Template revised April 12, 2018.
COMMISSION
AGENDA MEMORANDUM
Item No.
11c
BRIEFING ITEM
Date of Meeting
April 12, 2022
DATE: April 4, 2022
TO: Stephen P. Metruck, Executive Director
FROM: Wayne Grotheer, Director Aviation Project Management
Dawn Hunter, Interim Aviation Chief Operating Officer
SUBJECT: C Concourse Expansion Briefing (C800845)
EXECUTIVE SUMMARY
The purpose of this project briefing is to communicate the project progress on design and
sustainability goals and to highlight key risks and challenges.
Over the last decade, leasable space post-security at the Seattle-Tacoma International Airport
has become almost non-existent due to the continued growth of airlines and tenants’
operational and administrative needs. Staff has identified the C1 Building area as a key location
where the terminal can be expanded without the consumption of additional real estate
(building up rather than out). There are no other viable options for expanding the terminal
without significant negative impacts to existing capacity or operational areas.
The C Concourse Building Expansion (CCE) was created to address the shortfalls in Airport
Dining and Retail (ADR) capacity, public amenities, office space, and premium lounge space
resulting from the continued growth. The project is located at the intersection of Concourses C
and D and will add four floors to the existing three floor C1 building structure to accomplish our
goal to build up rather than out.
The CCE Project will grow ADR services with two floors of new space. These floors will include
17,000 square feet of new food and beverage locations and 8,000 square feet of new retail
space. This additional square footage will provide a higher level of service to travelers and
generate additional non-aeronautical revenue. The remaining three new floors will provide
space for two new premium lounges and additional office space. The office space will serve to
support existing tenants, airlines, and TSA in addition to creating support space for the new
ADR spaces. The project is supported by the airlines at $340M, including letters of interest for
large portions of the leasable space, and a favorable Majority in Interest (MII) vote for the
project.
The project will also be constructing new amenities for the traveling public. These will include
restrooms, a meditation room, a sensory room, nursing suites, and a public lookout. These
COMMISSION AGENDA – Briefing Item No. 11c Page 2 of 6
Meeting Date: April 12, 2022
Template revised September 22, 2016.
amenities combined with the unique architectural experience of the CCE will create a
destination location within the C Concourse.
CCE is the first Tier 3 project to go through the Port’s new Sustainable Evaluation Framework
process and is anticipated to meet approximately 47% of the potential increased energy load
through low-carbon and renewable energy and avoid approximately 90% of the potential
increase in carbon emissions.
The project will provide economic opportunities to WMBE during design and construction, and
to ACDBE post-construction.
Program Status Update
Previous authorizations allowed the project team to procure a designer and a general
contractor / construction manager (GCCM). Both teams started work in early 2021 and have
progressed the project to a 30% level of design.
Procuring the GCCM at this early stage has provided the project with several advantages. The
GCCM has been providing estimating services and constructability comments during design
development. While the project is currently trending over the estimate, several steps have
been taken with the support of the GCCM to mitigate these trends. These early steps also
provide an increased level of transparency to the project stakeholders and the Commission
about the project budget.
The GCCM is also working on phasing plans and developing a project schedule. These phasing
plans are being utilized to communicate operational impacts that are several years out. The
plans also help the CCE project to coordinate with other Capital Improvement Projects
happening near the CCE work. Most importantly, the team is optimistic that the phasing efforts
will result in a savings on the project schedule.
Even though the project is currently at 30% design development overall, accelerated design for
early work will allow the GCCM to start onsite construction in Quarter 2 2022. The early work
will involve upgrading the existing building foundations and civil work on the ramp. Full
construction on the building expansion is scheduled to start Quarter 2 2023.
Program Budget Update
The original project was estimated to be $340 million. Since that time the estimates for the
project have grown. The drivers of the increases are additional sustainability scope, baggage
transfer line impacts, and contractor estimates reflecting escalation due to COVID and the
current geopolitical situation.
COMMISSION AGENDA – Briefing Item No. 11c Page 3 of 6
Meeting Date: April 12, 2022
Template revised September 22, 2016.
To manage costs and scope the project has taken several steps. Between concept and 15%
design the Port, the contractor, and the design team met every two weeks to value engineer
and right size the project scope. That effort led to a $20 million reduction to the concept
estimate. That right-sized scope and project programming was used to develop a 30% design.
The 30% design was again estimated and the estimates were reviewed and reconciled with the
Port, the designer and the contractor.
As the design develops, the project teams will continue to assess potential savings in real time
with the design team and the contractor. While this will not prevent the higher cost of
delivering the project, it will be a tool to control the cost increases and ensure that the scope of
work is appropriate to the needs of SEA.
Original Estimate Range: $340M - $510M
Estimate Trends
Sustainability Initiatives: $10.4M
Non-Discretionary Scope Changes: $24M
Escalation and Scope Definition: $32.6M
Current Estimate Range: $340M – $420M
The available Program Contingency is $30M. The project team is assessing how much of this
contingency can be allocated to the existing budget. The team is working to balance known
risks against the available funds.
Diversity in Contracting
WMBE outreach efforts through local community organizations and publications have begun in
support of CCE construction efforts. This includes targeted WMBE and small business pre-bid
job walkthroughs for better understanding of project efforts, prior to upcoming bids.
Current WMBE goals:
1. Designer: 12%
2. GCCM: 12% (The GCCM goal may be modified as design progresses and the scopes of
work are further developed.)
3. Program Management and Construction Management: 20%
The project is anticipated to provide approximately 28% in Airport Construction Disadvantage
Business Enterprise (ACDBE) post-construction ADR opportunities.
COMMISSION AGENDA – Briefing Item No. 11c Page 4 of 6
Meeting Date: April 12, 2022
Template revised September 22, 2016.
Key Risks and Mitigation Strategies
1. Complex phasing: The C1 Building, where the expansion is to occur, is currently
occupied on all three existing levels. Throughout the life of the project, these levels will
be occupied to a greater or lesser extent at different times during construction. The
mitigation strategy employed to control this risk is the early procurement of the GCCM.
The GCCM will be a partner with the project team and designer in creating a viable
phasing plan and finding cost effective solutions to phasing challenges.
2. Operational constraints: The C1 Building is located at the intersection of Concourse C
and Concourse D. There is limited access for construction material laydown and the
construction equipment required to erect a new building. The project team employed
two different strategies to control this risk: early procurement of the GCCM and early
involvement of Airport Operations. The project team completed Safety Risk
Assessments that addressed safety and operational concerns both during construction
and in the final configuration of the building.
3. Transfer Line Capacity: Transfer lines are used to transfer baggage from one flight to
another. There are a limited number of these lines available for use. Since the project
was first conceived, the needs of our airline partners have changed. Changes to the
transfer lines add additional complexity to our phasing and operational constraints. We
will be mitigating this risk by transferring scope and funds to the Baggage Optimization
Program which is already in construction. That program is best suited to design,
contract, and manage this very specialized scope of work.
4. Tenant Buildouts: The majority of the new building will be leasable space. The interiors
of these spaces will be built by the various tenants that are procured by Properties and
ADR. To fully open the building and start generating revenue, the tenants will be
building out their spaces while the project team is constructing the base building. This
will require a high level of coordination between tenant procurement, design, and
construction. Properties and ADR will need to let prospective tenants know details
about each space. They need to understand square footage, utility capacity, and use
restrictions. The project will need to coordinate construction times and durations, lay
down areas for each tenant, material deliveries, and space commissioning. The project
is managing these risks with multiple efforts. The project, in conjunction with the design
team, will create a tenant handbook. The details for each space will be specified and
restrictions being driven by the base building will be listed. During design and
construction, each tenant will have a project manager assigned to them that will
shepherd them through the Port design and construction process.
Environmental Sustainability
CCE is the first Tier 3 project to go through the Port’s new Sustainable Evaluation Framework
process (Resolution 3768). The project team, in conjunction with internal Port experts from AV
COMMISSION AGENDA – Briefing Item No. 11c Page 5 of 6
Meeting Date: April 12, 2022
Template revised September 22, 2016.
Environment and Sustainability, Facilities and Infrastructure, and Maintenance departments,
evaluated the costs and sustainability benefits of 34 different strategies. The top 8 strategies
were recommended to SEA leadership and then to the Commission’s Sustainability,
Environment, And Climate (SEAC) Committee.
The recommended sustainability strategies are listed below by category. By implementing
these strategies, the project will meet approximately 47% of the potential increased energy
load through low-carbon and renewable energy and avoid approximately 90% of the potential
increase in carbon emissions. While we cannot quantify the sustainability benefits of the equity
strategies, the employee breakroom will provide a quiet location away from passengers, and
the additional storage location will provide easy drop-off for tenants and pick-up location for
the food bank that supports our food donation program. Lastly, the low-flow fixtures will
reduce 8% of water usage when compared to baseline.
Energy/Carbon
• Tenant all electric hot water heaters
• Tenant all electric cooking
• Fossil-fuel free heating
• Rooftop photovoltaics
Equity
• Employee breakroom
• Signage for public transportation
• Storage location for food donations from tenants
Water Conservation
• Low flow fixtures
Authorization Summary
Cost Estimate
/Authorization Summary
l
COST ESTIMATE
Capital
Expense
Total
Original estimate
$331,776,000
$8,224,000
$340,000,000
AUTHORIZATION
Total authorizations
$86,174,000
$7,926,000
$94,100,000
Remaining amount to be authorized
$245,602,000
$298,000
$245,900,000
ATTACHMENTS TO THIS BRIEFING
(1) Presentation
COMMISSION AGENDA – Briefing Item No. 11c Page 6 of 6
Meeting Date: April 12, 2022
Template revised September 22, 2016.
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
• March 8, 2022 – Authorization to execute a Service Agreement for a third-party
Commissioning Agent
• April 27, 2021 – C1 Building Project Additional Design and General
Contractor/Construction Manager Early Work Authorization – Special Inspection and
Testing Authorization
• May 26, 2020 – C1 Building Project Design and General Contractor/Construction
Manager Authorization
• March 10, 2020 – C1 Building Project Briefing and Introduction
• June 26, 2018 – C1 Building Project Authorization for Planning Funds
• July 11, 2017 – The Commission authorized (1) advertise and execute a construction
contract for the Gate C3 Holdroom Expansion project at Seattle-Tacoma International
Airport; and (2) use Port crews in executing the project
• January 26, 2016 – The Commission authorized design of an expansion for the existing
Gate C3 passenger Holdroom at Seattle-Tacoma International Airport.
