8e. Memo
Seating Contract Bag Claim and Ticketing
COMMISSION AGENDA MEMORANDUM Item No. 8e ACTION ITEM Date of Meeting December 13, 2022 DATE : November 17, 2022 TO: Stephen P. Metruck, Executive Director FROM: Laurel Dunphy, Director Airport Operations SUBJECT: Airport Seating Contract Bag Claim, Ticketing and Concourse Amount of this request: $0 Maximum Value of Contract: $11,000,000 ACTION REQUESTED Request Commission authorization for the Executive Director to advertise and execute a longterm contract for up to 10 years for airport seating. EXECUTIVE SUMMARY This request is for authorization to execute a long-term, purchasing agreement with a manufacturer for airport baggage claim, ticketing, and concourse seating to replace existing seating to enhance the level of service and address deficiencies highlighted from multiple sources. There is no funding request associated with this authorization. Individual purchase orders will be executed to authorize each purchase within approved project authorizations and charges to this contract will be from department budgets and projects that will be authorized separately through established procedures and within the total contract amount. We are asking for $11 million in contract capacity. JUSTIFICATION Seating is a significant factor in passenger experience and our seating at Bag Claim and Ticketing are the lowest scoring areas of the facility. In our 2021 Skytrax Audit, Ticketing seating scored 3.43 and Bag Claim seating scored 3.50 out of a 5 scale, the lowest scoring seating at the airport. Skytrax feedback is this seating “remains basic, does not provide power outlets and the provision for passengers with restricted mobility (ADA) or elderly passengers is quite poor.” This feedback is echoed by our 2017 Open Doors Organization Accessibility Report and our Accessibility Advisory Committee. A key passenger desire is for seating with power outlets airport-wide, an industry best practice highlighted by customer service feedback, Skytrax audits, feedback from Airport Service Quality (ASQ) surveys and from JD Power Rankings. Future purchases from this contract may include seating for other public areas of the airport. Template revised January 10, 2019. COMMISSION AGENDA – Action Item No. 8e Page 2 of 5 Meeting Date: December 13, 2022 This request is aligned with the Aviation Division’s Goal 2: Advance this region as a leading tourism destination and business gateway, specifically Objective 3: Continuously improve the operational efficiency and customer experience at SEA and Objective 4: Strengthen the competitiveness of SEA in the regional and global marketplace. The request is moderately urgent to ensure approved 2023 Small Capital Purchases can proceed in FY2023. Again, we are asking for $11 million in contract capacity, but individual projects and budget requests will purchase the seating throughout the life of the contract. Diversity in Contracting Separate from this purchasing contract SEA intends to engage WMBE, DBE or SBE companies for the disassembly and full recycling of our existing Herman Miller seating when we dispose of that seating related to replacement furniture purchases. DETAILS Since 1973, the airport has purchased and utilized Herman Miller Eames Tandem seating at baggage claim, ticketing designated “Wheelchair Waiting Areas” for where the Port provides the seating for airline wheelchair providers and our concourses. This seating has served us well but is outdated, difficult, and time-consuming to repair and lacking in power outlet options. Scope of Work The Port will conduct a competitive process to select the manufacturer of the products. The selection of one manufacturer to supply bag claim, ticketing and seating for other portions of the airport will ensure SEA adheres to the architectural standards of the facility while staying contemporary, maintaining Americans with Disabilities Act (ADA) compliance, and improving the passenger experience and overall customer service. Below is a list of known upcoming seating requirements. Project Number of Seats Desired First Seat Delivery Date Ticketing Wheelchair ~139 December 2023 Waiting Areas Bag Claim ADA Seating ~128 December 2023 Bag Claim Remaining ~250 2024 Seating Cruise Seating ~600 2025 D Concourse ~705 2026 South Satellite ~950 2026 Project Objectives • Improve Customer Experience Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA – Action Item No. 8e Page 3 of 5 Meeting Date: December 13, 2022 • Maintain one of the top customer service airports in North America • Improve our Skytrax Audit scores for Ticketing and Bag Claim from 3.43 and 3.50 to over 4.10 helping to maintain our 4-Star Skytrax Airport Rating Schedule We intend to select a supplier and execute a contract by May 2023 Activity Commission contract authorization 4th Quarter 2022 RFP selection process 1st Quarter 2023 Contract executed 2nd Quarter 2023 ALTERNATIVES AND IMPLICATIONS CONSIDERED Alternative 1 – Status Quo: Maintain Herman Miller at bag claim, ticketing, and other areas of Seattle-Tacoma International Airport Cost Implications: $11,000,000 in contract capacity Pros: (1) Minimizes time and resources of the Port to go through the full evaluation process (2) Ensures a consistent seating standard is maintained Cons: (1) Does not address seating feedback from Skytrax, ASQ, Open Doors Organization Accessibility Report, and JD Power Rankings (2) Does not improve the level of service for passengers with restricted mobility and our Wheelchair Waiting Area seating (3) Does not allow assessment of new seating options that may have been introduced since 2003 (4) Does not allow the Port to negotiate for best pricing through coordinated purchasing This is not the recommended alternative. Alternative 2 – Do not establish a new seating standard for Seattle-Tacoma International Airport. Allow discrete projects to determine and incorporate the seating individually. Cost Implications: Pros: (1) Contractors may be able to obtain better prices for large purchases of seating across multiple projects. (2) Provides individual project designers and architects with more autonomy to use the seating to sculpt the desired experience. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA – Action Item No. 8e Page 4 of 5 Meeting Date: December 13, 2022 Cons: (1) Will result in inconsistency in Airport seating, increasing maintenance and inventory costs. (2) Does not address seating feedback from Skytrax, ASQ, Open Doors Organization Accessibility Report, and JD Power Rankings. (3) Historically will provide less durable seating or with the lowest upfront cost but with a substantially higher Total Cost of Ownership while requiring additional staffing time to maintain and replace. This is not the recommended alternative. Alternative 3 – Execute a long-term contract for airport seating. Cost Implications: $11,000,000 in contract capacity. Pros: (1) Allows for a rigorous process to determine the optimal seating selection based on the balance of cost, passenger experience, maintainability, and green principles. (2) Enables Port to negotiate for the best price by using coordinated purchasing for planned purchases over the next five years with a focus on the total-cost-of-ownership for seating that meets our standards. Cons: (1) Increased engagement from Port resources necessary to take full advantage of the opportunity and select the correct product. This is the recommended alternative. FINANCIAL IMPLICATIONS Budget Status and Source of Funds Charges to this contract will be from department budgets and projects that will be authorized separately through established procedures. Consequently, there is no funding request associated with this authorization. Individual purchase orders will be executed to authorize each purchase within approved project authorizations and the total contract amount. Lifecycle Cost and Savings The selection criteria will be composed of the total-cost-of-ownership (TCO), comfort, maintainability, aesthetics, and Century Agenda environmental goals. A team will evaluate the cost from a lifecycle perspective versus solely an upfront cost perspective and employ a strategic vendor agreement to ensure a negotiated price is reached to guarantee the best pricing for all anticipated future purchases. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA – Action Item No. 8e Page 5 of 5 Meeting Date: December 13, 2022 ADDITIONAL BACKGROUND None ATTACHMENTS TO THIS REQUEST (1) Presentation PREVIOUS COMMISSION ACTIONS OR BRIEFINGS August 9, 2016 – The Commission authorized similar contract for standardized airport hold room seating. Template revised June 27, 2019 (Diversity in Contracting).
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