Template revised January 10, 2019.
IItem No.
8k
ACTION ITEM
Date of Meeting
July 23, 2024
DATE: July 23, 2024
TO: Stephen P. Metruck, Executive Director
FROM: Kenneth R. Lyles, Director Maritime Operations and Security
Russ Read, Sr. Manager, Maritime Security
SUBJECT: Authorization to Procure Maritime Security Services Contract
Amount of this request:
Total estimated cost:
$30,000,000
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 $30,000,000.
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. We are working with the Diversity in Contracting team and will establish a WMBE
aspirational goal ahead of advertisement.
JUSTIFICATION
This request is to provide standard security services and does not modify any procedure or
previous authorizations. 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 December 31, 2024.
COMMISSION AGENDA Item No. 8k Page 2 of 4
Meeting Date: July 23, 2024
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 December 31, 2024.
Services will be provided:
• On a regularly scheduled basis, at standard locations
• On an as needed basis
• 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.
Security services will also include requirements for additional staffing on emergency or ad hoc
basis for 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,
have 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
2024 Quarter 3
Request for Proposals Advertised
2024 Quarter 3
Review of proposals, selection and award of contract
2024 Quarter 4
Contract start
2025 Quarter 1
COMMISSION AGENDA Item No. 8k Page 3 of 4
Meeting Date: July 23, 2024
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 meet CBP regulatory requirements for operations at Terminal 46
(3) Inability to assist with cruise ship operations at Terminal 91
(4) Significantly increase potential for criminal activities, vandalism, unauthorized camping
on Port of Seattle and Northwest Seaport Alliance properties
(5) Increased risk to insurance claims against the Port of Seattle.
This is not the recommended alternative.
Alternative 2 –Award a single competitively procured security services contract for a period of
up to 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 $6 million per year over
the five-year life of the contract for a total expense of $30 million. 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) Opportunity for Women and Minority Business Enterprises (WMBE) to competitively
bid for Security Services contract.
Cons:
(1) Awarded bidder may not be able to satisfy service requirements for the five-year
duration of contract.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
The financial implications of this request are an annual expense of approximately $6 million per
year over the course of the five-year contract, based on current best estimates of current bill
rates.
COMMISSION AGENDA Item No. 8k Page 4 of 4
Meeting Date: July 23, 2024
Template revised September 22, 2016; format updates October 19, 2016.
Annual Budget Status and Source of Funds
Budget for all services is in individual expense budgets in the organizations using the services.
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 $6
million annually, or $30 million over the life of the awarded contract.
ATTACHMENTS TO THIS REQUEST
None
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
September 10, 2019 – Port of Seattle 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 $20 million.
