Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
4e
ACTION ITEM
Date of Meeting
July 11, 2017
DATE: June 23, 2017
TO: David Soike, Interim Executive Director
FROM: Ralph Graves, Senior Director, Capital Development
Janice Zahn, Assistant Engineering Director, Construction Services
SUBJECT: C60 Interim: Transportation Security Administration Search Room Expansion /
Enhancement Project Change Order # 17 (CIP #C800825)
Amount of this request:
$0
Total estimated project cost:
$14,200,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute Change Order 17 to
Contract MC-0318605, C60 Interim TSA Search Room Expansion/Enhancement Project at
Seattle-Tacoma International Airport, to extend the contract duration by 84 calendar days and
for the deductive amount of $18,312.00. No additional funds are being requested.
EXECUTIVE SUMMARY
The Transportation Security Administration (TSA) Search Room Expansion/Enhancement Project
was one of several elements within the interim project on the C60 baggage handling system
(BHS). The purpose of this project was to improve security and increase reliability until the C60
BHS is replaced in 2023.
The original engineer’s estimate for the construction contract was $6.1 million, with a total
project budget of $14.2 million. The execution of this change order reconciles all contract time
issues with the contractor, MD Moore Company, Inc. Of the 84 days of time extension, 72 days
are excusable and non-compensable and 12 days are unexcusable for a credit of $18,312.00.
No additional funds are needed.
JUSTIFICATION
Interim improvement projects are necessary to keep up with airline customers’ rapid growth of
flights and passengers prior to when the Baggage Optimization project will improve this portion
of the Airport. Meetings with both airline and TSA leadership, and their respective technical
staff teams from across the country, confirmed that these interim elements are necessary.
COMMISSION AGENDA – Action Item No. 4e Page 2 of 4
Meeting Date: July 11, 2017
This version as revised 9/16/2016
The urgency of this work was very high. The Port’s airline customers have demanded that the
Airport find solutions to the frequent disruptions to their operations they experienced during
the summer of 2015, and be prepared to handle an even larger volume of passengers on the
system in the future. The elements of this project address these concerns.
The TSA Search Room Expansion/Enhancement Project was one element of the interim project
executed as a major construction contract.
DETAILS
On July 18, 2016, the Port executed a construction contract with MD Moore Company, Inc. for
the amount of $5,428,522.00 and a contract completion date of November 16, 2016. Actual
Substantial Completion was not achieved for the project until February 8, 2017, a project delay
of 84 calendar days. Although completed late, the project successfully expanded the TSA
search room and improved the C60 BHS. The Contractor and Port had several issues that
affected the schedule.
After a detailed analysis, the Port acknowledged that there was one specific design change that
contributed to the time impact. The design change was minor in scope, but impacted the
schedule due to the fact that the BHS components had a long lead time. The design change was
issued to the contractor on November 11, 2016. The BHS components were delivered to the
site on January 11, 2017. They were installed, tested, and completed by January 27, 2017. This
contributed to 72-days of concurrent delay. The contractor concurrently delayed the schedule
due to two separate issues:
1. Two incorrect motor control panels (MCP) that were delivered to the site and
required modifications.
2. Fabrication delays from the BHS supplier.
The contractor completed installation and testing allowing the Port to issue Substantial
Completion on February 8, 2017. Therefore, the contractor is solely responsible for 12 days of
schedule delay.
Scope of Work
Work elements included increasing the TSA search room capacity, eliminating a single point of
failure, incorporating reinsertion/rescreening equipment and improving the overall system
functionality.
Schedule
Activity
Commission design authorization
2015 Quarter 4
Design start
2015 Quarter 4
Commission construction authorization
2016 Quarter 1
COMMISSION AGENDA – Action Item No. 4e Page 3 of 4
Meeting Date: July 11, 2017
This version as revised 9/16/2016
Construction start
2016 Quarter 3
In-use date
2017 Quarter 1
Total
Original Contract Amount
$5,428,522.00
Current Executed Change Order Amount
$ 46,328.19
Current Contract Amount
$5,474,850.19
Change Order #17
($18,312.00)
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do not authorize the issuance of the change order, and start the dispute
resolution processes.
Cost Implications: Additional staff soft costs, potential legal expenses.
Pros:
(1) Further negotiation may reduce the amount of time considered concurrent delay.
Cons:
(1) Delays project closeout and increases Port costs to continue negotiations.
(2) Creates a risk potential for litigation and potentially higher settlement amount.
This is not the recommended alternative.
Alternative 2 – Authorize the issuance of the change order for the deductive amount of
$18,312.00 and 84 calendar days. If executed, this will settle all outstanding time impacts
between the Port and the contractor.
Cost Implications: None.
Pros:
(1) Settles all time impacts with the contractor.
Cons:
(1) None.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
There is no additional funding being requested in this memo. The project has adequate funds
to cover this request.
ATTACHMENTS TO THIS REQUEST
None
COMMISSION AGENDA – Action Item No. 4e Page 4 of 4
Meeting Date: July 11, 2017
This version as revised 9/16/2016
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
July 12, 2016 – The Commission authorized execution of a major public works construction
contract with the sole responsive and responsible bidder for the C60 Interim Baggage
Handling System Project.
June 28, 2016 – Baggage Program Briefing.
January 12, 2016 – The Commission authorized advertisement, award, and execution of a major
public works contract for the C60 Interim Baggage Handling System Project.
December 8, 2015 – The Commission authorized design, use of Port crews, and equipment
purchase for the C60 Interim Baggage Handling System Project.
June 23, 2015 – Baggage Optimization Briefing.