Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
6d
ACTION ITEM
Date of Meeting
September 24, 2019
DATE: September 17, 2019
TO: Stephen P. Metruck, Executive Director
FROM: Wayne Grotheer, Director, Aviation Project Management
Laurel Dunphy, Director, Airport Operations
SUBJECT: Restroom Renovations Concourses B, C, and D (CIP #C800697)
Amount of this request:
$1,200,000
Total estimated project cost:
$38,379,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to: (1) execute a construction
contract with the low responsive and responsible bidder for the Restroom Renovation
Concourses B, C, and D project at Seattle-Tacoma International Airport, notwithstanding the
low bid exceeded the engineers estimate by more than 10 percent, and (2) authorize an
additional $1,200,000 for a total project authorization of $17,792,000.
EXECUTIVE SUMMARY
This request is to authorize additional construction funding for the third phase of the five phase
Restroom Upgrades project. Phase Three renovates and enlarges one public restroom set on
Concourse D. This construction phase has federal grant funds associated which includes FAA
entitlement funding for approximately 75 percent of the cost of construction. This request is for
additional authorization within the current budget. As future phases complete design the
project may require additional budget, but it is premature to request additional budget at this
time
The project was advertised on June 25, 2019. Two bids were received on July 25, 2019. The low
bidder, PCL Construction Services Inc., submitted a bid for $3,081,000, 65 percent over the
Engineer’s Estimate of $1,862,000. The second bid was for $3,190,000, 71 percent over the
engineer’s estimate.
The project team evaluated the project cost estimate relative to the bids received and
determined that the engineer’s estimate did not sufficiently price the project construction
logistics, and the cost of some sub-contracted work. Because the two bids received were within
6 percent of each other, the team determined that the low bid was an accurate reflection of the
current construction market.
COMMISSION AGENDA – Action Item No. _6d___ Page 2 of 4
Meeting Date: September 24, 2019
Template revised June 27, 2019 (Diversity in Contracting).
Post bid commentary from some plan holders indicated that they received higher than
anticipated bids from their subcontractors for steel, metal wall panels, glazing, metal stud
framing, tile installation, plumbing and electrical. Plan holders also indicated that they had
difficulty getting subcontractor bids and that they felt the logistics, traffic control, safety
provisions, and security associated with working on the ramp level (required for construction)
also increased their bid amounts.
JUSTIFICATION
The public restrooms on Concourses B, C, and D are old, outdated and overcrowded. They are
difficult to maintain due to the age of the finishes and fixtures, have endured water infiltration
and damage, and have limited air circulation and odors that have penetrated the finishes. Of
the existing eight pairs of restrooms, three have not been remodeled since 2001, and five have
not been renovated since their construction in 1992. Additionally, because of passenger traffic
growth, the existing restrooms are too small resulting in long lines during peak periods of use.
This phase will renovate the existing public restrooms near gate D6 to improve maintainability,
accessibility and passenger experience.
Diversity in Contracting
This procurement included an inclusion plan and the low bidder demonstrated sufficient
affirmative efforts to outreach to and utilize DBE subcontractors.
Scope of Work
Renovate and enlarge one set of restrooms on Concourse D. This work includes building new
space for restrooms over an active drive lane which is heavily used by tug traffic.
Schedule
Construction start
In-use date
The additional authorization requested for this project covers the added cost between the low
bid and the Engineer’s Estimate.
Cost Breakdown
This Request
Total Project
Design
$0
Construction
$1,200,000
Total
$1,200,000
COMMISSION AGENDA – Action Item No. _6d___ Page 3 of 4
Meeting Date: September 24, 2019
Template revised June 27, 2019 (Diversity in Contracting).
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Reject all bids, repackage the work of Phase 3 by adding it to the scope of Phase
4 scheduled to advertise Q4 2020.
Cost Implications: $1,646,000, including revised cost of the work and escalation for delay to Q4
2020.
Pros:
(1) There is a possibility that the Port could receive lower bids for the work.
Cons:
(1) FAA entitlement funding for 2019 would be lost.
(2) New restrooms for traveling customers would be delayed.
(3) Prices are likely to continue rising in the short-term.
(4) The probability of the Port receiving a bid lower than the current low bid given the
current bidding environment is very low.
(5) Additional cost will be incurred for rebidding the project.
(6) Schedule impacts will delay the implementation of subsequent phases.
This is not the recommended alternative.
Alternative 2 – Accept the current low bid.
Cost Implications: $1,200,000
Pros:
(1) FAA entitlement funding remains in place.
(2) FAA is supportive of this approach.
(3) 75 percent of the added costs will be paid through FAA funding.
(4) This alternative delivers the project sooner than Alternative 1.
(5) The low bid has been judged responsive and responsible.
Cons:
(1) The low bid exceeded the estimate of probable cost by $1,200,000.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$11,180,000
$0
$11,180,000
Previous changes – net
$27,158,000
$41,000
$27,199,000
Revised estimate
$38,338,000
$41,000
$38,379,000
AUTHORIZATION
Previous authorizations
$16,551,000
$41,000
$16,592,000
COMMISSION AGENDA – Action Item No. _6d___ Page 4 of 4
Meeting Date: September 24, 2019
Template revised June 27, 2019 (Diversity in Contracting).
Current request for authorization
$1,200,000
0
$1,200,000
Total authorizations, including this request
$17,751,000
$41,000
$17,792,000
Remaining amount to be authorized
$20,587,000
$0
$20,587,000
Annual Budget Status and Source of Funds
This project is included in the 2019 – 2023 capital budget and plan of finance. The funding plan
includes FAA grants, current and future revenue bonds.
Financial Analysis and Summary
Project cost for analysis
$38,379,000
Business Unit (BU)
Terminal
Effect on business performance
(NOI after depreciation)
NOI after depreciation will decease
IRR/NPV (if relevant)
N/A
CPE Impact
$0.07 upon project completion
Future Revenues and Expenses (Total cost of ownership)
Aviation Maintenance anticipates minimal impacts to operating and maintenance costs as a
result of the scope of work in Phase 3 of the project. In Phase 3 only one public restroom set on
Concourse D is being renovated and enlarged. Later phases that renovate and construct an
additional eight sets of restrooms will see greater impact.
ATTACHMENTS TO THIS REQUEST
None
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
February 26, 2019 – The Commission was briefed by staff on a recommendation to move
forward with a motion to develop a Seattle-Tacoma International Airport gender-
inclusive restroom plan.
October 23, 2018 – The Commission authorized construction of Phase Two and Phase Three
of this project for $8,969,000.
October 23, 2018 – The Commission was briefed on the status of the motion to develop a
Seattle-Tacoma International Airport gender-inclusive restroom plan.
May 22, 2018 – The Commission heard a motion to develop a Seattle-Tacoma International
Airport gender-inclusive restroom plan.
September 12, 2017 – The Commission authorized the construction of Phase One of this
project for $2,536,000.
July 12, 2016 – The commission authorized the design for $5,087,000.