Item No.:
Meeting Date:

6e_s upp
June 27, 2017

C800612 Baggage Optimization
Capacity Acceleration
June 27, 2017

1

Capacity Increase Scope Request
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The Baggage Optimization project was initially scoped in 2012 to accommodate
a projected volume of 45 million annual passengers (MAP), with an expandable
design to accommodate future growth.
45 MAP was expected to be adequate capacity through 2027; however, due to
unprecedented growth, the Airport exceeded 45 MAP in 2016.
To avoid significant negative impacts to airlines and travelers, acceleration of
this future work is necessary now in order to increase the baggage system
capacity to accommodate a projected 60 MAP.
Requesting to incorporate expansion into existing Baggage Optimization
Phases 2 and 3.
The Airport is growing faster than was anticipated.
2

Revised Baggage Optimization Phases
(including future capacity of 60 MAP)
Budget

Construction
Start

Construction
End

Phase 1

$135 M

Q2 2017

Q3 2019

Phase 2

$83 M + 60 MAP

Q3 2019

Q2 2022

Phase 3

$100 M + 60 MAP

Q2 2022

Q4 2024

Project Phase

Original Total

$319 M

Q4 2023 (Original)

60 MAP Capacity

+ $150 M

14 months

Favorable Phase 1 Bid

- $24 M

Revised Total

$445 M

Q 2024

This capacity increase will add $150M and 14 months to the project.
3

Budget Details
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Budget Increase:
+ $150,000,000 Capacity Increase scope
- $24,000,000 Return from favorable Phase 1 bid
= $126,000,000 Net Increase for Increased Capacity
New Total Project Budget
$319,050,000 Original Budget
+ $126,000,000 Net Increase for Increased Capacity
= $445,050,000 Revised Total Estimate Project Cost

Revised project budget will be $445,050,000.
4

Budget Details
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This Request:
+ $19,937,000
+ $5,000,000
- $24,300,000
= $637,000

Project Management funds to expand capacity
Port crews and small works to perform additional
construction work
Return from favorable Phase 1 bid (previously
authorized for construction)
Net Increase for Increased Capacity

This request is for Commission to authorize $637,000.
5

Additional Capacity Scope Details
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Five CTX machines (TSA provided) and spur lines
Two additional mainlines
Two additional recirculation lines
Building infrastructure to accommodate additional BHS capacity
With coordination of the IAF project-
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Two additional makeup units
One manual encode station
Partial demolition of IAF baggage system
Additional feedlines

With coordination of the South Satellite renovation project-
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Additional outbound line in the baggage tunnel
Two additional makeup units
Availability to add manual encode and additional makeups in the future

Required Baggage Optimization Scope to achieve 60 MAP
6

Port Construction Services Pre-Work Scope
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H-line wall code compliance for Phase 2 permit
Claim 13 conveyor input installation
Right of way clearances
Right of way conveyor, MCP and conduit demolition
Change order alternative
Portering
Shutdown support
Equipment movement and TSA/contractor support
Tenant, TSA, Airline and Port move support
Testing Support
This PCS work will help to streamline the transition between phasing and capacity expansion.

7

Baggage Optimization
Project Update

8

Q1 Financials
Total Project Budget

$ 319,050,000

Total TSA Contribution

$ 93,220,422

Total Commission Authorization to Date

$ 135,375,000

Amount Spent to Date (as of 3-31-17)

$ 20,454,390

TSA Design Reimbursement to Date (as of 3-31-17)

$

5,834,580

The project is within budget as originally scoped.
9

Phase 1 Bid Results
• Contract Awarded to lowest bidder:
- PCL Construction Services Inc. (General Contractor)
- Jervis Webb (Baggage Sub-Contractor)

• Bid Amount:
- $52,000,000.00 (Below Engineer's Estimate)

The project returned $24M due to a low bid below the Engineer's Estimate.

10

Phase 1 Small Business Requirements
• Small Business Requirement: 15%
- Certified Small Business: 5% included within 15% total

• Specialized Baggage, Controls, and Electrical equipment
installation is not heavily represented in the Small Business
Community.

Total Requirement: 15% Small Business
11

Phase 1 Pre-work
• New makeup device and a new
odd-size device in the North end of
the bagwell have been installed.
• Work completed by PCS, Port
Maintenance, and Small Works.

Completion of pre-work allowed Horizon operations to be moved prior to major contract work
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