Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
8c
ACTION ITEM
Date of Meeting
May 22, 2018
DATE: May 14, 2018
TO: Stephen P. Metruck, Executive Director
FROM: Michael Ehl, Director Aviation Operations
Daniel Zenk, Senior Manager Airport Operations
SUBJECT: Contract for Customer Service Staffing at Seattle-Tacoma International Airport
Amount of this request:
$2,740,000
Total estimated project cost:
$2,740,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to advertise and execute a
contract for up to three (3) years, a one-year base contract with two (2) one-year options of
seasonal customer service staffing at Seattle-Tacoma International Airport for an estimated
contract value of $2,740,000.
EXECUTIVE SUMMARY
Seattle-Tacoma International Airport (SEA) is seeking a contract to provide seasonal customer
service staff in specific areas of the airport facility to address the growth and to maintain the
passenger level of service for travelers. The increase in passenger traffic has added pressure to
an already constrained facility and pressure on staff to properly provide customer service to
passengers needing to find their way through the airport during peak hours.
JUSTIFICATION
Staff has identified a need to supplement and improve customer service in the public areas of
the airport, which include the skybridge entrances and the main passenger terminal. During
peak hours these areas have high passenger congestion with insufficient assistance to help
navigate their way through the airport passenger process and facility. It is the intent to add
seasonal contract customer service staff to assist passengers with navigating their way during
the busiest time of day, specifically in areas of the:
Vehicle parking garage entrance
Cell phone parking lot
North employee parking lot
3
rd
floor parking garage at the TNC pickup and Ground Transportation Plaza
4
th
floor at the skybridge entrance
Airport information booths
Baggage claim
Security Checkpoints
COMMISSION AGENDA – Action Item No. 8c Page 2 of 4
Meeting Date: May 22, 2018
Template revised September 22, 2016; format updates October 19, 2016.
The flexibility provided by seasonal contract customer service staff would allow the Port not
only to handle peak hour surges but also support passengers that require early morning and
late evening assistance.
It is necessary to authorize and execute a contract expeditiously in order to enable hiring and
training so that the added contract staff can be deployed before an increase with the peak
travel season. The cost for this contract is not included in the 2018 approved budget. Staff will
strive to absorb as much as possible within the existing budget and will provide an updated
report with Q3 2018 results.
The primary purpose of this request is to improve customer service throughout airport facilities.
Furthermore, per our Century Agenda this advances the region as a leading tourism and
business gateway into the West Coast “Gateway of Choice” by providing a seamless process
through the airport facility.
Scope of Work
Provide customer assistance throughout the airport facility, specifically at the skybridge
entrances and in the main terminal. The contactor will assist with passengers by ensuring
customers are in the correct place and ensuring service tools are available. A contract for
supplemental staffing would translate to approximately 25 additional full-time-equivalent
employees per day, and is based on ballpark assumptions of current Port of Seattle customer
service employee wages. The contract will not go beyond three years; provided however,
should the cost of services exceed the authorized amount, the Port may seek Commission
authorization to increase the contract value.
TERMINAL
The estimated daily hours of service/operation will require contractor flexibility and is expected
to be as follows:
Checkpoint Number 2,3,5 - 0500 hours through 1300 hours daily
Information Booth – 0800 hours through 1600 hours daily
Baggage Claim – 0800 hours through 1600 hours daily
The estimated daily staffing per shift will require contractor flexibility and is expected to be as
follows:
Checkpoint Number 2,3,5 – Queue Master – 6
Information Booth – 1
Baggage Claim – 2
LANDSIDE
The estimated daily hours of service/operation will require contractor flexibility and is expected
to be as follows:
Cell Phone Lot - 0930 hours through 1130 hours daily
3
rd
Floor Garage: TNC Pick-up – 0800 hours through 1200 hours daily
COMMISSION AGENDA – Action Item No. 8c Page 3 of 4
Meeting Date: May 22, 2018
Template revised September 22, 2016; format updates October 19, 2016.
3
rd
Floor Garage: GT Plaza 0800 hours through 1200 hours daily
4
th
Floor Garage: Skybridges – 1200 hours through 2300 hours daily
Garage Entrance: North entry – 0500 hours through 2100 hours daily
North Employee Parking Lot – 12 noon through 1400 hours daily
North Tunnel Stop – 1300 hours through 1530 hours daily
The estimated daily staffing per shift will require contractor flexibility and is expected to be as
follows:
Cell Phone Lot – 1
North Employee Parking Lot/North Tunnel Stop - 6
3
rd
Floor Garage: TNC Pick-up - 2
3
rd
Floor Garage: GT Plaza - 1
4
th
Floor Garage: Skybridges - 2
Schedule
The Port is in the process of developing a Request for Proposal advertisement with an expected
start of contract service date of August 1, 2018. In order to meet August 1, 2018 service date,
the contractor will need to retain, train, and onboard the service provider.
Estimated Dates
Advertise Solicitation
Proposals Due
Port Execute Agreement
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Allow customers to navigate their own way through the airport process without
additional assistance.
Cost Implications: Zero cost for Port. The passenger loss of a level of service established by the
Port of Seattle and select alternative travel. The Port, TSA, and airlines all lose credibility in the
eyes of the missed customer and even those passengers who find long lines unacceptable.
Pros:
(1) Does not require expending approximately $2.74 million.
Cons:
(1) This alternative continues extremely long lines, confusion, and customer
dissatisfaction.
(2) Fire code and life safety can become an issue as the lines grow.
(3) Large number of passengers may miss their flights while waiting in lines and/or
may be unable to navigate airport facilities.
This is not the recommended alternative.
COMMISSION AGENDA – Action Item No. 8c Page 4 of 4
Meeting Date: May 22, 2018
Template revised September 22, 2016; format updates October 19, 2016.
Alternative 2 – Use existing Port of Seattle staff.
Cost Implications: Estimated cost of additional 8 hours per person, per day of overtime for
existing staff. The expectation is to add approximately 380 daily work hours in 10 different
areas of demand. This expectation is not sustainable.
Pros:
(1) Provides valuable customer assistance to help process passengers through the
airport as efficiently as possible.
Cons:
(1) There are not currently enough Port employees to do this work.
(2) Excessive overtime hours would be required.
This is not the recommended alternative.
Alternative 3 – Hire a contractor that has employees who are trained and fully covered by the
contractor.
Cost Implications: $2.74 million.
Pros:
(1) Provides valuable customer assistance to help process passengers through the
airport as efficiently as possible.
(2) Provides a flexible staffing model conducive to seasonal fluctuations.
(3) Utilizing a contractor that meets customer service standards is the preferred plan.
(4) Job creation for community.
Cons:
(1) Requires spending $2.74 million of Port funds.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Budget Status and Source of Funds
The cost of this contract was not included in the 2018 operating budget. The airport will strive
to absorb these costs through cost savings in other areas. The terminal related costs will be
included in the airline rate base and recovered through terminal rents, thereby increasing
passenger airline cost per enplaned passenger (CPE). The Landside costs will result in lower net
operating income. The funding source will be the Airport Development Fund.
ATTACHMENTS TO THIS REQUEST
None
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None