http://collab.portseattle.org/sites/00391/Lessons Learned/Final Draft - Lessons Learned and After Action Report – Interim West Side Fire

Station.docx

PORT OF SEATTLE

MEMORANDUM

DATE: October 31, 2019

TO: Stephen P. Metruck, Executive Director

EXECUTIVE SUMMARY

This is in response to the Commission’s approval of the budget increase for the interim West Side

Fire Station project on October 8, 2019, requiring a Lessons Learned and After-Action Report by

October 31, 2019. The project delivery problems associated with this project raise systemic issues

regarding: (1) project definition, (2) cost estimate, schedule and risk communication to the

Commission, (3) communications to management of project team concerns, and (4) lessons

learned performance and communications. As detailed below, improvements are underway to

address these issues. We recognize that additional steps are needed to address other issues with

project delivery and will continue to make further improvements. We have focused in this memo

later project stages when it is more difficult, costly and slows down the project. Significant

changes in project scope, project delivery method, or project constraints require a pause to fully

evaluate the impacts. In this project, this occurred in multiple ways:

• The change prior to initial Commission authorization from remodel of current firefighter

living quarters in the Paccar hangar to a project to build a separate living quarters was not

adequately defined to accurately establish project cost or schedule.

• The idea of a modular building to save time and money and allow reuse later was not fully

evaluated by the project team prior to implementing of this idea. A modular building was

ultimately rejected due to numerous constraints, including inability to get such a building

to the site without runway closures.

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design and construction process. The design-build approach did provide an innovative

solution at a competitive marketplace cost.

• Discretionary changes in project scope following project definition did not go through a

consistent process of change management.

We will review these lessons with our staff and with the Airport senior management team. Given

the airport’s continued rapid growth and need for capital improvements, the time pressures will

continue; our challenge is to continue to work with the project sponsors to identify the subset of

end user and stakeholder involvement in concept development of projects, including the future

permanent fire station location under the Sustainable Airport Master Plan, to our staff.

COST ESTIMATE, SCHEDULE AND RISK COMMUNICATION

One-time Commission approval of project design and construction is allowed by Resolutions

3734, 3628 and 3605 (the Resolutions) but is rarely sought. Prior to project design, when the

Resolutions require Commission authorization of a project, the industry standard for

construction cost estimate accuracy (AACE International Recommended Practice No. 56R-08,

Cost Estimate Classification System – As Applied for the Building and General Construction

Industries) gives a broad range of possible costs depending on the level of project definition. Early

project definition estimates can vary greatly – from -20% to -30% on the low end and +30% to

schedule as a result. The tradeoffs between project cost, schedule, and scope were ultimately

resolved in a way that will meet end user and stakeholder scope requirements but at a cost and

schedule that does not meet the expectations we had originally set with the Commission.

As most recently seen in the October 22 Commission action request for early authorization of the

Checkpoint 1 relocation, when requested to move ahead without full project definition, we were

trying to ensure that non-standard approaches to project authorization include clear

communications of uncertainties and risks. We are also increasing communication of project risks

in relevant Commission project authorization requests.

COMMUNICATIONS TO MANAGEMENT OF PROJECT TEAM CONCERNS

Successful project delivery involves integration of expertise from multiple airport and corporate

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not being adequately addressed, all departments involved in projects must encourage

communication of those concerns to management. In this Fire Station project, concerns about

LESSONS LEARNED PERFORMANCE AND COMMUNICATIONS

Documentation and dissemination of project lessons is critical to continuous improvement of

project delivery performance. Aviation Project Management has long-established policies

requiring project managers to review relevant lessons learned from other projects during project

definition, after any significant project change, and prior to contracting for construction. Aviation

Project Management has taken the following steps to increase the frequency and visibility of

project lessons:

• Our management team now reviews key lessons learned monthly in our staff meetings

and with the Aviation Oversight committee. This will have a positive impact on project

delivery culture where learning can be shared frequently with customers and where staff

Aviation Oversight committee.

• When we seek authorization from the Commission for project budget increases or notify

the Commission of potential future increases, we have begun including relevant lessons

learned in our Commission memos and presentations.

PREVIOUS COMMISSION ACTIONS OR BRIEFINGS

October 8, 2019 – The Commission authorized funding increase for the Interim Westside Fire

Station Design-Build Contract by $3,679,000 for a new total project cost of $9,179,000, with a

lessons learned and after-action report due to the Commission by October 31, 2019.

May 28, 2019 – The Commission authorized use of a design-build contract for this project. No

additional funding was requested.