Item No. 9a_supp Meeting Date: March 27, 2018 Port of Seattle IAF Overview March 27, 2018 Project Briefing • Benefits of the IAF • Construction Progress Photos • Project Delivery Strategy • Key IAF Project Initiatives • Progressive Design-Build Contract Overview Major program meeting a critical airport need 2 Benefits of IAF • Increases passenger processing capacity from 1,200 to 2,600 pax/hour • Reduces passenger transit time through the facility • Provides a modern and welcoming facility for international travelers coming to the world class cities in our region • Supports our international airlines - Six new international carriers since 2016 - Annually, each provides $89M regional economic benefit • Provides 20 dual-capable flexible gates for both large international aircraft and smaller domestic aircraft Enhance the experience of arriving international passengers 3 IAF Aerial View 4 IAF Night View 5 Airside Construction Progress 6 Airside Construction Progress 7 Landside Construction Progress 8 Project Delivery Strategy • Progressive Design-Build Offered an 18-Month Schedule Advantage in Completing the Time-critical new IAF • Although the IAF is Delayed, the Current Schedule Benefit is Estimated to be 12 Months Compared to Other Project Delivery Methods • Schedule-impacting Issues Encountered as the IAF Progressed: - Dec 2016 - Local Market Conditions (Delayed GMP Negotiations) • Fewer interested bidders • Shortage of skilled labor - Aug 2017 - PCB Contamination (3,200+ tons removed) - Sep 2017 - Baggage Handling System Scope Additions - Nov 2017 - Emergency Generator Re-design - Nov 2017 - CBP's Transition to Facial Recognition Halfway Through Delivery Period 9 IAF Project Initiative Report Card ?? X ? X Overall assessment 10 Progressive Design-Build Contract Overview Set Target Budget & Target Schedule 1/04/16 March 27, 2018 Test, Validate, Confirm Project Definition Document Validation Period 7/20/15 Full Build GMP Development Period Post-GMP Period Commence Design, Early Work Construction, and Long Lead Time Item Procurement The Contract Contemplated Three Distinct Time Periods 11 GMP Overview (Three Contract Periods) Mar 2018 Mini-GMPs Project challenges have delayed contract negotiations 12 Budget Overview Original Target Budget Phase 2 Scope Added $608.4M $52M (Pod D & 2600 Pax/Hour) $24M Related Projects Added Adjusted Target Budget $684.4M BUDGET OVERRUN (Reported in the November 2017 Commission Meeting) Revised Project Cost $105.6M $790M Potential Additional Costs $40M Design Exceeding Budget $146M Current GMP Forecast $830M Target budget has not been met - outcome of negotiations is uncertain. 13 Budget Overrun Breakdown Description of Forecasted Costs Overruns: Seattle Market Conditions Original Target Budget Understated Misjudged Code Requirements (ex. Smoke Control) Failure to Design to the Adjusted Target Budget Baggage Handling System Enhancements and Changes to the Equipment Specifications Emergency Generator Change Remediation of PCBs on IAF Building Site CBP Facial Recognition (Addition of a 3rd Escalator) Occupancy Classification Change in Bagwell Schedule Phasing/Complexity Increased Costs Driven by Above Cost Overruns (WA B&O Tax, Sales Tax rate, Builder's Risk, etc.) Total $14M $29M $22M $35M $13M $4M $4M $1M $2M $5M $17M $146M Assessment of causes for cost growth 14 Schedule Overview JUL '17 IAF BUILDING 26 months PASSENGER BRIDGE STERILE CORRIDOR (Pods A, B & C) SEP '19 FEB '20 166 Days 26 months 26 months STERILE CORRIDOR JUL '20 11 months (Pod D) Recovery from schedule delays will cost additional money 15 Backup Slides 16 Landside Construction Progress 17 Landside Construction Progress 18 Key IAF Project Initiatives • Establish the Right Project Scope • Capture Northwest Sense of Place in Design • Community Participation (Small Business) • Environmental (Sustainability) • Achieve Budget and Schedule Objectives Initiatives Largely on Track 19 The Right IAF Project Scope PPD 2013-2014 Planning & Programming Document (PPD) PDD 2014-2015 Program Definition Document (PDD) BoD 2016 Basis of Design (BoD) Scope and Design Coordinated with Port, Airline and Federal Stakeholders 20 Community Participation Planned SCS - 12% SBE - 17.5% Contracted to Date SCS - 4.2% SBE - 20.0% Small Business Participation 21 Apprenticeship Utilization Overall Goal - 15% (of which 10% are to be Women) Overall to Date - 16.81% Women - 10% Women - 2.56% Minority - 15% Minority - 13.87% Exceeding overall goal; minorities nearly on target, women below target. 22 Environmental Features of the IAF Project Water Efficiency: • Rainwater Management - Installing double pipe for future rainwater system. Energy Use Reduction: • LED lighting and high efficiency motors in baggage system. • Harnessing daylighting with the use of daylight sensors to reduce energy. • Efficient central airport plant for heating and cooling. Environmentally Friendly Materials: • Locally based and low impact to the extent possible. Enhanced Commissioning: Silver • Independent Commissioning Agent. Targeting LEED Silver IAF is First Port Facility to Pursue LEED v4 23