Template revised April 12, 2018.
COMMISSION
AGENDA MEMORANDUM
Item No.
8f
ACTION ITEM
Date of Meeting
November 17, 2020
DATE: October 26, 2020
TO: Stephen P. Metruck, Executive Director
FROM: Tina Soike, Engineering Director
Janice Zahn, Assistant Engineering Director, Construction Services, Engineering
SUBJECT: Contracts for Engineering Construction Management Services and Special Testing and
Inspection Services
Amount of this request:
$0
Total estimated contract
cost:
$22,000,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute (1) up to six indefinite
delivery, indefinite quantity consulting agreements for services related to Construction
Management Services, with a cumulative total amount not to exceed $20 million; (2) up to three
indefinite delivery, indefinite quantity consulting agreements for Construction Special Testing
and Inspection Services with a cumulative total amount not to exceed $2 million. Each contract
will have a five-year ordering period. No funding is associated with this request; funding to utilize
these contracts will come separately from individual project authorizations.
EXECUTIVE SUMMARY
Within the next five years, over 70 new projects are identified as having construction costs over
$300,000 per project. This excludes the International Arrivals Facility (IAF), C1 Building Expansion
and NorthSTAR Projects which have or will have project specific Construction Management
Services agreements for their use. With the anticipated project workload and the fluctuating
market, indefinite delivery, indefinite quantity (IDIQ) contracts provide the Port with the
flexibility to meet business requirements as they arise by utilizing outside consultants through
the Construction Management (CM) Services. The Special Testing and Inspection contract will
provide the Port with resources that the Port does not currently staff through an IDIQ contract
to meet project needs. The types, numbers, amounts, and durations of consultant services are
established based on projected needs of the Port and projects in the North Harbor associated
with the Northwest Seaport Alliance.
This authorization will only authorize the execution of the contracts. A service directive will be
issued for each project authorizing the consultant to perform a specified scope of work only after
staff has received authorization for the project in accordance with Port policies and procedures.
COMMISSION AGENDA – Action Item No. 8f Page 2 of 4
Meeting Date: November 17, 2020
Template revised September 22, 2016; format updates October 19, 2016.
Each agreement/contract will have a five-year ordering period during which services may be
separately authorized. The Port will not issue any service directives in excess of each contract’s
value or after expiration of the contract ordering period.
JUSTIFICATION
The Port of Seattle’s existing Construction Management Services IDIQ and Special Testing
Inspection Services contract are nearly at the awarded contract value. When originally executed,
the contract values requested were estimated based on projected project needs to provide
necessary consultant services for 4 years. Actual project needs are consuming the available
contract values sooner than expected and all but one contract will be out of funds by April 2021.
The Special Testing and Inspection contracts have executed their final option year and will be out
of funds by contract completion dates of July 2021.
DETAILS AND DIVERSITY IN CONTRACTING
The Port anticipates issuing up to 9 contracts to provide two different types of consultant
services, Construction Management and Construction Special Inspection.
• Construction Management: The intent is to execute up to six contracts with the most
qualified firms; however, we will redistribute the awarded contract values should we not
receive sufficient qualified firms without exceeding the combined total value. Three
contracts valued at $5 million each, which will be awarded to the three highest-ranked
firms and will include a thirty percent (30%) percent WMBE aspirational participation
goal. Three contracts, two valued at $1,750,000 each and one valued at $1,500,000 each
with a thirty percent (30%) WMBE aspirational participation goal awarded to the next
three highest ranked firms.
• Construction Special Inspection Services: Three contracts; contract value with a
combined value of $2 million will be awarded. One contract valued $800,000 will be
awarded to the highest ranked firm and two contracts valued $600,000 will be awarded
to the next two highest ranked firms. Due to the nature of these services, subcontracting
may not be feasible, however WMBE participation opportunities are available for priming
of this service. Project staff along with the Diversity in Contracting Department is
outreaching and notifying WMBE firms of this opportunity.
The actual agreement/contract duration may extend beyond five years in order to complete the
work identified in a particular service directive.
Scope of Work
The services required under these contracts will include Construction Management and Special
Testing and Inspection services in support of various Port projects, including projects related to
the Northwest Seaport Alliance. The scope of work may support the planning, design,
construction, special testing and inspection or closeout phases of the Port construction or tenant
COMMISSION AGENDA – Action Item No. 8f Page 3 of 4
Meeting Date: November 17, 2020
Template revised September 22, 2016; format updates October 19, 2016.
projects, including contracts procured using design-bid-build, design-build, progressive design-
build, and general-contractor/construction-management alternative delivery projects.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Procure individual project specific contracts - This alternative would require the
lengthy and costly process of selecting consultants for each task, thus requiring increased lead
time, additional management oversight, additional administrative preparation, and increased
advertising fees. This is not a viable alternative if the Port is committed to best practices for
capital project delivery and meeting our business sponsor needs.
Cost Implications: Potential impact to project schedules with a strong likelihood of additional
project costs due to individualized procurements.
Pros:
(1) Selecting the best consultant to meet the individual specific project expertise.
Cons:
(1) This alternative would require the lengthy and costly process of selecting consultants
for each project, thus requiring increased lead time, additional management oversight,
additional administrative preparation, and increased advertising fees.
(2) Consulting companies interested in this work would need to spend more money
preparing proposals as part of the selection process.
This is not the recommended alternative.
Alternative 2 – Advertise and execute multiple contracts for Construction Management, and
Special Testing and Inspection Services to allow for the efficient and cost-effective use of
consultants to provide the services required by Engineering.
Cost Implications: Procurement process costs
Pros:
(1) Efficient and effective use of Port staff procuring contracts that address multiple
projects.
(2) Efficient and cost-effective use of consultant’s resources.
(3) Low risk associated with potential project schedule delay due to an inability support a
construction project.
Cons:
1) Consultants with the subject matter expertise may not be available when project work is
requested.
This is the recommended alternative.
COMMISSION AGENDA – Action Item No. 8f Page 4 of 4
Meeting Date: November 17, 2020
Template revised September 22, 2016; format updates October 19, 2016.
FINANCIAL IMPLICATIONS
There is no funding request directly associated with this authorization. No work is guaranteed to
the selected consultants and the Port is not obligated to pay a selected consultant until a service
directive is executed. The budget for work performed under each agreement will come from
individual directives authorizing the consultant to perform specific work on the contract against
approved project authorizations and within the total contract amount.
ATTACHMENTS TO THIS REQUEST
None
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
July 24, 2018 – Construction Management Services IDIQ approved by Commission for $14 million.
February 27, 2018 – Special Testing and Inspection Services IDIQ approved by Commission for $2
million.
