Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
9a
BRIEFING ITEM
Date of Meeting
January 9, 2018
DATE: December 21, 2017
TO: Dave Soike, Interim Executive Director
FROM: Jeffrey Brown, Director AV Facilities and Capital Program
Wendy Reiter, Director, Aviation Security
Wayne Grotheer, Director, Aviation Project Management Group
SUBJECT: Baggage Optimization Project Update
EXECUTIVE SUMMARY
The Baggage Optimization project replaces six individual baggage screening systems with a
centralized system that optimizes the operation and functionality of the checked baggage
system. The purpose of this project is to optimize the baggage system to achieve the maximum
outbound baggage capacity within the current airport footprint. The project increases screening
capacity for greater baggage volumes, increases flexibility to allow bags to be checked in from
any ticket counter and be conveyed to any makeup device, meets a minimum-connect-time
goal, and increases energy efficiency. Additionally benefits include increased reliability,
redundancy, and security. Meeting travelers’ baggage needs will significantly contribute to
increased customer service, and address growing demands of the region. The project is
currently scoped to accommodate 60 Million Annual Passengers (MAP), and will be
implemented through three phases of construction.
PROJECT UPDATE
Phase One
Notice to Proceed was issued to the Phase 1 prime contractor, PCL Construction Services Inc.,
on May 26, 2017, and construction is currently underway. Work continues to be concentrated
within the Central Terminal (CT) area; recent accomplishments include:
(1) TSA delivered eight Explosives Detection Systems (EDS) machines
(2) Concrete demolition and excavation of CT ramp between basement and ramp levels
(3) Utility relocations and lighting installation within the CT
(4) Baggage Handling System (BHS) conveyor mock-up assembly and review
(5) Drywall, communication, and electrical installation in the new Aviation Maintenance
(AVM) foreman offices
COMMISSION AGENDA – Briefing Item No. __9a__ Page 2 of 4
Meeting Date: January 9, 2018
Template revised September 22, 2016.
Upcoming critical elements include continued excavation and support of existing structure for
the CT ramp between basement and ramp levels, and continued review of baggage handling
system submittals, partial delivery of conveyor equipment, and turnover of new AVM foreman
offices.
On-going stakeholder coordination continues to be essential, particularly with other projects,
Aviation Maintenance, and airport tenants.
The Contractor has been maintaining two work shifts, Monday – Thursday. As of the latest pay
application, 12,880 work hours have been reported and work complete is estimated to be 17%.
Contracting requirements (status as of November 2017)
Program
Requirement/Goal
To-Date
Small Business Enterprise (SBE)
15% of total contract
11.26%
Small Contractors & Suppliers (SCS)
5% of SBE
5.53%
Apprenticeship
15% of total hours
18.27%
Phase Two
The Port of Seattle finalized Consultant negotiations and executed the Service Directive to
develop the Bid Documents for Phase 2. The Consultant will separate the Phase 2 design from
the comprehensive 100% design package and will incorporate the scope increase to bring the
new baggage system to a capacity of 60 MAP.
A project kickoff meeting was held, and bi-weekly coordination meetings are underway.
Members from cross-functional teams compiled lessons learned from Phase 1 thus far, which
were reviewed with the Phase 2 design team. Upcoming tasks include identifying critical
milestones and developing a sequencing plan.
SCHEDULE AND BUDGET
The Baggage Optimization project will be implemented in three construction phases.
Schedule
Phase 1 is one month behind schedule, as the Phase 1 contract execution was one month late
(based on baseline schedule set in April 2015). Phase 1 Notice to Proceed (NTP) was issued on
May, 26 2017. Phase 1 Substantial Completion is still anticipated in 2019 Quarter 3. The project
team is working with the Contractor to possibly make up the month delay in project schedule
during Phase 1 construction.
Phase 2 design efforts started on October 31, 2017. The overall project is currently scheduled
for Phase 3 (the final phase) to obtain Substantial Completion in 2025 Quarter 1.
COMMISSION AGENDA – Briefing Item No. __9a__ Page 3 of 4
Meeting Date: January 9, 2018
Template revised September 22, 2016.
2019 Quarter 3
2022 Quarter 2
2025 Quarter 1
Budget
The Baggage Optimization project is on budget as currently scoped.
The budget summary for the project to date is as follows:
$445,050,000
$93,220,422
$136,312,200
$27,996,064
$9,885,804
ADDITIONAL BACKGROUND
The Baggage Optimization project was scoped in 2012 to accommodate 45 MAP with an
expandable design to accommodate future growth. At the time, growth forecasts were flat and
predicted that 45 MAP would be adequate through 2027. The decision was made to proceed in
building an expandable 45 MAP system with the expectation that an expansion would occur in
the future in time to accommodate growth up to the 60 MAP level. Due to unprecedented
growth at the airport, the 45 MAP threshold was met in 2016, over ten years earlier than
anticipated. In June 2017, Commission authorized the project to incorporate a capacity
expansion of the Baggage Optimization project in order for the new outbound baggage system
to accommodate 60 MAP. The additional capacity will be incorporated into Phases 2 and 3, and
added 14 months to the overall project schedule, and a net budget increase of $126M.
ATTACHMENTS TO THIS BRIEFING
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
• September 26, 2017 – Baggage Optimization Quarter 3 Project Briefing
• June 27, 2017 – Commission authorization to (1) authorize additional design and project
management funds to expand the capacity to 60 million annual passengers (MAP); (2) use
Port crews and small works contracts to perform additional construction work; and (3)
amend Service Agreement P-00317641 to add $10,160,000
• October 25, 2016 – Baggage Optimization Quarter 4 Project Briefing
• July 12, 2016 – Commission authorization to advertise and execute a contract for
construction Phase 1
• June 28, 2016– Baggage Program Briefing
• May 17, 2016 – Checked Baggage Optimization Project Briefing
COMMISSION AGENDA – Briefing Item No. __9a__ Page 4 of 4
Meeting Date: January 9, 2018
Template revised September 22, 2016.
• March 8, 2016 – Commission authorization for the Chief Executive Officer to amend the
Baggage Optimization Design Services contract
• June 23, 2015 – Checked Baggage Optimization Project Briefing
• September 10, 2013 – The Commission authorized the execution of an Other Transaction
Agreement (OTA) with TSA for reimbursable costs for design; construction, and to authorize
$15 million to continue from 30% to 100% design; and execute a consultant service
agreement for program management support services
• August 20, 2013 – Response to questions from Commissioners asked during August 6, 2013
Commission Meeting
• August 6, 2013 – The Commission was briefed on the near-term and long-term challenges
related to handling checked baggage at the Airport
• January 22, 2013 – The Commission authorized $5 million for staff to begin design through
30%, and to enter into an agreement to allow reimbursement from the federal government
to the Port for eligible elements of the 30% design effort
• January 8, 2013 – Baggage Systems Briefing
• August 14, 2012 – Baggage system recapitalization/optimization was noted in the 2013
business plan and capital briefing as a significant capital project not included in 2013-17
capital program
• August 7, 2012 – Baggage system recapitalization/optimization was referenced as one of
the drivers for the need to develop an Airport Sustainability Master Plan
• June 26, 2012 – The Airport’s baggage systems were discussed during a briefing on terminal
development challenges
• May 10, 2012 – TSA’s interest in a national recapitalization/optimization plan for all
baggage-screening operations was referenced in a design authorization request for the C60-
C61 Baggage Handling System Modifications Project