Budget committee approves $76 million increase to SFO project management contract for Terminal 3 modernization

The Budget and Finance Committee on Sept. 17 voted to forward to the full Board of Supervisors a resolution approving modification number 15 to the San Francisco International Airport’s project-management-support contract with WCME JV for the Terminal 3 West modernization project.

The amendment increases the contract by $76 million, bringing the not-to-exceed total to $126 million, and extends the contract term through Dec. 12, 2030. The committee recommended approval by a 3-0 vote.

Scope and funding: SFO officials said WCME JV provides project-management oversight, including project controls, cost and schedule management, budget analysis and cost estimating, and monthly reporting. The Terminal 3 West modernization project covers seismic retrofit, replacement of end-of-life building systems, additional swing gates, a new TSA checked-baggage-inspection system, expanded concessions and a larger security checkpoint, replacement of façade elements and the construction of a Courtyard 4 connector building to accommodate airline lounge and office space. The project budget has grown substantially since 2017; presenters documented an increase from roughly $627 million in 2017 to about $2.8 billion currently.

Airport funding and minority/local participation: The contract is funded by airport revenue bonds under SFO’s capital-improvement plan, and the Airport said there is no impact on operating costs. The prime joint venture exceeds the airport’s local business enterprise subconsulting participation requirement: WCME JV reported 30.7% subconsultant participation against a 20% requirement.

Budget office findings: The Budget and Legislative Analyst recommended approval and noted that while the contract increase is substantial in absolute terms, it remains proportional to the enlarged project budget (about 4–4.5% of total project cost as presented).

Vote and next steps: The resolution was forwarded to the full board with a positive recommendation. Committee members asked whether the overall scope had increased since the contract was originally approved; SFO staff described added elements including the Courtyard 4 connector building, an east addition nearer the E gates, full replacement of the landside façade, and an overhaul of the pre-security lobby and baggage systems. The committee recorded a 3-0 roll call in favor.

Ending: The contract modification will proceed to the Board of Supervisors for final approval; SFO officials and the BLA will continue to update the committee and the board as the modernization work progresses and additional funding or scope changes arise.