Template revised April 12, 2018.
COMMISSION
AGENDA MEMORANDUM
Item No.
11a
BRIEFING ITEM
Date of Meeting
September 12, 2023
DATE: September 1, 2023
TO: Stephen P. Metruck, Executive Director
FROM: Rick Duncan, Director Airline Affairs & Aviation Properties
Eileen Francisco, Director, Aviation Project Management Group
SUBJECT: Post IAF Airline Realignment Program Status Briefing (CIP #C801158)
EXECUTIVE SUMMARY
The purpose of this project briefing is to communicate the program progress, provide a budget
and schedule update and highlight key risks and challenges.
The project is facilitating the relocation of United Airlines’ (UA) domestic only operations from
Concourse A to Concourse B. This allows for airlines with international flights to use the vacated
international capable gates on Concourse A. Associated office and support spaces to support
both relocations will be delivered as part of the project. As a separate, discreet scope of work,
ticket counters in the central main terminal will be reconfigured and expanded to support airline
operations.
Since the Commission action in February 2023, the project has progressed the majority of the
design to 60% completion and accelerated the enabling work through 100% completion. These
100% design documents support the procurement of enabling construction needed to support
airline relocations. The project team will be returning at the September 26 Commission meeting
to request authorization for construction for the enabling work procurement based on the
Maximum Allowable Cost for Construction negotiations between the Port and General
Contractor/Construction Manager.
Program Status
Since February 2023 the project team has continued to develop the multiple design packages.
The Estimate at Completion budget and GCCM construction milestone schedule continues to be
updated with the progression of design and verification of existing conditions. The project will
gain greater cost and schedule certainty as we deliver 100% design documents and procure all
project scope by Q4 2023.
To facilitate the relocation of UA’s operations and passenger services from Concourse A to B,
scope has been split between both the Airline Realignment Project and the forthcoming UA
Lounge Project. As Airline Realignment is the larger parent project, all funding requests for the
COMMISSION AGENDA – Briefing Item No. 11a Page 2 of 4
Meeting Date: September 12, 2023
Template revised September 22, 2016.
UA project will be brought forward under the Airline Realignment umbrella, with the discrete
scopes of work separated under each project.
Currently, the Port anticipates completing the new operational ramp prior to the opening of the
new lounge on Concourse B. Presently, the UA project is tracking to request Commission
authorization for construction in Q2 2024 with a substantial completion in Q3 2025.
Design
Package
Description Contract Document Status
Package 1 Enabling Work Package
90% Complete now, Issue for Construction
Q4 2023
Package 2 Mechanical System Upgrades
60% Complete now, Issue for Construction
Q4 2023
Package 3
Concourse B Ramp Renovation
& Expansion
60% Complete now, Issue for Construction
Q4 2023
Package 4
Zone 4 Ticket Counter
Reconfiguration
60% Complete now, Issue for Construction
Q1 2024
TBD United Airlines Lounge
Design contract executed June 2023,
anticipate 30% complete by Q4 2023
Program Budget and Schedule
The 30% design development documents, with the enabling work package accelerated to 60%
design development, were delivered in April. This initiated an estimate and reconciliation of the
airline realignment scope, along with preparation of an independent cost estimate. The resulting
effort informed the revised estimate range of $102M to $140M, refined from projected range of
$98M - $172M previously shared with the Commission in February. Note that the costs being
carried for the United Airlines Lounge are from a conceptual estimate performed in December
2022. The project team is expecting revised budget estimates from UA in Q4 2023.
Since April 23, 2023, the project team, including the GCCM and its subcontractors, have been
evaluating the milestone schedule to identify areas for efficiency. The Electrical and Mechanical
subcontract trade partners contracted during preconstruction are now included in this effort to
inform the schedule updates based on their detailed understanding of the complex infrastructure
phasing required. This early engagement also includes coordination with Port stakeholders, and
jurisdictional authorities to ensure functional continuity with existing airport systems and
operations throughout the project’s phased construction.
Key Project Milestone Current Delivery Dates:
(1) United Airlines Gates to be allocated on Concourse B – September 2025
(2) United Airlines Lounge on Concourse B – Q4 2025
COMMISSION AGENDA – Briefing Item No. 11a Page 3 of 4
Meeting Date: September 12, 2023
Template revised September 22, 2016.
A key goal for the project team is to improve the project schedule such that United Airlines will
be operating on B Concourse sooner.
Key Risks & Mitigation Strategies
(1) Existing Conditions verification: The project team is approximately 70% complete with
existing conditions verification and 3D modeling. At the beginning of the design effort
in January 2023, approximately 10% of the existing conditions had been verified and
modeled. The existing condition verification effort will be complete in October 2023 and
mitigate the risk of future design changes or cost impacts due to unforeseen conditions
during construction.
(2) Complex Phasing: Through the design development, durations to account for safe
construction and to reduce downtime of existing systems have been incorporated,
requiring additional phasing not initially anticipated. The project team and stakeholders
continue to collaborate to identify and validate opportunities in an effort to advance
the move of United Airlines to Concourse B gates in January 2025. Coordination
meetings to review schedule durations and identify opportunities for efficiency are
facilitated weekly.
(3) Operational Constraints: Additional construction phasing and temporary facilities are
required to maintain tenant ramp operations throughout the project premise. The
project team continues to collaborate with Port Stakeholders to confirm and account
for all operational constraints in contract documents.
(4) Final Program Budget: The program will have the highest level of cost certainty when
the design has progressed through Issue for Construction documents and all elements
of the program are publicly procured. The full airline realignment scope is currently
scheduled to be procured by the end of 2023. The project team is scheduled to request
authorization for the enabling work package on September 26, 2023, and follow on with
the balance of the authorization in Q4 of 2023. The schedule for United Airlines lounge
procurement is still to be determined. This risk is being coordinated and tracked by the
project team.
ATTACHMENTS TO THIS BRIEFING
(1) Presentation
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
February 14, 2023 – The commission authorized $7,000,000 to facilitate the following actions: (1)
amend a project-specific design contract, and (2) execute a Change Order to the General
Contractor/Construction Manager Pre-Construction Services contract.
COMMISSION AGENDA – Briefing Item No. 11a Page 4 of 4
Meeting Date: September 12, 2023
Template revised September 22, 2016.
March 23, 2021 – The Commission authorized $26,000,000 to facilitate the following actions: (1)
execute project specific Service Agreements for project management, construction
management, design services, and testing and special inspections; (2) to utilize a General
Contractor/Construction Manager (GCCM) and execute a GCCM construction contract for pre-
construction services; (3) to use port crews; and (4) to execute a Memorandum of Agreement
(MOA) between the Port of Seattle (Port) and United Airlines.
