Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
6d
ACTION ITEM
Date of Meeting
May 12, 2020
DATE: April 17, 2020
TO: Stephen P. Metruck, Executive Director
FROM: Laurel Dunphy, Director, Aviation Operations
Wayne Grotheer, Director, Aviation Project Management
SUBJECT: 2020 Airfield Pavement Program Acceleration (CIP # C800483)
Amount of this request:
$2,800,000
Total estimated project cost:
$28,630,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) transfer $2,800,000 of
programmed funds and associated scope from the 2021-2025 Airfield Pavement and
Infrastructure Program to the 2016-2020 Airfield Improvement Program; and (2) execute Change
Order 02 to Contract MC-0319856 for an amount Not-To-Exceed $2,300,000.
EXECUTIVE SUMMARY
This budget transfer and change order would capitalize on the current decrease in airport
operations by accelerating planned airfield pavement and utility improvements scheduled for
2021-2025 into this year’s 2020 Airfield Pavement Replacement Project and reduce future
impacts to airlines.
The 2020 project is currently under construction and the Contractor has an approved, project-
specific COIVD-19 safety plan. Additionally, the contractor will not be bringing on additional
workers to complete this added work. The current schedule has two distinct work windows
(spring and fall) to avoid airfield impacts during the summer months. Due to the lowered aircraft
traffic expected, the contractor can keep their crew on the job, working through the summer. In
the event of an early recovery in airport operations, the additional work has been planned with
multiple off-ramps that can be taken should this portion of the airfield need to be returned to
full service.
This proposed change order would expand the amount of pavement and utility work directly
adjacent to, and underneath of, the current 2020 work area at the of the South Satellite Taxilane
and Taxilane W, known as “Spot 88”. There are three specific work items associated with the
change order: (1) Replace additional 50-year old pavement adjacent to the current pavement
COMMISSION AGENDA – Action Item No. __6d__ Page 2 of 7
Meeting Date: May 12, 2020
Template revised June 27, 2019 (Diversity in Contracting).
replacement area; (2) Add utility sleeves underneath the taxilane pavement replacement to
accommodate future planned utility replacements; and (3) Replace a failing channel drain
adjacent to the current pavement replacement area. This failed channel drain recently came
loose and punctured a fuel tank on a fuel truck. These three items are currently programmed and
budgeted as part of the next cycle of airfield pavement and utility replacements. Performing this
additional pavement and utility work now reduces the future impact to airlines at Spot 88 by
completing this work while airport operations are low. Aviation Operations is requesting this
work be accelerated from its current planned replacement window currently scheduled for
between 2021 and 2025.
A Change Order is required to direct the Contractor to proceed with the additional work. This
Change Order will be issued for an amount Not-To-Exceed $2,300,000. This also requires a budget
transfer of $2,800,000 of programmed funds from the 2021-2025 Airfield Pavement and
Infrastructure Program (CIP C800930) to the 2016-2020 Airfield Improvement Program.
Additionally, the base project work is receiving Federal Aviation Administration (FAA) Airport
Improvement Program (AIP) Grant Funding and the project team has requested FAA participation
in the change order work to the maximum extent available through FAA discretionary funding.
JUSTIFICATION
The 2020 Airfield Pavement Replacement Project is the last construction project of the 2016-
2020 Airfield Improvement Program (CIP C800483) and is a continuation of the programmatic
approach of replacing distressed airfield pavement and utilities having exceeded their planned
lifespan. Replacing damaged infrastructure on the airfield maintains the integrity of airfield
pavements and enables continuing airport operations. Deferring damaged pavement and utility
replacement increases risk to airfield operations, damage from Foreign Object Debris (FOD),
increases the likelihood of emergency work, and drives costs higher in the future.
Rapidly deteriorating infrastructure and recent incidents on the airfield (i.e., where a channel
drain grate came loose and punctured a fuel tank) have identified the need to accelerate portions
of work forward to this year. Performing this work now also reduces the future impact to airlines
by completing planned work while airport operations are low. The proposed change order work
is immediately adjacent to, or underneath of, the existing 2020 pavement work and there are
cost efficiencies and savings on escalation to doing the work now.
Planned future disruptions to airfield operations at the Spot 88 taxilane intersection due to
construction will still occur if no action is taken. Also, taking no action will lead to additional
unplanned disruptions and potential future safety incidents resulting from continued failing
infrastructure. Finally, should the utility portion of the work not happen concurrent to the
planned pavement work, there will be added Port cost for having to go back and install utilities
in new pavement.
COMMISSION AGENDA – Action Item No. __6d__ Page 3 of 7
Meeting Date: May 12, 2020
Template revised June 27, 2019 (Diversity in Contracting).
Diversity in Contracting
This project includes federally assisted funding that requires the use of the federal Disadvantaged
Business Enterprise (DBE) program rules and regulations which includes the setting of DBE Goals.
A DBE goal of 9.08% has been established for this construction project. The nature of the change
order work is of the same type as the base construction project and as such the DBE goal can be
extended to the change order work.
DETAILS
This Commission action capitalizes on reduced operational activity at the airport to advance
needed paving and utility work at Seattle-Tacoma International Airport via a Not-To-Exceed
Change Order of $2,300,000. A total of $2,800,000 will be transferred from the 2021-2025 Airfield
Pavement and Supporting Infrastructure Replacement Program (CIP#C800930) to the current
2016-2020 Airfield Pavement Program (CIP#C800483) to cover the change order amount plus
sales tax, design, construction management, testing and inspection, and access controller costs
associated with this work.
Scope of Work
There are three distinct work activities that would be added to this year’s project adjacent to the
current work area:
1. Added Pavement Work: Replace approximately 2,200 square yards of 50-year old
distressed pavement located immediately south of the base work area. (Recommended)
2. Added Utility Work: Install approximately 320 linear feet of utility ductbanks and sleeves
to accommodate future sanitary sewer, domestic water, and power/communication lines
across the South Satellite Taxilane area. (Recommended)
3. Replace Most Critically Damaged Channel Drain: Replace 550 linear feet of failing channel
drain serving the gates along the west side of Concourse B. (Recommended)
Schedule
The 2020 Airfield Pavement Project is currently under construction. The work area for the base
scope at Spot 88 is scheduled to start in mid-May. Executing this change order now will enable
the project team to provide direction to the Contractor prior to them needing to start the added
work. Due to the lowered air traffic expected this year, the Contractor can keep their crew on the
job, working through the summer on this additional work. This change order work would wrap
up by September 2020, when normal airfield construction is slated to resume.
2018 Quarter 4
2018 Quarter 4
2019 Quarter 4
2020 Quarter 2
2020 Quarter 3
COMMISSION AGENDA – Action Item No. __6d__ Page 4 of 7
Meeting Date: May 12, 2020
Template revised June 27, 2019 (Diversity in Contracting).
Cost Breakdown
This Request
Total Project
Design
$0
$2,755,000
Construction
$2,800,000
$25,875,000
Total
$2,800,000
$28,630,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do not execute the change order
Cost Implications: $7,000,000
This estimate is based on not executing the change order work and performing the work on its
original schedule in the year’s 2021 to 2025. This cost estimate includes escalation and having to
replace newly installed pavement to install the utility sleeve work. This cost will increase if any
portion of the change work must be performed as an emergency declaration.
Pros:
1. No added project costs in 2020.
2. No additional disruptions to airfield operations in 2020.
Cons:
1. Continued use of the 50-year old pavement and failing channel drains creates additional
safety hazards for airfield safety incidents and higher likelihood of unplanned disruptions
to operations due to infrastructure failures.
2. This change order work will need to be performed as a stand-alone work area if delayed
beyond 2020. This would result in contracting inefficiencies and more impacts to airfield
operations.
3. Deferring this work would drive costs higher in the future by adding escalation costs and
having to impact airline gate operations multiple times.
This is not the recommended alternative.
Alternative 2 – Execute change order to perform additional scope adjacent to “Spot 88”
including scope of work items 1 through 3 (most critical), plus continue with programmatic
replacement of an additional 550 linear feet older channel drain just north of the proposed
change order work
Cost Implications: $3,500,000
Pros:
1. Capitalize on the current reduced aircraft traffic by performing this planned work now
and reduce future impacts.
2. The replacement of damaged airfield infrastructure helps with ensuring safe aircraft
operations and reduced likelihood of unplanned disruptions due to infrastructure
failures.
COMMISSION AGENDA – Action Item No. __6d__ Page 5 of 7
Meeting Date: May 12, 2020
Template revised June 27, 2019 (Diversity in Contracting).
3. Opportunity to receive additional FAA discretionary grant funds allocated for Seattle-
Tacoma International Airport for 2020 calendar year.
4. Avoid the escalation costs that would have applied if the work is deferred.
Cons:
1. Increased risk of this additional scope being considered a “cardinal change” due to the
Change Order dollar magnitude and a finding that the Port should have separately
competed this work as originally planned.
2. Earlier capital spending than the alternative 1.
This is not the recommended alternative.
Alternative 3 - Execute change order to perform only the most critical additional scope items
adjacent to “Spot 88” (scope of work items 1 through 3)
Cost Implications: $2,800,000
Pros:
1. Capitalize on the current reduced aircraft traffic by performing this planned work now
and reduce future impacts.
2. The replacement of damaged airfield infrastructure helps with ensuring safe aircraft
operations and reduced likelihood of unplanned disruptions due to infrastructure
failures.
3. Opportunity to receive additional FAA discretionary grant funds allocated for Seattle-
Tacoma International Airport for 2020 calendar year.
4. Avoid the escalation costs that would have applied if the work is deferred.
Cons:
1. Earlier capital spending than alternative 1.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original Estimated Budget
$25,830,000
$0
$25,830,000
Budget Additions (to be transferred from
CIP#C800930 to CIP#C800483)
$2,800,000
$0
$2,800,000
Current Budget
$28,630,000
$0
$28,630,000
AUTHORIZATION
Previous authorizations
$25,830,000
$0
$25,830,000
Current request for authorization
$2,800,000
$0
$2,800,000
COMMISSION AGENDA – Action Item No. __6d__ Page 6 of 7
Meeting Date: May 12, 2020
Template revised June 27, 2019 (Diversity in Contracting).
Total authorizations, including this request
$28,630,000
$0
$28,630,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
The Airfield Pavement Program (C800483) is included in the 2020-2024 capital budget and plan
of finance with a budget of $25,830,000. The budget of $2,800,000 will be transfer from C800930
2021-2025 Airfield Pavement to perform most critical additional scope of work to capitalize on
the current reduced aircraft traffic and reduce future impacts. The funding sources for the 2020
work will be the Airport Development fund, Airport Improvement Program grant and existing
revenue bonds.
Financial Analysis and Summary
Project cost for analysis
$28,630,000
Business Unit (BU)
Airfield Movement Areas
Effect on business performance
(NOI after depreciation)
NOI after depreciation will increase due to inclusion of
capital (and operating) costs in airline rate base
IRR/NPV (if relevant)
N/A
CPE Impact
$.06 in 2021
Future Revenues and Expenses (Total cost of ownership)
Annual Operating and Maintenance costs are not anticipated to change appreciably. The
estimated life expectancy for this project is 40 years for concrete pavement and associated
utilities. Replacing this infrastructure will result in maintenance cost avoidance.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
November 12, 2019 – The Commission authorized advertisement and execution of a major
works construction contract for the replacement of damaged pavements, joint seal and
COMMISSION AGENDA – Action Item No. __6d__ Page 7 of 7
Meeting Date: May 12, 2020
Template revised June 27, 2019 (Diversity in Contracting).
related utilities for the 2020 Airfield Pavement portion, the final year of the 2016-2020
Airfield Pavement Replacement Program.
March 12, 2019 – The Commission authorized advertisement and execute of a major works
construction contract for the replacement of distressed pavements and related utilities
for the 2019 portion of the 2016-2020 Airfield Pavement Replacement Program.
November 27, 2018 – The Commission authorized design and preparation of construction
documents for the replacement of distressed pavements and related utilities for the 2020
Airfield Pavement portion of the 2016-2020 Airfield Pavement Replacement Program.
October 9, 2018 – The Commission authorized design funds for construction documents for
replacement of distressed pavement and related utilities the 2019 portion of the 2016-
2020 Airfield Pavement Program.
November 14, 2017 – The Commission authorized advertisement and execution of a single
construction contract which included the 2018 Airfield Pavement Replacement as part of
the 2018 Taxiway Improvement Projects and approved non-use of PLA.
May 9, 2017 – The Commission authorized design funds for construction documents for
replacement of distressed pavement and joint sealant replacement in the 2018 portion
of the 2016-2020 Airfield Pavement Program, and approved use of PLA.
October 25, 2016 – The Commission authorized advertisement and execution of contract for
retrofits of 400 Hz In-ground power units and reconstruction of existing pavement at
Cargo 2.
February 24, 2015 – The Commission authorized design funds for construction documents,
for replacement of distressed pavement and joint seal in the 2016 portion of the 2016-
2020 Pavement Program.