INTERNAL AUDIT REPORT
Operational - Capital Audit
2023 Airfield Projects - Contract 2
February 2023 - January 2025
Issue Date: February 24, 2025
Report No. 2025-05
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2023 Airfield Projects - Contract 2
TABLE OF CONTENTS
Executive Summary ................................................................................................................................................. 3
Background ............................................................................................................................................................. 4
Audit Scope and Methodology ............................................................................................................................... 5
Appendix A: Risk Ratings ......................................................................................................................................... 6
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2023 Airfield Projects - Contract 2
Executive Summary
Internal Audit (IA) completed an audit of the 2023 Airfield Projects - Contract 2, for the period February
2023 through January 2025. The audit was performed to provide an independent assessment of
performance, with the purpose of determining whether the Port of Seattle's (Port) controls on pay
applications, and monitoring of unit price items were achieved. Another objective of the audit was to
determine if there were opportunities for improvement in future projects.
This project was executed as a Design-Bid-Build method. The Port entered into an Agreement with
Scarsella Brothers Inc. with unit prices for each line item. The project was temporarily paused in
November 2024, due to supply chain issues with electrical transformers.
We found that Port's processes for this Project were effective and met industry standards. We
do not have any reportable issues.
Glenn Fernandes, CPA
Director, Internal Audit
Responsible Management Team
Karen Goon, Deputy Executive Director
Brian Sweet, Director of Engineering - Construction Management
Janice Zahn, Chief Engineer
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2023 Airfield Projects - Contract 2
Background
The 2023 Airfield Projects - Contract 2 encompassed critical infrastructure projects aimed at enhancing
airfield safety, security, and operational efficiency at Seattle-Tacoma International Airport (Airport).
These projects addressed both immediate and long-term needs for the Airport's airfield infrastructure.
These projects were designed to work in tandem with other capital projects, minimizing disruption to
airport operations, assuring compliance with regulatory requirements, and improving the airfield's longterm functionality.
Key projects within Contract 2 include:
•
Snow Storage Expansion: This project increased snow storage capacity by expanding the
existing snow storage areas. The project also improved the infrastructure that supports these
areas, such as widening the perimeter roadway to accommodate snow removal equipment and
improving the airfield operational safety during winter storm events.
•
Overheight Vehicle Damage Protection System (OHVDPS): This project installed warning
bars on the perimeter road at a height of 14' to stop overheight vehicles from striking the FAA
approach lighting bridge that crosses the perimeter road at the north end of runway 16R.
•
Cascade Road: This project extended a mid-airfield power ductbank.
•
Perimeter Intrusion Detection System (PIDS): This project will enhance airport perimeter
security and public safety by deploying power and communication infrastructure, along with
advanced monitoring technology to track and respond to security threats. It will also provide
infrastructure to undeveloped areas on the airfield and support AV Security business and
operational goals. The PIDS system will integrate with other airfield improvements, boosting both
security and operational efficiency.
•
Secured Area Vehicle Checkpoints Project (SAVCP): This project will provide the
infrastructure and equipment needed to support full employee screening at the North and South
boundaries of the airfield's secured area. It includes the installation of vehicle gates and security
screening equipment to make sure that only authorized vehicles are permitted access to critical
areas, enhancing overall airport security.
Estimated cost by Project:
Snow Storage Expansion
OHVDPS
Cascade Road
PIDS
SAVCP
Total
$3,152,729.60
$627,120.00
$3,065,029.50
$16,552,159.40
$2,060,592.55
$25,457,631.05
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2023 Airfield Projects - Contract 2
Audit Scope and Methodology
We conducted the engagement in accordance with Generally Accepted Government Auditing Standards
and the Global Internal Auditing Standards. These Standards require us to plan and execute the
engagement to obtain sufficient, appropriate evidence to support our findings and conclusions based on
the engagement objectives. We believe the evidence obtained provides a reasonable basis for our
findings and conclusions.
In some instances, we used judgmental sampling methods to determine the samples selected for our
testing. In those cases, the results of the work cannot be projected to the entire population.
The period audited was February 2023 through January 2025 and included the following procedures:
Changes in Quantity/Unit Price Renegotiation:
• Identified the agreed upon bid quantity per the contract.
• Identified the actual quantity to date in the latest pay estimate.
• Compared the quantities to identify items that would have triggered section G-05.04
(Compensation for Changes) in the contract.
• Assessed if unit price negotiation could have been beneficial for the Port.
Pay Estimate Process:
• Sampled line items from the Schedules and compared with the Field Note Records to verify the
used amounts.
Trip Ticket:
• Examined the trip tickets for line items with the unit of measure "TON."
• Verified material quantities billed on the pay estimates were accurately supported by trip
tickets.
• Reviewed documentation to determine whether there were missing trip tickets.
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2023 Airfield Projects - Contract 2
Appendix A: Risk Ratings
Observations identified during the audit are assigned a risk rating, as outlined in the table below. Only
one of the criteria needs to be met for an observation to be rated High, Medium, or Low. Low rated
observations will be evaluated and may or may not be reflected in the final report.
Rating
High
Financial/
Operational
Impact
Internal
Controls
Compliance
Significant
Missing or
partial
controls
Non-compliance
with Laws, Port
Policies,
Contracts
Partial
controls
Medium
Low
Moderate
Minimal
Not
functioning
effectively
Functioning
as intended
but could be
enhanced
Partial
compliance with
Laws, Port
Policies
Contracts
Mostly complies
with Laws, Port
Policies,
Contracts
6
Public
High probability
for external audit
issues and / or
negative public
perception
Moderate
probability for
external audit
issues and / or
negative public
perception
Low probability
for external audit
issues and/or
negative public
perception
Commission/
Management
Requires
immediate
attention
Requires
attention
Does not
require
immediate
attention