Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8c
ACTION ITEM
Date of Meeting
April 12, 2022
DATE: April 1, 2022
TO: Stephen P. Metruck, Executive Director
FROM: Wayne Grotheer, Director, Aviation Project Management Group
SUBJECT: Indefinite Delivery Indefinite Quantity (IDIQ) Service Agreements for Third-Party
Commissioning Agent Services
Amount of this request:
$0
Total estimated maximum
value of contracts:
$3,000,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute up to three
professional services indefinite delivery, indefinite quantity (IDIQ) contracts for third-party
commissioning services, in support of the Aviation division’s capital programs, with a total
maximum value of up to $3,000,000 and a contract ordering period of up to five years.
EXECUTIVE SUMMARY
The Aviation Project Management Group (AV/PMG) utilizes IDIQ contracts to meet highly
variable workload projections for design services. The past third-party commissioning agent
services IDIQ contracts, valued at $1,500,000, was used to completion only 2 years into its
contract period. Based on current capital project projections, this request will provide the
necessary third-party commissioning agent services to meet project needs for the next three to
five years.
AV/PMG has identified nearly $150 million in capital improvement projects that will require the
services of a third-party commissioning agent over the next three years. Many of the small and
medium projects may utilize the IDIQ contracts described herein for general commissioning,
commissioning documentation, pre-construction and post construction services, field
investigation, etc. Evaluation of the options resulted in IDIQ contracts being selected as the
best method to secure the required services.
JUSTIFICATION
The workload demands for delivery of various capital improvement projects at the Seattle-
Tacoma International Airport (SEA) are increasing. To support the increasing and dynamic
business requirements of SEA, the IDIQ contracts provide flexibility through project-specific
COMMISSION AGENDA – Action Item No. 8c Page 2 of 4
Meeting Date: April 12, 2022
Template revised June 27, 2019 (Diversity in Contracting).
service directives that allow third-party commissioning services to be provided on an as-needed
basis for a fixed period and a maximum contract amount.
Diversity in Contracting
There will be a 16% WMBE aspirational goal for each IDIQ contract.
DETAILS
This request is to execute three contracts valued at $1 million each. In the event the Port does
not receive a sufficient number of qualified proposals, the Port may award fewer contracts and
increase capacity of the awarded contracts to the selected firms, for a total capacity not to
exceed $3 million.
Each contract will have up to a five-year ordering period. Service directives may be issued at
any time during the contract-ordering period. Work may be performed after expiration of the
ordering period. The total value of all service directives issued on a contract will not exceed the
contract value.
Budgets to utilize these contracts will come separately from individual project authorizations.
The IDIQ contracts will be procured according to Port policies and procedures, as well as
procurement policy CPO-1. The Port will advertise and issue a solicitation. The contracts will be
written with specific not-to-exceed amounts and identify the services required. Each contract
will have a contract ordering period (during which the services may be separately authorized) of
two years with three option years, for a total of five years. The actual contract duration may
extend beyond five years in order to complete the work identified in the service directives.
Service directives may be issued during the contract-ordering period and within the total
original contract value. The Port will have the option of moving money between contracts if the
Port determines that a contracted current firm cannot adequately complete future work
requests.
Scope of Work
Primary scope will be third-party commissioning agent services. Architectural, structural/civil,
and other engineering services will be included as part of these contracts. There will be one
procurement for third-party commissioning agent services with up to three (3) contracts issued.
Although intent is to award three contracts, one or two contracts may be awarded depending
on the qualifications of proposers.
COMMISSION AGENDA – Action Item No. 8c Page 3 of 4
Meeting Date: April 12, 2022
Template revised June 27, 2019 (Diversity in Contracting).
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Procure separate commissioning agent contracts for each project that requires
an element of commissioning.
Cost Implications: Each project would expend additional administrative costs to procure
individual third-party commissioning agent services contracts.
Pros:
(1) Separate contracts would allow the consulting firms opportunity for each individual
project.
(2) Defers the administrative cost of procurement to a later date when individual projects
each do their own procurement.
Cons:
(1) Increased cost for individual procurements rather than a more efficient single
procurement of one set of IDIQ contracts.
(2) This alternative is an inefficient use of Port resources and staff time and does not
leverage the Port’s allowable contracting methods. It would increase overhead and
administrative costs to the Port, as we would need to manage more procurement
processes and contracts.
(3) This alternative will add time to each project schedule to complete the procurement
process for each individual project and will impact our ability to meet project and
customer needs.
This is not the recommended alternative.
Alternative 2 – Hire two full-time engineers to meet project commissioning requirements.
Cost Implications: A potential savings of approximately $1 million could be realized over a
three-year period, compared with hiring consultants.
Pros:
(1) Lower hourly cost than the use of consultant engineers.
(2) Institutional knowledge is built by Port Staff.
Cons:
(1) Commissioning services is not guaranteed work. Adding full time in-house staff would
create long term costs that could potentially be unnecessary during times when the
work is not needed.
This is not the recommended alternative.
COMMISSION AGENDA – Action Item No. 8c Page 4 of 4
Meeting Date: April 12, 2022
Template revised June 27, 2019 (Diversity in Contracting).
Alternative 3 – Procure three Third-Party Commissioning Agent IDIQ contracts in a single
solicitation action.
Cost Implications: No capital costs will be incurred with this procurement. Funding to utilize
these contracts will separately be authorized by the individual projects requiring commissioning
services.
Pros:
(1) This alternative would ensure the Port has the necessary professional, technical and
advisory resources available to assist with time critical planning efforts and delivery of
potential future capital work.
(2) Women and Minority Owned Business (WMBE) participation will be a contract
requirement.
(3) This alternative would minimize the number of procurement processes necessary for
timely completion of tasks and reduce overhead and administrative costs to the Port
and consultants.
Cons:
(1) This alternative would limit the number of opportunities available to firms to compete
for work.
(2) This alternative would not build in-house commissioning expertise.
This is the recommended alternative.
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 service 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
None
