Template revised April 12, 2018.
COMMISSION
AGENDA MEMORANDUM
Item No.
6b
ACTION ITEM
Date of Meeting
July 24, 2018
DATE: July 16, 2018
TO: Stephen P. Metruck, Executive Director
FROM: Wayne Grotheer, Director, Aviation Project Management Group
SUBJECT: Indefinite Delivery Indefinite Quantity (IDIQ) Service Agreement for Third-Party
Commissioning Agent Services
Amount of this request:
$0
Total estimated contract cost:
$1,500,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute three consulting
services indefinite delivery, indefinite quantity contracts for third-party commissioning agent
services for a total maximum value of $1,500,000 with a maximum contract period of five years.
There is no funding request associated with this authorization; funding to utilize these contracts
will come separately from individual project authorizations.
EXECUTIVE SUMMARY
Third-party commissioning agent services provide verification that the Port’s investment in
high-performance systems is yielding optimum results, both in long-term cost reductions and
operational efficiencies. Third-party commissioning agents represent the Port as subject matter
experts, independent of the project designers and the selected construction contractor. Third-
party commissioning agents will develop commissioning plans, procedures, conduct field
investigations and submit reports that ensure systems and equipment are designed, installed
and function in accordance with all code compliance requirements.
The Third-Party Commissioning Agent Indefinite Delivery, Indefinite Quantity (IDIQ) contracts
will provide commissioning services for known and potential CIP projects in addition to
unknown projects that may occur over the next three to five years. The IDIQ contracts provide
flexibility through project specific service directives that allow third-party commissioning
services to be provided on an as-needed basis for a fixed period and a maximum contract
amount.
Based on the current CIP Program, it is estimated approximately $80 million in project costs
through 2020 will have systems, equipment, and/or facilities that will need to be commissioned
COMMISSION AGENDA – Action Item No. _6b___ Page 2 of 4
Meeting Date: July 24, 2018
Template revised September 22, 2016; format updates October 19, 2016.
by a third-party commissioning agent. Based on an industry standard 2% of a project cost for
commissioning agent services, we estimate a need for approximately $1.5 million in
commission services.
Mega projects have been excluded from these estimates as they typically utilize a project
specific commissioning contract, not this IDIQ.
The Aviation Project Management Group (AV/PMG) utilizes IDIQ contracts to meet highly
variable workload projections for projects requiring commissioning agent services. The two-
existing third-party commissioning agent services IDIQ contracts (valued at $2,000,000 each)
expire on October 25, 2018. Based on current projections, this request will provide the
necessary commissioning agent services to meet project needs for the next three to five years.
Competitively procured IDIQ contracts are widely used public-sector contracting tools,
consistent with the Port’s General Delegation of Authority, and governed by CPO-1 policy.
JUSTIFICATION
There are multiple reasons for needing outside consultants for this work. The Port currently
does not have the in-house staff to provide commissioning services. Using Port staff would not
provide a true third-party commission agent. The National Electric Code, Washington State
Energy Code, and the United States Green Building Council require commissioning of certain
energy using systems, equipment and facilities. All projects and facilities seeking Leadership in
Energy & Environmental Design (LEED) Certification are required to retain the services of a
third-party commissioning agent. As such, Port staff recommends executing these three new
IDIQ contracts in support of these efforts. This request provides for retaining the services of
three third-party commissioning agent firms that will provide commissioning agent services for
use by all Port of Seattle Capital Improvement Program projects.
The contracts will be available to meet the needs of the Maritime, Economic Development, and
Aviation Divisions. The proposed IDIQ contracts will allow the Port to respond to future service
needs efficiently and cost effectively.
DETAILS
This request is to execute up to three contracts: two valued at $600,000 which will be awarded
to the highest ranked firms; the third contract, valued at $300,000, will be awarded to the
highest-ranked small business enterprise firm.
Each contract will have a base contract period of one year and four option years in which the
services may be separately authorized. The actual contract duration may extend beyond five
years to complete the work identified in a particular service directive. The Port will not issue
any service directives in excess of each contract’s value or after expiration of the contract
ordering period.
COMMISSION AGENDA – Action Item No. _6b___ Page 3 of 4
Meeting Date: July 24, 2018
Template revised September 22, 2016; format updates October 19, 2016.
Aviation Project Management has been partnering with the Port’s small business group to
ensure proper outreach via PortGen to small businesses and those owned by women and
minorities (WMBE firms). These activities range from email outreach and presentations to
those businesses that may be interested in the opportunities these contracts present.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Procure separate commissioning agent contracts for each project that requires
an element of commissioning.
Cost Implications: Each project would expend additional administrative costs to procure
individual third-party commissioning agent services contracts.
Pros:
(1) Separate contracts would allow the consulting firms opportunity for each individual
project.
(2) Defers the administrative cost of procurement to a later date when individual projects
each do their own procurement.
Cons:
(1) Increased cost for individual procurements rather than a more efficient single
procurement of one set of IDIQ contracts.
(2) This alternative is an inefficient use of Port resources; staff time and does not leverage
the Port’s allowable contracting methods. It would increase overhead and
administrative costs to the Port, as we would need to manage more procurement
processes and contracts.
(3) This alternative will add time to each project schedule to complete the procurement
process for each individual project and will impact our ability to meet project and
customer needs.
This is not the recommended alternative.
Alternative 2 – Hire two new full-time engineers to meet project commissioning requirements.
Cost Implications: A potential savings of approximately $1 million could be realized over a
three-year period, compared with hiring consultants.
Pros:
(1) Lower hourly cost than the use of consultant engineers.
(2) Institutional knowledge is built by Port Staff.
Cons:
(1) Commissioning services is not guaranteed work. Adding full time in-house staff would
create long term costs that could potentially be unnecessary during times when the
work is not needed.
This is not the recommended alternative.
COMMISSION AGENDA – Action Item No. _6b___ Page 4 of 4
Meeting Date: July 24, 2018
Template revised September 22, 2016; format updates October 19, 2016.
Alternative 3 – Procure three Third-Party Commissioning Agent IDIQ contracts in a single
solicitation action.
Cost Implications: No capital costs will be incurred with this procurement. Funding to utilize
these contracts will be separately authorized by the individual projects requiring commissioning
services.
Pros:
(1) This alternative reduces overhead costs for each project requiring a Commissioning
Agent; the solicitation, negotiations and contracting for the Third-Party
Commissioning Agent services is completed one time for all projects.
(2) This alternative can reduce the schedule for projects requiring Commissioning because
the solicitation, evaluation and selection for commissioning services have already
been completed. Typically, this process consumes approximately 3 to 4 months.
(3) The IDIQ will allow the Port to bring the Third-Party Commissioning Agent on board
early in the design process without the need for an independent procurement or
hiring new staff.
(4) This alternative is the most efficient use of Port resources and staff time.
(5) The three contracts provide multiple firms the opportunity to work for the Port of
Seattle.
(6) Port projects seeking a LEED certification will be able to use any of these three firms.
Cons:
(1) This alternative would limit the number of opportunities available to firms to compete
for work.
(2) This alternative would not build in-house commissioning expertise.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
There is no funding request directly associated with this authorization. No work is guaranteed
to the selected consultants and the Port is not obligated to pay a selected consultant until a
service directive is executed. The budget for work performed under each agreement will come
from individual service directives authorizing the consultant to perform specific work on the
contract against approved project authorizations and within the total contract amount.
ATTACHMENTS TO THIS REQUEST
None
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
May 12, 2015 – Port Commission authorized two Third Party Commissioning Agent IDIQ
contracts.
