Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
10c
ACTION ITEM
Date of Meeting
May 14, 2024
DATE: May 7, 2024
TO: Stephen P. Metruck, Executive Director
FROM: Keri Stephens, Director, Aviation Facilities and Capital Programs
Eileen Francisco, Director, Aviation Project Management
SUBJECT: S Concourse Evolution Facilitating Projects Design Authorization (CIP #801203)
Amount of this request:
$25M
Total estimated project cost:
$1.9B-2.2B
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) Prepare design and
construction bid packages for S Concourse facilitating projects, (2) Procure long-lead items, (3)
Utilize Port crews for design support, (4) execute an alternative delivery contract, and (5) Increase
the project authorization by $25,000,000 for a total project authorization to date of
$127,500,000.
The total estimated S Concourse Program cost range is $1.9B to $2.2B.
EXECUTIVE SUMMARY
The S Concourse Evolution (SCE) project extends the useful life of the S Concourse, located at
Seattle-Tacoma International Airport (SEA), by upgrading structural, seismic, and all building
systems, meeting required building codes. This project also enhances the customer experience
by renovating and modernizing the existing S Concourse. A multi-phased construction approach,
combined with facilitating projects will address and mitigate the impact that S Concourse
construction will have on passengers, airlines, and airport operations. These facilitating projects
directly offset gate and holdroom capacity lost at the S Concourse during construction through
short-term improvements at multiple locations around SEA.
This project does not increase the number of gates or increase the overall capacity at SEA.
COMMISSION AGENDA – Action Item No. 10c Page 2 of 7
Meeting Date: May 14, 2024
Template revised June 27, 2019 (Diversity in Contracting).
JUSTIFICATION
The S Concourse facility is over 50-years old and is need of seismic, code, and passenger
experience upgrades. The SCE project will renew this important regional facility through its two-
tiered project objectives:
• To extend the useful life and meet current code including Structural/Seismic Upgrades
• To re-purpose space left vacant from services moved to the International Arrivals Facility
(IAF) and enhance passenger experience, including Increased passenger amenities/level
of service and increased airport dining and retail (ADR) opportunities.
During the initial Commission authorization for SCE design and project management support, the
project team communicated that they would come back to Commission on how to address the
project’s operational and passenger impacts during construction. The initial approach to project
phasing indicated that the necessary gate and holdroom outages during construction would
greatly impact aircraft operations, resulting in between 50 and 70 flights without a gate
assignment or parking position at SEA during the airport’s busiest days.
Working with airlines at SEA as well as Operations, Customer Experience, Security and other
stakeholders, the project team developed a comprehensive plan to address the construction
impacts during the SCE project. The result is a unique multi-phase approach that accomplishes
the exterior seismic upgrades while limiting gate closures during any given project phase. This
phasing approach is paired with facilitating projects at other SEA locations that temporarily
accommodate the displaced flights. These facilitating projects are described fully in the details
section below and include a short-term holdroom facility to replace holdrooms eliminated at S
Concourse during construction, improvements at hardstand locations for passenger operations,
and converting an existing bussing gate back to a gate served by a loading bridge.
Developing the planned approach to construction outages and passenger impacts took into
consideration a variety of competing factors including performance in offsetting project impacts,
cost, schedule, customer experience, airline support, and compatibility with SEA’s facility
planning objectives.
Diversity in Contracting
The SCE project designer has a DBE requirement of 12%, the project management and controls
contract has a WMBE requirement of 26%, and the two existing IDIQ contracts anticipated to be
used in support of the facilitating projects have existing WMBE requirements of 24% and 27%
which the project team will ensure is met.
DETAILS
The SCE project will extend the useful life of the building to support airport operations for
another 50 years by modernizing the facility. The phasing will occur such that no more than three
(3) positions for large international aircraft at S Concourse will be closed at a time. The facilitating
COMMISSION AGENDA – Action Item No. 10c Page 3 of 7
Meeting Date: May 14, 2024
Template revised June 27, 2019 (Diversity in Contracting).
projects will be short-term projects to support operations during SCE construction, utilize existing
airport infrastructure when available, and are not permanent.
Scope of Work
S Concourse
• Perform structural and seismic upgrades to meet code requirements.
• Upgrade mechanical, electrical, plumbing, and communications systems.
• Upgrade utilities inside and outside the building.
• Install smoke control system to meet code.
• Perform environmental and sustainability upgrades.
• Ensure building meets ADA compliance.
• Provide increased ADR opportunities.
• Increase passenger amenities and level of service with additional restrooms, nursing
suite, children’s play area, and sensory room.
Cargo 7 Hardstand and Short-Term Holdroom
• Construct short-term holdroom serving aircraft hardstanding at Cargo 7 (holdroom
includes bathrooms, seating, modest dining and retail, and employee breakroom, to
replace facilities lost to construction in S Concourse).
• Utility Modifications.
• Additional Security and Lighting per Code.
• Holdroom will be removed at the completion of the SCE project.
Cargo 6 Hardstand
• Re-purpose existing hardstand for passenger operations:
o Utility Modifications.
o Additional Security and Lighting per Code.
o Apron pavement replacement as required.
Cargo 3 Ground Support Equipment (GSE) Storage Area
• Re-purpose an existing parking area for storage of GSE during SCE project:
o Modify Perimeter Fencing.
o Additional Cameras and Lights to support employee shuttles, bus parking and GSE
storage.
Gate D6 Passenger Loading Bridge (PLB) Conversion
• Restore a gate currently configured for over-ramp bussing back to an aircraft contact gate:
o Remove existing D6 passenger ramp and bus parking and install a passenger
loading bridge.
o Modify adjacent passenger loading bridges as needed to support the D6
conversion.
COMMISSION AGENDA – Action Item No. 10c Page 4 of 7
Meeting Date: May 14, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Supporting Equipment
• Procurement of long-lead infrastructure and equipment (e.g., 400 Hz gate box, electrical
panels, pre-conditioned air unit).
• Procurement of GSE to support passenger and employee operations at hardstands during
SCE construction (e.g., staff shuttles, busses, aircraft boarding ramps, aircraft GSE).
Schedule
The near-term focus will be on starting design for the facilitating projects and continuing with the
S Concourse design.
Activity
Q4 2022
Q2 2024
Q1 2024
Q2 2024
Q1 2025
Q2 2025
Q3 2025
Q4 2025
Q1 2028
Q3 2033
Cost Breakdown
This Request
Total Project
Design
$25M
$200M
Construction
$0
$1.7B-$2.0B
Total
$25M
$1.9B-$2.2B
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Utilize a standard two-phase concourse renovation approach without
implementing facilitating projects at other SEA locations.
Cost Implications: $1.4-1.7B.
Pros:
(1) Shortest construction timeline.
(2) Smaller capital investment.
COMMISSION AGENDA – Action Item No. 10c Page 5 of 7
Meeting Date: May 14, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Cons:
(1) Reduced airport and airline operational flexibility.
(2) Large impact to customer experience.
(3) Several significant operational constraints to passengers, airlines, and employees.
This is the NOT the preferred alternative.
Alternative 2 –Perform S Concourse renovation in up to five phases, and construct facilitating
projects at other SEA locations including short-term improvements to Cargo Hardstands 3, 6, and
7, and restore Gate D6 to a contact gate position.
Cost Implications: $1.9B-$2.2B.
Pros:
(1) Maintain airport operation flexibility with available gates per scheduled operations.
(2) Improved customer experience, especially for hardstand operations.
(3) Improved efficiency and operational continuity for passengers, employees, and airlines.
Cons:
(1) Highest Capital Investment.
(2) Extends S Concourse construction duration 2 years.
This is the Preferred alternative.
FINANCIAL IMPLICATIONS
The current estimate range is expected to be $1.9-2.2B.
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$1B
$0
$1B
Previous changes – net
$370M
$0
$370M
Current change
$500M
$0
$500M
Revised estimate
$1.9B - $2.2B
$0
$1.9B - $2.2B
AUTHORIZATION
Previous authorizations
$102,750,000
$0
$102,750,000
Current request for authorization
$25,000,000
$0
$25,000,000
Total authorizations, including this
request
$127,750,000
$0
$127,750,000
Remaining amount to be authorized
TBD
$0
TBD
Annual Budget Status and Source of Funds
This project, CIP C801203, was included in the 2024-2028 capital budget and plan of finance with
a budget of $1,370,000,000. A budget increase of $500,000,000 was transferred from the
Aeronautical Reserve CIP (C800753) resulting in zero net change to the Aviation capital budget.
COMMISSION AGENDA – Action Item No. 10c Page 6 of 7
Meeting Date: May 14, 2024
Template revised June 27, 2019 (Diversity in Contracting).
The funding sources would be revenue bonds, Airport Development Fund (ADF), the Bipartisan
Infrastructure Law (BIL) grant funding through the FAA-AIP program, and future Passenger
Facility Charge.
Financial Analysis and Summary
Business Unit (BU)
Terminal Building
Terminal Building
Project cost for analysis
$1.9B
$2.2B
Infrastructure grants
$225M
$225M
NPV incremental to Base
$(223M)
$(339.5M)
Non-aero net cashflow in 2034
$(16.7M)
$(23.4M)
Incremental Terminal Rental Rate
$74.84
$88.20
CPE Impact in 2034
$3.73
$4.40
Future Revenues and Expenses (Total cost of ownership)
The cost savings of keeping the current terminal operational would likely present no long-term
savings even with discounting the risk of a potential catastrophic failure; the terminal is still in
need of upgrades driven by code and safety. Balancing the deferral of these costs against the
structural, seismic, and operational needs of the terminal is not recommended.
ADDITIONAL BACKGROUND
The S Concourse (originally referred to as South Satellite) at SEA opened in 1973. The building
has not been updated to meet current building codes for seismic restraint, includes infrastructure
past useful service life, and has been limited by code authorities from any further development
due to code deficiencies. The building systems and materials are aging and are difficult/costly to
replace and maintain.  The building also contains areas of encapsulated regulated materials, such
as asbestos, which further complicates maintenance, renovation, and replacement. Since the S
Concourse was constructed, passenger volumes and aircraft operations have increased
dramatically, security regulations have expanded, passenger level of service expectations have
evolved, and airlines and retailers have changed their marketing strategies.  Recently, the S
Concourse was connected directly to the new International Arrivals Facility (IAF) across the taxi
lane separating it via an above ground pedestrian walkway. The S concourse evolution project
will better accommodate current passenger volumes and improved level of service for
passengers and create a continuity of design from the IAF and walkway to the S concourse with
a seamless terminal aesthetic.
ATTACHMENTS TO THIS REQUEST
(1) Presentation
COMMISSION AGENDA – Action Item No. 10c Page 7 of 7
Meeting Date: May 14, 2024
Template revised June 27, 2019 (Diversity in Contracting).
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
October 22, 2022 – The Commission authorized to procure a Designer, GC/CM, Project
Management/Controls Support, and Commissioning Agent for SCE.
September 27, 2022 - The Commission was briefed on S Concourse Evolution and project
status.
April 13, 2021 – The Commission was briefed on SSAT Renovation Renewal PDD.