COMMISSION
AGENDA MEMORANDUM
Item No.
ACTION ITEM
Date of Meeting
DATE:
September 5, 2024
TO:
Stephen P. Metruck, Executive Director
FROM:
Eileen Francisco, Director Aviation Project Management Group
Wendy Reiter, Director Aviation Security
8j
September 10, 2024
SUBJECT: Air Cargo Buildings 167A and 167B Access Controls (CIP# C801288)
Amount of this request:
Total estimated project cost:
$ 500,000
$2,500,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to increase the budget of the Air
Cargo Building 167A/B Access Controls project at Seattle-Tacoma International Airport for a
total estimated project cost of $2,500,000. The amount of this request is $500,000.
EXECUTIVE SUMMARY
Extending bussed hard stand passenger service operations to Cargo 5 has expanded the
Airport's Secured Area to include Air Cargo Building 167A and 167B, as defined and regulated
by the Transportation Security Administration (TSA). These buildings are owned by the Port
and leased to tenants. To comply with Secured Area regulations, this project is installing the
Airport's Access Control system at doors providing access to the Secured Area. This work will
require support infrastructure connecting back to the Airport's Main Terminal. During design,
deficiencies in both the building's electrical capacity and its connectivity to the Main Terminal
have resulted in scope development that has increased the project estimate and require
additional budget to complete the project.
JUSTIFICATION
To meet TSA security regulations, this project will provide the Airport's Access Control System
to manage doors that connect the interior of the building to the Airport's Secured Area. Users
will be required to use Airport issued identification badges to gain access similar to other
secured areas. As the project team advanced the design of the project, and a more thorough
review of existing conditions occurred, it became apparent that the buildings' existing
electrical service and the proposed data pathway to connect to the Main Terminal could not
support the project. This has resulted in scope additions to the project that could not be
absorbed within the current project budget.
Template revised January 10, 2019.
COMMISSION AGENDA - Action Item No. 8j
Meeting Date: September 10, 2024
Page 2 of 4
Diversity in Contracting
For design, the Indefinite Delivery Indefinite Quantity (IDIQ) designer has a 25% Women and
Minority Business Enterprise (WMBE) goal and for this project is achieving a 49% participation.
For construction, the project team will utilize an existing Job Order Contract, which has a 6.3%
goal.
DETAILS
Scope of Work
This project will install the Port's access control system at doors that provide access to the
Secured Area from this building. This project will also provide all required infrastructure
including power and communications to support the access control system.
Schedule
This project experienced schedule delays due to resource limitations needed for other
prioritized work, and labor availability.
Activity
Design start
Construction start
In-use date
Cost Breakdown
Design
Construction
Total
2023 Quarter 2
2024 Quarter 3
2025 Quarter 2
This Request
$0
$500,000
$500,000
Total Project
$600,000
$1,900,000
$2,500,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
As it became apparent that the design had to change, the project team evaluated several
alternatives to minimize cost growth, including scope reduction (eliminating Access Control to
one door) and alternative sources of electrical power and data connectivity.
Alternative 1 - Refurbish and reuse existing telecom cabinets
Cost Implications: $450,000 additional funding
Pros:
(1)
(2)
Save $50,000 material cost
Schedule savings: Refurbishment may take less time than procurement
Cons:
(1)
(2)
Additional design effort to determine fit
Additional installation effort to adjust to fit
Template revised June 27, 2019 (Diversity in Contracting).
COMMISSION AGENDA - Action Item No. 8j
Meeting Date: September 10, 2024
(3)
Page 3 of 4
Refurbished cabinets may be more susceptible to leaks
This is not the recommended alternative.
Alternative 2 - Proceed with the project as planned with new telecom cabinets
Cost Implications: $500,000 additional funding
Pros:
(1)
(2)
(3)
Completes construction as planned
Allows the building to meet regulatory requirements.
Provides additional project contingency to address remaining project risks
Cons:
(1)
Higher cost than Alternative 1
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
Previous changes - net
Current change
Revised estimate
$592,000
$2,000,000
$500,000
$2,500,000
$0
$0
$0
$0
$592,000
$2,000,000
$500,000
$2,500,000
AUTHORIZATION
Previous authorizations
Current request for authorization
Total authorizations, including this request
Remaining amount to be authorized
$2,000,000
$500,000
$2,500,000
$0
0
0
0
$0
$2,000,000
$500,000
$2,500,000
$0
Annual Budget Status and Source of Funds
The Air Cargo Building 167A/B Access Controls #C801288 was included in the 2024-2028
capital budget and plan of finance with a budget of $2,000,000. The capital budget increase
of $500,000 was transferred from the Aeronautical Allowance CIP C800753 resulting in no net
change to the Airport capital budget. The funding source will be the Airport Development
Fund.
Template revised June 27, 2019 (Diversity in Contracting).
COMMISSION AGENDA - Action Item No. 8j
Meeting Date: September 10, 2024
Financial Analysis and Summary
Project cost for analysis
Business Unit (BU)
Effect on business performance
(NOI after depreciation)
IRR/NPV (if relevant)
CPE Impact
Page 4 of 4
$2,500,000
Airfield Commercial Area
NOI after depreciation will decrease
NPV of ($2,218,000)
N/A
Future Revenues and Expenses (Total cost of ownership)
As a result of this project, Aviation Maintenance anticipates an increase in ongoing operations
and maintenance for Electronic Systems. Maintenance for the additional cameras, biometric
card readers and intercoms will amount to roughly 50 additional labor hours annually. The
cost at 2024 rates is roughly $5,500.
ATTACHMENTS TO THIS REQUEST
None
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
March 14, 2023 - The Commission authorized complete design and construction of the Air
Cargo Building 167A/B Access Controls project at Seattle-Tacoma International Airport for a
total estimated project cost of $2,000,000.
Template revised June 27, 2019 (Diversity in Contracting).