Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
6f
ACTION ITEM
Date of Meeting
September 10, 2019
DATE: July 12, 2019
TO: Stephen P. Metruck, Executive Director
FROM: Stuart Mathews, Director, Aviation Maintenance
Erik Knowles, Senior Manager, Aviation Maintenance
SUBJECT: Contract for Controls and Software Support for Various Baggage Handling Systems
(BHS)
Total estimated contract
cost:
$500,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute contracts for controls
and software support for multiple Baggage Handling Systems (BHS) at the Seattle-Tacoma
International Airport over a period of five years at the Port’s discretion for a total estimated
cost of $500,000.
EXECUTIVE SUMMARY
The baggage handling controls and software services contracts provide technical support to
conduct regular maintenance and to ensure the Airport’s proprietary baggage handling
software systems are fully supported when services are needed beyond that, which Port staff
can provide. The service providers will be responsible for providing full technical support for the
baggage software systems, should the need arise, 24 hours per day, seven days per week.
JUSTIFICATION
We are proposing to continue to use service providers to perform additional service on our
controls networks within our baggage system once Port resources are exhausted. This is an
effort to provide the level of service necessary for our airline partners; timely, accurate
screening and sortation of baggage is critical to baggage system operations. Failure to correctly
screen, sort checked baggage, and deliver it to the correct destination in a timely manner can
result in costly delayed or lost bags for airports and airlines. This, in turn, can negatively impact
the customer experience. Technical support for these systems in the form of software and
hardware maintenance, trouble shooting, and root cause investigation will be critical to ensure
the BHS remains fully capable. Beyond the regular maintenance necessary to be performed by
the service providers, Port staff utilizes the service providers for additional support services
COMMISSION AGENDA Action Item No. 6f Page 2 of 5
Meeting Date: September 10, 2019
Template revised June 27, 2019 (Diversity in Contracting).
approximately 12 times a year. We intend to continue to use this valuable service in the future
in support of the baggage handling system.
Diversity in Contracting
Although there will be limited subcontracting opportunities for this procurement, AV and CPO
will be coordinating with the Diversity in Contracting Department to maximize outreach to
potential women- and minority-owned business enterprise firms capable of performing these
services.
DETAILS
The estimated cost for each year of the contracted services is budgeted within the annual
Aviation Division operating budget. The estimated value of these contracts is $500,000 over a
five-year period. The proposed contract scopes and terms are similar to the current service
agreement.
Over the next 5 years we may have multiple vendors providing phone support and call out
support on systems related to their own source code as new systems come online, such as
Control Touch, Webb, and an Airport-wide SmartSuite (BCRS) system. We will execute the
contracts to be as flexible as possible to allow competition within the system’s proprietary
constraints.
Scope of Work
The scope of work for this procurement is to provide controls and software support for multiple
Baggage Handling Systems at the Seattle-Tacoma International Airport. This service needs to
provide remote support, followed by onsite resolution with travel included, should a need arise.
The service support will include, but not be limited to the following systems:
(1) C25 Lower Level & Upper Level Controls
(2) C1/C92 Lower Level & Upper Level Controls
(3) C88 Lower Level & Upper Level Controls
(4) C60/61 Lower Level & Upper Level Controls
(5) Airport-wide SmartSuite (BCRS)
The scope of these contracts requires the service providers to supply the Seattle-Tacoma
International Airport with support services that will provide stable and reliable access to service
provider staff that are informed and knowledgeable on the control systems for the indicated
systems. The support service contracts will allow for fast and reliable solutions to service issues
when they arise.
Included in this service is 24/7 Remote Support assistance. This will provide the Seattle-Tacoma
International Airport on-site staff with access to on-call personnel who are knowledgeable
COMMISSION AGENDA Action Item No. 6f Page 3 of 5
Meeting Date: September 10, 2019
Template revised June 27, 2019 (Diversity in Contracting).
about the systems and are able to handle support issues when they arise, 24 hours a day, seven
days per week.
Schedule
The goal of this procurement will be to bid, award, test, and implement one or more service
contracts by December 31, 2019.
Activity
Commission authorization
RFP out to bid
RFP awarded
Contractor begins installation and testing
In-use date
Cost Breakdown
This Request
Total Contract
Project management
$0
$0
BHS contracts
$500,000
$500,000
Total
$500,000
$500,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 Do not execute service contracts for this service.
Cost Implications: No cost to the Port.
Pros:
(1) This $500,000 would not need to be utilized for this service and an expense savings
could be realized.
Cons:
(1) If a software or hardware control system failure were to occur that on-site Airport
staff could not resolve, the airlines utilizing that system could be severely impacted
until an emergency procurement could be executed.
This is not the recommended alternative.
Alternative 2 Hire additional technical staff.
Cost Implications: Estimated $600,000 (per year) for 4 Engineering FTEs to be available around
the clock should systems need critical support and to conduct regular maintenance.
Pros:
(1) Internal staff, trained and ready to perform system troubleshooting, would be a great
way for the Port to be technically independent of reliance on outside support.
COMMISSION AGENDA Action Item No. 6f Page 4 of 5
Meeting Date: September 10, 2019
Template revised June 27, 2019 (Diversity in Contracting).
Cons:
(1) It would be difficult for the Port to achieve all the rights necessary to access
proprietary systems to be fully effective.
(2) Hiring and training such technical personnel would take a significant period of time.
These resources would not be ready to support by 2020.
(3) The cost of hiring FTEs for this role exceeds the cost to contract this work.
This is not the recommended alternative.
Alternative 3 Execute one or more contracts for controls and software support for multiple
Baggage Handling Systems (BHS) at the Seattle-Tacoma International Airport.
Cost Implications: $500,000 (5 years)
Pros:
(1) This is in alignment with how we operate today. Technical experts are available 24/7
to support our Port staff in an effort to keep the BHS running efficiently. This method
has worked effectively.
Cons:
(1) These contracts consume expense funding that could be utilized for other activities if
the contract were not executed.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$0
$500,000
$500,000
AUTHORIZATION
Previous authorizations
0
0
0
Current request for authorization
0
$500,000
$500,000
Total authorizations, including this request
0
0
0
Remaining amount to be authorized
$0
$500,000
$500,000
Annual Budget Status and Source of Funds
The annual estimated cost of $100,000 was included in the Aviation Division’s operating
budget, as it was for the 2019 budget. The cost for each year of the contracts is budgeted
within the annual Aviation Division operating budget. The funding source is the Airport
Development Fund. The costs are fully recovered from airlines through fees for use of the
baggage system.
COMMISSION AGENDA Action Item No. 6f Page 5 of 5
Meeting Date: September 10, 2019
Template revised June 27, 2019 (Diversity in Contracting).
ATTACHMENTS TO THIS REQUEST
None
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None