Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
6c
ACTION ITEM
Date of Meeting
June 26, 2018
DATE: May 21, 2018
TO: Stephen P. Metruck, Executive Director
FROM: Brendalynn Taulelei, Senior Manager, Aviation Maintenance
Valarie Johnson, Planner/Coordinator Supervisor, Aviation Maintenance
SUBJECT: Seattle-Tacoma International Airport Ramp Snow Removal Contract
Amount of this request:
$1,600,000
ACTION REQUESTED
Request Commission authorization for Executive Director to execute two contracts totaling
$1,600,000 to provide snow removal services for the Airport Operations Area at the Airport.
The contracts will be structured as one-year agreements with four one-year options.
EXECUTIVE SUMMARY
The current contracts expired on April 30, 2018. The ability to remove snow from the north and
south ramp operation areas is crucial to the operations of the Airport during a snow event. We
must have a snow removal plan and the necessary resources in place by October 1, 2018, as the
snow season is considered to begin November 1.
JUSTIFICATION
Snow removal is required at Seattle-Tacoma International Airport to sustain commercial airline
operations, passenger movements, and air cargo operations during snow and ice conditions.
We do not currently have the internal resources and equipment to accomplish all snow removal
requirements during extreme winter snow and ice storms. Maintenance will be working closely
with the Central Procurement Office and Office of Social Responsibility to explore opportunities
to incorporate a small or disadvantaged business component to the bid which aligns with the
Port’s Century Agenda strategy to “use our influence as an institution to promote small
business growth and workforce development.”
DETAILS
Historically two contractors have provided snow removal services. The contractors are required
to provide heavy construction equipment and equipment operators to manage snow removal
during peak snow conditions and ice accumulations. One contractor (contract A) has
maintained the north side of the Airport Operations Area, the other contractor (contract B) has
maintained the south side of the Airport Operations Area. The equipment has included dump
COMMISSION AGENDA – Action Item No. _6c___ Page 2 of 6
Meeting Date: June 26, 2018
Template revised September 22, 2016; format updates October 19, 2016.
trucks, front loaders, graders and other support vehicles. The contractors have cleared the
Airport Operations Area ramp area and removed and transferred snow to designated snow
dumps located at the north and south ends of the airfield. In addition, the contractors
supported Aviation Maintenance airfield staff as needed for clearing snow. The snow season
typically starts on November 1
st
and continues through April 1
st
of the following year. We have
competitively bid this purchase.
Scope of Work
The scope of work in the preferred alternative is to develop an RFP and generate two contracts
to provide services necessary for snow removal and transfer within the Airport Operations Area
ramp area as well as to support Aviation Maintenance airfield staff as needed for clearing snow.
The bids will include costs for all services necessary.
Schedule
Activity
Commission authorization
2018 Quarter 2
Bid
2018 Quarter 3
Contract in Place
2018 Quarter 4
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Increase Port FTE staff, hire seasonal staff and purchase additional snow
removal equipment to meet peak snow and ice conditions.
Cost Implications: $7 million over five years.
Snow removal contractors are required to provide a minimum of 13 heavy snow equipment
vehicles and operators as part of their contract. The heavy equipment identified includes 3
motor graders, 3-wheel loaders, 4 dump trucks, 1 fuel truck and 2 trucks for supervisors.
Based on state contract pricing the estimated capital cost to purchase the heavy equipment
is approximately $3.97 million dollars.
In addition, maintenance costs to maintain equipment is estimated to be $9,800 annually
for ten pieces of heavy equipment (dump trucks, front end loaders and road graders) and
Cost Per
Qty
Total
$33,660
2
$67,320
$281,600
4
$1,126,400
$313,500
3
$940,500
$548,655
3
$1,645,965
$195,000
1
$195,000
$3,975,185
COMMISSION AGENDA – Action Item No. _6c___ Page 3 of 6
Meeting Date: June 26, 2018
Template revised September 22, 2016; format updates October 19, 2016.
$7,500 annually for the two 4x4 trucks and one fuel truck. In a 5-yr period this amounts to
$602,500 (10*$9800*5 and 3*$7500*5).
With the new heavy equipment vehicles, 1 FTE Auto Mechanic is needed to maintain the
additional snow fleet. Wage and benefit costs for 1 FTE Auto Mechanic at a $68/hr rate
amounts to $707,000 over a 5-yr period.
Hire 13 seasonal staff to operate machinery @ $55/hr. This estimate is for a 12-week period
during winter season, with assumption staff can be brought on as seasonal emergency
hires.
5-year seasonal staff cost estimate:
$1,716,000
(13 seasonal staff*12wks*5yrs)
1 FTE (auto mechanic)
$707,000
(1 FTE*5yrs)
New equipment cost:
$3,975,185
Equipment maintenance cost:
$602,500
Total estimated 5-year cost:
$7,000,685
Pros:
(1) Hiring additional Port staff, seasonal staff and purchasing new equipment increases the
Port’s available resource pool for extended shift rotations during lengthy snow events.
(2) The additional staff can be deployed to support other Airport operational areas in the
event of extreme snow and ice conditions.
Cons:
(1) The additional FTE adds to the Port’s total staffing levels and will require compensation
and benefits which will result in increased costs to the Port.
(2) Purchasing new heavy equipment to add to the Port’s snow removal fleet will be a
costly investment.
(3) Total investment over a 5-year period for additional heavy snow equipment, equipment
maintenance costs, 1 new FTE and seasonal staff is estimated to be $7 million dollars.
(4) Additional costs to be considered include building a heavy equipment storage facility,
fueling the equipment and the training costs for operator certifications.
(5) The Port also runs the risk of investing in purchasing heavy equipment that does not get
used due to lack of snow and ice.
This is not the recommended alternative.
Alternative 2 – Rely on already limited Port staff, and purchase additional snow removal
equipment, with the understanding that we cannot keep up during peak snow and ice
conditions.
Cost Implications: $4.68 million over five years.
COMMISSION AGENDA – Action Item No. _6c___ Page 4 of 6
Meeting Date: June 26, 2018
Template revised September 22, 2016; format updates October 19, 2016.
The cost for existing Aviation Maintenance staff dedicated to support snow removal events
amounted to $1,247,781 during the last 5 year-period (2014-2018), this includes training
costs in preparation for snow operations. The cost does not include staff assigned to the
snow command center, Airport Terminal Operations support, and snow removal material
costs.
Although staff resource costs can be absorbed by using and repurposing existing Port FTEs,
additional heavy equipment will be required to support Airport Operations Area ramp snow
removal efforts. The existing snow fleet will be dedicated at capacity to the Aircraft
Movement Area (AMA) snow removal efforts. The estimated costs to purchase a fleet of
new snow equipment is $3.97 million dollars. With the heavy equipment vehicles, 1 FTE
Auto Mechanic is needed to maintain the additional snow fleet. Wage and benefit costs for
1 FTE Auto Mechanic at a $68/hr rate amounts to $707,000 over a 5-yr period.
1 FTE (auto mechanic)
$707,000
(1 FTE*5yrs)
New equipment cost:
$3,975,185
Equipment maintenance cost:
$602,500
Total estimated 5-year cost:
$5,284,685
Pros:
(1) Current Airport operations and facility staff already have experience and familiarity with
snow removal operations, therefore the training period is minimal.
Cons:
(1) Existing Port staff will not be able to keep up with snow and ice conditions under heavy
demand, which may ultimately lead to an Airport closure.
(2) An investment of $3.97 million dollars is required to add particular snow removal heavy
equipment to the snow fleet. The current fleet will be at capacity and dedicated to
snow removal efforts on the AMA, it is not sufficient to also take care of the north and
south ramp operation areas as well as the Airport.
(3) Due to the additional new equipment, 1 FTE auto mechanic is required to maintain the
new equipment. Wage and benefit costs for 1 FTE over the 5-year period amounts to
$707,000.
(4) The use of existing staff and equipment severely limits the Port’s ability to keep all areas
of the Airport operational during adverse weather conditions.
(5) Airline needs during heavy snow events would not be met, flights may be grounded.
(6) In extended snow events, work shift periods may be longer which may make it
challenging to retain resources on-site for longer shift periods.
This is not the recommended alternative.
COMMISSION AGENDA – Action Item No. _6c___ Page 5 of 6
Meeting Date: June 26, 2018
Template revised September 22, 2016; format updates October 19, 2016.
Alternative 3 – Authorization to execute two new contracts for snow removal services at the
Airport.
Cost Implications: Two contracts for snow removal for the north and south sides of the Airport
Operations Area is estimated at $1,600,000 in total. Actual ramp snow removal costs over the
last 3-year snow period (2015-2018) was $937,147, averaging approximately $310,000/year,
the estimate is based on averaging $310,000/year for five years ($310,000*5 = $1,550,000).
Pros:
(1) Current state and has met the operational needs of the Airport.
(2) With contracted snow removal services in place, existing Port staff can focus on deicing
and snow clearing efforts on the Aircraft Movement Area (AMA) during peak snow
events to ensure continuity of operations.
(3) The contractors will be responsible for hiring of operators and for securing the heavy
construction equipment required for snow removal.
(4) No additional hiring of staff is required; therefore, salary and benefit considerations and
increases are avoided.
(5) Purchasing new snow removal equipment is not necessary, therefore saving the Port an
investment of $3.97M, and not having to add it to our existing fleet to be operated and
maintained.
(6) Advertising a snow removal service contract as a procurement opportunity supports the
Port’s Century Agenda strategy to “use our influence as an institution to promote small
business growth and workforce development”.
Cons:
(1) Total estimate cost of the contractor(s) is $1,600,000.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$0
$1,600,000
$1,600,000
AUTHORIZATION
Previous authorizations
0
0
0
Current request for authorization
0
0
0
Total authorizations, including this request
0
0
0
Remaining amount to be authorized
$0
$0
$0
COMMISSION AGENDA – Action Item No. _6c___ Page 6 of 6
Meeting Date: June 26, 2018
Template revised September 22, 2016; format updates October 19, 2016.
Annual Budget Status and Source of Funds
The anticipated cost will be included in the annual operating budget. The funding source will be
the Airport Development Fund.
Financial Analysis and Summary
Future Revenues and Expenses (Total cost of ownership)
Contracts will be budgeted within Aviation Maintenance Small Works through the annual
Aviation Division budgeting process. The costs attributable to the airfield apron area cost
center will be recovered from airlines through apron fees. The costs attributable to the airfield
commercial area will reduce the net operating income of that cost center.
ATTACHMENTS TO THIS REQUEST
(1) 2017 POS Ramp Priorities Map
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None