Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8b
ACTION ITEM
Date of Meeting
April 26, 2022
DATE: April 15, 2022
TO: Stephen P. Metruck, Executive Director
FROM: Laurel Dunphy, Airport Operations Director
Krista Sadler, Technology Delivery Director
SUBJECT: Passenger Flow Metrics Project (CIP #C801188)
Amount of this project request:
$630,000
Total estimated project cost:
$630,000
Service Fee Contract Value
$3,000,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to 1) proceed with the Passenger
Flow Metrics project, 2) utilize Port Staff, and 3) execute contract(s) for software, equipment,
vendor services, and ten years of software license and maintenance fees in the amount of
$630,000 and a service fee contract value of $3,000,000.
EXECUTIVE SUMMARY
This project will procure a system(s) that will collect anonymized information from a mix of new
and existing technologies and systems to determine average passenger flow measurements for
1) arriving passengers from the clock tower on the main drive through a security checkpoint and
2) internationally arriving passengers from their gate on the South Concourse to a connecting
flight on the North Concourse. Timing for these two travel paths is a key Seattle-Tacoma
International Airport (SEA) metric supporting Aviation Customer Experience objectives and will
be used to identify and measure improvements, assess impacts from future construction
projects, and alert SEA Operations on emerging issues.
The system(s) selected may utilize existing Port wireless technology, smart phone location
services, or roadway cameras to determine passenger flow times. In every case, data will be
anonymized so that no personally identifiable information (PII) is collected nor stored.
Information and Communication Technology, Aviation Operations, Business Intelligence, and
Aviation Maintenance will partner to complete this project with a vendor selected via a
competitive procurement. The capital project was included in the 2022-2026 capital budget and
plan of finance in the amount of $630,000. This authorization also includes a contract for
COMMISSION AGENDA – Action Item No. 8b Page 2 of 5
Meeting Date: April 26, 2022
Template revised June 27, 2019 (Diversity in Contracting).
recurring software license and maintenance fees for up to ten years, estimated at $3,000,000.
Recurring costs will be budgeted in the Aviation operating budget.
JUSTIFICATION
A critical impact to SEA Customer Experience long-term goals is how smoothly passengers flow
from arrival to the airport through security checkpoints or the International Arrival Facility to
their gate. While flow measurements exist in certain legs of these journeys there are several
unmeasured areas and no comprehensive metric to evaluate progress against the goals. In the
next few years, several construction projects will disrupt normal passenger routes on the
roadways and through the terminal and reliable information on passenger flow will help identify
adjustments for key choke points and alert staff to issues for quicker resolution.
Diversity in Contracting
Project staff will work with the Diversity in Contracting Department to determine if a direct
women-and-minority-owned business enterprise (WMBE) aspirational goal should be assigned.
Typically, subcontracting opportunities under technology projects are limited.
DETAILS
Scope of Work
(1) Competitively procure a system(s) to gather and consolidate average passenger flow
measurements.
(2) Install limited equipment, if needed, to support anonymized measurement tracking.
(3) Integrate with existing systems that can provide flow data in areas along the measured
paths.
(4) Develop reports that integrate with Aviation Business Intelligence platform.
Schedule
Procurement Complete
2022 Quarter 4
Roadway Metrics
2023 Quarter 4
Terminal Metrics
2024 Quarter 4
Cost Breakdown
Total Project
Equipment
$30,000
$30,000
Software and Vendor Services
$200,000
$200,000
Port Labor
$400,000
$400,000
Total
$630,000
$630,000
COMMISSION AGENDA – Action Item No. 8b Page 3 of 5
Meeting Date: April 26, 2022
Template revised June 27, 2019 (Diversity in Contracting).
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Procure and implement a solution(s) to provide extensive data for detailed
passenger movement throughout the terminal.
Cost Implications: Capital Project - >$2,000,000; Ten Year Recurring Costs: >$5,000,000
Pros:
(1) Robust capabilities to understand passenger movement can provide additional benefits
from targeted services and more comprehensive coverage.
(2) Future stakeholders could leverage technology with a smaller investment.
Cons:
(1) This alternative is significantly more expensive primarily due to the likelihood of
significant construction for additional sensors or cameras and more proprietary
equipment.
(2) The schedule to complete the installation would be significantly longer than the
recommended alternative.
This is not the recommended alternative.
Alternative 2 – Leverage future terminal and roadway projects to install technology.
Cost Implications: $0
Pros:
(1) Resources and funding available for other projects.
Cons:
(1) There is no measurement to determine progress on key Aviation goals.
(2) The impact on passenger flow from future terminal and roadway projects is not
supported by actionable data.
(3) Identification of emerging issues is a manual effort.
This is not the recommended alternative.
Alternative 3 – Procure and implement a solution that gathers and consolidates average
passenger flow measurements using a mix of new and existing technologies and systems.
Cost Implications: Capital Project-$630,000; Ten-Year Recurring Costs: $3,000,000
Pros:
(1) This alternative provides passenger flow measurements to identify problem areas,
understand customer experience trends, and react to emerging issues for a more
modest investment than the alternative.
(2) Investment in existing technology and systems that provide supporting data is utilized.
COMMISSION AGENDA – Action Item No. 8b Page 4 of 5
Meeting Date: April 26, 2022
Template revised June 27, 2019 (Diversity in Contracting).
(3) Comprehensive reports will provide progress against a key Customer Experience goal
on passenger flow times.
Cons:
(1) Detailed information about passenger movement would be unavailable for other
potential targeted services.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$630,000
$0
$630,000
AUTHORIZATION
Previous authorizations
$0
0
$0
Current request for authorization
$630,000
0
$630,000
Total authorizations, including this request
$630,000
0
$630,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
This project was included in the 2022-2026 capital budget and plan of finance for $630,000. The
project will be funded with the Airport Development Fund and revenue bonds.
Financial Analysis and Summary
Project cost for analysis
$630,000
Business Unit (BU)
Terminal Building
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
Less than $.01 in 2024
Future Revenues and Expenses (Total cost of ownership)
Annual recurring service, license, or maintenance fees, estimated at $300,000 per year, will be
budgeted in annual operating budgets beginning in 2023. The estimated total over a ten-year
contract term is $3,000,000 in addition to the vendor costs for implementation.
COMMISSION AGENDA – Action Item No. 8b Page 5 of 5
Meeting Date: April 26, 2022
Template revised June 27, 2019 (Diversity in Contracting).
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None