PORT OF SEATTLE
MEMORANDUM
COMMISSION AGENDA
Item No.
6e
Date of Meeting
November 23, 2009
DATE: November 5, 2009
TO: Tay Yoshitani, Chief Executive Officer
FROM: Peter Garlock, Chief Information Officer
Kim Albert, Senior Manager, ICT Business Services
REQUEST: Authorization for the Chief Executive Officer to execute a series of three year
Indefinite Delivery, Indefinite Quantity - ICT Master Service Agreements to hire
temporary information technology contractors as needed to support systems,
projects, and services for an amount not to exceed $11 million.
SYNOPSIS
ICT requests authorization to execute multiple contracts to replace our expiring three year
Master Service Agreements (MSAs). The total cost for all contracts shall not exceed $11 million
and the contracts shall be for a maximum of three years. These contracts will enable us to
quickly hire temporary information technology contractors whenever needed to support short
term requirements. Our current MSAs will expire in December 2009.
BACKGROUND
The Information and Communication Technology (ICT) Department intermittently hires
information technology contractors when specific services or unique technical skills are required.
In the past, examples of specialized systems skills have included PeopleSoft, Maximo, and
SharePoint, as well as project management skills needed for large and complex projects such as
Marine Domain Awareness, and Payroll & Benefits. Since contract resource requirements for
these services and skills fluctuate with project work and with system maintenance requirements,
it is impractical to hire full time staff to meet these needs. In December 2006, the Commission
authorized ICT to utilize Master Service Agreements to streamline the process of hiring
temporary contractors to supplement Port staff whenever needed to support, upgrade, or develop
various Port information systems.
ICT currently has Master Service Agreements with 22 professional staffing vendors. These
MSAs are Indefinite Delivery, Indefinite Quantity (IDIQ) contracts that significantly improve
ICT’s ability to promptly respond to new requirements and problems, while decreasing
procurement costs. ICT has managed MSAs valued at over $13 million in the past three years.
We estimate that MSAs over the next three years will not exceed $11 million.
COMMISSION AGENDA
T. Yoshitani, Chief Executive Officer
November 05, 2009
Page 2 of 3
To establish an MSA with an outside professional staffing company, ICT follows a two step
competitive process. The first step uses a procurement process to select qualified Information
Technology staffing vendors who then enter into a Master Service Agreement with the Port. The
second step occurs whenever a specific temporary staffing requirement is identified by ICT.
When this occurs, a service directive (outlining specific skills and specific tasks to be performed)
is issued to all vendors on the MSA list inviting them to respond to our requirement through a
competitive selection process. This two step process ensures the Port gets the most qualified
candidates at the lowest cost and in the shortest timeframe. ICT developed this innovative
process in order to streamline the contracting of professional staffing resources whenever they
are required. This process has worked well in managing over $13 million in MSA service
directives that have been issued over the past three years, including those issued to small
businesses.
In the last three years we issued approximately 125 service directives to the MSA contracts.
Average time for personal service procurement is 4 to 6 months. By establishing the MSA
contracts, we perform a mini-competition among the MSA contracts, which takes substantially
less time and allows ICT to be more responsive to Port technology requirements. Since the MSA
holds the base contract documents, this process eliminates the need to obtain standard contract
forms and insurance for each service directive.
PROJECT DESCRIPTION / SCOPE OF WORK
Project Statement
Through a formal competitive review and procurement process and CPO assistance, the ICT
Department will replace our expiring three year IDIQ - ICT Master Service Agreements with
outside professional staffing companies used when needed to support various ICT systems,
projects, and services used by the Port.
Project Objective s/ Scope of Work
Continue existing efficiencies in procuring information technology contractors.
Reduce costs by leveraging the economies inherent in a single procurement vs. many.
Procure MSA vendors pursuant to requirements of CPO-1. Each contract will terminate
in three years with an overall not to exceed amount.
When contractors are required, ICT will solicit proposals from among the MSA vendors.
It will then issue a Service Directive to the vendor with the best proposed contractor.
Individual Service Directives will specify name of contractor, scope of work, schedule,
hourly rate and a not to exceed amount.
COMMISSION AGENDA
T. Yoshitani, Chief Executive Officer
November 05, 2009
Page 3 of 3
FINANCIAL IMPLICATIONS
This is not a request for funding. All work authorized under an MSA will be paid from projects
which are authorized pursuant to Resolution No. 3605 or from ICT expense funds approved in
ICT’s annual budget.
