Template revised January 10, 2019.
COMMISSION
AGENDA
MEMORANDUM
Item No.
10a
ACTION ITEM
Date of Meeting
March 12, 2024
DATE: March 5, 2024
TO: Stephen P. Metruck, Executive Director
FROM: Eileen Francisco, Director Aviation Project Management
Laurel Dunphy, Director Airport Operations
Keri Stephens, Director Aviation Facility and Capital Program
SUBJECT: 2024 Airfield Projects–Contract 2 (CIP# C800930 and C801333)
Amount of this request:
$13,074,500
Total estimated combined
project cost:
$189,650,500
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) advertise and execute a
construction contract for 2024 Airfield Projects–Contract 2; (2) transfer budget/authorization, as
necessary, between the 2024 Airfield Projects; (3) procure long lead items; (4) include a Project
Labor Agreement for the contract; and (5) authorize use of Port crews for abatement work.
The amount of this authorization request is $13,074,500.
EXECUTIVE SUMMARY
This construction contract is comprised of two interdependent Capital Improvement Projects
(CIP).
The two projects have overlapping work areas and design functionality, interdependent
operational impacts, and share 2024 schedule milestones. They both encompass airfield
pavement and utility infrastructure scope. As such they were planned, designed, and phased to
be delivered concurrently for purposes of Airfield safety, efficiency, and minimization of
operational impacts. The purpose of each CIP is summarized below:
• C800930: The 2021-2025 Airfield Pavement and Supporting Infrastructure Replacement
Program (APSIRP) replaces distressed airfield pavements, joint sealant, and supporting
infrastructure at SEA. The APSIRP portion of 2024 Airfield Projects–Contract 2 includes
Concourse A channel drain replacement, N Concourse channel drain and fire hydrant
vault cover replacement, and miscellaneous airfield pavement replacement (Taxiway B,
Taxiway C, Taxilane W, N Concourse Taxilane, and A Concourse apron).
COMMISSION AGENDA – Action Item No. 10a Page 2 of 9
Meeting Date: March 12, 2024
Template revised June 27, 2019 (Diversity in Contracting).
• C801333: The N14 Wide-Body (WB) and N15 Narrow-Body (NB) Common Use Gates
Program converts Gate N14 to be able to be used for NB and WB aircraft operations to
accommodate gate closures that will be taken out of service because of upcoming
planned construction projects.
JUSTIFICATION
The two projects being delivered via 2024 Airfield Projects–Contract 2 consist of physically and
functionally interdependent Capital Improvements designed to renew and replace failing
infrastructure, ensure continued operational safety and efficiency, and meet Seattle-Tacoma
International Airport (SEA) regulatory requirements.
Diversity in Contracting
The project staff, in coordination with the Diversity in Contracting Department, have set a 14%
Woman and Minority Business Enterprise (WMBE) aspirational goal.
DETAILS
These projects will interface with other projects and airline operations. Continual coordination
with Airport Operations, the FAA, 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.
Scope of Work
The 2021-2025 APSIRP replaces distressed airfield pavements, joint sealant, and supporting
infrastructure at the Airport. The APSIRP portion of 2024 Airfield Projects–Contract 2 includes
the following:
(1) Concourse A channel drain replacement
(2) N Concourse channel drain replacement.
(3) N Concourse fire hydrant vault cover replacements at Gates N13 and N15, and
(4) Miscellaneous airfield pavement replacement.
a. Taxiway B.
b. Taxiway C.
c. Taxilane W.
d. N Concourse Taxilane.
e. A Concourse apron.
COMMISSION AGENDA – Action Item No. 10a Page 3 of 9
Meeting Date: March 12, 2024
Template revised June 27, 2019 (Diversity in Contracting).
The N14 WB and N15 NB Common Use Gates Program modifies Gate N14 to be used for WB
aircraft operations to accommodate gate closures that will be taken out of service because of
upcoming planned construction projects. The N14 WB and N15 NB Common Use Gates portion
of 2024 Airfield Projects–Contract 2 includes the following:
(1) Apron pavement replacement at Gates N14, N15, and N16.
(2) Supplemental High Mast lighting installation at Gate N14.
(3) PCAir unit for WB aircraft at Gate N14.
(4) 400 Hz power unit for WB aircraft at Gate N14.
(5) SafeDock aircraft guidance system unit for WB aircraft at Gate N14.
(6) Airfield markings (striping) at Gates N14, N15, and N16.
(7) Fuel hydrant pits and associated infrastructure.
a. Two at Gate N14.
b. One at Gate N16.
Schedule
Activity
Construction Contract #
Contract #2
Construction start
2024 Quarter 3
In-use date
2025 Quarter 2
Cost Breakdown
This Request
Total Project
2021-2025 Airfield Pavement and Supporting Infrastructure Replacement Prog. (C800930)
Design
$0
$16,000,000
Construction
$7,864,000
$164,270,000
Total
$7,864,000
$180,270,000
N14 WB and N15 NB Common Use Gates (C801333)
Design
$0
$1,670,000
Construction
$5,210,500
$7,710,500
Total
$5,210,500
$9,380,500
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Proceed only with C800930 APSIRP scope. Do not proceed with the C801333
N14 WB and N15 NB Common Use Gates Program scope.
Cost Implications: $7,864,000 in Capital Cost for 2024 Airfield Pavement and Supporting
infrastructure Replacement Project.
Pros:
(1) Reduced capital spending in 2024 and 2025.
(2) Less complexity for budget tracking during construction.
(3) Gates N13 and N16 operations continue without interruption.
(4) Distressed airfield pavement will be replaced.
COMMISSION AGENDA – Action Item No. 10a Page 4 of 9
Meeting Date: March 12, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Cons:
(1) Gate N14 not fully capable to accommodate WB aircraft.
(2) No hydrant fueling capability for current interim WB aircraft position at Gate N14.
(3) Gate N16 not fully capable to accommodate WB aircraft.
(4) Slower WB aircraft turns due to slower fueling operations at Gate N16.
(5) Loss of fuel system redundancy in the event existing FHP at Gate N16 requires
maintenance or in the event of aircraft maintenance on the port side of the WB
aircraft at Gate N16.
This is not the recommended alternative.
Alternative 2 – Proceed only with C801333 N14 WB and N15 NB Common Use Gates scope. Do
not proceed with the C800930 APSIRP scope.
Cost Implications: $7,710,500 in Capital Cost for N14 WB and N15 NB Common Use Gates
project.
Pros:
(1) Reduced capital spending in 2024.
(2) Less complexity for budget tracking during construction.
(3) Less construction impacts to airport/airline operations in 2024.
(4) Gate N14 fully capable of accommodating WB aircraft.
(5) Gate N16 fully capable of accommodating WB aircraft.
(6) Meet current airport operational demand.
(7) Help mitigate the impacts of WB aircraft gate outages during planned construction.
Cons:
(1) Risk of airfield pavement failure at multiple locations:
o Taxiway B.
o Taxiway C.
o Taxilane W.
o N Concourse Taxiway.
o A Concourse apron.
(2) Risk of failure of IWS and catch basins.
(3) Risk of failure of fire hydrant vault lids.
(4) Deferred resiliency improvements to Industrial Wastewater System (IWS) at Gate A3.
This is not the recommended alternative.
COMMISSION AGENDA – Action Item No. 10a Page 5 of 9
Meeting Date: March 12, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Alternative 3 – Construct each individual project with separate construction contracts.
Cost Implications: $16,363,000 in total Capital Cost to deliver the projects via two major
construction contracts, $788,500 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) Reduced efficiencies and potential rework due to overlapping projects/contractors.
(2) Additional labor costs for contractor on-boarding and mobilizations, double-project
ramp up and close out.
(3) Increased coordination required between overlapping projects/contractors.
(4) Increased construction safety risk due to overlapping projects/contractors.
(5) Additional and recurring impacts to airfield operations until all efforts are completed.
(6) Additional Phasing Required.
This is not the recommended alternative.
Alternative 4 – Move forward to construct both projects as a single coordinated effort.
Cost Implications: $15,574,500.
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.
(3) Programmatic replacement of aged and distressed pavements and related
infrastructures.
(4) Gates N14 and N16 fully capable of accommodating WB aircraft.
(5) Meet current airport operational demand.
(6) Help mitigate the impacts of WB aircraft gate outages during planned construction.
Cons:
(1) Earlier capital spending in 2024 and 2025.
This is the recommended alternative.
COMMISSION AGENDA – Action Item No. 10a Page 6 of 9
Meeting Date: March 12, 2024
Template revised June 27, 2019 (Diversity in Contracting).
FINANCIAL IMPLICATIONS
2021-2025 Airfield Pavement and Supporting Infrastructure Replacement Program (C800930)
Cost Estimate/Authorization Summary
Cost Estimate
Capital
Expense
Total
COST ESTIMATE
Original estimate
$155,740,000
$560,000
$156,300,000
Previous changes – net
$23,970,000
$0
$23,970,000
Revised estimate
$179,710,000
$560,000
$180,270,000
AUTHORIZATION
Previous authorizations
$145,682,000
$360,000
$149,159,641
Transfer from C801177 AF Utility
$3,117,641
$0
$3,117,641
Current request for authorization
$7,864,000
$0
$7,864,000
Total authorizations, including this request
$156,663,641
$360,000
$157,023,641
Remaining amount to be authorized
$23,046,359
$200,000
$23,246,359
N14 WB and N15 NB Common Use Gates (C801333)
Cost Estimate/Authorization Summary
Cost Estimate
Capital
Expense
Total
COST ESTIMATE
Original estimate
$9,380,500
$0
$9,380,500
Previous changes – net
$0
$0
$0
Revised estimate
$9,380,500
$0
$9,380,500
AUTHORIZATION
Previous authorizations
$4,170,000
$0
$4,170,000
Current request for authorization
$5,210,500
$0
$5,210,500
Total authorizations, including this request
$9,380,500
$0
$9,380,500
Remaining amount to be authorized
$0
$0
$0
COMMISSION AGENDA – Action Item No. 10a Page 7 of 9
Meeting Date: March 12, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Annual Budget Status and Source of Funds
2021-2025 Airfield Pavement and Supporting Infrastructure Replacement Program
(CIP C800930)
This project was included in the 2024-2028 capital budget and plan of finance with a
budget of $159,467,559. The capital increase of $20,242,441 was transferred from the
Aeronautical Allowance
1
CIP C800753 resulting in no net change to the Airport capital
budget. This project has a Majority-In-Interest approval from the airlines in January
2020. The funding sources will be the Airport Development Fund, AIP grants, and
revenue bonds. The capital project C800930 receives federal grant funding for eligible
items meeting FAA standards with an anticipated FAA grant reimbursement of
$8,000,000 for the year 2024 and a total of $50,000,000 expected for the life of the
program.
N14 WB and N15 NB Common Use Gates (CIP C801333)
This project was included in the 2024-2028 capital budget and plan of finance with a
budget of $9,380,500. The funding sources would be the Airport Development Fund and
existing Airport Revenue Bonds.
Financial Analysis and Summary
C800930 2021-2025 Airfield Pavement and Supporting Infrastructure Replacement Program
Project cost for analysis
$180,270,000
Business Unit (BU)
Airfield movement and Airfield Apron 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
Total project cost CPE of $0.43 in 2026; annual CPE of
$0.12
C801333 N14 WB and N15 NB Common Use Gates
Project cost for analysis
$9,380,500
Business Unit (BU)
Gates
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
$0.03 in 2026
1
The Aeronautical Allowance is included in the Capital Improvement Plan to ensure funding capacity for
unspecified projects, cost increases for existing projects, new initiatives, and unforeseen needs. This ensures funding
capacity for unanticipated spending within the dollar amount of the Allowance CIP.
COMMISSION AGENDA – Action Item No. 10a Page 8 of 9
Meeting Date: March 12, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Future Revenues and Expenses (Total cost of ownership)
2021-2025 Airfield Pavement and Supporting Infrastructure Replacement Program (CIP
C800930).
The AIP project will not have an impact on annual Aviation Maintenance Operating and
Maintenance (O&M) costs for the pavement assets. This project may lead to a reduction in
the amount of time currently spent by the Port Maintenance team on joint seal and
pavement spall repairs. After implementing the project, the improved portions of the
pavement will have a renewed 40-year asset life and a greatly reduced risk of the pavement
producing loose gravel and rock Foreign Object Debris (“FOD”) that could be picked up by
vehicle tires or blown by jet engine exhaust and spread across the apron, taxiways, and
runways.
N14 WB and N15 NB Common Use Gates (CIP C801333).
An increase in annual operating & maintenance (O&M) costs is anticipated as a result of this
project providing additional infrastructure to support larger aircraft activity. This will
primarily affect the Electronic Technicians, with having an additional SafeDock unit,
boarding gate readers, cameras, access controls and common use equipment to maintain in
support of widebody operations. This will result in an annual increase of approximately 240
labor hours for Electronic Technicians.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides.
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
2021-2025 Airfield Pavement and Supporting Infrastructure Replacement Program (CIP
C800930).
October 24, 2023 – The Commission authorized for the Executive Director to (1) advertise
and execute a construction contract for 2024 Airfield Projects - Contract 1; (2) transfer
budget/authorization, as necessary, between the 2024 Airfield Projects; (3) transfer
budget/authorization for Gate B11 Passenger Loading Bridge (PLB) civil foundation from CIP
C801180 PLB Phase 3 Project to CIP C800930 2021-2025 Airfield Pavement and Supporting
Infrastructure Replacement Program; (4) procure long lead items; (5) include a Project Labor
Agreement for the contract; and (6) authorize use of Port crews for abatement work. 2024
Airfield Projects – Contract 1 encompasses federally funded pavement and utility
infrastructure. The amount of this authorization request is $50,500,000.
COMMISSION AGENDA – Action Item No. 10a Page 9 of 9
Meeting Date: March 12, 2024
Template revised June 27, 2019 (Diversity in Contracting).
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
Project Labor Agreement for both contracts; (4) authorize use of Port crews for abatement
work. The amount of this authorization request is $67,153,000. The total estimated cost for
all projects included in this authorization is $255,945,000.
November 16, 2021 - The Commission authorized the Executive Director to (1) advertise and
execute a major works construction contract and (2) include a Project Labor Agreement for
the 2022 Airfield Pavement and Supporting Infrastructure Replacement Project, at the
Seattle-Tacoma International Airport. This authorization is for $24,000,000 with a total
authorized to date of $79,195,000 and a previously approved total 2021-2025 program
budget of $153,500,000.
August 10, 2021 – The Commission authorized the Executive Director to advertise and award
a major public works contract to replace the North Runway Protection Zone Culvert (NRPZ
Culvert), a year 2022 component of the 2021 to 2025 Airfield Pavement and Supporting
Infrastructure Replacement Program. This construction authorization is for $3,800,000 for a
total program authorization to date of $55,195,000. The total 2021-2025 program cost is
$153,500,000.
November 10, 2020 – The Commission authorized the Executive Director to (1) advertise and
execute a major works construction contract and (2) include a project labor agreement for
the replacement of distressed pavements and supporting infrastructure for the 2021 portion
of the 2021-2025 Airfield Pavement and Supporting Infrastructure Replacement Program at
the Seattle-Tacoma International Airport. This construction authorization is for $37,900,000
for a total authorization to date of $51,395,000. The total 2021-2025 program cost is
$153,500,000.
October 22, 2019 – The Commission authorized the Executive Director to authorize design
and preparation of construction documents for the 2021-2025 Airfield Pavement and
Supporting Infrastructure Replacement Projects at the Seattle-Tacoma International Airport
in the amount of $16,000,000 and approve the use of a project labor agreement (PLA) for
each year’s construction contract.
N14 WB and N15 NB Common Use Gates (CIP C801333)
August 8, 2023 – The Commission authorized the Executive Director to complete final
design, prepare construction bid documents, and procure long-lead material items for the
N14 Wide Body and N15 Narrow Body Common-Use Gates at Seattle-Tacoma International
Airport (SEA). The amount of this authorization request was $3,875,000 for a total
authorization of $4,170,000.
