Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8d
ACTION ITEM
Date of Meeting
January 9, 2024
DATE : November 10, 2023
TO: Stephen P. Metruck, Executive Director
FROM: Mike Tasker, Director, Aviation Maintenance
Delmas Whittaker, Director, Marine Maintenance
SUBJECT: Testing, Maintenance and Repair for Escalators, Elevators, and Moving Walkways at
Sea-Tac Airport and Maritime Facilities
Amount of this request:
$37,000,000.00
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute a testing, maintenance
and repair contract for elevator, escalator and moving walkway services at Sea-Tac Airport and
Maritime locations for up to seven years with a competitively bid Port contract. The total cost
for seven years is estimated to be approximately $37 million (Airport $36.1 million; Maritime
$900,000).
EXECUTIVE SUMMARY
The purpose of this request is to provide services that will maintain operational needs at both
Airport and Maritime facilities. The current Port wide contract provides testing, maintenance,
and repair of the airport and waterfront elevators, escalators and moving walkways. It includes
immediate response to issues such as entrapments, safety faults, and falls, and ensures
compliance with all sections of the State of Washington Labor and Industries (L&I) elevator
code.
JUSTIFICATION
This contract authorization will allow the Airport and Maritime facilities to meet operational
needs efficiently throughout its term. It directly supports the Port’s century agenda item of
Meeting the region’s air transportation needs at Sea-Tac Airport and aligns with our “One Port”
approach. Facility maintenance is a key component to ensuring safety and compliance, providing
good customer service, and meeting the Airport Service Quality (ASQ) targets set in the 2018
Aviation Division Priorities.
COMMISSION AGENDA – Action Item No. 8d Page 2 of 4
Meeting Date: January 9, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Diversity in Contracting
The contract is not feasible for subcontracting because it does not appear to be a significant
number of WMBE firms with the scope. We’ll be asking the prime to prioritize reaching out to
WMBE suppliers when possible.
DETAILS
On July 1, 2018, the Port Commission authorized a Port-wide contract with the current contractor
(Schindler) which will expire on August 31, 2024. Our objective is to competitively bid another
Port wide 7-year elevator, escalator and moving walkways testing, maintenance and repair
contract for an estimated cost of $37 million dollars, that includes 6% budgeted inflation.
This contract will ensure that the Port’s (131) elevators, (100) escalators, (7) moving walkways
receive professional services by a trained and licensed technician.
Elevator, escalator, and moving walk maintenance and repairs require the services of licensed
technicians. In the past, in accordance with local and national standards, that work has been
performed by a contractor whos’ technicians are licensed by the State of Washington and fall
under the jurisdiction of L&I.
The selected contractor will also be required to address deficiencies identified by the state or
local inspections office.
Scope of Work
Provide State required testing, manufacturer recommended maintenance, and timely repair
services on the airport and Maritime elevators, escalators, and moving walkways. The bid shall
include monthly service cost broken down by hourly wages for business hours, after-hours,
weekends, and holidays.
Schedule
Execute a contract no later than June 1, 2024.
Activity
Commission design authorization
2024 Quarter 1
Procurement Advertisement
2024 Quarter 1
Contract Execution
2024 Quarter 2
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Bid two separate contracts
Request commission authorization to advertise, award, and execute two separate contracts, one
for the airport and one for the waterfront. We recommend a 4-year term with three 1-year
extensions. The total cost of no less than $41 million.
COMMISSION AGENDA – Action Item No. 8d Page 3 of 4
Meeting Date: January 9, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Annual Cost Implications: Airport $6.1 million; Maritime $200,000. (Total $6.3 million)
Pros:
(1) Response time to Maritime facilities may be faster.
(2) Possible opportunity for small businesses considering Maritime’s limited inventory.
Cons:
(1) Resources required to execute and manage two separate contracts double.
(2) Risk of a reduced economy of scale from Maritime exclusion.
(3) Does not align with our “One Port” philosophy.
(4) Maritime may receive fewer bids due to a limited inventory.
This is not the recommended alternative.
Alternative 2 – Rebid Port wide contract
Request commission authorization to advertise, award, and execute a Port wide contract. We
recommend a 4-year term with three 1-year extensions. The total cost estimated $37 million.
Annual Cost Implications: Airport $5.2 million; Maritime $140,000. (Total $5.3 million)
Pros:
(1) Fewer resources spent on execution and management of a single contract.
(2) Aligns with our “One Port” philosophy.
(3) Increased opportunity for economy of scale.
Cons:
(1) All maintenance to be provided with one provider.
(2) No competition within the airport for dueling contracted companies.
This is the recommended alternative.
FINANCIAL IMPLICATION
Capital
Expense
Total
COST ESTIMATE
Original estimate
$0
$37,000,000
$37,000,000
AUTHORIZATION
Previous authorizations
0
0
0
Current request for authorization
0
$37,000,000
$37,000,000
Total authorizations, including this request
0
$37,000,000
$37,000,000
Remaining amount to be authorized
$0
$0
$0
COMMISSION AGENDA – Action Item No. 8d Page 4 of 4
Meeting Date: January 9, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Annual Budget Status and Source of Funds
The annual expenses associated with this contract will be included in the annual operating
budgets. For 2024, the Aviation Maintenance department’s operating budget includes $3.5
million. Approximately 75% of this annual cost is recovered through terminal rents paid by the
airlines.
Future Revenues and Expenses (Total cost of ownership)
By continuing to combine airport and maritime contracts into one, the Port has an increased
opportunity of cost reduction for this service.
ADDITIONAL BACKGROUND
None.
ATTACHMENTS TO THIS REQUEST
(1) WMBE Availability Analysis Form
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
February 27, 2018 – Commission authorized the executive director to execute a contract for
maintenance and repair for escalators, elevators and moving walks at Sea-Tac airport and
maritime facilities.