Item No. 9b_supp
Meeting Date: October 23, 2018

Baggage Optimization
Third Quarter Briefing and
Project Update

AGENDA
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Project Overview
2018 Quarter 3 Update
Budget
Schedule
Challenges
Accomplishments
Progress
Sustainability

Baggage Optimization Project

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PROJECT OVERVIEW
• Replaces six individual baggage screening
systems with a centralized system that
optimizes the operation and functionality
of the checked baggage system

Key elements:
• 60 Million Annual Passengers (MAP)
• Reliability
• Redundancy
• Security

Complete Overhaul of Outbound System

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2018 Q3 Update
• Schedule
- Contractor Falling Behind on Submittals and Fabrication

• Phase 1:
- Contractor Maintaining Two Work Shifts (Mon. through Fri.)
- Conveyor Installation is ongoing (Critical Path)

• Phase 2:
- 100% Design Documents
- Reviewing Phase 2 estimates
- Developing Phase 2 Bid Documents
Phase 1 Schedule Concerns

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FINANCIAL PROGRESS REPORT
Millions

Authorization Summary

Capital

Expense

Total

Current Budget

$444.90 M

$0.15 M

$445.05 M

$400

Current Authorization

$136.16 M

$0.15 M

$136.31 M

$350

Amount Remaining to be
Authorized

$308.74 M

$0 M

$308.74 M

$450

$300
$250

Total Project (Capital + Expense)

$200

Budget

Spent to
Date

Forecast at
Completion

Variance

Soft Cost

$64.99 M

$23.01 M

$64.99 M

$0 M

$50

Construction

$359.43 M

$35.55 M

$359.43 M

$0 M

$-

Management
Reserve

$20.63 M

$0 M

$20.63 M

$0 M

$445.05 M

$58.56 M

$445.05 M

$0 M

$150
$100

Management Reserve Remaining
Construction Spent
Soft Cost Spent

Construction Remaining
Soft Cost Remaining

Financial Breakdown - Project Tracking Within Authorized Budget

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FUNDING CONTRIBUTION
(Port Contribution to Date
$31.7M)

Port
$351M
79%

(TSA Contribution to Date
$27.0M)

TSA
$94M
21%

Total Project Budget
Total TSA Contribution
Total Port Contribution
Amount Spent to Date
TSA Reimbursement to Date

TSA OTA/LOI Reimbursement

$445,050,000
$94,043,296
$351,006,704
$58,566,741
$27,005,449

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SCHEDULE

Contractor Delay Extends Overall Completion Date

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SMALL BUSINESS/APPRENTICESHIP UTILIZATION
SCS/SBE

APPRENTICESHIP
Overall
(15%)

SBE Const
(15%)

Women
(10%)
SCS Const
(5.0%)

0.0%

Minority
(15%)
50.0%

100.0% 150.0% 200.0% 250.0%
Goal
Actual

Tracking Close to or Exceeding Goals

0.0%

50.0%

Goal

100.0%

150.0%

Actual

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CHALLENGES
• Phase 1 Construction Schedule
• Baggage Handling/Steel Market Conditions for Phase 2 Bid
• Operational Impacts Through Construction
• IAF Coordination - IAF must be operational prior to Phase 2 SSAT construction

• Project Coordination - Have coordinated with 48+ projects so far

Overcoming Challenges

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ACCOMPLISHMENTS
• Continuous delivery and installation of new conveyors.
• 100% Phase 2 Design Documents reviewed.

• New CT Ramp Construction complete.
• Maintenance breakroom in Concourse B complete.
• Conveyor Factory Acceptance Test (FAT) conducted, retest scheduled Q4

• Continued construction on utilities and infrastructure.

Baggage Optimization Construction Progress

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SUSTAINABILITY
Energy Conservation
Optimized system is projected to result
in up to 30% energy savings

Water Conservation
No opportunity
Working Environment
Improved ergonomics
Waste Reduction
Contractual requirement to recycle
demolished material when possible

Opportunity in Energy Conservation

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New Conveyor Sections

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North EDS Screening Matrix

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CTE Bump Out - Steel Installation

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Factory Acceptance Testing - Detroit, MI

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Drive In A Box Network Testing - Louisville, KY

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