Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8f
ACTION ITEM
Date of Meeting
May 26, 2026
DATE : May 18, 2026
TO: Stephen P. Metruck, Executive Director
FROM: Eileen Francisco, Director, Aviation Project Management Group
Keri Stephens, Director, Aviation Facilities and Capital Programs
Laurel Dunphy, Director, Aviation Operations
SUBJECT: S Concourse Evolution and 188
th
Street Duct Bank Authorization
Amount of this request:
$38,610,000
Total estimated project cost:
$2,525,000,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) complete pre-construction
activities for S Concourse Evolution Program through end of 2027; (2) advertise and execute a
construction contract for the 188
th
Street Duct Bank Crossing and (3) advertise and execute any
necessary change orders, work authorizations, contract amendments, and contracts to complete
the S Concourse Evolution at SEA within the approved total program cost. The total amount of
this request is $38,610,000 for a total authorization of $300,000,000.
EXECUTIVE SUMMARY
The S Concourse Evolution (SCE) project at Seattle-Tacoma International Airport (SEA) is a
cornerstone of the Upgrade SEA program. As a critical infrastructure renewal effort, SCE will
modernize a 50-year-old facility to meet current seismic, structural, and building codes. While
the project does not increase gate count, it repurposes space vacated by the International
Arrivals Facility (IAF) to elevate the passenger experience through expanded dining, retail, and
amenities.
Over the next 18 months, this additional authorization will support the development of
Maximum Allowable Construction Cost (MACC), ensuring the project remains on its critical path.
Beyond design support, this action authorizes early civil and utility work along 188th Street. This
infrastructure is a prerequisite for a new emergency backup generator and electrical equipment,
forming the "electrical backbone" necessary for the concourse’s long-term reliability.
COMMISSION AGENDA – Action Item No. 8f Page 2 of 6
Meeting Date: May 26, 2026
Template revised June 27, 2019 (Diversity in Contracting).
The project utilizes a multi-phased construction approach and strategic "facilitating projects" to
maintain gate capacity during construction. This current request secures funding through the end
of 2027 to support essential pre-construction efforts, including project and construction
management, design services, and special testing.
Given the scale and complexity of the SCE program, this request establishes necessary
administrative authority. By empowering the Executive Director to dynamically manage change
orders, work authorizations, and contract amendments, the Port can respond to project needs in
real-time without compromising the schedule. All administrative actions will be strictly managed
within the approved total program cost to ensure fiscal accountability.
JUSTIFICATION
The South Concourse facility at SEA opened in 1973 and is owned and operated by the Port. The
facility depends on building systems that are well past their useful service lives, and further
development of the facility has been limited by the authorities having jurisdiction, owing to
concerns stemming from current building code minimum requirements. The building code
requirements are necessary to bring the building up to current seismic and structural code
standards. The building systems and materials used in the original construction, due to their age
and manufacture, are difficult to maintain. The project is currently working on 90% design and
has some early work design completed allowing the contractor to start the bidding process to get
this work started. This authorization supports the project team completing the design and
bidding efforts with the general contractor and allows us to build a portion of the electrical duct
bank along 188
th
St to support future electrical needs of the building.
Diversity in Contracting
The SCE project includes a 26% WMBE aspirational goal for project management and controls.
The project team is working with Diversity in Contracting to identify the WMBE requirement for
the construction contract for the work at 188
th
St Duct Bank.
DETAILS
This request provides funding for the S Concourse Evolution (SCE) program to support pre-
construction efforts for project management, construction management, design services, special
testing and inspection, and contractor efforts to support initial Maximum Allowable Construction
Cost (MACC) efforts for the next 18 months. Several MACCs will be needed to support the
contract schedule and critical path work as design continues to develop. The funding is needed
to support this work until the end of 2027 when design will be completed, and efforts will shift
primarily to construction. The final contracting plan is still being developed to comply with state
law.
COMMISSION AGENDA – Action Item No. 8f Page 3 of 6
Meeting Date: May 26, 2026
Template revised June 27, 2019 (Diversity in Contracting).
Beyond design support, this action is to authorize the construction of limited utility infrastructure
scope along 188th Street. This civil and utility scope is a prerequisite for the future emergency
backup generator and associated electrical equipment, providing the critical electrical backbone
for the S Concourse’s long-term utility needs.
Finally, this request establishes the administrative authority required to manage a program of
this scope and complexity. By authorizing the Executive Director to advertise and execute
necessary change orders, work authorizations, contract amendments, and contracts for SCE, the
Port can respond dynamically to project needs without compromising the schedule. All such
actions will be strictly managed within the approved total program cost.
Scope of Work
The scope includes construction of a mechanically stabilized earth (MSE) retaining wall, grading,
drainage, electrical vaults, and equipment pads for the generators, to create a level, structurally
supported equipment yard. The work is being delivered separately from the main SCE project to
allow for infrastructure delivery in advance of when the building construction phases will require
it. Staff are leveraging resources within the Port to deliver this work safely, efficiently, and to
minimize operational impacts.
Schedule
Activity
Commission Authorization Design Start
Commission Final Design Authorization
Construction Authorization 188
th
St Duct Bank
Construction Start 188
th
Street Duct Bank
Commission Construction Authorization SCE
Construction Start SCE
In-use date
Cost Breakdown
This Request
Total Project
Design
$30,110,000
$383,000,000
Construction
$8,500,000
$2,142,000,000
Total
$38,610,000
$2,525,000,000
COMMISSION AGENDA – Action Item No. 8f Page 4 of 6
Meeting Date: May 26, 2026
Template revised June 27, 2019 (Diversity in Contracting).
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Delay authorization until August when base building returns to Commission for
construction authorization and first Maximum Allowable Construction Cost.
Cost Implications: $250,000 from delay of this specific scope of duct bank work by a few months.
Pros:
(1) Reduces number of Commission trips for authorization.
Cons:
(1) Delay construction starting for 188
th
St duct bank creating additional operational
impacts.
(2) Additional costs from starting work later resulting in higher escalation.
(3) Delaying the start of this construction creates the potential for impacts among multiple
scopes of work in the same vicinity. This work is being pursued early to avoid the
overlapping of work areas between scope elements to avoid conflicts. Cascading
impacts could eventually delay the base building schedule, creating significantly higher
schedule delay costs.
This is not the recommended alternative.
Alternative 2 – Authorize funding now for 188
th
St duct bank and soft costs to complete design
and bidding process.
Cost Implications:
Pros:
(1) Maintains program schedule and reduces operational impact duration for duct bank
work.
(2) Reduces costs of work by getting started sooner.
(3) Eliminates risk of multiple scopes of work being performed in the same vicinity
simultaneously.
Cons:
(1) More trips to commission.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$1B
$0
$1B
Previous changes – net
$1.5B
$0
$1.5B
COMMISSION AGENDA – Action Item No. 8f Page 5 of 6
Meeting Date: May 26, 2026
Template revised June 27, 2019 (Diversity in Contracting).
Revised estimate
$2.500B
$25M
$2.525B
AUTHORIZATION
Previous authorizations
$261,390,000
$0
$261,390,000
Current request for authorization
$38,290,000
$320,000
$38,610,000
Total authorizations, including this
request
$299,680,000
$320,000
$300,000,000
Remaining amount to be authorized
$2,200,320,000
$24,680,000
$2,225,000,000
Annual Budget Status and Source of Funds
The S Concourse Evolution project, CIP C801203, was included in the 2026-2030 capital budget
and plan of finance with a budget of $1,895,000,000. The budget increase of $630,000,000 was
transferred from the Aeronautical Reserves CIP C800753 resulting in no net change to the Airport
capital budget. The funding sources would be revenue bonds, Airport Development Fund (ADF),
the Bipartisan Infrastructure Law (BIL) grant funding through the FAA-AIP program, other FAA
Grants, and future Passenger Facility Charge.
Financial Analysis and Summary
Project cost for analysis
$2,525,000,000
Business Unit (BU)
Terminal Building
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)
NPV (50 years) for non-aero is negative $130 million
CPE Impact
$4.90 in 2035
Future Revenues and Expenses (Total cost of ownership)
This specific scope of work does not result in a direct change to Aviation Maintenance operating
and maintenance (O&M) costs. The SCE overall program, however, will have substantial impacts
to O&M costs in the future.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
April 28, 2026 - The Commission was briefed on S Concourse Evolution and informed of an
upcoming funding request to advance design, pre-construction efforts, and upcoming
construction.
October 28, 2025 – The Commission approved construction authorization for the Spot 99
Duct Bank installation.
COMMISSION AGENDA – Action Item No. 8f Page 6 of 6
Meeting Date: May 26, 2026
Template revised June 27, 2019 (Diversity in Contracting).
May 27, 2025 – The Commission authorized an increase to funding, executed a professional
services agreement, advertisement of construction contracts and special testing and
inspection contracts, modification of a United Airlines lease and transferred scope and
budget for the A6 Widebody Remediation.
May 13, 2025 – The Commission was briefed on S Concourse Evolution and informed of an
upcoming funding request to advance design, scope additions, and construction.
May 14, 2024 – The Commission authorized to Prepare design and construction bid packages
for S Concourse facilitating project, Procure long-lead items.
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.