Port=~
of Seattle
PORT
OF
SEATTLE
MEMORANDUM
Date:
October
22,2009
To:
Port Commission
From:
John Christianson, General Manager, Aviation Maintenanc
Subject:
Notification that the Port intends to renew the Five (5) Year Sole Source
Technical Assistance Agreement with Bombardier Transportation Inc.
Amount
of
This
Request: $1,535,803.32
Source
of
Funds:
Airport Development Fund; specifically budgeted in Aviation
Maintenance annual operating budget
Notification
This is for the authorization to execute a Sole Source Technical Assistance Agreement on this
vital people-mover system. For the safety
of
the general public and maintaining the reliability
of
the operation
of
the Satellite Transit System, we will require factory-certified, technical
expertise, with access to the systems source codes, to assist with programming changes and
maintenance work on this proprietary system. Please see the attached Bombardier Justification
Letter from Aviation Maintenance for additional details.
October
5,
2009
To:
Central Procurement Office
From: John Christianson, General Manager, Aviation Maintenance
SUbject
Sole Source for Bombardier Transportation Technical Assistance Agreement
This memorandum requests approval for sole source procurement of the Bombardier
Transportation Technical Assistance Agreement based on the following detailed information.
In 2003, the PORT completed a capital improvement project to upgrade the existing STS
(Satellite Transit System), Capital Improvement Project (CIP) project 100783. Since this was an
upgrade to the system, the Bombardier proprietary system was the winning selection. As with
most new systems or upgrades, an initial maintenance service warranty was provided.
Port technicians were trained on the daily maintenance requirements but we still have a need
for factory-certified technical expertise to assist with major programming changes and
maintenance work on this proprietary system. This includes software upgrades and
modifications.
In
addition, parts for the STS are proprietary and only available from the
manufacturer.
To budget and pay for the Bombardier Technical support, and other factory supported technical
expertise, we need to have
in
place a Technical Assistance Agreement with Bombardier for this
system.
We
believe that the best method to provide long-term technical support
is
to implement
a five-year Technical Assistance Agreement.
Bombardier's on-site support has contributed to maintaining an operating efficiency of over
99%. Their representative has been a resource for parts issues, troubleshooting, providing test
procedures, mentoring POS mechanics, training new employees, and providing a conduit to
support services at Bombardier's home office
in
Pittsburg.
Due to the proprietary nature of the system, Bombardier is the only entity that
is
factory-certified
to provide these on-going technical assistance services and parts to the Port. The value of this
contract will be $1,535,803.32 over a five (5) year term.
APproved:'
~~-
Date:
10/6/0'1
Nora Huey, Director, Central Procu ent Office
Approved:
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Date:
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U-+-,6-=-(o/--/o--/.1e...-
Craig Watson, Legal
Approved:, :,
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/7
7- Date:
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Ralph Graves, Managing Director, Capita(Development Division'
PORT
OF
SEATTLE
MEMORANDUM
DATE: October 14,2009
TO:
Central Procurement Office
FROM:
John Christianson, General Manager Aviation Maintenanc
SUBJECT: Sole Source for Bombardier Transportation Technical Assistance Agreement
1. How was it determined
that
Bombardier
is
a sole source?
The existing STS (Satellite Transit System) was completed by Bombardier under CIP number
100783 in 2003, replacing their previous system
that
was in operation since 1973. Bombardier
has provided Technical support for the Satellite Transportation System throughout its operating
tenure at Seattle-Tacoma International Airport. There are
no
other sources that could provide the
support needed for the operation and reliability
of
the STS. The services provided by Bombardier
include support for new train controls, a conduit for subsystem support, and product safety
management. These specialized tasks are provided by Bombardier at other facilities that use
similar train systems.
2.
Why
is
no other design suitable for
your
requirements?
Any change in design to the current Bombardier Satellite Transportation System would require
major changes to the infrastructure and would be cost prohibitive.
3.
Are there unique skills
or,
knowledge required for the Bombardier STS?
The Satellite Transportation System has proprietary controls that Bombardier's Technical
Representative has thorough knowledge
of
and can support in a timely manner. The proprietary
controls include a new Communication Based Train Control (CBTC), Bombardier CITYFLO
650 Automatic Train Operation
and Protection software, supporting equipment, and subsystems.
Quick response times to address systems issues are crucial to maintaining a high level
of
operating standards and reliability.
4.
Mandate from Federal
or
State Government required.
There are no Federal or State Government mandates required.
Bombardier mandates specific
safety requirements for the Satellite Transportation System with
the Technical Representative playing a significant role in managing those requirements. The on-
site Bombardier Technical Representative updates current employees on safety issues and trains
new employees on safety requirements.
5.
What
are
the consequences
of
not approving the sole source request?
Not having a factory trained representative on site could result in system failures that puts the
passengers at risk
of
injury and cause flight delays. Their representative
has
been a resource for
Page 1
of4
Memorandmn
Page 2
of4
parts issues, troubleshooting, providing test procedures, rnentoring
POS
mechanics, training new
employees, and providing a cOnduit
to
support services
at
Bombardier's home office in Pittsburg.
6.
What
negative consequences
wiD
result by formally bidding this requirement?
There are no other service providers that could support the requirements
of
the Bombardier
Satellite Transportation System. STS operations could be adversely affected without adequate
support
in place.
7.
What
is
the
estimated cost
of
this request?
The total cost
of
the Bombardier Transportation Technical Support Agreement will be
$1,535,803.32 over a contract term
of
(5) years. A table is attached showing the monthly
payment details
per contract year.
Year Escalation
Proposed Monthly
Payment
Total Annual Payments
1
24,593.13 295,117.50
2
2.00"'{'
25,084.99 301,019.85
3
2.00% 25,586.69 307,040.25
4 2.00% 26,098.42 313,181.05
5
2.00% 26,620.39
319,444.67
8. How was this cost determined
to
be reasonable?
Similar operations where Bombardier provides full service support the cost is twice what our in-
house resources, including
our
on-site technical representative, budget
to
provide a safe and
reliable transportation system. Our Satellite Transportation System Maintenance department has
consistently maintained a system reliability rate
of
over
990./0.
The reliability rate
is
higher
than
any other similar Bombardier system
at
any location.
The cost
of
support for the Satellite Transportation System is required
to
maintain system
reliability and compliance
to
operating standards. This contract provides immediate response
to
issues by the on-site Technical Representative and an efficient conduit for parts and services
from Bombardier support in Pittsburg.
9. Is this request a one time requirement?
No. This Bombardier Transportation Technical Service Agreement will be required through the
life
of
the Satellite Transportation System.
Memorandum
Page
3
of4
10.
What
are other costs incurred from this request?
The POS will provide the Bombardier Engineer with office space, administrative support
services, communications, and parking privileges.
11.
What
other methods
of
fulfilling this requirement have been explored?
Due
to
the proprietary nature
of
the Satellite Transportation System and the specialized technical
knowledge required, alternative vendors are likely
to
be more expensive and will be unable
to
provide the required service level that Bombardier can provide.
Service support provided by Bombardier solely through their Pittsburg home office would result
in
delays for service and parts thus affecting operating efficiencies. Support personnel would
have to be scheduled
to
fly
to our site and the exact nature
of
system problems may not be
diagnosed until a Bombardier Engineer arrives on site.
Memorandum
Page4of4
Certification
that
Aviation Maintenance Department personnel making this recommendation to
the
Port
of Seattle Senior Manager, Procurement Services has/have no financial
or
other beneficial
interest in Bombardier Transportation, a Division
of
Bombardier Inc.
I warrant and covenant that I have no direct
or
indirect pecuniary
or
proprietary interest, and that
they shall not acquire any such interest which conflicts in any manner
or
degree with the
performances
of
the work and services provided by Bombardier Transportation, a Division
of
Bombardier Inc. In the event that the Port
or
any
of
its Consultants
or
its agents, employees
or
representatives hereafter acquires such a conflict
of
interest, the Port shall immediately disclose
such interest to the Port
of
Seattle Legal Department,
and
take action immediately to
elirni~
the conflict. In addition, with my signature below I further state that I
am
not nor will I within
18
months
of
this justification seek employment with this firm. I hold that the information
provided is true and complete to the
best
of
my knowledge under the penalties
of
perjury
in
the
State
of
Washing!:on.
If~
\0 \
\<{(
~
John
R Christianson
Date \
General Manager, Aviation Maintenance
Seattle Tacoma International Airport
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9
GaryP. Richer
Date
Maintenance Manager, Electronic Systems
Seattle Tacom Inte tional Airport
om Q'Day
Maintenance Manager, Electr
ic S sterns
Seattle Tacoma International Airport