PORT OF SEATTLE

MEMORANDUM

COMMISSION AGENDA

Item No.

Date of Meeting

November 1, 2011

DATE: October 21, 2011

TO: Tay Yoshitani, Chief Executive Officer

FROM: John Christianson, General Manager, Aviation Maintenance

Michael Ehl, Director, Airport Operations

Wayne Grotheer, Director, Aviation Project Management

SUBJECT: Procurement of Indefinite Delivery, Indefinite Quantity Professional Service

Agreement for Passenger Loading Bridge Design Services for Seattle-Tacoma

International Airport

Amount of This Request: $0 Source of Funds: Current and Future Operating Budgets;

Future Individual Project Authorizations

Maximum Value of IDIQ Contract: $750,000

ACTION REQUESTED:

Request Port Commission authorization for the Chief Executive Officer to execute a professional

services Indefinite Delivery, Indefinite Quantity (IDIQ) design contract for Passenger Loading

Bridge (PLB) design services to be used in support of the replacement or refurbishment of Port-

owned PLBs at Seattle-Tacoma International Airport (STIA), as well as the purchase and

replacement or refurbishment by the Port of PLBs that are currently airline-owned. One IDIQ

contract will be issued for the not-to-exceed amount of $750,000 with a four-year ordering

period. No funding is associated with this authorization.

SYNOPSIS:

The Commission has already authorized the replacement of a number of PLBs associated with

the Airline Realignment project. This IDIQ will provide design services required through 2015

for the purchase, refurbishment or replacement of existing Port-owned or airline-owned PLBs

which have reached the end of their useful service lives. These PLBs will be used at both

common use and preferential gates to improve the usage and flexibility of airline gates. The

Airport proposes to advertise and select one qualified firm to provide these design services

because scheduling PLB projects is relatively unpredictable and dependent on operational or

capacity concerns and Port staff are frequently unavailable to take on the additional work. The

Office of Social Responsibility will assist in identifying opportunities for small business

participation prior to the public advertisement of the IDIQ, and a goal will be established for

small contractor and supplier participation.

COMMISSION AGENDA

Tay Yoshitani, Chief Executive Officer

October 21, 2011

Page 2 of 4

BACKGROUND:

This IDIQ is not associated with the first two phases of current PLB Replacement – Airline

Realignment CIP (C800467), the design services for which are being addressed under a separate

IDIQ contract already in place.

Through the end of 2015, Airport staff estimates that up to 15 PLBs will potentially require the

design services expected to be delivered under this contract. Historical data indicates that the

design for a PLB replacement project typically costs $35,000 to $50,000.

There are currently two capital projects that will require the type of design services expected to

be delivered under this contract. The first is C800267 – Airport Owned Gate Infrastructure II,

which continues through the end of 2014 and proposes to refurbish or replace existing Port-

owned PLBs which have reached the end of their service lives. CIP C800267 will have

sufficient funding ($2.4 million) to replace one and refurbish three PLBs. The second is a yet-to-

be-named CIP that is expected to continue through the end of 2015 and proposes to purchase

PLBs that are currently airline-owned and to refurbish or replace them as preferential and

common use gates.

Over the past several months, Port staff held long-range PLB strategy and acquisition planning

meetings in order to identify how best to procure the required PLB design services.

The scheduling of PLB replacement and refurbishment projects is relatively unpredictable and

highly dependent upon operational and capacity concerns. In the past, the utilization of this type

of IDIQ contract has proven to be an efficient, cost effective and flexible method of responding

to uncertain design requirements over a multiple-year time span. While Port staff have the skills

required to produce these designs, they do not always have the available capacity to take on

additional work. Past experience shows the Port typically has contracted with consultants for

these particular design services due to the lack of availability of Port staff, the short duration of

the assignments and the fact that the need for these services is normally intermittent in nature.

PROJECT JUSTIFICATION:

Project Objectives:

There is an ongoing requirement for design services for PLBs beyond the current renewal and

replacement and airline realignment efforts. The capacity of the current PLB Design Services

IDIQ has been depleted by the first two phases of the Airline Realignment project at Concourses

D and B as well as by the remaining work in the current PLB renewal and replacement CIP.

Additional design capacity is required to complete designs for the five PLBs that are expected to

be replaced at the North Satellite. Further, up to four Port-owned PLBs are programmed for

refurbishment or replacement through the end of 2014. Finally, there are six airline-owned PLBs

(three at the South Satellite and three at Concourse B) that are not included in the scope of the

current airline realignment CIP and will likely be acquired by the Port as they become available

for purchase.

COMMISSION AGENDA

Tay Yoshitani, Chief Executive Officer

October 21, 2011

Page 3 of 4

PROJECT SCOPE OF WORK AND SCHEDULE:

Scope of Work:

This IDIQ contract will be procured according to Port policies and procedures in accordance

with Resolution No. 3605, as amended, and CPO-1. The Port will advertise and issue a request

for qualifications (RFQ) that will include a goal for small contractor and supplier participation.

The contract will be written with specific not-to-exceed amounts and identify the design services

required by the consultant. The contract will have a contract ordering period (during which the

design services may be separately authorized) of four years. The actual contract duration may

extend beyond four years in order to complete work identified in particular service directives.

Service directives may be issued during the contract ordering period. The Port will not issue

service directives in excess of the $750,000 contract value.

Schedule:

It is estimated that the contract will be executed by February 2012 and have a four-year ordering

period. The contract duration may extend beyond that period to allow for work to be completed.

Each service directive will specify the duration and schedule associated with the task or tasks

involved.

FINANCIAL IMPLICATIONS:

The total estimated cost for PLB design services will not exceed $750,000. The contract will

have a not-to-exceed dollar threshold. No work is guaranteed to the consultants, and the Port is

not obligated to pay the consultant until a service directive is executed. After receiving

Commission authorization for each project in accordance with Resolution No. 3605, as amended,

the actual scope of work will be defined and the Port will issue individual project-specific

service directives.

Charges to this contract will come directly from individual PLB replacement or refurbishment

projects which have already been authorized by the Commission and will be applied utilizing

established procedures and guidelines. Consequently, there is no funding request associated with

this IDIQ authorization. Unused contract capacity will expire at the end of the contract duration.

ENVIRONMENT AND SUSTAINABILITY:

Each project will identify environmental sustainability benefits as part of its authorization.

STRATEGIC OBJECTIVES:

This project supports the Port’s strategy to ‘Ensure Airport and Seaport Vitality’ through

renewing and replacing infrastructure vital to the Port’s operations.

Best management practices will be employed in the selection of the consultant as well as for

materials, work practices and ongoing total cost of ownership.

BUSINESS PLAN OBJECTIVES:

This project is aligned with the Aviation business plan objectives to maintain safe facilities and

assets while providing customers with a compelling value.

COMMISSION AGENDA

Tay Yoshitani, Chief Executive Officer

October 21, 2011

Page 4 of 4

TRIPLE BOTTOM LINE SUMMARY:

Each project will identify a triple bottom line summary as part of its authorization.

ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS:

1. Prepare separate procurements each time PLB design services are needed. This option would

be an inefficient use of Port resources as it would result in multiple low-dollar contracts for

similar services. This is not the recommended alternative.

2. Prepare one Category III procurement to provide PLB design services in the amount of

$750,000. This alternative ensures a competitive process, encourages small business

participation and provides Port staff with the necessary tools to respond to short-notice

requests for service in a flexible, cost-effective and timely manner. This is the

recommended alternative.

OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST:

None.

PREVIOUS COMMISSION ACTION:

There have been no previous Commission actions related to this IDIQ.