Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
6c
ACTION ITEM
Date of Meeting
June 23, 2020
DATE: May 26, 2020
TO: Stephen P. Metruck, Executive Director
FROM: Alex Adams, Senior Environmental Program Manager
Sandra Kilroy, Director, Maritime Environment & Sustainability
SUBJECT: IDIQ Contract to Provide Environment & Sustainability Audit Services and Support
for Ongoing Regulatory Compliance Measures
Amount of this request:
$3,000,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute one (1) consulting
services Indefinite Delivery/Indefinite Quantity (IDIQ) contract to perform environmental audit
and regulatory support for the Maritime Environment and Sustainability Department with a
total value not to exceed $3,000,000 and a contract ordering period of five (5) years. No
funding is associated with this authorization request.
EXECUTIVE SUMMARY
The Maritime Environment and Sustainability Department proposes to advertise and select one
qualified firm to provide the outside services necessary to support essential annual
environmental compliance measures such as building tune-up audits and energy benchmarking,
as well as the non-compliance related tasks, including but not limited to the following: energy
audits, lighting audits, waste audits, sustainability audits, building commissioning, and system
measurement and verification services. This IDIQ contract will replace an existing outside
services contract that is ending.
JUSTIFICATION
Fulfillment of environmental obligations and sustainability efforts through this procurement
supports all four of the Port’s Century Agenda objectives under the following strategies:
(1) Position the Puget Sound region as a premier international logistics hub;
(2) Advance this region as a leading tourism destination and business gateway;
(3) Use the Port’s influence as an institution to promote women and minority business;
enterprise (WMBE) growth, small business growth, and workforce development, and;
(4) Be the greenest, and most energy-efficient port in North America.
COMMISSION AGENDA – Action Item No. _6c___ Page 2 of 5
Meeting Date: June 23, 2020
Template revised June 27, 2019 (Diversity in Contracting).
In addition to supporting the Port’s strategic objectives, this contract provides critical support
needed for the Port to maintain regulatory compliance with Seattle Municipal Code (SMC).
The non-regulatory audits and planning services covered by this contract’s scope of work are
also essential for the planning and management of sustainability and resource conservation
projects and to maximize cost recovery through rebates and grant funding.
Diversity in Contracting
Port staff met with the Diversity in Contracting Department within the Economic Development
Division to set a WMBE goal of twelve percent of contract spending. Funding of services under
this contract will come separately from annual operating budgets.
DETAILS
Indefinite delivery, indefinite quantity contracts provide the Port with flexibility to meet
business requirements as they arise by issuing individual service directives to accomplish tasks
within a general, pre-defined scope of work, on an as-needed basis, for a fixed period, and a
maximum contract amount. Specifically, this contract will allow the Maritime Environment and
Sustainability Department to contract the specific services needed to comply with SMC while
also advancing other priority resource conservation and sustainability tasks. Compliance with
SMC 22.930 requires building owners to complete annual building audits called “Tune-Ups” on
a repeating, five-year timeline based on the building’s square footage and use. A qualified
“Tune-Up Specialist” must conduct a “Tune-Up Assessment” and submit a “Seattle Building
Tune-Up Report” to the City of Seattle per the City’s Tune-Up schedule. The Port of Seattle
must also comply with City of Seattle's Energy Benchmarking Program under SMC 22.920,
which requires owners of non-residential and multifamily buildings (20,000 square feet or
larger) to track energy performance and annually report to the City of Seattle. This IDIQ
contract will replace an existing contract, which expires in 2021, and provides capacity to
complete only regulatory tasks but not the additional environmental audit tasks identified in
this scope of work and necessary to advance the Century Agenda.
Scope of Work
The service agreements in this IDIQ will provide environmental audit services in support of Port
capital development, operations, maintenance, strategic planning, sustainability, climate
change, air quality, and energy projects. Environmental audit services requested include
regulatory compliance tasks, as well as non-regulatory energy and sustainability audits,
assessments and plans. The above services include but are not limited to the following tasks:
(1) Regulatory compliance and reporting
(2) Environmental audits of solid waste, energy, water, materials and other resource uses
(3) Building and facility commissioning, monitoring, measurement and verification
Schedule
The IDIQ service agreement will have a contract ordering period of five years during which,
COMMISSION AGENDA – Action Item No. _6c___ Page 3 of 5
Meeting Date: June 23, 2020
Template revised June 27, 2019 (Diversity in Contracting).
service directives may be issued. Each service directive will specify the scope, value, duration,
and schedule associated with the work. This contract ordering period will ensure continuity of
compliance efforts and efforts to advance the Century Agenda.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Compliance with Seattle Municipal Code is mandatory, therefore alternatives provide methods
for the Port, at a minimum, to maintain regulatory compliance.
Alternative 1 – Train existing Port staff to become Tune-Up Specialists, per SMC requirements,
and complete regulatory audits with existing staff capacity.
Cost Implications: N/A
Pros:
(1) Lowest outside cost alternative.
(2) Contract administration needs would decline.
(3) Port staff would increase technical depth and capacity to complete Building Tune-Ups.
Cons:
(1) Port staff do not currently have the breadth of specialized expertise.
(2) Port staff do not currently have the capacity to undertake this scope at current staffing
levels. It would result in the need to hire additional staff.
(3) Extensive training is needed for Port staff to achieve necessary certifications to
complete regulatory requirements.
(4) Training opportunities may not align with regulatory need, putting compliance at risk.
This is not the recommended alternative.
COMMISSION AGENDA – Action Item No. _6c___ Page 4 of 5
Meeting Date: June 23, 2020
Template revised June 27, 2019 (Diversity in Contracting).
Alternative 2 – Delay new contract procurement and use remaining outside service contract
capacity to complete only regulatory tasks through the end of the contract term (September
2021) then procure a new contract that both maintains compliance and addresses key non-
regulatory tasks.
Cost Implications: Up to $600,000 per year for one year
Pros:
(1) Does not require re-tasking and training existing staff to maintain compliance.
(2) Provides a flexible, contracted workforce over the remaining contract duration.
(3) Provides short-term regulatory compliance support.
(4) Reduces short-term burden on procurement staff in 2020.
Cons:
(1) Existing contract held by the Port provides a short-term solution but does not address
annual compliance requirements beyond 2021.
(2) Does not provide support for key non-compliance-related environmental audit tasks.
(3) Use of contract capacity for Building Tune-Ups may reduce available funding capacity
needed for other regulatory tasks.
This is not the recommended alternative.
Alternative 3 – Procure a new Environmental Audit IDIQ contract to acquire the specialized
services needed to complete regulatory and non-regulatory tasks over a five-year duration.
Cost Implications: Up to $600,000 per year for five years
Pros:
(1) Does not require re-tasking and training existing staff to maintain compliance.
(2) Provides a highly skilled and technically broad consultant workforce for both
regulatory and non-regulatory requirements, on demand.
(3) Enables the Port to plan audit tasks beyond 2021 and to maintain compliance over the
duration of the contract.
(4) Provides flexibility: low utilization of contract beyond regulatory compliance will result
in reduced costs below annual estimates.
Cons:
(1) Higher cost than Alternative 1.
(2) Requires coordination and management of contractor by Port staff.
(3) Requires contract administration process to procure new contract in 2020.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
There is no funding associated with this request for authorization. Charges to this contract will
use service directives from authorized division budgets.
COMMISSION AGENDA – Action Item No. _6c___ Page 5 of 5
Meeting Date: June 23, 2020
Template revised June 27, 2019 (Diversity in Contracting).
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$0
$600,000 per
year for 5
years
$3,000,000
AUTHORIZATION
Previous authorizations
0
0
0
Current request for authorization
0
0
0
Total authorizations, including this request
0
0
0
Remaining amount to be authorized
$0
$0
$0
ADDITIONAL BACKGROUND
City of Seattle adopted the Building Tune-Ups Ordinance in March 2016 as part of the City’s
Climate Action Plan, to optimize energy and water performance across Seattle’s commercial
buildings. Building Tune-Ups identify low- or no-cost actions related to building operations and
maintenance and can result in up to fifteen percent in energy savings. The City of Seattle has
the legal authority to assess fines for non-compliance.
ATTACHMENTS TO THIS
(1) Presentation Slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None.
