Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
8a
ACTION ITEM
Date of Meeting
April 24, 2018
DATE: April 17, 2018
TO: Stephen P. Metruck, Executive Director
FROM: David Soike, Chief Operating Officer
Selena Tonti, Director, Security & Preparedness
Stuart Mathews, Director, Aviation Maintenance
SUBJECT: Radio System Upgrade (CIP #C801012)
Amount of this request:
$22,050,000
Total estimated project cost:
$22,100,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) proceed with the Radio
System Upgrade project; (2) procure required hardware, software, vendor services, and license
and maintenance; (3) execute lease agreements for tower sites for the next 10 years; and (4)
use Port staff for implementation, for a total capital project cost not to exceed $14,800,000. A
ten-year contract for license and maintenance fees is estimated at $5,700,000 and ten-year
recurring lease costs are estimated at $1,600,000.
EXECUTIVE SUMMARY
The Port of Seattle operates its own radio network supporting approximately 1800 radios and
dispatch consoles used for day-to-day operations. It is also the critical communication link for
mutual aid responders within adjacent jurisdictions including King County, City of Seattle, Pierce
County, Snohomish County, and Valley Communications Center, who rely on the Port’s radio
coverage when assisting during emergencies.
Approximately half of the components in the Port’s radio system are nearing or are at end-of-
life, backup equipment, in some cases, does not exist, and replacement parts are difficult to
acquire. This increases the risk of a radio system service interruption. Performance of this
system is critical for the safety of emergency responders and efficient operation of Port
business. The proposed upgrade is typical for a radio system at end-of-life.
This project will upgrade key components of the Port’s Motorola mixed-mode radio network
including radio system hardware and software, tower sites, and subscriber equipment to
ensure availability of a critical communication system for Port Public Safety (Police, Fire, 9-1-1
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Dispatch, and Emergency Preparedness), Airport Operations, Aviation Maintenance (AVM),
Marine Maintenance (MM), Security & Preparedness, and mutual aid responders from adjacent
jurisdictions.
King County is currently leading a project for a regional wireless communication system, Puget
Sound Emergency Radio Network (PSERN), to be used jointly with Eastside Public Safety
Communications Agency (EPSCA), City of Seattle, and Valley Communications Center
(ValleyComm). This project is not currently scheduled for final completion until 2021, although
it may be possible for the Port to move onto the new PSERN system in late 2020. PSERN was
evaluated as an alternative for this project but was not the recommended solution at this time
due to the risks related to timelines, design, and scope. The risk of a Port system failure while
waiting for a viable solution with PSERN is too high to be acceptable. System failure could result
in total communication and response failure by first responders. Communication would move
to more manual methods —resulting in significant delayed response, as well as status/
situational awareness and efficiency breakdown. Communication failure with this system has
direct life and safety impact—whether it’s related to the Port’s airport or maritime operations,
incident response, or major regional disaster response. Communication failure within the Port
also impacts its ability to effectively communicate with mutual aid partners.
The recommended solution is to procure Motorola equipment, software, and services with a
competition waiver. Another alternative, described in the alternative section below, included
the competitive procurement of a new radio system. Because not all radio components are at
end-of-life, the cost of a new system is significantly higher than the recommended alternative
and until adjacent mutual aid responders have transitioned to a current radio standard,
interoperability with non-Motorola system is limited.
Port Public Safety organizations, AVM, MM, and Information and Communication Technology
(ICT) resources will collaborate to complete the project. Total capital project costs are
estimated to be $14,800,000. This includes temporary lease costs for expanded tower space
required for cut-over. Ten-year license, system upgrade and maintenance fees are estimated at
$5,700,000. Ten-year lease recurring lease costs are estimated at $1,600,000. Recurring
hardware license, maintenance, and lease costs will be budgeted within the AVM department
operating budget.
JUSTIFICATION
The Port’s current radio system is aging and maintenance repair costs are rising as components
increasingly require repair and replacement. The Port is facing parts shortages as well as limited
or no operational support. This will adversely impact our ability to provide reliable
communications in emergency situations and hamper maintenance and operations. Upgrading
the existing systems is the lowest risk alternative that meets the Port’s needs and ensures high
availability, excellent priority support services and proven public safety communication with
high confidence.
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DETAILS
Scope of Work
Procure hardware, software, and vendor implementation services to upgrade key components
of the Port’s Radio System including:
(1) Radio Subscriber Equipment with Global Positioning features for first responders
(2) Core System
(3) Redundant Prime Site
(4) Integration improvements with Pierce County
(5) Scalability improvements through enhanced channel access
(6) Recording System
Schedule
Commission Authorization
Design Complete
Equipment Procurement and Staging
Installation Complete
Final Completion
Cost Breakdown
This Request
Total Project
Hardware, Software, and Vendor Services
$13,800,000
Port Labor
$710,000
Temporary Lease Costs
$290,000
Total Project Costs
$14,800,000
10-Year License and Maintenance
Agreements
$5,700,000
10-Year Recurring Lease Agreements
$1,600,000
Total 10 Year License, Maintenance, and
Lease Agreements
$7,300,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
In 2017, an objective evaluation of alternatives was conducted by Port staff and an
independent consultant, Gartner, Inc. This assessment evaluated the current conditions, future
state needs, the Port’s specific priorities and objectives, and possible sustainment alternatives.
During this assessment background documentation was reviewed and various stakeholders
interviewed, including PSERN and county personnel, and the Port’s current service provider,
Motorola, in support of an informed decision.
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Alternative 1 – Go to market. Select a new radio system via a competitive process and
completely replace *all components.
Cost Implications: Costs would not be known until after procurement and negotiations but the
estimate 10-year cost range is between $29,000,000 and $37,000,000.
Pros:
(1) Control: Continued ability to control radio communications systems strategy,
evolution, and support practices.
(2) Requirements met: Port managed procurement would ensure feature, coverage,
security, and scalability requirements are of the highest priority.
(3) Reduction of ongoing cost (potential): On-going costs could be less than current
Motorola proposal. This information would not be known until proposals are received
as part of the procurement process
Cons:
(1) Time: A complete replacement would require several years for procurement and
implementation. In the interim, the risk of a system failure and recovery to emergency
response and operations is higher than acceptable.
(2) Cost: There are several components of the Motorola system that do not require
replacement at this time so a complete replacement of the system would cost
significantly more than a partial upgrade of the current system.
(3) Proprietary equipment must be maintained: *Due to the necessity to continue
interoperability with mutual aid partners, a portion of the existing Motorola
proprietary system must remain functional until the Port’s regional partners are
compatible with current standards. This will limit the ability for vendors other than
Motorola to implement successfully.
This is not the recommended alternative.
Alternative 2 – Commit to PSERN and phase out Port system when migration is complete
Cost Implications: The estimated 10-year cost estimate is $10,700,000
Pros:
(1) Interoperability: Maintain ability to connect to other local agencies.
(2) Project LOE reduction: The overall level of effort for the Port to support the radio
system upgrade project will be significantly reduced.
(3) Cost: The estimated net present value for this alternative is approximately $11.5M less
than the recommended alternative.
Cons:
(1) Aging equipment/ risk of catastrophic failure: More than half of the Port’s current
critical hardware, firmware and software components are near or at end-of-life and at
risk of a catastrophic failure without timely upgrades. The risk of system failure and
ability to recover from failure while needing to support emergency response and
operations is higher than acceptable. Replacement parts and technician skillset to
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make repairs are increasingly difficult to acquire. Failed parts may have to be shipped
for repair, taking weeks to be returned and not guaranteed to be repaired in the end.
(2) Uncertainty & risk of not meeting requirements: Design of the PSERN system was
completed without Port as a stakeholder. There is significant uncertainty and risk
related to whether PSERN will include the Port’s feature, coverage, capacity, security,
and scalability requirements. Additional capital costs may be required to meet our
unique public safety and operational requirements.
(3) Risk of increased costs and schedule slippage: Current PSERN pricing is based on
previous estimate and may not reflect their final contract scope and may increase for
the overall PSERN system. This may include upgrade agreements and maintenance
costs. Pricing could be subject to an increase in user and dispatch fees to address the
changes in final design. There is a potential that costs could decrease but continued
scope impacts suggests otherwise. Continued discussions of scope expansion and
challenges with leases puts the PSERN schedule at risk for further delays.
(4) Reduced control: As part of PSERN, the Port would have reduced control of system
strategy, evolution and support practices due to a multi-stakeholder governance
model. At the time of the assessment, PSERN would not commit to a voting seat for
the Port should we opt for this alternative. Even in the event of a voting seat for the
Port, control would be significantly reduced, due to the consensus nature of the
PSERN governance model.
(5) Impact to Service Levels & Port Priority: In the event of a significant negative event
impacting the availability of the PSERN system, recovery of Port specific functionality
may be marginalized due to the overall size of PSERN and the individual stakeholder
groups represented. In addition, priority for Public Safety may limit the availability for
Port Operations.
This is not the recommended alternative.
Alternative 3 – Complete upgrades with beneficial features now and re-evaluate PSERN
opportunity in 2025. Additional beneficial features are not required at this time such as a
mobile site and in-building enhancements.
Cost Implications: The estimated 10-year cost is $24,175,000.
Pros:
(1) Timely replacement of aging equipment: Reduce risk of system failure for Port Public
Safety and Operations due to radio equipment at end-of-life and the unavailability of
replacement parts and skilled technicians.
(2) Additional redundancy for Port and community: Include extra redundancy with a
mobile tower site to augment coverage in the event of a catastrophic event. A mobile
site can also provide additional community support and interoperability beyond the
Port needs.
(3) Control: Continue ability to control radio communications systems strategy, evolution,
and support practices.
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(4) Requirements met: Port managed procurement would ensure feature, coverage,
security, and scalability requirements are of the highest priority.
(5) Interoperability: Maintain ability to connect to other local agencies.
(6) True Benefit & Cost Predictability: Advantages and the cost predictability of joining the
local agency PSERN program will become clearer in the next few years as the program
design and deployments complete. A thorough assessment and risk evaluation can be
completed with reliable information.
Cons:
(1) Timing/ Cost versus value: Capital to purchase redundancy features will not be
available for other efforts. The project team believes the benefits of this additional
functionality are not worth the $2,075,000 estimated cost at this time. The
recommended alternative includes a redundant prime site which will allow the radio
system to function in a limited capacity during a catastrophic event. This limitation is
sufficient for operations and emergency services until the main prime and master sites
have been restored.
(2) Costs: The estimated net present value for this alternative is approximately $13.7M
more compared to alternative 2, move to PSERN in 2021.
This is not the recommended alternative.
Alternative 4 – Complete required upgrades now and re-evaluate PSERN opportunity in 2025.
Cost Implications: The estimated 10-year cost is $22,100,000.
Pros:
(1) Shortest implementation schedule to replace aging equipment: This alternative
provides the shortest schedule; which will provide the greatest risk reduction of
system failure for Port Public Safety and Operations. Current radio equipment is at
end-of-life and the unavailability of replacement parts and skilled technicians is of
great concern. This project addresses these concerns in the shortest timeframe. As
with any project, schedule slippage is a potential risk. This alternative has fewer
external influences that may impact project schedule than other alternatives.
(2) Interoperability: Maintain ability to connect to other local agencies, to include PSERN.
Also, our connection to PSERN will allow for both, the Port and the PSERN, to benefit
from each other’s system’s connected partners. (i.e. The Port will connect to partners
not connected to the PSERN and vise-versa. Our shared interface will expand each
other’s partner connection)
(3) Control: Continue ability to control radio communications systems strategy, evolution,
and support practices. In addition, Port radio stakeholders repeatedly speak of the
excellent quality of service they receive from the Port radio support team. It is
expected that the level and quality of service will be maintained after the upgrade.
(4) Requirements Met: This alternative has the clearest predictability to meet our
priorities, standards and environmentally unique requirements compared to all other
alternatives. Port managed procurement would also ensure feature, coverage,
security, and scalability requirements are of the highest priority.
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(5) True Benefit & Cost Predictability: Advantages and the cost predictability of joining the
local agency PSERN program will become clearer in the next few years as the program
design and deployments complete. A thorough assessment and risk evaluation can be
completed with reliable information.
Cons:
(1) Cost: The estimated net present value for this alternative is approximately $11.5M
more compared to alternative 2, move to PSERN in 2021.
(2) No Mobile Tower Site: Additional redundancy from the Mobile Tower Site will not be
available to the Port, mutual aid agencies, or community in the event of a catastrophic
event. This recommended alternative includes a redundant prime site which will allow
the radio system to function in a limited capacity during a catastrophic event. This
limitation is sufficient for operations and emergency services until the main prime and
master sites have been restored.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Expense estimates shown are recurring costs. Current year recurring costs have been budgeted
in the 2018 Operating budget. Future years will be budgeted during annual budget cycles.
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$1,800,000
$0
$1,800,000
Current change
$13,000,000
$7,300,000
$20,300,000
Revised estimate
$14,800,000
$7,300,000
$22,100,000
AUTHORIZATION
Previous authorizations
$50,000
$0
$50,000
Current request for authorization
$14,750,000
$7,300,000
$22,050,000
Total authorizations, including this request
$14,800,000
$7,300,000
$22,100,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
Of the requested $14,800,000 capital budget, Aviation will fund $12,075,000 and Maritime will
fund $2,725,000. This allocation was based on the number of radio subscriber units assigned to
associated organizations. This project was included in the 2018-2022 capital budget and plan of
finance for $1,800,000 under CIP #C801012, Radio System Upgrade. This original budgeted plan
of $1,800,000 was to implement a solution to mitigate the most critical components and allow
for more time to consider and implement another alternative, such as PSERN. After further
review, it was discovered that the solution originally proposed was a partial solution that would
not provide mitigation for the scope and timeframe needed to transition to a new alternative.
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Approximately $4,600,000 of the remaining, unbudgeted $13,000,000 capital amount is
estimated to be spent in 2018. Of this, approximately $3,750,000 will be transferred from the
Aeronautical Allowance CIP (C800753) and $850,000 will be transferred from the Contingency
Renewal & Replacement CIP (C800002).
Financial Analysis and Summary
Project cost for analysis
$16,729,671 Aviation
Business Unit (BU)
Airport Admin
Effect on business performance
(NOI after depreciation)
NOI after depreciation will increase
IRR/NPV (if relevant)
N/A
CPE Impact
$0.04 CPE in 2021
Future Revenues and Expenses (Total cost of ownership)
Recurring vendor maintenance and license costs for this system are estimated at $570,000.
This is up from a current recurring cost of $167,000 but it includes software and hardware
upgrades not currently part of the vendor agreement. AVM support and tower site leasing
costs, currently at $192,000, are not expected to change over current inflation rate.
ATTACHMENTS TO THIS REQUEST
(1) Public Safety Radio System Upgrade- Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
May 20, 2013 – The Commission authorized a project to upgrade a smaller portion of the
Radio System