Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8d
ACTION ITEM
Date of Meeting
March 14, 2023
DATE : March 6, 2023
TO: Stephen P. Metruck, Executive Director
FROM: Wendy Reiter, Aviation Security Director
Kenneth Lyles, Maritime Operations and Security Director
Krista Sadler, Technology Delivery Director
SUBJECT: Badge System Replacement (CIP #C801201)
Amount of this request:
$4,200,000
Total estimated project cost:
$5,000,000
Ten-year maintenance cost:
$2,500,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to 1) proceed with a revised
project to replace the Port Badge System and 2) execute contract(s) for software, equipment,
vendor services, and ten years of software license and maintenance fees. The project capital
amount requested for the originally authorized system upgrade was $800,000. An additional
$4,200,000 is requested for the revised system replacement scope. The estimated ten-year
software license and maintenance fee remains the same at $2,500,000.
EXECUTIVE SUMMARY
This project will replace the Badge System used Port-wide to create and manage over 24,000
access credentials for Seattle-Tacoma International Airport (SEA) and Port Corporate and
Maritime locations. System users include the Aviation Credential Office, Maritime Security,
Maritime Maintenance, Pier 69 Facilities, and Cruise Operators who vet credential requests
following location specific requirements and assign and maintain appropriate access for Port of
Seattle employees, tenants, consultants, and contractors.
In November 2021, an $800,000 project was authorized by Commission to upgrade the existing
badge system with a planned implementation start of 1
st
quarter 2022. Minimal funds have
been spent towards the original scope. A contract to begin the implementation has not yet
been executed and Port Security Leaders are now advocating a competitive procurement for
long term stability of this critical system. The current system was deployed in 2014 and while
additional features have been added, no significant upgrades have been completed since initial
implementation.
COMMISSION AGENDA – Action Item No. 8d Page 2 of 4
Meeting Date: March 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
ICT, Aviation Security, and Maritime Security will partner to complete this project. The revised
capital amount was included in the 2023-2027 capital budget and plan of finance in the amount
of $5,000,000. Recurring cost, originally estimated at $250,000 per year for up to ten years
($2,500,000) has not changed with the revised scope and will be budgeted in the ICT operating
budget.
JUSTIFICATION
Access authorization through credential management is a complex and critical process for
Airport and Maritime operations. At SEA, security requirements from the Department of
Homeland Security, Transportation Security Administration (TSA) include mandatory
background checks for new and renewed badge applications as well as continual vetting of
badge holders against current threats. For Maritime badging, the United States Coast Guard
(USCG) has a requirement for a Transportation Worker Identification Credential (TWIC) for
several of our port locations. A robust and reliable credential management system is essential
for Airport and Maritime operations.
Diversity in Contracting
Project staff will work with the Diversity in Contracting Department to determine if a direct
women-and-minority-owned business enterprise (WMBE) aspirational goal should be assigned.
Opportunities may be limited given the specialized scope.
DETAILS
Scope of Work
(1) Competitively procure and implement a system that will support the complex
requirements for our Aviation and Maritime locations.
(2) Install on current-version infrastructure to ensure long-term sustainability.
(3) Migrate legacy system data to new system where appropriate.
(4) Integrate with Port financial system, TSA security clearance system, Access Control
system and others.
(5) Complete a robust testing cycle that ensures compliance with agency regulations.
Schedule
Activity
Commission authorization
2023 Quarter 1
Procurement Complete
2023 Quarter 3
In-use date
2025 Quarter 1
This Request
Total Project
Software, Equipment, and Vendor Services
$3,850,000
$4,400,000
Port of Seattle Labor
$350,000
$600,000
COMMISSION AGENDA – Action Item No. 8d Page 3 of 4
Meeting Date: March 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Total
$4,200,000
$5,000,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Continue with project to upgrade the existing badge system.
Cost Implications: No Change to existing project authorization
Pros:
(1) Ensures availability of security updates, system patches, and provides updated
features of a new version.
(2) Port of Seattle infrastructure is architected to protect the sensitive data and
availability requirements of this critical system.
Cons:
(1) A delay in the availability of a new version that meets Port of Seattle requirements
impacts the sustainability of a critical security system. It is currently unknown when
the new version might be available.
This is not the recommended alternative.
Alternative 2 – Competitively procure and implement a badge system.
Cost Implications: $4,200,000 in increase project costs over authorized upgrade
Pros:
(1) While software that meets the stringent requirements of our regulatory commitments
is limited, options are newly available that could provide desired features on a more
aggressive cadence.
(2) Current system support is complex and software that better manages required
peripherals may reduce support costs and operational impacts.
Cons:
(1) A replacement project is significantly more expensive than an upgrade and will require
a much longer implementation schedule, delaying possible improvements.
(2) To meet requirements of both an airport and a seaport the new system may require
additional software integrations or process change.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$800,000
$2,500,000
$3,300,000
Current change
$4,200,000
0
$4,200,000
Revised estimate
$5,000,000
$2,500,000
$7,500,000
AUTHORIZATION
COMMISSION AGENDA – Action Item No. 8d Page 4 of 4
Meeting Date: March 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Previous authorizations
$800,000
$2,500,000
$3,300,000
Current request for authorization
$4,200,000
0
$4,200,000
Total authorizations, including this request
$5,000,000
$2,500,000
$7,500,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
This project was included in the 2023-2027 capital budget and plan of finance at an amount of
$5,000,000. The project will be funded 92% from the Airport Development Fund and 8% from
the General Fund.
Financial Analysis and Summary
Project cost for analysis
$5,000,000
Business Unit (BU)
Administrative, 92% allocation to Aviation
Effect on business performance
(NOI after depreciation)
NOI after depreciation will increase due to inclusion of
capital (and operating) costs in airline rate base
IRR/NPV (if relevant)
N/A
CPE Impact
$0.01 in 2026
Future Revenues and Expenses (Total cost of ownership)
Ten-year recurring service, license, or maintenance fees, estimated at $2,500,000, will be
budgeted in the ICT annual operating budget beginning in 2024.
ATTACHMENTS TO THIS REQUEST
None
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
November 9, 2021 – The Commission authorized the Executive Director to 1) proceed with
the Badge System Update project and 2) execute contract(s) for software, equipment,
vendor services, and ten years of software license and maintenance fees. The amount
requested for project implementation was $800,000 and the estimated ten-year
software license and maintenance fee is $2,500,000 ($250,000 Annually).