PORT OF SEATTLE
MEMORANDUM
COMMISSION AGENDA
Item No.
5a
Date of Meeting
December 6, 2011
DATE: November 22, 2011
TO: Tay Yoshitani, Chief Executive Officer
FROM: John Christianson, General Manager Aviation Maintenance
SUBJECT: Airport Building Management System Service Support
Amount of This Request: $0 Source of Funds: Airport Development Fund
Est. State and Local Taxes: $156,000 over 5 year contract
Total Contract Value: $1,793,100 over 5 years
ACTION REQUESTED:
Authorization for the Chief Executive Officer to execute appropriate contract documents,
including amendments, to continue to receive software and hardware maintenance services for
the Airport’s Direct Digital Control (DDC) System. Authorization is being requested to execute
contract documents for service through December 2016. This system is utilized to operate and
maintain many of the mechanical systems throughout the Airport. The cost of this annual service
is $359,000 including tax for up to five (5) years for total payments estimated at $1,793,100.
SYNOPSIS:
The annual cost of this contract for 2012 has been included in the 2012 operating budget, which
was earlier submitted to the Commission. However, Port Resolution No. 3605, as amended,
mandates that the Chief Executive Officer receive Commission authorization to execute
contracts greater than $300,000.
The DDC system at the Airport assists in the operation and maintenance of the Heating,
Ventilation and Air Conditioning (HVAC) systems, domestic water systems, sanitary sewer
systems, smoke control systems, gas heating and cooking systems, compressed air systems,
storm water pumping and environmental control systems. The existing system contains over
75,000 control points and 15,000 devices controlled by 145 Master Building Controllers (MBC).
The system is integrated into the infrastructure of the facility.
A service contract to support this large system has been in place in some form since the initial
installation of a DDC system in the 1980’s. Siemens is the current and proprietary provider for
the maintenance service contract on this system. We are requesting authorization to execute a
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
November 22, 2011
Page 2 of 4
new five year contract with Siemens Building Technologies to replace the existing contract that
expires in December 2011.
On November 3, 2011, the Port approved a competition waiver, number 2011-26 and notified the
Commission of this waiver for this contract with Siemens as the proprietary provider.
The cost of the work is reviewed and estimated independently for each scope element by Port of
Seattle Maintenance personnel, and Facilities and Infrastructure personnel. The scope of Siemens
work includes providing software updates, network analysis, network optimization, software
analysis, software optimization, automation controls analysis optimization, control loop analysis,
control loop optimization, and data back-ups. The proposal has been reviewed for cost and scope
and has been deemed comparable to other similar facilities.
BACKGROUND:
The Siemens Direct Digital Controls (DDC) system was originally procured through a
competitive bidding process dating back to the 1980’s. At that time, Siemens was the low bidder
on the original Concourse A expansion. Siemens was also the low bidder on the 1991 Concourse
B, C, and D Upgrade project. Both of these projects were “open” bids with no competition
waiver requirements.
In 2008, Siemens was the low bidder on the Rental Car Facility (RCF) Project, designed as a
stand-alone DDC system that was “open” bid with no competition waiver requirements. The
RCF system has yet to be completed as construction is still underway. Between and after these
major projects, the DDC system has been expanded in a “Sole Source” capacity.
This execution of a new five (5) year contract incorporates an option to cancel the contract at the
completion of any year of the contract with 60 days written notice. Since the DDC system
incorporates proprietary equipment, and requires proprietary tools and training for technicians to
perform this specific maintenance on the system, there are no other vendors that can provide the
support needed to maintain this system. Only services that are proprietary in nature are included
in this agreement. All other non-proprietary maintenance services have been assigned to Port of
Seattle Operating Engineers for execution.
PROJECT JUSTIFICATION:
Project Objectives:
The objective of this request is to allow the Aviation Maintenance Department to continue to
maintain the Siemens DDC system in an effective manner, ensuring the Airport continues to
operate effectively.
PROJECT SCOPE OF WORK:
Software Analysis & Optimization. Through Software Analysis & Optimization, this
service will help ensure that the HVAC control system is operating properly to minimize
any software problems that would negatively impact system performance.
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
November 22, 2011
Page 3 of 4
Network Analysis & Optimization. Through Network Analysis & Optimization, this
service will ensure reliable and optimized communication throughout the Airport’s
HVAC Control System's Building Level Network of field panels.
Automation Controls Analysis & Optimization. Automation controls can drift out of
calibration with changes in mechanical component performance characteristics, building
use, and climatic conditions. This service will extend equipment life, reduce energy
consumption, and reduce the risk of costly and disruptive breakdowns.
Controller Analysis & Optimization (Field Level Network). Through Controller
Analysis & Optimization, this service will ensure reliable and optimized performance of
the Airport’s Terminal Equipment Controllers throughout the HVAC systems.
Software Updates. Through this service, the Port will benefit from new features and
enhancements that will improve building operations, take advantage of the latest version
changes, while extending the life of the Airport’s earlier software (named APOGEE)
investment. This service will provide the Port with software and documentation updates
to our existing APOGEE software as they become available (approximately annually).
Business Protection & Recovery Services. Through this service the Port will receive
protection for our HVAC control system’s vital databases of business information from
unforeseen and costly catastrophic events (lightning strike, electrical power surge, hard
drive or controller failure, flood, physical damage, etc.). This service will provide
quarterly database back-ups.
Online Systems Support. This service will provide unlimited system and software
troubleshooting and diagnostics via modem and direct phone support. This service is
available through vendor in-house specialists during normal business hours.
FINANCIAL IMPLICATIONS:
Budget Status and Source of Funds:
Contract payments are included as a specific line item in the Aviation Maintenance Expense
budget. The funding source is the Airport Development Fund. Funding for future years will be
included in future Aviation Maintenance annual expense budgets as a specific line item.
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS:
Alternative 1: Do Nothing. Do not execute a contract with Siemens. Because the system is
proprietary, we will be unable to maintain the system. Equipment failures will eventually occur.
This is not the recommended alternative.
Alternative 2: Attempt to execute the contract with another vendor. Because of the proprietary
nature of the software and hardware on the system, and the requirement for technicians to be
factory trained, this is not the recommended alternative.
Alternative 3: Execute a five (5) year contract with Siemens Building Technologies for the
services noted above. This is the recommended alternative.
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
November 22, 2011
Page 4 of 4
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST:
N/A
PREVIOUS COMMISSION ACTION:
There have been no previous Commission actions related to this maintenance contract other than
the Commission’s recent review of the 2012 operating budget. First Reading of the 2012 budget
occurred on November 8, 2011.
