Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8c
ACTION ITEM
Date of Meeting
December 8, 2020
DATE: November 25, 2020
TO: Stephen P. Metruck, Executive Director
FROM: Wayne Grotheer, Director, Aviation Project Management Group
SUBJECT: Cost Estimating Services Indefinite Delivery, Indefinite Quantity Personal Services
Contracts
Amount of this request:
$0
Maximum Value of Contracts:
$3,000,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute two consulting
indefinite delivery, indefinite quantity (IDIQ) contracts for cost estimating services for a total
amount not-to-exceed $3 million and a contract ordering period of five years. There is no funding
associated with this request.
EXECUTIVE SUMMARY
The Port of Seattle is continuing to invest in capital facilities at an unprecedented level. A major
factor in the successful delivery of projects is providing accurate and timely estimates. This
Portwide IDIQ contract supplements existing Port staff and consultant personnel in the
development, review, and updating of project estimates.
Along with current estimating responsibilities, independent estimates are being implemented in
accordance with previous discussions with the Commission in 2020 regarding utilizing more third-
party/independent estimate reviews to validate the design team’s estimates. These contracts
are expected to provide support for project management to carry out current duties and
supplemental resources to provide continued estimate support.
Budget to utilize these contracts will come separately from either annual operating budgets or
individual project authorizations.
JUSTIFICATION
IDIQ contracts provide the Port the flexibility to meet business requirements and adjust to
fluctuating needs as they arise by issuing individual service directives to accomplish tasks within
a general, pre-defined scope of work on an as-needed basis for a fixed period of time and a
maximum contract amount.
COMMISSION AGENDA – Action Item No. 8c Page 2 of 4
Meeting Date: December 8, 2020
Template revised June 27, 2019 (Diversity in Contracting).
In addition, this type of contract provides flexibility of securing the necessary resources during
periods of short, but increased activity.
Diversity in Contracting
There will be a 10% WMBE aspirational goal for this IDIQ contract.
DETAILS
Specialized skills are required for cost estimating positions. With this type of IDIQ contract, the
required experience and expertise will be identified, along with the range of responsibilities or
services, but the specific work will not be known until the time it is requested by the project
managers or sponsors.
Scope of Work
Staff would like to execute two IDIQ contracts for cost estimating services as identified below.
The IDIQ contract will be procured according to Port policies and procedures in accordance with
the General Delegation of Authority and procurement policy CPO-1. The Port will advertise and
issue a request for qualifications (RFQ’s). The contracts will be written with specific not-to-exceed
amounts and identify the services required. The contract will have a contract-ordering period
(during which the services may be separately authorized) of five years. Service directives may be
issued during the contract-ordering period and within the total original contract value.
Cost estimating services include the development of cost estimates that could range from
conceptual estimates for prospective and new projects, to detailed estimates, and may require
specialized experience in one or multiple disciplines.
Schedule
It is anticipated that these contracts will be executed in 2021 and have a 5-year ordering period.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Let existing IDIQ contract expire and utilize FTEs only
Cost Estimate: $3,750,000
Pros:
(1) FTE’s are typically less expensive than consultants.
(2) Eliminates continuity issues for consultant estimating staff supporting projects.
Cons:
(1) Full time additional staff needed (estimated cost of $3.75 million over five years) to
address anticipated peak workload would remain constant, regardless of lulls in work
assignments.
(2) Consultants bring an outside perspective/experience that helps improve the Port’s
COMMISSION AGENDA – Action Item No. 8c Page 3 of 4
Meeting Date: December 8, 2020
Template revised June 27, 2019 (Diversity in Contracting).
project controls processes and procedures.
(3) Recruiting qualified FTE estimators has been a long, and sometimes unsuccessful
undertaking for the Port. A minimum of six FTE’s will be needed to meet the peak
anticipated workload. Based on past experience, it would be extremely difficult for the
Port to fill this number of FTE estimating positions.
(4) Our current FTE resources are inadequate to fulfill the current workload and perform
independent estimates.
This is not the recommended alternative.
Alternative 2 – Single IDIQ contract for one firm for five years
Cost Estimate: $3,000,000
Pros:
(1) Allows for quicker ramp up/ramp down of resource as consultants are used for specific
tasks.
(2) Less administrative work with one contract.
(3) Can be used to bridge the gap between a vacancy and hiring an FTE.
Cons:
(1) Consultant rates are much higher than Port staff.
(2) Continuity of consultant resources when the Port transitions to a new contract.
(3) Onsite requirement could limit some small firms that lack the resources to dedicate staff
100% to the Port.
(4) We rely on our estimating consultant to assist in all design phases of our projects. It is
likely this firm will have had some involvement in projects valued over $50m. With pre-
planning we can limit the consultant’s involvement; however, this puts a greater burden
on our FTE’s and will negatively impact the timeliness of our deliverables.
This is not the recommended alternative.
Alternative 3 – Two $1.5 million contracts
Cost Estimate: $3,000,000
Pros:
(1) Increases the number of opportunities for firms to contract with the Port. Increases
opportunities for WMBE firms to participate.
(2) Up to three firms would be available until 2022, ensuring independence from design
team.
(3) Consultant contract allows for easier growth/reduction of resources as workload
fluctuates.
(4) Better availability and quicker response with multiple firms to choose from.
(5) Competition between firms when requesting a Level of Effort estimate for work.
(6) Could break up trades between firms if needed to expedite deliverable.
COMMISSION AGENDA – Action Item No. 8c Page 4 of 4
Meeting Date: December 8, 2020
Template revised June 27, 2019 (Diversity in Contracting).
Cons:
(1) Multiple contracts would introduce higher administrative costs in administering
multiple contracts with similar scopes of work.
(2) Consultant rates are much higher than Port staff.
(3) Differences in rates between/among multiple IDIQ contracts for positions providing
similar project controls support among projects may unfairly impact project budgets.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
The current estimating contract averages $25,000 per month in spending. Projecting this out
over 5 years would amount to $1,500,000. The number of independent estimates will drive this
average up; however, assuming the work split between firms, the cost should not exceed
$3,000,000.
Annual Budget Status and Source of Funds
For services in support of capital projects, the costs will be charged directly to capital projects
and included in the authorized budgets and will use the designated funding sources for the
individual projects. For services in support of expense projects, the costs will be included in the
annual operating budget for Aviation Project Management Group and will be funded by the
Airport Development Fund (ADF).
ADDITIONAL BACKGROUND
None.
ATTACHMENTS TO THIS REQUEST
None.
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None.
