PORT OF SEATTLE
MEMORANDUM
COMMISSION AGENDA
Item No.
5e
Date of Meeting
December 13, 2011
DATE: December 2, 2011
TO: Tay Yoshitani, Chief Executive Officer
FROM: Ralph Graves, Managing Director, Capital Development
SUBJECT: Change Order: Terminal Escalators Modernization Project MC-0316531/CIP
C800237
Amount of This Request: $879,000 Total Project Cost: $40,000,000
Source of Funds: Design Build Contract Contingency. No additional funds required
Est. State and Local Taxes: $1,798,319 Jobs Created: None
ACTION REQUESTED:
Request Port Commission ratification of the issuance of 1) Change Order #3 in the amount of
$186,000 and authorization for the Chief Executive Officer to issue a second as yet unnumbered
change order for up to $239,000 to install four new stainless steel enclosures under four main
terminal skybridges at the Seattle-Tacoma International Airport for up to a total amount of
$425,000; and 2) as yet unnumbered change order(s) for up to $640,000 to complete the North
and South Satellite Transit System (STS) Station escalators in two phases at each location
instead of one phase. Funds to cover the cost of the change orders are part of the project
contingency funds that were included in the previously approved Terminal Escalators
Modernization authorizations.
SYNOPSIS:
The design-build (D-B) contractor was requested to incorporate design, procurement and
construction of stainless steel enclosures under the escalators at four Main Terminal Sky Bridges
to improve the lighting, appearance, and functionality of the public passageways under the
escalators. These areas are currently dark, poorly lit, and collect unwanted baggage carts and
other materials.
The Port issued Change Order #3 for the not-to-exceed amount of $186,000 for design and
construction based on a conceptual estimate regarding the scope and complexity of the stainless
steel enclosures. The design has now been completed, resulting in a revised cost proposal of
$425,000 from the contractor, or a net increase of $239,000. The scope of the enclosures is now
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
December 2, 2011
Page 2 of 4
better defined, improving the functionality of the enclosures regarding secured storage and
telephone niches as well as providing significant aesthetic improvements to the public
passageways under the sky bridge escalators.
The D-B contractor was also requested to rephase the installation of escalators at the north and
south Main Terminal (MT) STS stations from a single phase to two phases to provide improved
passenger flow during construction.
The Port received a cost proposal from the contractor to rephase the North and South MT STS
Station escalators from a single phase to two phases of construction in the amount of $316,000
for each location. At both locations, the rerouting of passengers to alternative exits during the
approximately four month construction durations as originally scoped by the Port was
determined upon further review by the Port and airline stakeholders to present unacceptable
inconveniences including increased risk of security breaches. The additional cost for each
location represents multiple mobilizations, modified hoisting of trusses, and restricted work
space.
BACKGROUND:
The Port directed the contractor to proceed with design and construction of four stainless steel
enclosures below the escalators at four MT skybridges to upgrade the area’s aesthetics for
consistency with the more modern and contemporary appearance of the South Main Terminal
and the Central Terminal. A $186,000 not-to-exceed Change Order 3 was issued with $26,000
estimated for design and $160,000 for construction. The Port is now in receipt of the final
design and cost proposal from the contractor for $425,000. An independent estimate is
underway. A final reconciliation change order will be issued after the final costs have been
established. Staff does not expect the final amount to exceed the contractor estimate of
$425,000.
Escalators 221, 222 & 224 serve the south MT STS and escalators 521, 522 and 524 serve the
north MT STS. The basis of design and schedule for each of these two locations was predicated
on the initial request for proposal that identified two phasing options for this work to allow the
contractor to complete the construction in one phase or two in an effort to shorten the overall
project duration with manageable level of disruption. The D-B contract was executed with the
north and south MT STS stations constructed in one phase at each location consistent with the
D-B contractor’s scope.
During the design of the Main Terminal escalator replacements, a more thorough review by the
Port and airline stakeholders concluded the single phase routing would result in an undesired
level of inconvenience to and potential confusion for passengers. Further, the alternate routing
was determined to increase the potential for security issues while passengers transitioned from
sterile to non-sterile areas in the terminal. By changing the phasing from one to two phases, the
existing egress routings can be maintained with only minor congestion due to the reduction in
available escalators during each construction phase. The Port is now in receipt of the final cost
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
December 2, 2011
Page 3 of 4
proposal from the contractor for $316,000 for each location or a total of $632,000. A final
change order will be issued after the final costs have been established. Staff does not expect the
final amount to exceed the contractor estimate of $640,000.
FINANCIAL ANALYSIS:
Funds to pay for this change order are part of the project contingency funds that are included in
the approved $40,000,000 project budget. No additional project funds are being requested as a
result of this change order. The initial project authorization in February 2011 was $55,000,000.
The project budget has been reduced to the current amount to reflect an initial competitive cost
proposal and further detailed review of anticipated expenditures.
CONTRACT INFORMATION:
The following information relates to the contract and competitive award:
Contract award date February 9, 2011
Original period of performance February 9, 2011, through May 15, 2013
Previous contract extensions 0 Days
Contract extension this change order 0 Days
Current Contract Completion Date May 15, 2013
FINANCIAL INFORMATION:
Original contract amount $16,945,000
Previous Change Orders Executed $2,296,872
Current contract amount $19,241,872
This request, Change Orders No. XX - YY $897,000
Subtotal Construction Costs $20,138,872
Anticipated WSST @ 9.5% $1,798,319
Revised Contract Amount $21,937,191
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST:
None.
PREVIOUS COMMISSION ACTION:
September 27, 2011, the Commission authorized the issuance of Change Order 20 and an
unnumbered future change order (now identified as Change Order 32) to demolish and install
electrical panels at the Seattle-Tacoma International Airport for up to a total amount of $900,000.
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
December 2, 2011
Page 4 of 4
May 10, 2011, the Commission authorized the issuance of Change Order #2 to change certain
escalator balustrades from high-deck stainless steel to low-deck glass; to change the escalator
cladding from the existing dark bronze to stainless steel on certain escalator balustrades; to
install deceleration “sleep mode” sensors in escalator newel ends; and to change the step lighting
from balustrade to skirt panel for 34 replacement escalators.
February 1, 2011, the Commission authorized execution of a contract with the selected design-
build team and to construct the Terminal Escalators Modernization Project at a total estimated
cost of $55,000,000.
June 22, 2010, the Commission authorized the issuance of a request for proposals (RFP) under
the design-build contracting procedure.
May 4, 2010, the Commission tabled a request to issue a RFP pending further information
concerning the need for revenue bond financing for this project.
April 13, 2010, the Commission authorized the advertisement of the request for qualifications
under the design-build contracting procedure, and the application of a project labor agreement.
The project scope was changed to include a second new escalator in the South Satellite.
July 22, 2008, the Commission authorized $3,183,000 to prepare the performance specifications
and preliminary design for the Renew/Replace 42 Escalators and 1 New Escalator project at
Seattle-Tacoma International Airport.
