Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8f
ACTION ITEM
Date of Meeting
July 11, 2023
DATE : June 20, 2023
TO: Stephen P. Metruck, Executive Director
FROM: Janice Zahn, Chief Engineer, Director Engineering Services
Chris Sherwood, Interim Assistant Director Engineering, Construction Services
SUBJECT: Construction Management Services IDIQ Memo
Amount of this request:
$30,000,000
Total estimated project cost:
$0
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute up to six indefinite
delivery, indefinite quantity (IDIQ) consulting agreements for services related to Construction
Management Services Portwide, with a cumulative total amount not to exceed $30 million
dollars. Each agreement will have a five-year ordering period. No funding is associated with this
request; funding to utilize these agreements will come separately from individual project
authorizations.
EXECUTIVE SUMMARY
Within the next five years, over fifty new projects, both at the Seattle Tacoma International
Airport, Maritime and Economic Development divisions, and the Northwest Seaport Alliance, are
identified as having construction costs over $300,000 per contract. This excludes larger projects
such as Main Terminal Improvement Project, Industrial Waste Treatment Plant, Concourse HVAC
Improvement Replacement and Renewal, South Concourse Evolution, Main Terminal
Improvement and Baggage Optimization Phase 3, which have or will have project specific
agreements. With the anticipated future project workload, IDIQ contracts provide the Port with
the flexibility to meet business requirements as they arise by utilizing external consultants to
support the Construction Management (CM) department. The specific scope, amounts, and
durations of consultant services are established based on projected needs of the Port and the
Northwest Seaport Alliance.
This authorization will only authorize the advertisement, procurement and execution of the
contracts. A service directive will be issued for each project authorizing the consultant to perform
a specified scope of work only after staff has received authorization for the project in accordance
with Port policies and procedures. Each agreement/contract will have a five-year ordering period
COMMISSION AGENDA – Action Item No. 8f Page 2 of 3
Meeting Date: July 11, 2023
Template revised June 27, 2019 (Diversity in Contracting).
during which services may be separately authorized. The Port will not issue any service directives
in excess of each contract’s value or after expiration of the contract ordering period.
JUSTIFICATION
The Port of Seattle’s existing CM Services IDIQ agreements were executed in 2020 and the
contracts are approaching their maximum contract amount. When originally executed, the
amount requested was estimated based on projected project needs to provide consultant
services for 5 years. Actual project needs have utilized the contracted agreements much sooner
than expected. Of the six agreements in place, all but one agreement will be fully utilized by mid-
year 2024.
Diversity in Contracting
The intent is to execute up to six contracts with the most qualified firms; however, we will
redistribute the awarded contract values should we not receive sufficiently qualified firms
without exceeding the combined total $30M amount. Three agreements valued at $6 million
each will be awarded to the three highest-ranked firms, two agreements valued at $4.5 million
each and one agreement valued at $3 million to the next highest-ranked firms in order. We
anticipate a thirty percent (30%) WMBE aspirational participation goal will be included with each
agreement.
DETAILS
Scope of Work
The services required under this agreement are for CM Services in support of various Port
projects for the Aviation, Maritime, and Economic Development divisions, and projects related
to the Northwest Seaport Alliance. The scope of work may include supporting projects with
planning, design, construction and closeout phases of Port major construction or tenant projects,
including contracts procured using design-bid-build, design build, progressive design build and
general contractor/construction management alternative delivery projects.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Advertise and execute multiple individual project specific contracts.
Cost Implications: Potential impact on project schedules with a strong likelihood of additional
project costs due to individualized procurements.
Pros:
(1) Selecting the best consultant expertise to meet the individual project needs.
Cons:
(1) This alternative would require the lengthy and costly process of selecting consultants
for each project, thus requiring increased lead time, additional management oversight,
COMMISSION AGENDA – Action Item No. 8f Page 3 of 3
Meeting Date: July 11, 2023
Template revised June 27, 2019 (Diversity in Contracting).
additional administrative time in CPO and Construction Management preparation, and
increased advertising fees.
(2) Consulting companies interested in this work would spend more money preparing
multiple proposals as part of the selection processes.
(3) This is not a viable alternative if the Port is committed to best practices for capital
project delivery and remaining flexible to meet our business sponsor’s needs.
This is not the recommended alternative.
Alternative 2 – Advertise and execute multiple IDIQ contracts within a single procurement.
Cost Implications: Procurement process costs.
Pros:
(1) Efficient and effective use of Port staff procuring contracts that address multiple
projects.
(2) Efficient and cost-effective use of consultant resources.
(3) Provides staffing flexibility that helps meet our business sponsor needs when urgent
projects arise.
(4) Minimizes the risk associated with potential project schedule delays due to staff’s
inability to support a construction project.
(5) Aligns with best business practices for effectively utilizing external consulting firms.
Cons:
1) Consultants with subject matter expertise may not be available when project work is
requested.
This is the recommended alternative.
Annual Budget Status and Source of Funds
There is no funding request directly associated with this authorization. No work is guaranteed to
the selected consultants. The budget for work performed under each agreement will come from
individual directives authorizing the consultant to perform specific work on the contract. with
approved project authorizations and within the total contract amount.
ATTACHMENTS
None.
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
November 17, 2020 – Construction Management Services IDIQ approved by Commission for $20
million.
