Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8c
ACTION ITEM
Date of Meeting
September 10, 2019
DATE: August 23, 2019
TO: Stephen P. Metruck, Executive Director
FROM: Kenneth R. Lyles, Director Maritime Operations and Security
Russ Read, Maritime Security Manager
SUBJECT: Security services contract for all maritime locations
Amount of this request:
Total estimated cost:
$20,000,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute a contract for security
services to be delivered to all Maritime Division, Economic Development, and Northwest
Seaport Alliance locations on both scheduled and ad hoc basis for a total estimated cost over
five years of approximately $20,000,000.
EXECUTIVE SUMMARY
Security services are required for compliance with U.S. Coast Guard Regulations, as well as to
safeguard the public, tenants, contractors, vendors, port staff and the physical assets of the
Port of Seattle. Staff will conduct a Request for Proposal process and will consider the
experience, reputation and prices of each firm that submits a proposal. Advertisements will be
placed in all traditional MWBE publications. Special outreach will be made to Women and
Minority Business Enterprises (WMBE).
Proposals are expected from several companies, including WMBE firms.
JUSTIFICATION
This request is to provide standard security services and does not substantially modify any
standing procedure or previous decision. The services provided by the contractor will allow the
Port of Seattle to remain in compliance with the Maritime Transportation Security Act as
codified under Title 33, Code of Federal Regulations, Part 101 and 105. Additionally, these
services are required to maintain compliance with the U.S. Coast Guard approved Port of
Seattle Facility Security Plan. Finally, security services help to secure the public, tenants,
contractors, vendors, consultants Port of Seattle staff and associated assets.
The current contract will expire on February 29, 2020.
COMMISSION AGENDA – Action Item No. _8c_ Page 2 of 5
Meeting Date: September 10, 2019
Template revised September 22, 2016; format updates October 19, 2016.
DETAILS
This request is to provide standard security services to multiple locations to assure compliance
with security and safety, aid in reducing risk of criminal activities and to maintain and improve
regulatory compliance.
The current contract will expire on February 29, 2020.
Services will be provided:
On a regularly scheduled basis, at standard locations
On an as needed basis for event response
In a standardized performance scope, as defined by the Port of Seattle
Assure appropriate communications with other government entities during emergencies
and events.
Provide ad hoc security and fire watch services as required by law or circumstance.
Scope of Work
The scope includes providing qualified and trained security staff and supervision for defined
duties at Shilshole Bay Marina, Fishermen’s Terminal/Salmon Bay Marina, Maritime Industrial
Center, Terminal 91, Pier 69, Pier 66/Bell Harbor Marina Complex, Northwest Seaport Alliance
properties (on a cost reimbursement basis), Terminal 46, and Port of Seattle parks and real
estate properties as required for the reduction of criminal behavior and regulatory compliance.
It also includes requirements for additional staffing on emergency or ad hoc basis for event
coverage or for fire watch duties in buildings when fire protection systems are off-line.
The services will be available to provide these services to the Port of Seattle owned properties
managed by the Northwest Seaport Alliance, when the properties do not have an active tenant,
and A) Physical assets requiring safety and or security services, and/or the facility needs to be
able to receive vessels or conduct activities under U.S. Coast Guard regulations and the Port of
Seattle Facility Security Plan.
Schedule
This contract will cover a period of five years.
Activity
Commission authorization
2019 Quarter 3
Request for Proposals Advertised
2019 Quarter 4
Review of proposals, selection and award of
contract
2019 Quarter 4
Contract start
2020 Quarter 1
COMMISSION AGENDA – Action Item No. _8c_ Page 3 of 5
Meeting Date: September 10, 2019
Template revised September 22, 2016; format updates October 19, 2016.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Cease security operations and services at maritime, real estate and Northwest
Seaport Alliance Properties.
Cost Implications: This would reduce annual expenditures by approximately $4 million per year.
However, this would be offset by the inability to receive certain vessels at Port of Seattle and
Northwest Seaport Alliance properties, as well as the potential increase in losses due to
criminal activity and damage to the reputation of the Port of Seattle and Northwest Seaport
Alliance.
Pros:
(1) Reduced annual security services contract expense.
Cons:
(1) Inability to comply with U.S. Coast Guard regulatory requirements
(2) Inability to assist with cruise ship operations at Terminal 91
(3) Significantly increase potential for criminal activities, vandalism, unauthorized
camping on Port of Seattle and Northwest Seaport Alliance properties
(4) Increased risk to insurance claims against the Port of Seattle.
This is not the recommended alternative.
Alternative 2 – Bring security services into Maritime staff management with direct hire Port of
Seattle Employees (FTE).
Cost Implications: Estimated $35M expense over same time period. In addition, this alternative
may add long term liability with associated FTE staffing.
Pros:
(1) Eliminates need for large contract
(2) Creates opportunities for deeper commitment to Port of Seattle by security personnel
(3) Allows for broader tasks for security personnel to be assigned collateral duties for
operations in addition to safety and security functions
(4) Provides potential point of entry into a public service career and point of talent
acquisition for the Port of Seattle
Cons:
(1) Significant additional recurring expense to the Port of Seattle over contracted services
(2) Lack of flexibility: Would lose significant flexibility in ability to change, reduce or
increase resources in a timely mater.
(3) Would add to additional long-term expenses to the Port of Seattle with associated FTE
staffing.
(4) Would reduce opportunities for small business contractor(s).
This is not the recommended alternative.
COMMISSION AGENDA – Action Item No. _8c_ Page 4 of 5
Meeting Date: September 10, 2019
Template revised September 22, 2016; format updates October 19, 2016.
Alternative 3 –Award a single competitively bid security services contract for a period of five
years for services to the Port of Seattle, and the Northwest Seattle Seaport Alliance on a
reimbursable basis.
Cost Implications: The estimated expense for this option is approximately $4 million per year
over the five-year life of the contract for a total expense of $20 million over five years. This is
based on a best estimate of current and future security personnel service rates.
Pros:
(1) Provides a consistent five-year contract through one service provider.
(2) Maintains regulatory compliance.
(3) Protects Port of Seattle and Northwest Seaport Alliance personnel and properties.
(4) Supports Women and Minority Business Enterprises (WMBE) opportunities to work
with the Port of Seattle.
Cons:
(1) Due to the size and complexity of the services to be provided, some small businesses
may not be able to meet the needs of the contract.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
The financial implications of this request are an annual expense of approximately $4 million per
year over the course of a five-year contract, based on current best estimates of current bill
rates.
Annual Budget Status and Source of Funds
Budget for all services is in individual expense budgets in the organizations using the services.
These amounts may need to be adjusted for 2020 based on the results of the awarded contract.
Future expenses will be budgeted into the individual expense budgets of those organizations
utilizing the security services.
Future Revenues and Expenses (Total cost of ownership)
This request will result in a competitive bid process with an anticipated cost of approximately
$4 million annually, or $20 million over the life of the awarded contract.
ATTACHMENTS TO THIS REQUEST
None
COMMISSION AGENDA – Action Item No. _8c_ Page 5 of 5
Meeting Date: September 10, 2019
Template revised September 22, 2016; format updates October 19, 2016.
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
May 17, 2016 – The Commission authorized the Chief Executive Officer to execute a
contract for security services to be delivered to all Maritime Division locations on both
scheduled and ad hoc bases for a period of five years, at an expense of approximately $8
million.
