COMMISSION AGENDA MEMORANDUM Item No. ACTION ITEM Date of Meeting DATE: January 30, 2025 TO: Stephen P. Metruck, Executive Director FROM: Laurel Dunphy, Director, Aviation Operations Eileen Francisco, Director, Aviation Project Management 8g February 11, 2025 SUBJECT: Virtual Ramp Tower Design Authorization (C802009) Amount of this request: Total estimated project cost: $15,000,000 $29,100,000-$40,000,000 ACTION REQUESTED Request Commission authorization for the Executive Director to (1) authorize design and preparation of construction documents for the Virtual Ramp Tower; (2) execute a contract with Saab, inc. for equipment and services and (3) use of Port of Seattle crews to support design and construction activities. This request is for $15 million of a total estimated project cost of $29.1 to $40 million. EXECUTIVE SUMMARY The Ramp Tower at Seattle-Tacoma International Airport (Airport) directs aircraft movement between the gates and cargo areas to the FAA's airfield movement area. This is a critical component of Port of Seattle Airport operations. This project will be creating a Virtual Ramp Tower (VRT) for the Airport, which will help to ensure safe and efficient operations for the Airport. A VRT replaces the physical tower where controllers use line-of-sight to view ramp traffic with a series of sophisticated cameras that show an improved panoramic view on multiple displays. The VRT will provide the controllers with critical visibility and will integrate with the Surface Area Management System to improve situational awareness and efficiency. This request is for design authorization, as well as contracting authorization with a sole source manufacturer for equipment and services. JUSTIFICATION The Airport is the 12th busiest airport in North America, with an average of over 1,100 operations a day. Critical to these operations is the movement of aircraft to and from the gates and cargo facilities. At the Airport there are two towers responsible for this coordination, the Federal Aviation Administration's Air Traffic Control (ATC) Tower and the Seattle Ramp Tower. The ATC Template revised January 10, 2019. COMMISSION AGENDA - Action Item No. 8g Meeting Date: February 11, 2025 Page 2 of 5 is responsible for aircraft in the movement area, primarily comprised of the airspace, runways, and interconnected taxiways. The Airport's ramp tower directs aircraft movement in the ramp and cargo areas. This includes aircraft arriving to a gate, leaving a gate, and towing operations to different gate or hanger locations. The footprint of the Airport is significantly smaller than most large hub airports, which adds complexity to moving aircraft. Any issue with moving an aircraft can create a cascading effect that creates multiple impacts to other airlines and passengers. The Airport has successfully implemented software solutions to help mitigate risks and increase efficiency in operations through the Surface Area Management System (SAMS). The Virtual Ramp Tower will leverage and integrate with SAMS to provide an efficient and safer operation at the Airport. In addition to the complexities of operations at the Airport, the existing ramp tower is space constrained with limited visibility to the North due to the obstruction of the new C Concourse Expansion (CCE) Building. Currently, the north view uses temporary cameras that are not integrated into any existing software through the construction of CCE. The completed CCE building will include a supplemental ramp tower to monitor views blocked by the structure. This configuration results in a split ramp tower operation which is less efficient and undesirable. This project will be creating a virtual ramp tower by installing camera arrays on the north and south side of the Airport and building out an office space for the controllers to manage aircraft operations in the ramp and cargo areas of the Airport. This will allow for an expanded location that can accommodate more visual feeds and support multiple controllers in a single location. This solution will also add flexibility to support increases in aircraft activity. The virtual ramp tower will integrate with existing systems and data feeds to create more efficient and safer operations, such as using infrared cameras to be able to see planes in low visibility conditions. Virtual ramp towers are used at several U.S. airports including George Bush Intercontinental Airport, Kansas City International Airport, and Fort Lauderdale-Hollywood International Airport. Diversity in Contracting Project is using Indefinite Delivery, Indefinite Quantity (IDIQ) contracts for design with a 16 percent WMBE goal. DETAILS This project will install 2 camera arrays, one on the north end and one on the south end of the Airport with dedicated mechanical rooms. Supplemental cameras will be used to provide additional views. In addition, this project will build out office space for the Virtual Ramp Tower including a manager's office, break space, and training room. This work includes: communication and electrical infrastructure, mechanical improvements, and structural work. These systems will need to be connected to back-up power. An existing competition waiver is in place for the use of the manufacturer Saab, who is the manufacturer for the existing ramp monitoring software. Scope of Work (1) Install and commission Camera arrays and associated equipment; Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 8g Meeting Date: February 11, 2025 (2) (3) (4) (5) Page 3 of 5 Equipment room build out for each camera array; Supplemental cameras; Office space build-out; and All other work required to provide a Virtual Ramp Tower for Seattle-Tacoma International Airport. Schedule Activity Commission design authorization Design start Commission construction authorization Construction start In-use date 2025 Quarter 1 2025 Quarter 2 2026 Quarter 2 2026 Quarter 3 2028 Quarter 4 Cost Breakdown This Request Total Project Design Construction Total $4,600,000 $10,400,000 $15,000,000 $5,820,000 $23,280,000 $29,100,000 ALTERNATIVES AND IMPLICATIONS CONSIDERED Alternative 1 - Use the existing ramp tower with a second location in the new Concourse C Expansion building creating a split operation. Cost Implications: Expense $15,000 spent to date Pros: (1) Cons: (1) (2) (3) (4) (5) Does not require additional capital spending outside of CCE No additional camera views will be added Requires additional controllers to operate the second location, which increases expense costs for the Airport Adds additional complexity when coordinating between Ramp and ATC Tower Does not allow for leveraging existing software for improved efficiency Space constraints do not allow for flexibility to support increasing flight activity This is not the recommended alternative. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 8g Meeting Date: February 11, 2025 Page 4 of 5 Alternative 2 - Build out the North Tower Array with a virtual ramp tower room. New room will coordinate with existing Ramp Tower viewing the South Ramp area. Cost Implications: $18,000,000 - $25,000,000 Pros: (1) (2) Cons: (1) (2) (3) (4) Provides clear sight lines for the North part of the airfield Allows for integration with the existing systems for north operations Requires additional controllers to operate the second location, which increases operational expense costs Does not allow for integration with existing software for the south operations Requires significant capital expenditure Adds additional complexity when coordinating between Ramp and ATC Tower This is not the recommended alternative. Alternative 3 - Build a virtual ramp tower with two camera arrays and supplemental cameras that integrates into the existing ramp tower systems. Cost Implications: $29.1-$40 million Pros: (1) (2) (3) (4) (5) Provides a central location for ramp operations Allows for integration with existing software to create efficient operations Provides clear views to the north and south Lowest operational expense cost of the 3 alternatives Adds flexibility for increased aircraft activity Cons: (1) Requires capital expenditure This is the recommended alternative. FINANCIAL IMPLICATIONS Cost Estimate/Authorization Summary Capital Expense Total COST ESTIMATE Original estimate $29,100,000 $0 $29,100,000 AUTHORIZATION Previous authorizations Current request for authorization Total authorizations, including this request Remaining amount to be authorized $50,000 $15,000,000 $15,050,000 $14,050,000 0 0 0 $0 $50,000 $15,000,000 $15,050,000 $14,050,000 Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 8g Meeting Date: February 11, 2025 Page 5 of 5 Annual Budget Status and Source of Funds This project (C802009) was not included in the 2025-2029 capital budget and plan of finance. A budget of $29,100,000 was transferred from the Aeronautical Allowance 1 CIP C800753 resulting in zero net change to the Aviation capital budget. The funding sources will be revenue bonds. Financial Analysis and Summary Project cost for analysis Business Unit (BU) Effect on business performance (NOI after depreciation) IRR/NPV (if relevant) CPE Impact $29,100,000 Airfield Movement Area NOI after depreciation will increase due to inclusion of capital (and operating) costs in airline rate base. N/A $0.11 in 2029 Future Revenues and Expenses (Total cost of ownership) Recurring licensing and maintenance fees, estimated at <$500,000> annually will be budgeted in the Aviation Operations operating budget starting in 2027 or 2028, depending on system deployment schedule ATTACHMENTS TO THIS REQUEST (1) Presentation slides PREVIOUS COMMISSION ACTIONS OR BRIEFINGS None 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. Template revised June 27, 2019 (Diversity in Contracting).