COMMISSION
AGENDA MEMORANDUM
Item No.
8h
ACTION ITEM
Date of Meeting
November 17, 2026
DATE: November 17, 2026
TO: Steve Metruck, Chief Executive Officer
FROM: Dan Hytry, Manager, Aviation Maintenance
Erik Knowles, Asst Director, Aviation Maintenance
Mike Tasker, Director, Aviation Maintenance
SUBJECT: Siemens DDC Service Contract
Amount of this request:
$10,800,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute an agreement for
Maintenance Services for the Seattle-Tacoma International Airport’s (SEA) Direct Digital
Control System for up to five years. Total dollar value for the 5-year term is estimated at
$10,800,000.
EXECUTIVE SUMMARY
This procurement will allow the Port staff to continue to operate and maintain the SEA Direct
Digital Control (DDC) System. This system controls and operates most airport terminal
mechanical systems such as heating and cooling (HVAC), air flow and vibration set-points,
smoke control and life safety systems and is considered critical to monitoring the airport
infrastructure. With the expansion of the airport due to the International Arrivals Facility,
NorthSTAR, and C Concourse Evolution, the system has grown from 157,000 control points
to 240,000 control points, an increase of roughly 52% and the number of field panels has
grown 93% to 384 over the last 5-year cycle. It is expected to continue to grow with S
Concourse Expansion. To date, costs have only increased due to annual escalation, which is
standard practice.
The Siemens DDC system is a proprietary system with required software updates, tools and
training provided only to Siemens technicians. Following these major projects, a CPO-6
Competition Waiver for the Siemens DDC system was approved in 2025 to allow the Port to
enter into a contract with Siemens without competing the service contract. Through the
Central Procurement Office, contract negotiations will take place with Siemens to develop
the contract scope and pricing for the next 5-year contract.
COMMISSION AGENDA – Action Item No. 8h
Meeting Date: November 17, 2026
Page 3 of 5
The Siemens Direct Digital Controls (DDC) system was originally procured through a
competitive process dating back to the 1980’s. At that time, Siemens was the low bidder on
the original Concourse A expansion. Siemens was also the lowest bidder on the 1991
Concourse B, C, and D Upgrade project. Both projects were advertised and awarded through
a competitive process.
In 2008, Siemens was the low bidder on the Rental Car Facility Project, designed as a stand-
alone DDC system. This project was advertised and awarded through a competitive process.
In 2010, Siemens was the successful low bidder for the PC Air system. This project was
advertised and awarded through a competitive process.
For reference, a point is defined as any item in the system that can be monitored or
controlled by the system. Examples of points include thermostat temperatures in a localized
space or a damper position on a terminal box in an office ceiling. Field panels contain the
control units that operate the control devices in the field and communicate with the main
control system. As such, these points and field panels must be properly maintained to ensure
the efficient operation of the system. As the system has grown in size, complexity, and
criticality, so has the staff’s need for support due to the growth in volume of our passengers.
JUSTIFICATION
The objective of this request is to allow the Aviation Maintenance Department to continue
to maintain the Siemens DDC System in an effective manner, ensuring the Airport continues
to operate reliably and without interruption, provide smoke control and optimize levels for
passenger comfort.
DETAILS
• The system monitors multiple functions throughout the airport via a variety of
existing infrastructure and components such as fans, pumps, valves and temperature
sensors throughout the terminal and air flow monitors.
• Examples of important systems monitored, controlled and maintained utilizing the
DDC system include the Central Mechanical Plant (which provides nearly all heating
and cooling for the facility), the Pre-Conditioned Air Plant (providing heating and
cooling to aircraft), smoke control systems (part of our fire suppression system), and
the domestic and fire suppression water system for the Airport.
• The recommended option places us at a price point comparable with other Siemens
supported airports on a cost-per-monitoring-point basis.
• The current 5-year Service Agreement ends December 31, 2026.
• Three new major installations with included DDC systems, which increase the size of
the system by approximately 50%, have come on-line since the last negotiated.
COMMISSION AGENDA – Action Item No. 8h
Meeting Date: November 17, 2026
Page 4 of 5
contract; IAF, North Star and CCE.
Scope of Work
There are multiple elements that collectively make up the scope of work of this service
agreement. Those elements are summarized in the bullet points below:
• Data Backup and Restoration Services: Contractor will perform scheduled database backups of
Port of Seattle workstation databases and graphics and/or field panel databases and provide safe
storage of this critical business information.
• Network Maintenance: Using a combination of proprietary diagnostic technologies, digital
meters, and network analysis software, the Contractor will analyze, optimize and report on the
performance of the customer's systems networks a specified number of times per year. Proper
network performance ensures the proper speed of communication and accuracy of control,
alarming, and reporting across the facility. Using network diagnostic tools, proactive evaluation of
the data network includes an analysis of bandwidth, disturbances, network traffic, communication
over the network, and overall operation.
• Field Panel Preventative Maintenance – Hardware: Contractor will provide preventive
maintenance in accordance with a program of routines as determined by their experience,
equipment application, and location.
• Field Panel Preventative Maintenance – Software: Contractor will periodically perform system
diagnostics and then take corrective actions to ensure that the Building Automation System is
perform at peak efficiency or to the Port of Seattle’s requirements. Contractor will make sure that
software changes are clear and consistent, address any failed points, points in alarm, points in
operator priority and take corrective action. Contractor will identify and correct software
corruption and inconsistencies; eliminate duplicate points, redundant loops and causes
unnecessary traffic; and address unresolved points and alarm reporting problems. This will ensure
that the system operates quickly, accurately and efficiently as originally designed and installed or
as determined by current standards or requirements.
• Software Subscription Service – Desigo CC: Contractor will provide software upgrades to existing
Siemens Desigo CC software as they are released. These upgrades include both Service Releases
and all New Version Releases of Software. Contractor will also provide corresponding support
documentation outlining the features of the releases. Included will be training to help to familiarize
the Port of Seattle’s team with the new features along with their associated benefits.
• Control Loop Tuning: Contractor will ensure control loops for devices such as valves, dampers,
actuators, etc., experience minimized overshooting and oscillatory behavior.
• Customer Directed Support: Contractor will provide a trained and experienced specialist or
technician to support special projects to be performed during standard operating hours.
• Operator Coaching: Contractor will assist Port of Seattle’s operators in identifying, verifying and
resolving problems found in executing tasks. During the coaching sessions, Contractor can address
logbook issues, assist operators in becoming more self-sufficient, and improve the skills of our
operators to better meet the needs of the Port of Seattle’s facility. Contractor will provide coaching
during normal business days and hours, during scheduled visits.
COMMISSION AGENDA – Action Item No. 8h
Meeting Date: November 17, 2026
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• Emergency response: Contractor to provide system and software troubleshooting and diagnostics
remotely to enable faster response to emergency service requests and to reduce the costs and
disruptions of downtime. Contractor to respond within two (2) hours, seven days a week, 24 hours
per day, 365 days per year, including holidays, upon receiving notification of an emergency.
• Contractor to provide on-site response to emergency service requests. Contractor to respond
within four (4) hours, seven days a week, 24 hours per day, 365 days per year, including holidays,
upon receiving notification of an emergency.
Schedule
New service contract is scheduled to be executed in Q4, once approved by Commission. The
current agreement ends December 31, 2026.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Three different variations of the new service contract are proposed below.
Alternative 1) Procure a 1-year Contract
Cost Implications: Estimated $1,333,000 for 1 year.
Pros:
(1) Lowest cost option, providing required minimums for service levels.
(2) Fastest execution of new contract.
(3) Provides the Port with additional time to negotiate a longer-term contract.
(4) Only commits the Port to a short term.
Cons:
(1) Largest one-year increase in price due to highly volatile market demands and upward
adjustment from previous 5-year contract term.
(2) Requires time and effort by Port staff to continue to negotiate service levels beyond a
one-year contract.
This is not the recommended alternative.
Alternative 2) Procure a 10-year Contract
Cost Implications: Estimated $17,500,000 for 10 years.
Pros:
(1) Locks the Port into a contract for 10 years.
(2) Reduces negotiating time spent over the years with Contractor.
(3) Makes assumptions that the market is predictable with no added risk over time.
Cons:
(1) Costs are the greatest of these options.
(2) Contractor assumes worst-case scenario with negotiating therefore demands highest
possible rates.
(3) Most challenging option to change paths as the market changes in supply and costs.
This is not the recommended alternative.
COMMISSION AGENDA – Action Item No. 8h
Meeting Date: November 17, 2026
Page 6 of 5
Alternative 3) Procure a 5-year Contract
Cost Implications: Estimated $10,800,000 for 5 years.
Pros:
(1) Service levels are most closely balanced and assessed by CPO and Contractor during a
period of foreseeable known work.
(2) Consistent with prior DDC Contracts over the last two decades.
(3) This option guarantees a high level of proficiency and consistency over the term in
operating the system and training for our own staff.
(4) Reduces Staff time in negotiating a new contract earlier than necessary.
(5) The cost of this option is middle of the road for required services.
Cons:
(1) During a time when the Port is experiencing a financial reevaluation of costs vs.
revenues, this contract may be priced during a time of uncertainty.
(2) Only commits the Port to a 5-year contract to manage risk.
This IS the recommended alternative.
FINANCIAL IMPLICATIONS
The annual Aviation Maintenance expense budget already includes funding for this service
agreement based on the current year's contract cost. The total contract reflects the significant
growth of the system over the past five-year cycle and anticipated continued expansion, which will
increase the Maintenance budget in subsequent years.
Annual Budget Status and Source of Funds
Contract payments are included as a specific line item in the Aviation Maintenance expense budget,
account 64770.
ATTACHMENTS TO THIS REQUEST
None
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
In 2011, 2016 and 2021 - The Commission authorized 5- year service agreements with
Siemens for DDC system maintenance.
