Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8f
ACTION ITEM
Date of Meeting
April 28, 2026
DATE : February 28, 2026
TO: Stephen P. Metruck, Executive Director
FROM: Mike Tasker, Director, Aviation Maintenance
Jinah Kim, Assistant Director, Aviation Maintenance
SUBJECT: Airport Custodial Services – Zone 1 – Zone 4
Amount of this request:
$57,500,000
Total estimated project cost:
$57,500,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to
1. Increase existing airport custodial service contract funding by $45 million to meet current
contractual obligations beyond 2026 (Zones 1, 3, & 4)
2. Extend the Zone 2 contract for sixth year to maintain uninterrupted custodial services
during the FIFA World Cup and the opening of the new Concourse C Expansion. An
additional $12.5 million in funding will support continued service in Zone 2 through June
2027.
EXECUTIVE SUMMARY
The requested $57.5 million in Commission funding supports existing contractual obligations
across Zones 1, 3, and 4 and provides for a one-year extension of services in Zone 2. This
extension will ensure continued operations during the FIFA World Cup and maintain cleanliness
in the new Concourse C Expansion. Overall, the funding ensures uninterrupted custodial services
at SEA through contract expiration dates up to 2030.
The existing Commission Authorization of $149.3M across Zones 1 through 4 will be fully utilized
as intended by end of 2026. While current service contracts extend beyond 2026, they are
underfunded. The additional $57.5 million will fulfill contract obligations for Zones 1–4 through
the remainder of their terms.
The service maintains the current performance-based contracting model that supports the Port’s
goals by delivering competitive and industry-leading services while maintaining safe, healthy, and
sustainable Green Cleaning practices. It also preserves labor harmony, WMBE participation, and
COMMISSION AGENDA – Action Item No. 8f Page 2 of 8
Meeting Date: April 28, 2026
Template revised June 27, 2019 (Diversity in Contracting).
promotes strong financial stewardship through carefully evaluating the costs and negotiating for
competitive pricing.
Custodial contracts include expenditure on labor, equipment, consumable supplies, chemicals,
materials, and employee benefits. They also account for cost escalations, including equipment
and supplies, as well as annual cost-of-living adjustments. The contract funds are adjusted to
better reflect actual expenses and align with Washington State’s prevailing wage requirements.
Key cost pressures include:
• Minimum wage increases exceeding 18% since 2022
• Inflation and rising supply costs
• Increased facility square footage (e.g., Concourse C Expansion)
• Contract extension for FIFA World Cup events
JUSTIFICATION
Maintaining clean and well-managed facilities is essential to meeting the Port’s customer
experience standards and advancing its Century Agenda goal of being a leading tourism and
business gateway on the West Coast. Cleanliness is also critical to the health and safety of
employees and the traveling public.
We request additional funding for custodial contracts in four of our five zones to expand services
to include a new facility, increase the period of service, and accommodate rising costs in labor
and materials.
Approval of this request will allow the Port to:
1. Provide uninterrupted custodial service and continuous operations across Zones 1, 3, &
4.
2. Amend existing contract to address cost increases associated with an 8%+ square footage
increase in Zone 2 due to the Concourse C Expansion (CCE), in preparation for its opening
in May 2026
3. Extend the Zone 2 contract to ensure continuous, uninterrupted service through FIFA
World Cup events
The table below outlines the terms of each Zone Contract and the allocation of funds through
2030.
• Each chart indicates the contract’s start and end dates (month and year).
• $45M will fund existing contractual obligations across Zones 1, 3, & 4, covering their
respective terms beyond 2026.
• $12.5M will fund the Zone 2 contract extension through June 2027
COMMISSION AGENDA – Action Item No. 8f Page 3 of 8
Meeting Date: April 28, 2026
Template revised June 27, 2019 (Diversity in Contracting).
Without this approval, custodial services will begin to lapse as early as Q3 2026, limiting SEA’s
ability to support FIFA World Cup operations and resulting in degraded cleanliness. This would
negatively impact on customer experience, public health and safety, and the airport’s reputation.
This request represents a continuity-of-operation need for essential services, not an expansion
of scope. It ensures service delivery for new facilities, including the Concourse C Expansion, and
supports uninterrupted operations through the FIFA World Cup.
This request also addresses rising costs for labor and materials. The funding for Zones 1-4 has
been adjusted and authorized in 2020, and 2023 to account for the gap between pre-approved
Commission funding and the actual costs identified after completion of the RFP process.
Historically, each contract change has been accompanied by a price increase ranging from 16.4%
to 27.6%. The first significant increase occurred in 2019, when passenger volume rose exceeding
10% compared to 2017, the year the implementation of the new custodial service contract
model.
The second increase followed the onset of the COVID-19 pandemic, when supply chain
disruptions and fluctuating demand created pricing uncertainties. Notably, the zone that
experienced the most significant increase at that time is currently operating at a lower rate than
zones procured in more recent years.
Despite these increases, our research from 2024 to 2025 indicates that the Port has continued to
provide services at a competitive annual rate of $11.23 per square foot. This compares favorably
to airports in lower cost-of-living cities with lower passenger volumes. As a point of reference,
SEA’s 2025 Airports Council International (ACI) Airport Service Quality (ASQ) average cleanliness
rating was 3.70.
Contract Timeline
Zone 1
Zone 2
Zone 3
Zone 4
Zone 5
$12.5M $45M
Feb-27
Separate Autority
Jun-26
May-25
2028
2023
Airport 2024 PAX $ per Sqft.
Major Hub in AZ 52.3M $17.27
Major Hub in FL 57.2M $14.10
OH-KY Major Airport 9M $12.21
SEA 52.6M $11.23
COMMISSION AGENDA – Action Item No. 8f Page 4 of 8
Meeting Date: April 28, 2026
Template revised June 27, 2019 (Diversity in Contracting).
When custodial service contracts were procured under a new performance-based model, four
zones were established with an elevated scope of work in 2017, and all contracts commenced
simultaneously on January 1
st
, 2018. Each contract included two base years and three one-year
options, for a total potential term of five years.
Over time, some contracts ended earlier than anticipated due to performance issues and some
were re-competed when new facilities opened. As a result, the zone contracts no longer share
the same start and end dates.
Although each contract is structured for up to a five-year term, the Port tracks and utilizes
cumulative five-year funding across Zones 1 through 4, drawing on these funds until they are
exhausted and requesting additional funding as needed to continue services. Please note that
IAF (Zone 5) is authorized separately under a Commission approval established in 2019, and the
funding and authorization will end in February 2027.
The following factors have contributed to the rising costs over the past nine years.
SEA Factors and Changes to consider since 2017
1)
PAX Increase
15.20%
45,737, 115 in 2017 to 52,670,712 in 2025
2)
Sq.Ft. Increase
32.60%
2,261,654 in 2017 to 2,999,476 by 2022
3)
Hourly Wage
Increase
38.30%
$15.00 to $20.74
4)
Supply
Consumption
Increase
75.26%
$1.94M to $3.4M
5)
Staff Increase
95.00%
Due to Service Demands and Sqft Increase
6)
Elevated Service
Level Agreement
* Customer Experience
* ENV Stewardship / LEED- Green Cleaning & Sustainable
Equipment
* Use of Technology in Audits & Quality Control
* Increase in FOD, Ramp, and Compactor Site Cleaning
* Increased Standards and more defined SOW overall
* Enhanced service standards for Terrazzo Floor Care
* Elevated service levels for carpet and window cleaning
7)
Commission
Directives
* Labor Harmony
* WMBE Goal
8)
Value Contract
Evaluation in multi-criteria analysis places pricing as the final
factor considered
9)
Competition between zones kept the pricing lower than other airports
10)
Technology enhanced the productivity
11)
Washington State Prevailing Wage consideration
COMMISSION AGENDA – Action Item No. 8f Page 5 of 8
Meeting Date: April 28, 2026
Template revised June 27, 2019 (Diversity in Contracting).
12)
Implementation of the Commission’s Public Health and Safety Initiative to provide free
hygiene products for all
DIVERSITY IN CONTRACTING
Aviation Maintenance Custodial Services staff is working with the Diversity in Contracting
Department regarding setting the Women- and Minority- Business Enterprise (WMBE)
aspirational goals for contracted work. A 20% WMBE goal has been set by the Diversity in
Contracting Department for custodial service contracts, based on that determination we
anticipate achieving a similar aspirational goal in the new procurement of the service RFPs.
DETAILS
Beginning in January 2018, the Airport transitioned to the performance-based zone model of four
contracts covering the then identified four zones at the Airport. The original procurement
established a two-year base term for each contract, with the option to renew annually for up to
three additional years.
Following the initial four-zone procurement, a fifth zone was created to incorporate the facilities
generated by the building of the International Arrivals Facility (IAF). The Zone 5 service contract
was procured and executed in 2019; however, due to construction delays, services did not
commence until February 16, 2022, and are scheduled to end on February 15, 2027. Currently
this zone is in its own commission authorization.
Zone 2 (CT, C, D, & N Gates) contract is being extended through June 2027 to continue seamless
service for the World Cup event to avoid any service disruptions due to contract change during
this global event. The newly amended Zone 2 contract will end on June 30, 2027.
Schedule
The following schedule represents the key areas of Zone 2 and contract scheduling for the zone:
Zone 2
- Consists of Customer-Facing Secure Side, Central Terminal and North end of
Terminal, CT, C, D and N Gates
- Contract amendments Q1 – Q2 2026
- Contract extension to June 2027
Activity
Commission Funding authorization
2026 Quarter 2
Funding Supporting Amendments and Existing
Contracts
2026 Quarter 2
Commission Contracting authorization
2026 Quarter 2
Contract Start date
2026 Quarter 2
COMMISSION AGENDA – Action Item No. 8f Page 6 of 8
Meeting Date: April 28, 2026
Template revised June 27, 2019 (Diversity in Contracting).
Cost Breakdown
This Request
Existing Contract Support beyond 2026
$45,000,000
New Funding for Zone 2 for 1 Year
$12,500,000
Total
$57,500,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Postpone Commission Contracting Authority Request until the existing custodial
service contracting authority is exhausted.
Cost Implications: $15,000,000.00 to sustain the existing 4 contracts, Zone 1 -4, for few months.
Pros:
(1) This is the lowest funding request option.
Cons:
(1) This alternative would not sustain the funding until the end of year since Zone 2
contract is being amended for extension of existing contract to get through World Cup
event to avoid service disruptions and an additional cost increase for opening
Concourse C (CCE) in May 2026.
(2) Inability to support FIFA World Cup operations.
(3) Inability to clean the new facility, CCE.
(4) This alternative would result in degraded cleanliness impacting customer experience,
public health, and airport reputation.
(5) This alternative would bring the staff again later this year requesting Commission
Funding and Authorization.
This is not the recommended alternative.
Alternative 2 – Receive additional Commission funds of $45 Million only to cover the remaining
contracts that ends at various times.
Cost Implications: $45,000,000.00 to sustain the existing 4 contracts, Zone 1 -4.
Pros:
(1) This is a less impactful funding request option.
Cons:
(1) This alternative would not provide Contracting Authority or Funds to extend Zone 2
contract.
(2) This alternative would result in service gaps beginning July 2026.
(3) Upcoming contract amendments will exhaust the funding earlier than anticipated.
This is not the recommended alternative.
COMMISSION AGENDA – Action Item No. 8f Page 7 of 8
Meeting Date: April 28, 2026
Template revised June 27, 2019 (Diversity in Contracting).
Alternative 3 – Commission authorization for additional funds to fulfil the existing contractual
obligations and extend an additional year for Zone 2 to provide uninterrupted service and
operations for FIFA World Cup and maintain cleanliness in the new facility, CCE.
Cost Implications: $57,500,000.
$45,000,000 to fulfil exiting contract obligations for Zone 1-3, and $12,500,000 to extend an
additional contract year term for Zone 2 .
Pros:
(1) This alternative allows the Port to provide uninterrupted and continuous custodial
service and airport operations in all zones.
(2) This alternative allows the Port to pay a fair market price determined for Zone 2 for an
extension.
(3) This alternative will allow the Port to amend the existing contract to continue service
without disrupting customer experience associated with the World Cup event and to
capture the cost to service the new facility, CCE.
(4) This alternative allows the Port to align with the existing re-procurement timeline for
Zone 2 in 2027.
Cons:
(1) The alternative brings the complexities of Contracting Authority requests, and
complexities of transitioning new service to the two large zones at the same time.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$0
$57,500,000
$57,500,000
AUTHORIZATION
Previous authorizations
0
0
0
Current request for authorization
0
$57,500,000
$57,500,000
Total authorizations, including this request
0
$57,500,000
$57,500,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
Custodial Service costs are included in Aviation Maintenance’s annual operating budget. The
funding source will be the Airport Development Fund.
ATTACHMENTS TO THIS REQUEST
(1) Graphic of the SEA – Simplified Zones Map
(2) Presentation
COMMISSION AGENDA – Action Item No. 8f Page 8 of 8
Meeting Date: April 28, 2026
Template revised June 27, 2019 (Diversity in Contracting).
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
June 1, 2023 – The Commission authorized the Executive Director to add additional funds for
Airport Custodial Services Zone 1 through 4, and Commission Initiative Implementation and
execute Waste Removal Services for Airport Dining and Retail tenants.
March 24, 2020 – The Commission authorized the Executive Director to execute up to 4 contracts
for Zone 1-4 for Seattle-Tacoma International Airport.
June 25, 2019 – Commission authorized the Executive Director to execute a contract for janitorial
services for Zone 5, consisting of the IAF new construction facilities for Seattle-Tacoma
International Airport.
September 27, 2016 – Commission authorized the Chief Executive Officer to execute up to four
contracts for janitorial services for Seattle-Tacoma International Airport.
August 23, 2016 – Commission Briefing “Contract for Janitorial Services at Sea-Tac Airport.”