REPORT TO THE BUSINESS ADMINISTRATION COMMITTEE

Transcription

1 REPORT TO THE BUSINESS ADMINISTRATION COMMITTEE RECOMMENDATION TO AWARD A SOLE SOURCE CONTRACT FOR MAINTENANCE AND TECHNICAL SUPPORT OF THE CENTRAL HEATING AND COOLING PLANT S DISTRIBUTED CONTROL SYSTEM AT RONALD REAGAN WASHINGTON NATIONAL AIRPORT APRIL 2017

2 PURPOSE Staff requests the Business Administration Committee approve and recommend to the Board of Directors that the Airports Authority enter into a sole source contract with Schneider Electric Systems USA, Inc. (Schneider) for the maintenance and technical support of its proprietary Foxboro Intelligent Automation (I/A) Series Distributed Control System (DCS) supporting the Central Heating and Cooling Plant (Central Plant) operations at Ronald Reagan Washington National Airport (Reagan National). The proposed contract will consist of a five-year period aligning with the forecasted remaining useful life of the Central Plant equipment.

3 BACKGROUND The Central Plant at Reagan National provides chilled water and high-temperature hot water (HTHW) for the heating and cooling requirements of the majority of the buildings at Reagan National. The Central Plant houses five 900-ton centrifugal chillers and three HTHW generators: two 80 million British Thermal Unit (MMBTU) boilers and one 40 MMBTU boiler. The Foxboro I/A Series system provides control, monitoring, and reporting of the equipment and processes at the Central Plant.

4 BACKGROUND - Continued Schneider is the sole provider of the proprietary hardware and software of the Foxboro I/A Series system. Schneider is the only authorized service provider of preventive and corrective maintenance for the software and hardware in the Foxboro DCS Systems. The current contract expires on June 30, 2017.

5 BACKGROUND - Continued The proposed total not to exceed amount of the contract is $400,000 and would become effective July 1, The proposed contract would be awarded as a sole source contract, permitted, with proper justification, under Contracting Manual Section 1.4.1(3)(c) Proprietary Equipment and Software, since there is only one actual source available. The intent to award a sole source contract to Schneider Electric Systems USA, Inc. was published on the Airports Authority s website, and no firm offered a statement of capabilities to provide the service.

6 RECOMMENDATION Staff requests that the Business Administration Committee approve and recommend that the Board of Directors approve the award of a sole source contract to Schneider Electric Systems USA, Inc. for the maintenance and technical support of the Foxboro Intelligent Automation Series Distributed Control System for the Central Plant operations at Reagan National.

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8 REPORT TO THE BUSINESS ADMINISTRATION COMMITTEE RECOMMENDATION TO AWARD A SOLE SOURCE CONTRACT FOR MAINTENANCE AND TECHNICAL SUPPORT OF THE CENTRAL HEATING AND COOLING PLANT S DISTRIBUTED CONTROL SYSTEM AT RONALD REAGAN WASHINGTON NATIONAL AIRPORT ACTION REQUESTED APRIL 2017 Staff requests the Business Administration Committee approve and recommend to the Board of Directors that the Airports Authority enter into a sole source contract with Schneider Electric Systems USA, Inc. (Schneider) for the maintenance and technical support of the Foxboro Intelligent Automation (I/A) Series Distributed Control System (DCS) supporting the Central Heating and Cooling Plant (Central Plant) operations at Ronald Reagan Washington National Airport (Reagan National). The proposed contract will consist of a five-year period, aligning with the forecasted remaining useful life of the Central Plant equipment. BACKGROUND The Central Plant at Reagan National provides chilled water and high-temperature hot water (HTHW) for the heating and cooling requirements of the majority of the buildings at Reagan National. Chilled water is generated during twilight hours and stored in a 2.2 million gallon thermal storage tank. The Central Plant houses five 900-ton centrifugal chillers and HTHW generators, including two 80 million British Thermal Units (MMBTU) boilers and one 40 MMBTU boiler. The DCS provides control, monitoring, and reporting of the equipment and the processes at the Central Plant. These are critical to the Central Plant s mission to provide heating and cooling to Airport facilities 24 hours per day. DISCUSSION The Airports Authority, through its competitive procurement procedures, awarded a contract to Invensys Systems Inc. (Invensys) in 1994 to provide technical support, preventive maintenance services, equipment upgrades, software upgrades, and licenses for the DCS. Schneider acquired Invensys in 2014, and as a part of the integration of the two companies, Invensys changed its name and began operating under the Schneider name in January The Airports Authority pays a fixed monthly fee for the following support and services:

9 Technical support via telephone Web support On-site corrective maintenance On-site preventive maintenance Software maintenance to include service packs, patches and upgrades Software version upgrades Module exchange/reserve program Schneider is the original equipment manufacturer and installer of the DCS and has provided support since Schneider is also the sole provider of the proprietary hardware and software for the DCS and is the only authorized service provider of preventive and corrective maintenance for the software and hardware equipment used in the DCS. Schneider s software and equipment are not compatible or interchangeable with software and equipment from other manufacturers or providers. The current contract expires on June 30, The proposed contract would be awarded as a sole source contract, permitted, with proper justification, under Contracting Manual Section 1.4.1(3)(c) Proprietary Equipment and Software. For the reasons described above, Schneider is the only source for the required services. As required by Section of the Contracting Manual, notice of this intended sole source award was published on the Airports Authority s website for the required time period, and no statements of capabilities were submitted. The proposed contract has an estimated five-year cost not to exceed $400,000 and would become effective July 1, RECOMMENDATION Staff requests that the Business Administration Committee approve and recommend that the Board of Directors approve the award of a sole source contract to Schneider Electric Systems USA, Inc. for the maintenance and technical support of the Foxboro Intelligent Automation Series Distributed Control System for the Central Plant operations at Reagan National. Prepared by: Ronald Reagan Washington National Airport Engineering and Maintenance Department April 2017

10 Proposed Resolution Authorizing the Award of a Sole Source Contract to Provide Maintenance and Technical Support of the Central Heating and Cooling Plant s Distributed Control System at Ronald Reagan Washington National Airport WHEREAS, Schneider Electric Systems USA, Inc. (Schneider) is the sole provider of the proprietary hardware and software of the Foxboro Intelligent Automation Series Distributed Control System (DCS) supporting the Central Heating and Cooling Plant operations at Ronald Reagan Washington National Airport (Reagan National); WHEREAS, The Airports Authority has contracted with Invensys Systems Inc., now operating under the Schneider name, for preventive and corrective maintenance for the software and hardware in the Foxboro DCS at Reagan National since the system s installation in 1994; WHEREAS, The current contract with Schneider for the provision of maintenance and technical support of the Central Heating and Cooling Plant operations at Reagan National expires on June 30, 2017; WHEREAS, The proposed contract is for a five-year base period aligning with the forecasted remaining useful life of the Central Plant equipment, at an estimated total cost of $400,000; and WHEREAS, As required by the Airports Authority s Contracting Manual, notice of this sole source contract award has been published on the Airports Authority s website for the required time period and no firm offered a capability statement for this requirement; now, therefore, be it RESOLVED, That the President and Chief Executive Officer is authorized to enter into a sole source contract with Schneider Electric Systems USA, Inc. for the provision of maintenance and technical support of the Central Heating and Cooling Plant operations at Reagan National, consistent with the terms presented to the Business Administration Committee at its April 19, 2017 meeting. For Consideration by the Business Administration and Board of Directors on April 19, 2017 NOTE: Recorded vote is required.