Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
8c
ACTION ITEM
Date of Meeting
April 24, 2018
DATE: April 16, 2018
TO: Stephen P. Metruck, Executive Director
FROM: Michael Ehl, Director Aviation Operations
Daniel Zenk, Senior Manager Airport Operations
SUBJECT: Contract for Management and Operation of Lost and Found Center at Seattle-
Tacoma International Airport
Amount of this request:
$4,500,000
Total estimated project cost:
$4,500,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute a contract for up to
five years for management and operation of the Lost and Found service at Seattle-Tacoma
International Airport with an estimated value of $4,500,000.
EXECUTIVE SUMMARY
The Lost and Found at Seattle-Tacoma International Airport serves a crucial airport operational
need and provides a valuable service to airport customers. The single, centralized Lost and
Found operation provides a one-stop service for customers and airport employees and
eliminates the need for other airport partner organizations, like the Transportation Security
Administration, and airlines to offer duplicate services.
Approval of this request will ensure that the Port of Seattle continues to provide a Lost and
Found center at Sea-Tac Airport. This request supports the Commission’s Century Agenda to
create a new business opportunity and job creation.
JUSTIFICATION
In 2017, Sea-Tac’s Lost and Found received over 27,000 items. The staff has maintained a
positive record to provide outstanding service to customers and has achieved a nearly 50%
recovery rate to reunite customers with lost or left-behind items. In compliance with
Washington state laws, Lost and Found staff securely stores lost items for 30 days before
disposition. Unclaimed items are donated to local registered charitable organizations. High-
value unclaimed items are transferred to the Port of Seattle Police Department who auction
them off and deposit proceedings in the Port’s Airport Development Fund.
COMMISSION AGENDA – Action Item No. 8c Page 2 of 4
Meeting Date: April 24, 2018
Template revised September 22, 2016; format updates October 19, 2016.
The Lost and Found office at Sea-Tac Airport complies with the provisions of the revised code of
Washington State (RCW), Chapter 63.21 Lost and Found property. The operation consists of the
full range of services from finder responsibilities when wishing to claim property if unclaimed
by the owner; search for recorded owner; contacting owners and returning lost property to
owners, and disposal of unclaimed items if unclaimed by owner. The Lost and Found operation
must maintain adequate controls, accountability, and adherence to established state laws,
policies and procedures.
DETAILS
YWCA of King County has provided Lost and Found services at Sea-Tac Airport since 2002. On
January 1, 2013, the Port of Seattle entered into a contract with the YWCA of King County to
operate the Airport Lost and Found center for five years through December 31, 2017, with an
option to renew for one five-year period.
In November 2017, the YWCA notified the Port of their decision to conclude the Lost and Found
management contract and not to exercise the option to renew the contract for an additional
five-year term. Subsequent conversations occurred between the Port and the YWCA to support
the continuation of the YWCA partnership. According to the YWCA CEO, the Lost and Found
operation no longer aligned with the YWCA’s core mission. The YWCA agreed to a three-month
contract extension through March 31, 2018 to provide the Port time to establish a continuity of
operations plan.
The Port's Small Business and Workforce Development teams have been engaged to help
identify potential successor community organizations and small businesses who may be
interested in this opportunity. The Central Procurement Office issued a Request for Interest
(RFI) on January 8, 2018 to further identify firms who would be able to provide the Lost and
Found services at Sea-Tac Airport.
The operation is being managed on an interim basis by Port Emergency Hire employees through
August 31, 2018. The new operator is expected to assume the management and operation of
the Lost and Found effective September 1, 2018, after the Port completes the competitive
process.
Scope of Work
The Lost and Found center receives lost or left behind items found in the airport terminal
(including items left at TSA checkpoints), parking garage, on rental car buses, and on the airport
drives. The airlines at Sea-Tac Airport manage lost items that are left on aircraft and lost or
misrouted baggage.
COMMISSION AGENDA – Action Item No. 8c Page 3 of 4
Meeting Date: April 24, 2018
Template revised September 22, 2016; format updates October 19, 2016.
Airport Lost and Found staff interact with customers who visit the center in person, on the
telephone, and with customers who contact the center through the Port website and through
email.
Project Objectives:
• Maintain compliance with RCW 63.21 Lost and Found Property.
• Maintain reliable Lost and Found service to customers and to airport business partners.
• Assist the Transportation Security Administration, Port of Seattle Police Department and
commercial airlines at the Airport in handling lost and found items on their behalf.
• Create new operational efficiencies through the use of technology.
• To better serve customers, expand the Lost and Found operating hours from five to seven
days a week, 8:00 a.m. to 6:00 p.m.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Operate the airport Lost and Found center seven days a week, with Port staff (9
FTEs).
Cost Implications: $939,000 per year
Pros:
(1) It is a standard, successful practice in the airport industry to manage airport Lost and
Found centers using airport staff.
(2) Eliminates the procurement cycle to support continuity of the operation.
Cons:
(1) Adding new Port FTEs to operate the Lost and Found competes with the staffing needs
in other mission-critical areas of the Aviation division.
(2) Does not provide the Port with a new business contracting opportunity with an
outside firm.
This is not the recommended alternative.
Alternative 2 – Invite competitive bids for the management and operation for the airport Lost
and Found center.
Cost Implications: $900,000 per year, ($4,500,000 five-year contract)
Pros:
(1) Outsourcing the airport Lost and Found service provides a staffing solution that does
not compete with the need to add FTEs for other mission-critical areas.
(2) Supports the Commission’s goal of job creation.
Cons:
(1) Potentially more expensive to manage the operation using a for-profit firm.
(2) There is no established market of suppliers for this kind of service. There is a potential
risk that the procurement process may yield vendors who do not possess the desired
experience to operate airport lost and found centers.
This is the recommended alternative.
COMMISSION AGENDA – Action Item No. 8c Page 4 of 4
Meeting Date: April 24, 2018
Template revised September 22, 2016; format updates October 19, 2016.
FINANCIAL IMPLICATIONS
Annual Budget Status and Source of Funds
Contract payments are to be included in the annual operating budget as specific line items in
the Aviation Operations Department budget. The 2018 operating budget includes $299,250 for
this service, so the preferred alternative represents a significant annual cost increase. The
funding source is the Airport Development Fund. The total contract cost over the requested
five-year contract is estimated to be $4,500,000.
ATTACHMENTS TO THIS REQUEST
None
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
December 11, 2012 - The Commission authorized a five-year contract, with an option to
renew for one five-year period with the Young Women’s Christian Association of King
County (YWCA).
June 7, 2011—The Port Commission Audit Committee was briefed on Internal Audit Report
No. 2011-07 on Third-Party Arrangements Operational Audit on Airport Lost and Found.
