PORT OF SEATTLE
MEMORANDUM
COMMISSION AGENDA
Item No.
6b
Date of Meeting
September 12, 2011
DATE: September 2, 2011
TO: Tay Yoshitani, Chief Executive Officer
FROM: Dave Soike, Director, Aviation Facilities and Capital Program
Wayne Grotheer, Director, Aviation Project Management Group
SUBJECT: Electrified Ground Support Equipment (EGSE) Vehicles and Charging Units
Contract Authorizations.
Amount of This Request: $0 Total Estimated Project Cost: $50 million
Source of Funds: Airport Development Fund
and Grants
ACTION REQUESTED:
Request Commission Authorization to (1) execute contracts to multiple vendors for the EGSE
vehicle procurement and (2) execute a contract for EGSE charging units. The maximum value of
these contracts over two years could be $35 million depending upon airline participation.
SYNOPSIS:
This request enables staff to continue proceeding forward on the project to phase out fossil-
fueled vehicles such as baggage tugs and aircraft pushback tractors. The Airport intends to
replace the fossil-fueled equipment with electric battery-powered vehicles which will help
improve air quality and save fuel costs. With full airline participation a fuel savings of $2.8
million per year is anticipated, with CO2 reduction of 10,000 tons per year (the equivalent of
1,700 cars being removed from local roadways). Airline maintenance costs would also be
reduced.
The overall EGSE program consists of 4 major components: procurement of vehicles,
procurement of charging units, procurement of long lead-time electrical components, and a major
construction contract to install all of the infrastructure. The total estimated cost of the project is
$50 million if airlines participate as indicated on the attached PowerPoint.
The vehicles and chargers are estimated to cost $35 million, and an approved Department of
Energy vehicle grant of $5 million reduces the Port’s total cost to $30 million if all airlines
participate. Staff has advertised the program to the airlines and provided competitive pricing for
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
September 2, 2011
Page 2 of 4
use in placing orders. At this time, we expect airline participation such that over 50% of the
current GSE fleet will be replaced. Carriers with fewer operations here at the Airport are less
likely to participate initially, as their usage of the vehicles is proportionally smaller, and some
use a third party provider for this type of activity.
A leasing contract is being prepared between the Airport and an Airline Consortium that ensures
proper maintenance of the vehicles and chargers by the Consortium, rather than by the Airport.
No budget is being requested with this authorization. Staff will return late this year to brief the
Commission and request necessary additional authorizations to move forward with final design,
leasing arrangements, purchase expenditures, and construction.
EGSE Vehicles:
The Airport is moving forward with the EGSE project to replace fossil-fueled GSE with battery-
powered equipment for all of those passenger airlines willing to participate. A request for
proposals (RFP) was issued on July 8, 2011, soliciting pricing for the five most common types of
EGSE used at the Airport. The Port received five bids, which were opened on August 5, 2011.
The purpose of the procurement is to establish a catalogue of the various equipment makes and
models, options, and pricing for each item. The Port compiled the pricing information for the
various types of EGSE and distributed the catalogue to the Airline representatives on August 22,
2011.
Staff is requesting authorization to execute a master contract agreement with each vendor, so that
when the airlines provide the list of equipment they desire, the Port can order the equipment
quickly. The contract does not commit the Port to any purchases.
Airlines are currently scheduled to provide their desired equipment type and quantities by
November 15. The Department of Energy has approved a $5 million grant to offset the increased
cost of electrified equipment. The $5 million grant expires on December 2, 2011. The Airport
seeks to capture the grant funding by placing the orders and applying a down payment by the
expiration deadline.
The Port will issue purchase orders for the equipment identifying the future delivery dates. The
Port will pay the vendors a down payment, with final payment made following delivery of the
vehicles. The delivery of the vehicles is anticipated to be staggered over time and may not begin
until late 2012.
EGSE Chargers:
Staff is also requesting authority to execute a contract for EGSE chargers. The Port intends to
issue an RFP in September and select the most qualified vendor offering the best value to the
Port. The charging units must be selected before final design of the infrastructure installation
contract can begin.
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
September 2, 2011
Page 3 of 4
The quantities of EGSE and charging units will be determined by airline participation. The
Commission authorized $1,510,000 on October 26, 2010 to: (1) prepare preliminary designs; (2)
use Port work crews; and (3) execute and amend contracts for materials, abatement, equipment,
work, and services to move the EGSE project forward. Staff will return for Commission
authorization late this year for approval of the leasing agreement, design funds, vehicle and
charger procurement funds, and construction advertisement, based upon airline participation.
PROJECT SCOPE OF WORK AND SCHEDULE:
Scope of Work:
This project will:
Replace up to 650 fossil-fueled GSE vehicles (depending upon airline participation)
Procure the appropriate number of chargers for installation to support the EGSE
capability at the Airport
Procure web-based electric meters that will monitor charger power consumption
Procure long lead time electrical equipment to reduce the overall construction duration
Award a major construction contract that will install chargers, meters, and associated
infrastructure to increase electrical power to support EGSE
Schedule:
Start
Pre-Design
April 2011
Design
October 2011
Place Vehicle Orders
November 2011
Construction
June 2012
FINANCIAL IMPLICATIONS:
There is no funding request associated with this authorization. This authorization allows the
Airport to enter into contracts. Authorizations allowing expenditures would be requested later in
the fall. Ultimately the Airport would recoup vehicle costs and charger costs via lease
arrangements, while the electrical infrastructure would be recouped via terminal rates and
charges.
The total EGSE project consists of four basic procurements: electrified vehicles, charging units,
long lead time electrical equipment, and major construction to perform equipment installations
and upgrade power capacity where needed. The total cost of this project will depend upon
participation by the passenger airlines, but could be as much as $50 million if there is 100%
participation.
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
September 2, 2011
Page 4 of 4
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST:
Commission EGSE PowerPoint
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS:
On May 10, 2011, the Commission was briefed regarding progress on the EGSE project prior to
soliciting pricing for rolling stock.
On October 26, 2010, the Commission authorized $1,151,000 for preliminary design, necessary
contracts, and work by Port forces to begin to implement the ultimate project; pre-purchase
specialized equipment and materials through competitive bid processes; and to authorize Port
Construction Services to perform Regulated Materials Management (RMM) investigations and self
perform necessary associated work.
On September 28, 2010, the Commission was briefed on the 2011 capital budget that included the
above-mentioned EGSE projects.
On September 8, 2005, the Commission was briefed on the benefit of changing from fossil fuel based
GSE vehicles to EGSE based vehicles at Seattle-Tacoma International Airport.