Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
4f
ACTION ITEM
Date of Meeting
June 27, 2017
DATE: June 20, 2017
TO: Dave Soike, Interim Executive Director
FROM: Wayne Grotheer, Director, Aviation Project Management Group
SUBJECT: Architect Services IDIQ Contract
Amount of this request:
$0
Maximum value of contracts:
$9,000,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute up to six professional
services indefinite delivery, indefinite quantity (IDIQ) contracts for architect services for a total
capacity not to exceed $9 million. Up to three of these contracts will be set aside for small
businesses. There is no funding associated with this request.
EXECUTIVE SUMMARY
The Aviation Project Management Group (AVPMG) utilizes IDIQ contracts to meet highly
variable workload projections for architect services. The existing architect services IDIQ
contracts established in 2015, with a total value of $3,500,000, have been fully committed. We
anticipate that this request will provide the necessary architect services to meet AVPMG needs
for the next three years.
In addition to the three contracts at $2.5 million each, the solicitation will include three
$500,000 contracts for small businesses. For the small business contracts, the Port will also
delay the requirement to provide insurance and associated endorsement until the Port issues
the first service directive.
JUSTIFICATION
The demand for design services on airport projects is increasing. The Airport is adding
approximately 24 new capital projects each year. To support the increasing and dynamic
business requirements of Sea-Tac Airport, AVPMG requires flexibility in obtaining design
services. The IDIQ contracts provide flexibility through project-specific service directives that
allow project architect services, which includes engineer sub consultants as part of the architect
team, to be provided on an as-needed basis for a fixed period and a maximum contract
amount. These contracts will also be available to other Port departments. Without these IDIQ
contracts, individual project procurements would be required, which are less efficient than a
COMMISSION AGENDA – Action Item No. 4f Page 2 of 4
Meeting Date: June 27, 2017
Template revised September 22, 2016; format updates October 19, 2016.
single procurement that can serve dozens of projects. Individual procurements would increase
costs and add 4 months to each project schedule, which would delay completion of design and
construction.
IDIQ contracts provide the Port with the flexibility to meet business requirements as they arise
by issuing individual service directives to accomplish tasks within a general, pre-defined scope
of work on an as-needed basis for a fixed period of time and a maximum contract amount.
Competitively bid IDIQ contracts are a widely used public sector contracting tool, consistent
with the Port’s General Delegation of Authority, and governed by CPO-1 policy. Representative
needs for contract architect services include: Terminal & Tenant projects, Landside, and
Infrastructure projects through 2019. We expect that new projects and current projects not yet
at the design stage will utilize the contract architects and engineers.
DETAILS
This request is to execute up to six contracts: the first three will be valued at $2.5 million each,
and will be awarded to the highest-ranked qualified firms; the fourth, fifth and sixth contracts,
valued at $500,000 each, will be awarded to the two highest-ranked qualified Small Business
Enterprises and to the highest-ranked qualified Certified Small Business. In the event the Port
determines that there are not enough applicant firms with sufficient qualifications to perform
this work, the Port may award fewer contracts and increase capacity of the awarded contracts
to the selected firms for a total capacity not to exceed $9 million.
Each contract will have up to a three year ordering period. Service directives may be issued at
any time during the contract-ordering period. Work may be performed after expiration of the
ordering period. The total value of all service directives issued on a contract will not exceed the
contract value.
Budgets to utilize these contracts will come separately from individual project authorizations.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do not procure Architect Services IDIQ contracts. Each project would
individually procure its own architect services as needed.
Cost Implications: Each project would expend additional administrative costs to procure
individual architect services.
Pros:
(1) Defers the administrative cost of procurement to a later date when individual projects
each do their own procurement.
Cons:
(1) Increased cost for individual project procurements rather than a more efficient single
procurement of IDIQ contracts.
COMMISSION AGENDA – Action Item No. 4f Page 3 of 4
Meeting Date: June 27, 2017
Template revised September 22, 2016; format updates October 19, 2016.
(2) Each individual project would have to procure architect services, which will cost more
and add 4 months to each project schedule to complete the procurement process.
This will delay completion of design and construction.
This is not the recommended alternative.
Alternative 2 – Hire new full-time architects and engineers as needed to meet project design
workload forecasts.
Cost Implications: A potential savings of approximately $6 million could be realized over a 3-
year period, compared with hiring consultants. This potential savings could be offset by other
factors that are likely to occur.
Pros:
(1) Lower cost than consultant architects and engineers.
(2) Institutional knowledge is built by Port Staff
Cons:
(1) Consultant architects and engineers with specialized skills might still need to be hired
when Port staff skills do not meet the design needs of a particular project.
(2) Projects that cannot be efficiently scheduled with staff designers would have to be
prioritized and wait for staff to become available, or be independently out sourced.
(3) Limited knowledge of future projects at time of annual budgeting means mid-year
budget adjustments may be required.
This is not the recommended alternative.
Alternative 3 – Prepare a single procurement to contract with up to five architect services
firms.
Cost Implications: $9,000,000 maximum value for a 3-year ordering period. This request is for
$0 since the costs would be paid by individual projects that issue Service Directives under the
contract.
Pros:
(1) Ability to balance consultant workload capacity with Port requirements, providing
timely completion of projects
(2) Procurement of IDIQ contracts that can be used by multiple projects avoids additional
administrative costs that would otherwise be incurred if each project had to procure
individual services contracts.
(3) Highest level of flexibility – architect teams are added or removed as needed to meet
demand
(4) Provides opportunities to architect services firms
(5) Provides opportunities to small businesses
Cons:
(1) Contractors build institutional knowledge, rather than Port Staff.
COMMISSION AGENDA – Action Item No. 4f Page 4 of 4
Meeting Date: June 27, 2017
Template revised September 22, 2016; format updates October 19, 2016.
(2) Cost is higher for consultants than staff with comparable experience
a) One Port FTE architect/engineer over a 3-year period costs approximately
$450,000.
b) One full-time consultant architect/engineer over a 3-year period costs between
approximately $950,000. This is roughly 50% more expensive than if the work
were performed using in-house resources.
(3) Multiple contracts would require greater administrative support.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Charges to these contracts will be from projects that will be authorized separately through
established procedures. Consequently, there is no funding request associated with this
authorization. The total cost for architect services will not exceed $9,000,000. 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 authorization for each project in accordance with the
Master Delegation of Authority, the actual work will be defined and the Port will issue
individual project-specific service directives.
ATTACHMENTS TO THIS REQUEST
• None
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
May 23, 2017 – The Commission requested that the proposed procurement be modified to
better accommodate the needs of small business proposers.
June 9, 2015 – The Commission authorized the execution of three professional services IDIQ
contracts for architect services. Maximum combined value of contracts was $3,500,000.
May 28, 2013 – The Commission authorized the execution of two professional services IDIQ
contracts for architect services. Maximum combined value of contracts was $3,000,000.
January 10, 2012 – The Commission authorized the execution of a single professional
services indefinite delivery, indefinite quantity contract for architectural services.
Maximum value of contract was $4,000,000.
