Title
Proposed Amendment No. 3
Contract No. GLWA-CS-090A
Instrumentation & SCADA Systems Service
O&M
Body
Agenda of: July 28, 2021
Item No.: 2021-271
Amount: Original Contract $5,663,694.76
Amendment No. 1 2,319,222.00
Amendment No. 2 2,319,222.00
Proposed Amendment No. 3 0.00
Total Revised Contract $10,302,138.76
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: July 7, 2021
RE: Proposed Amendment No. 3
Contract No. GLWA-CS-090A
Instrumentation & SCADA Systems Service
Vendor: PCI, LLC
MOTION
Upon recommendation of Cheryl Porter, Chief Operating Officer - Water and Field Services, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Contract No. GLWA-CS-090A Proposed Amendment No. 3 “Instrumentation & SCADA Systems Service” with PCI, LLC, with no increase in cost, for a total cost not exceed $10,302,138.76 and an increased duration of 6 months for a total contract duration of 54 months; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
GLWA has invested in a Supervisory Control and Data Acquisition (SCADA) system to monitor and operate the five water treatment plants, 19 booster stations, nine sewage lift stations, and over 300 remote sites that monitor and control the transmission and collection systems. This investment also added a number of control workstations and a large number of sensors and control devices to GLWA processes to enable better monitoring, control and coordination of GLWA water and sewer operations. This system has aged gracefully given the rapid advances in the computer industry; however, 20 years is several lifetimes with respect to this technology and there is a constant need for the specialized services necessary to keep the system operational and functioning in accordance with the needs and demands of GLWA. Contract No. GLWA-CS-090A provides for the ongoing maintenance and support, along with automation upgrade projects to integrate new systems into the process control system.
JUSTIFICATION
The services provided under Contract No. GLWA-CS-090A allow GLWA to monitor, operate and maintain its extensive SCADA control system. Due to the age and nature of our control systems, there is a constant need to maintain and improve the various components of the SCADA network on a continual basis. In addition, there are periodic outages, due to electrical or physical causes, that must be addressed on an urgent or emergency basis. As Water and Field Services utilizes emergency contracts for repairs of water transmission mains, this contract allows for immediate availability of resources to complete this specialized work.
Because the nature of this work varies based on the accelerated cycles of the computer industry, the most cost-effective maintenance of the system is how this contract has been established to meet the needs of the GLWA system.
Therefore, GLWA staff highly recommends approval of this third extension and will begin preparation of the new RFP to re-bid this project under a similar contract term and structure for an additional two (2) base years with two (2) optional one-year extensions.
PROJECT MANAGEMENT STATUS
Original Contract Time 24 months
Amendment No. 1 12 months
Amendment No. 2 12 months
Proposed Amendment No. 3 6 months
New Contract Time 54 months
PROJECT ESTIMATE
Original Contract Price $5,663,694.76
Amendment No. 1 2,319,222.00
Amendment No. 2 2,319,222.00
Proposed Amendment No. 3 0.00
New Contract Total $10,302,138.76
FINANCIAL PLAN IMPACT
Summary: The proposed amendment with PCI, LLC encompasses Operations & Maintenance expense only. The FY 2021 budget and five-year financial plan was based on the previous contract period. The value of the contract is within the current financial plan in total. Potential positive variances of other contractual services as well as the use of this service may vary by year. Sufficient funds will be provided in the Operations & Maintenance (O&M) financial plan for this contract related to contractual professional services.
Funding Source: Operations & Maintenance (O&M) Budget
Cost Center(s): Systems Operations Control (Centralized Services cost center 882301)
Expense Type(s): Contractual Professional Services (617903)
Estimated Cost by Year and Related Estimating Variance: See table below.
Fiscal Year Amount
FY 2018 Budget $2,831,847.00
FY 2019 Budget 2,831,847.00
FY 2020 Budget 2,320,800.00
FY 2021 Budget 2,100,000.00
FY 2022 Budget (Prorated) 1,050,000.00
Financial Plan Forecast $11,134,494.00
Proposed Contract Amount $10,302,138.00
Variance (positive/(negative)) $832,356.00
SAVINGS, COST OPTIMIZATION, AND REVENUE ENHANCEMENT IMPACT
The award of this contract provides a variance of $832,356.00 ($11,134,494.00 financial plan forecast less $10,302,138.00 proposed contract amount). Contractual services are dependent on several factors such as, delays in estimated start and end dates, environmental constraints, and other unforeseen circumstances that can cause the expenses to fluctuate from fiscal year to fiscal year.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on July 14, 2021. The Operations and Resources Committee unanimously recommended that the GLWA Board adopt the resolution as presented.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.