Facility (IAF) Duct bank system. 
(4)   Install underground structures, and conduit pathways for service providers to access
from International Boulevard. 
(5)   Connect the MMR building to the existing Airport utility connections. 
(6)   Install landscaping, and secure and controlled gate access around the facility. 
(7)   Design the MMR building to have separate Port and service provider spaces to house
(8)   Design and install cable trays to support internal to MMR fiber interconnections. 
(9)   Design primary and secondary fiber pathways from the MMR facility to each Main
Distribution Room (MDR). 
(10)  Install passive and active equipment needed to transport services from the providers to
the airport end users. 

Template revised June 27, 2019 (Diversity in Contracting).

             COMMISSION AGENDA – Action Item No. _8i_                                Page 3 of 6
Meeting Date: September 13, 2022 

The scope of work will be completed using two individual work projects. 
Commission Authorization (Building DB, Fiber
Design Build Procurement Start                  2022 Quarter 2 
Construction Start – Building                     2023 Quarter 2 
In Use Date – Building                            2024 Quarter 2 
Design Start                                       2022 Quarter 2 
Commission Construction Authorization         2023 Quarter 2 
Construction Start                                2023 Quarter 4 
In Use Date                                      2025 Quarter 1 
Cost Breakdown                                     This Request           Total Project 
Design                                                           $0             $3,822,000 
Construction                                             $2,000,000            $17,878,000 
Total                                                         $2,000,000             $21,700,000 
Alternative 1 – Cancel or defer the project. 
Cost Implications: Approximately $900,000 would need to be expensed.
(1)   No capital investment. 
(1)   A future project will be needed to relocate legacy connections to a permanent location. 
(2)   Additional scope, schedule, and cost would be required by other projects for temporary
connections. This could result in significant disruptions of service. 
(3)   No new facility constructed; will not be able to meet communications connectivity
needs for Sea-Tac Airport and its customers. 
(4)   No space available for new providers to bring services to the Airport. 
(5)   No new connections available for new services (Internet, Data, and Telephone).
(6)   Will not be able to fully utilize the existing communications backbone infrastructure. 
This is not the recommended alternative. 

Template revised June 27, 2019 (Diversity in Contracting).

             COMMISSION AGENDA – Action Item No. _8i_                                Page 4 of 6
Meeting Date: September 13, 2022 
Alternative 2 – Cancel the procurement, Revise, and Re-Advertise 
Cost Implications: $ 3,000,000-5,000,000 additive to current budget.
(1)   Constructs a secure building for telecommunication interconnections. 
(2)   Relocates legacy connections to a permanent location. 
(3)   Provides space for new service providers to bring telecom services to the Airport. 

(1)   Project would be delayed for 8-14 months to revise the project scope and readvertise
the work. 
(2)   Proposals may come back higher to complete a similar scope of work. 
(3)   Other project work will be delayed until the legacy connections are relocated. 
(4)   Other project will incur additional cost and scope to relocate legacy connections. 
(5)   No new available connections for new service providers to bring services to the Airport. 
(6)   Delay new connections for additional service providers. 
(7)   Delay in establishing a leasing agreement with the existing service provider. 
(8)   Highest capital investment. 
This is not the recommended alternative. 
Alternative 3 – Continue with the current proposal.
Cost Implications: $2,000,000 additive to current budget 
(1)   Constructs a secure building for telecommunication interconnections.
(2)   Relocate legacy connections to a permanent location. 
(3)   Provides space for new service providers to bring telecom services to the Airport. 
(4)   Project work will remain on schedule and construction be completed ahead of the
proposed timeline. 
(5)   Fiber design and installation can remain on track to migrate legacy connections and
(6)   Construct a larger facility on a spaced constrained site. 
(7)   Exceed the WMBE inclusion goal to complete the project. 
(1)   Additional capital investment.
This is the recommended alternative. 

Template revised June 27, 2019 (Diversity in Contracting).

             COMMISSION AGENDA – Action Item No. _8i_                                Page 5 of 6
Meeting Date: September 13, 2022 

Cost Estimate/Authorization Summary              Capital        Expense           Total 
Original estimate                                  $5,100,000         $50,000      $5,150,000 
Previous changes – net                         $14,249,000       $301,000     $14,550,000 
Current change                                 $2,000,000             $0      $2,000,000 
Revised estimate                               $21,349,000       $351,000     $21,700,000 
Previous authorizations                         $11,352,000       $351,000     $11,703,000 
Current request for authorization                 $2,000,000              $0      $2,000,000
Total authorizations, including this request      $13,352,000       $351,000     $13,703,000
Remaining amount to be authorized             $7,997,000                     $7,997,000
Annual Budget Status and Source of Funds 
This project, CIP C800762, was included in the 2022-2026 capital budget and plan of finance with
a budget of $5,100,000. A budget increase of $16,249,000 was transferred from the Aeronautical
Reserve CIP C800753 resulting in zero net change to the Aviation capital budget. The increase in
budget was driven in large part by expanding the scope to connect to all three MDRs, the addition
of the secondary pathway, including fiber to support existing fiber connections, and some
increase was a result of escalation from the project deferment. This project received prior airline
Majority- in-Interest (MII) approval. The current budget increase will not require additional MII
approval due to the use of MII Management Reserve provision. 
Financial Analysis and Summary 
Project cost for analysis              $21,700,000 
Business Unit (BU)                  Terminal Building 
Effect on business performance     NOI after depreciation will increase due to inclusion of
(NOI after depreciation)             capital (and operating) costs in airline rate base. 
IRR/NPV (if relevant)                N/A 
CPE Impact                       $.06 in 2025 

The MMR project has been in discussion and design with the initial commission action in 2017.
The scope only included connection to one of the main distribution rooms (MDR3) with new
connections being established through this pathway and for legacy connections to be moved

Template revised June 27, 2019 (Diversity in Contracting).

             COMMISSION AGENDA – Action Item No. _8i_                                Page 6 of 6
Meeting Date: September 13, 2022 
The project team underwent a detailed review of the various locations available to house these
connections. The location at the south end of the airport is near existing connection points for
both the Airport and Service Providers. The fiber connections were limited at this stage and being
considered for inclusion in other telecommunication work.
In July 2019, the project team advertised a design build package that included the construction
of the building and the connection to the existing Airport infrastructure. That RFP resulted in one
proposal with a cost greater than 35% over the engineers estimate. While the proposal was being
evaluated, the project was put on hold during the COVID-19 workplace disruption. 
In September 2021 the project efforts were restarted, and scope increased to provide a fully
functioning facility. This included the fiber required to connect to each MDR (3 in total), sufficient
circuits to migrate the legacy connections, and to establish the connection infrastructure within
the MMR facility for future growth from existing or new suppliers. Through the restarted efforts
the secondary leg was identified and included to improve the Airport’s data redundancy.
In February 2022, the project team presented on the revised scope and increased budget. After
which the team began working on both project efforts. The Building Design Build request for
qualifications was advertised 3/30/2022. Both  Qualified proposers  returned  proposals  on
7/22/2022. The fiber Design efforts were kicked off June 2, 2022. 
February 8, 2022 – The Commission authorized $7,725,000 for design and construction of the
MMR Building and authorized design of the MMR Fiber work project. Commission
authorization of the construction of the MMR fiber will be a future request.
September 26, 2017 – The Commission authorized $3,978,000 for design and construction. 

Template revised June 27, 2019 (Diversity in Contracting).


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