Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No. 8e
ACTION ITEM Date of Meeting October 22, 2024
DATE : October 4, 2024
TO: Stephen P. Metruck, Executive Director
FROM: Laurel Dunphy, Director Aviation Operations
Krista Sadler, Director Technology Delivery
SUBJECT: SEA Ramp Tower Voice Communication System Project Increase (CIP #801404)
Amount of this request: $470,000
Total estimated project cost:
$2,220,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to increase the project budget by
$470,000 for a new total project cost of $2,220,000.
EXECUTIVE SUMMARY
The Ramp Tower Voice Communication System (VCS) Refresh project was authorized through
Executive Director Delegation in November 2023. The VCS is used by the Seattle Tacoma
International Airport (SEA) Ramp Tower to facilitate constant communication between SEA Ramp
Controllers, FAA Controllers, Pilots, and Ground Support during ramp operations. The
authorization included a capital project of $1,300,000 to replace the current, end-of-life VCS and
a ten-year maintenance contract for the system in the amount of $450,000.
During design, additional construction complexity was identified that impacted the Port
Construction Services (PCS) estimate. While scope has not changed for this project, an additional
$470,000 is required to complete the project. This increases the capital project budget from
$1,300,000 to $1,770,000. With the authorized maintenance agreement, total project costs are
estimated at $2,220,000.
JUSTIFICATION
SEA’s current Ramp Tower VCS, purchased in 2007, is at end-of-life, is no longer supported by the
vendor, and replacement parts are unavailable. Emergency backup for a VCS failure at one of our
two controller positions is not sustainable for long-term safe and efficient operations. The VCS
system is a critical technology component for ramp tower operations.
Diversity in Contracting
COMMISSION AGENDA – Action Item No. 8e Page 2 of 4
Meeting Date: October 22, 2024
Template revised June 27, 2019 (Diversity in Contracting).
PCS will work with the Diversity in Contracting department to identify potential women-and-
minority-owned business enterprise (WMBE) aspirational goals are a potential.
DETAILS
Scope of Work
The scope of work, detailed below, has not changed from the original authorization.
(1) Purchase and install the Frequentis Voice Communication System in the SEA Ramp
Tower.
(2) Move infrastructure equipment from Ramp Tower to secure and environmentally
appropriate communication room.
(3) Update antennas used for the VHS radios.
Schedule
Activity
Executive Director Authorization 2023 Quarter 4
Design start 2024 Quarter 1
Construction start 2024 Quarter 4
In-use date 2025 Quarter 1
Capital Project Cost Breakdown This Request
Total Project
Design $70,000
$102,000
Construction $400,000
$760,000
Technology $0
$908,000
Total $470,000
$1,770,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
The alternative presented below relates to the change request presented for authorization.
Alternative 1 – Remove from scope the installation of infrastructure equipment in a security
communication room.
Cost Implications: This alternative results in project cost savings of $182,000.
Pros:
(1) Funds are available for other efforts.
Cons:
(1) Infrastructure equipment remains in a location without appropriate security and
environmental protections for a critical system.
(2) Design changes would result in a schedule delay of 4-6 months.
COMMISSION AGENDA – Action Item No. 8e Page 3 of 4
Meeting Date: October 22, 2024
Template revised June 27, 2019 (Diversity in Contracting).
(3) During deployment, the SEA Ramp Tower would be without a VCS for several days
because there is not enough room in the ramp tower closet to install both systems in
parallel forcing operations to use backup procedures. This will significantly impact
safety and efficiency during the outage.
This is not the recommended alternative.
Alternative 2 – Authorize the additional funding for the current scope.
Cost Implications: $470,000 increase in capital project budget
Pros:
(1) Infrastructure equipment is located in a secure environment with environmental
protections.
(2) System can be deployed in parallel with current system, resulting in no disruption of
service for voice communications.
Cons:
(1) Additional funds are required to complete the project.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate
/Authorization Summary Capital
Expense
Total
COST ESTIMATE
Original estimate $1,300,000
$450,000
$1,750,000
Current change $470,000
$0
$470,000
Revised estimate $1,770,000
$450,000
$2,220,000
AUTHORIZATION
Previous authorizations $1,300,000
$450,000
$1,750,000
Current request for authorization $470,000
$0
$470,000
Total authorizations, including this request $1,770,000
$450,000
$2,220,000
Remaining amount to be authorized $0
$0
$0
Annual Budget Status and Source of Funds
The Ramp Tower Voice Communication System Refresh Project is not included in the 2024-2028
capital budget and plan of finance. The capital budget of $1,770,000 will be transferred from the
Aeronautical Allowance, C800753 resulting in no net change to the Aviation Division capital
budget. The funding source will be the Airport Development Fund.
COMMISSION AGENDA – Action Item No. 8e Page 4 of 4
Meeting Date: October 22, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Financial Analysis and Summary
Project cost for analysis $2,220,000
Business Unit (BU) 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 $0.02 in 2026
Future Revenues and Expenses (Total cost of ownership)
Previously authorized recurring maintenance costs for this system, estimated at $450,000 over
ten years will not change with this authorization. Maintenance costs are budgeted in the Aviation
Maintenance operating budget.
ATTACHMENTS TO THIS REQUEST
None
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None
