Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8d
ACTION ITEM
Date of Meeting
November 14, 2023
DATE: November 3, 2023
TO: Stephen P. Metruck, Executive Director
FROM: Eileen Francisco, Director Aviation Project Management
Darryl McKinney, Senior Manager, Security Strategy and Intelligence
Matt Breed, ICT Chief Information Officer
SUBJECT: Perimeter Access and Gate Enhancements and Perimeter Intrusion Detection
System Phase 2 (CIP# C801363, C800844)
Amount of this request:
$3,816,000
Total estimated project cost:
$37,614,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) authorize final design and
preparation of construction bid documents for the Perimeter Access and Gate Enhancement
(PAGE) project; (2) advertise, award, and execute a major public works construction contract
for PAGE and Perimeter Intrusion Detection System (PIDS) Phase 2, and transfer
budget/authorization, as necessary, between the two Projects; (3) procurement of long lead
material items; (4) include a Project Labor Agreement for the contract. The amount of the
request is $3,816,000.
EXECUTIVE SUMMARY
The 2024 Airfield Projects – Contract 3 is comprised of two interdependent Capital
Improvement Projects (CIPs) noted above. The two projects have overlapping work areas and
design functionality, interdependent operational impacts, and share 2024 schedule milestones.
As such, they are being planned, designed, and phased to be delivered concurrently for the
purposes of Airfield safety and efficiency, while minimizing operational impacts.
The below table details the CIPs, corresponding authorizations requested, total authorizations
to date, and the total estimated project cost for each CIP.
COMMISSION AGENDA – Action Item No. 8d Page 2 of 7
Meeting Date: November 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
JUSTIFICATION
The two projects being co-delivered via the 2024 Airfield Projects – Contract 3 consist of a
variety of physically and functionally interdependent Capital Improvements designed to ensure
continued operational safety and security and meet SEA’s regulatory requirements. The
purpose of each project (CIP) is summarized below:
• The PAGE project will reduce the risk of unauthorized fence and gate intrusions. This
project will also meet Port Security Standards to comply with our Airport Security
Program (ASP) and Transportation Security Regulations by increasing the height of the
defined Perimeter fence.
• The Perimeter Intrusion Detection System (PIDS) project will enhance the airport
perimeter security to ensure public safety and improve operational efficiencies through
use of technology and automation. PIDS Phase 2 enable PIDS to meet the operational
and functional requirements by reducing nuisance alarms on high usage gates via Access
Control.
Diversity in Contracting
Through the Diversity in Contracting program, a Women and Minority Business Enterprise
(WMBE) aspirational goal will be established and included in the procurement of this
construction contract.
DETAILS
These projects will interface with other projects and airfield operations. Continual coordination
with Airport Operations, Airlines, and related Tenants will ensure the least possible operational
impact during construction.
A project labor agreement will be used for these projects based on the importance of labor
continuity and the need to minimize any risk of impact to operations during construction.
CIP Name/#
Amount of this
Request
Amount
Authorized to
Date
Total Estimated
Project Cost
Perimeter Access & Gate
Enhancements C801363
$3,116,000
$284,000
$3,400,000
Perimeter Intrusion Detection
System Phase 2 C800844,
$700,000
$33,514,000
$34,214,000
Total Authorization of this
Request
$3,816,000
COMMISSION AGENDA – Action Item No. 8d Page 3 of 7
Meeting Date: November 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Scope of Work
The PAGE project will automate three Airport Operations Area (AOA) perimeter vehicle access
gates and install access control systems, cameras, and lighting; replace three seven foot gates
with 12 feet gates and upgrade outdated equipment at the gates; replace perimeter fence and
signage to comply with Port standards; and install razor wire on existing perimeter fence along
the AOA perimeter.
The PIDS Phase 2 will install access control systems to two AOA perimeter gates so that
personnel accessing the AOA area can be identified via technology, reducing nuisance alarms.
Schedule
Activity
Design complete
2024 Quarter 2
Construction start
2024 Quarter 3
In-use date
2024 Quarter 4
Cost Breakdown
This Request
Total Project
Perimeter Access and Gate Enhancements (C801363)
Design
$669,000
$953,000
Construction
$2,447,000
$2,447,000
Total
$3,116,000
$3,400,000
Perimeter Intrusion Detection System (C800844)
Design
$0
$3,025,000
Construction
$700,000
$23,044,000
Technology
$0
$8,145,000
Total
$700,000
$34,214,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Proceed with only the PAGE project scope. Do not proceed with the project
scope in PIDS Phase 2 which includes installing access control to two Gates.
Cost Implications: $3,116,000 in Capital Cost for Perimeter Access and Gate Enhancements
Pros:
(1) Reduced capital spending in 2024.
(2) Reduced construction impacts to airport/airline operations in 2024.
(3) Meets Ports Security Standards to comply with our Airport Security Program (ASP) and
Transportation Security Regulations.
Cons:
(1) Requires PIDS Phase 2 to be handled as a separate effort.
COMMISSION AGENDA – Action Item No. 8d Page 4 of 7
Meeting Date: November 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
(2) Does increase the risk of added cost to install access control at the two gates through
a future project.
This is not the recommended alternative.
Alternative 2 – Construct each individual project with separate construction contracts.
Cost Implications: An estimated $4,083,000 in Capital Cost to deliver the projects via two major
construction contracts, $267,000 more than delivering via one major construction contract as
proposed by the recommended alternative.
Pros:
(1) Less complexity for budget tracking during construction.
Cons:
(1) Additional labor costs for contractor on-boarding and mobilizations, double-project
ramp up and close out.
(2) Increased coordination required between overlapping projects.
(3) Increased construction safety risk due to overlapping work areas.
(4) Additional and recurring impacts to airfield operations.
(5) Additional risk in less attractive contracts for bidders.
This is not the recommended alternative.
Alternative 3 – Move forward to construct both projects as a single coordinated effort.
Cost Implications: $3,816,000.
Pros:
(1) Reduces safety risks, minimizes operational impacts and increases efficiencies as
coordination and construction is managed as a single effort.
(2) Minimizes time to completion, limiting exposure to future cost increases, while
delivering benefits expeditiously.
Cons:
(1) Additional accounting complexity during construction.
This is the recommended alternative.
COMMISSION AGENDA – Action Item No. 8d Page 5 of 7
Meeting Date: November 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
FINANCIAL IMPLICATIONS
PAGE Cost Estimate/Authorization Summary
COST ESTIMATE
Capital
Expense
Total
Original estimate
$3,400,000
$0
$3,400,000
AUTHORIZATION
Previous authorizations
$284,000
0
$284,000
Current request for authorization
$3,116,000
0
$3,116,000
Total authorizations, including this request
$3,400,000
0
$3,400,000
Remaining amount to be authorized
$0
$0
$0
PIDS Cost Estimate/Authorization Summary
COST ESTIMATE
Capital
Expense
Total
Original estimate
$10,000,000
$0
$10,000,000
Previous changes – net
$23,969,000
$245,000
$24,214,000
Revised estimate
$33,969,000
$245,000
$34,214,000
AUTHORIZATION
Previous authorizations
$33,269,000
$245,000
$33,514,000
Current request for authorization
$700,000
0
$700,000
Total authorizations, including this request
$33,969,000
$245,000
$34,214,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
The Perimeter Access and Gate Enhancements (PAGE) – (CIP 801363) project was included in
the 2023-2027 capital budget and plan of finance with a budget of $3,400,000. The funding
sources would be Airport Development Fund and revenue bonds.
The Perimeter Intrusion Detection System (PIDS) – (CIP 800844) project was included in the
2023-2027 capital budget and Plan of Finance for $28,500,000. The capital budget increase of
$5,469,000 was transferred from the Aeronautical Allowance #C800753 resulting in zero net
change to the Aviation capital budget. The funding sources would be Airport Development Fund
and Airport Revenue Bonds The additional $245,000 expense budget for training will be
budgeted in 2024. This project has a Majority-In-Interest (MII) approval from the airlines on
March 28, 2019, in the amount of $10 million. Per Signatory Lease Operating Agreement, Port
Management has the discretion to utilize the MII Management Reserve for the budget increase.
COMMISSION AGENDA – Action Item No. 8d Page 6 of 7
Meeting Date: November 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Financial Analysis and Summary
C801363 Perimeter Access and Gate Enhancements
Project cost for analysis
$3,400,000
Business Unit (BU)
Airfield Movement Area
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
$0.01 in 2025
CIP 800844 Perimeter Intrusion Detection System
Project cost for analysis
$34,214,000
Business Unit (BU)
Airfield Movement Area
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
$0.10 in 2025
Future Revenues and Expenses (Total cost of ownership)
Perimeter Access and Gate Enhancements (PAGE) – (CIP 801363)
Aviation Maintenance will see an increase in Operation and Maintenance Manuals (O&M) cost
for Electrical and Electronic systems and lampers to maintain cameras, access controls and
lighting (roughly 50 additional labor hours per year). Mechanical systems will see an increase in
O&M costs to maintain the gate operating system. Labor hours and parts requirements will
depend on Original Equipment manufacturer (OEM) maintenance requirements and the
frequency of damage due to vehicles.
Perimeter Intrusion Detection System (PIDS) – (CIP 800844)
Annual recurring maintenance, license, and spare parts costs estimated for the PIDS scope prior
to this authorization are not expected to change with this authorization.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
October 25, 2022 – The Commission authorized the executive director to (1) advertise,
execute two separate construction contracts, and transfer budget/authorization, as
necessary, among the 2023 Airfield Projects; (2) procure long lead items; (3) include a
COMMISSION AGENDA – Action Item No. 8d Page 7 of 7
Meeting Date: November 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Project Labor Agreement for both contracts; (4) authorize use of Port crews for
abatement work; (5) increase the budget for the Perimeter Intrusion Detection System
Program by $5,400,000 for a total project budget of $34,045,000; and (6) increase the
budget for the Secured Area Vehicle Checkpoint Project by $400,000 for a total project
budget of $4,700,000.
May 24, 2022 – The Commission authorized the executive director to increase the
Perimeter Intrusion Detection System (PIDS) with Siemens, contract #S-00319688 by
$374,000 to procure hardware, professional and installation services to ensure PIDS
redundancy.
December 15, 2020 – The Commission authorized the Executive Director to (1) increase the
Perimeter Intrusion Detection System (PIDS) project at Seattle-Tacoma International
Airport (SEA) funding by $18,645,000 for a total estimated project cost of $28,645,000;
(2) expand the PIDS coverage area; (3) execute contracts for required hardware,
software, and technical vendor services, license(s) and maintenance; (4) complete
design (5) enter into reimbursable agreements with the Federal Aviation Administration
(FAA); and (6) execute contract(s) for up to ten years for licenses, service, and
maintenance fees estimated not-to-exceed $4,500,000, which will be paid from the
Aviation annual operating budget. The amount requested under this authorization is
$6,625,000 with an estimated total program cost of $28,645,000.
January 22, 2019 – The Commission authorized $3,500,000 of a $10,000,000 CIP to procure
and implement a Perimeter Intrusion Detection system with limited coverage scope.
