Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
6c
ACTION ITEM
Date of Meeting
July 9, 2019
DATE: July 1, 2019
TO: Stephen P. Metruck, Executive Director
FROM: Julie Collins, Director, Customer Experience & Brand Strategy
Pearse Edwards, Senior Director, External Relations
SUBJECT: Port Customer Relationship Management Software System (CIP #C801108)
Amount of this request:
$1,400,000
Total estimated project cost:
$1,400,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) proceed with the Customer
Relationship Management software system implementation project; (2) execute a contract for
software and vendor implementation services; (3) use Port staff for implementation and (4)
execute a contract for up to ten years for software license, service, and maintenance fees
estimated at $2,400,000. The amount requested for project implementation under this
authorization is $1,400,000.
EXECUTIVE SUMMARY
The purpose of this authorization request is to procure and implement a Customer Relationship
Management (CRM) software system configured first for Aviation Customer Service, External
Relations, and Commission Staff but with the capabilities and capacity to later expand Port-
wide. Today, the collection, response, and tracking of customer and constituent comments,
questions, and outreach are fragmented across organizations and customer growth and social
media prevalence make it impossible to appropriately manage the influx of feedback. With the
implementation of a robust CRM solution, Port organizations can utilize a shared system to
maximize contact information, manage two-way communications, and more efficiently execute
strategies for customer service or communication improvements.
Information & Communications Technology (ICT), Aviation Customer Service, External
Relations, Commission Staff, and Central Procurement Office (CPO) will be involved in this
project estimated at $1,400,000. Software-as-a-service subscription fees are estimated to
increase from $80,000 in 2019 to $300,000 in 2025, as users are added. Future recurring license
costs will be budgeted within the ICT operating budget.
COMMISSION AGENDA – Action Item No. 6c Page 2 of 4
Meeting Date: July 9, 2019
Template revised September 22, 2016; format updates October 19, 2016.
JUSTIFICATION
This project includes several important benefits:
(1) Directly supports communications and customer service business requirements, goals
and objectives of Aviation Customer Service, External Affairs and Commission Staff.
(2) Improves ability to build better relationships with customers, constituents and partners.
(3) Provides tools to meet the more sophisticated expectations for social media
engagement demanded by customers today.
(4) CRM solution provides valuable workflows, marketing automation, business routing
rules and analytics that save months of manual effort by port staff across several
departments.
DETAILS
Aviation Customer Service began using a CRM solution to capture, respond, and track customer
comments in 2011. In 2017, the CRM functionality was expanded to include social media
comments, also used by External Relations. This project builds on initial successes in Aviation
with features to improve communications and port-wide collaboration.
Maximize contacts across the Port in a single, comprehensive database
Manage two-way communication with identified contacts and public comments using a
wide variety of communication methods
Facilitate event management and communication
Support automated comment workflow and routing to appropriate response groups
Implementation to other Port organizations and new features will be completed with
subsequent projects as needs are identified and resources are aligned.
Scope of Work
(1) Procure vendor services to implement a CRM solution for Aviation Customer Service,
External Relations and Commission Staff.
Schedule
Commission Authorization
2019 Quarter 3
Procurement Completion
2019 Quarter 4
Implementation
2020 Quarter 4
This Request
Total Project
Vendor Implementation Services
$1,100,000
$1,100,000
Port of Seattle Labor
$300,000
$300,000
Total
$1,400,000
$1,400,000
COMMISSION AGENDA – Action Item No. 6c Page 3 of 4
Meeting Date: July 9, 2019
Template revised September 22, 2016; format updates October 19, 2016.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Procure and implement a comprehensive CRM solution.
Cost Implications: $2,100,000
Pros:
(1) Able to design CRM features with more department stakeholders at the table.
(2) Expanded list of users and features at project completion.
Cons:
(1) More complex implementation, which adds cost and schedule risks.
This is not the recommended alternative.
Alternative 2 – Proceed with a reduced scope CRM solution limited initially to Aviation
Customer Service, External Relations, and Commission Office.
Cost Implications: $1,400,000
Pros:
(1) Smaller initial outlay in capital dollars and slower growth in recurring license costs.
(2) Supports slower-growth technology adoption strategy to build value and ownership
across Port departments and users.
(3) More focused vendor services contract.
Cons:
(1) Limited initial user group and features.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$1,400,000
$0
$1,400,000
AUTHORIZATION
Previous authorizations
$0
$0
$0
Current request for authorization
$1,400,000
$0
$1,400,000
Total authorizations, including this request
$1,400,000
$0
$1,400,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
This project was not included in the 2019-2023 capital budget and plan of finance. $400,000 for
estimated 2019 funding will be transferred from the IT Services Technology Small Cap CIP,
COMMISSION AGENDA – Action Item No. 6c Page 4 of 4
Meeting Date: July 9, 2019
Template revised September 22, 2016; format updates October 19, 2016.
C800012 and $1,000,000 estimated for 2020 funding will be transferred from the IT Renewal
and Replacement CIP, C800097 for no change to the plan of finance. The project will be funded
88.2% Airport Development Fund and 11.8% General Fund.
Financial Analysis and Summary
Project cost for analysis
$1,400,000
Business Unit (BU)
Corporate division allocations to Aviation
Effect on business performance
(NOI after depreciation)
NOI after depreciation will increase
IRR/NPV (if relevant)
NA
CPE Impact
Less than .01
Future Revenues and Expenses (Total cost of ownership)
10-year software-as-a-service subscription costs estimated at $2,400,000 will be budgeted in
the ICT operating budget beginning in 2020.
ATTACHMENTS TO THIS REQUEST
Customer Relationship Management Presentation
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None