PORT OF SEATTLE
MEMORANDUM

DATE:     November 13, 2009

TO:        Port Commission and Tay Yoshitani, CEO

FROM:    Ralph Graves, Managing Director, Capital Development W
Mike Smith, Manager, Mechanical Systems, AV Facilities & Infrastructure

SUBJECT:  Notification that the Port intends to execute three (3) Sole Source contracts and/or
agreements with Siemens Building Technologies, Inc., for the following airport mechanical
controls system projects: Steam Distribution System Upgrades (A Concourse); Sewer Pump
Stations Upgrades (STIA); and, Central Mechanical Plant (CMP) Ethernet Control System
Upgrade.


NOTIFICATION

The Port intends to execute three (3) Sole Source contracts/agreements for airport mechanical
controls system projects including Steam Distribution upgrades (steam valves in A Concourse),
Sewer Pump Stations upgrades (STIA), and CMP (HVAC) Ethernet Control System upgrades
throughout the airport. The Port did a waiver for each project.

These 3 competitive waivers are for modifying a mechanical controls system called Direct
Digital Controls (DDC) from Siemens Building Technologies. The combined estimated value is
$720,000.

This is justied under Resolution 3605, Section 6.5 Competition Waivers. This section reads, in
part, "The CEO is authorized to approve competition waivers consistent with applicable federal
and state laws and internal Port policies.
. .".

The condition that applies here is:

Condition (ii) which states, "the only source for the service or product is proprietary in
nature.
.
.".  This applies here because the programming changes and system modifications
related to these upgrades to Siemens Direct Digital Controls (DDC) proprietary system require
factory certified, technical expertise, with access to the system source codes.

Please see the 3 attached Siemens Building Technologies Inc. justification memos for additional
details.


POI-t "-
of Seattle

PORT OF SEATTLE
MEMORANDUM

DATE:     October 8, 2009

TO:        Ralph Graves, Managing Director, CDD
Craig Watson, General Counsel '
Nora Huey, Director, CPO                  {70
Paul Powell, Sr. Manager, CPO Construction

FROM:    Mike Smith, Manager, Mechanical Systems Aviation Facilities and Infrastructure

SUBJECT:  Sole Manufacturer Justification  Siemens Building Technologies Direct Digital
Controls (DDC) for Project 103703 Sea-Tac International Airport Sewer Pump Station Upgrade.

1.   How was it determined that Siemens DDC is a sole manufacturer?

Siemens Direct Digital Controls (DDC) system was the low bidder on the original Concourse A
expansion in the 19808. Siemens was also the low bidder on the 1991 Concourse B, C and D
Upgrade project. The above projects were "open" bids with no sole source requirements. The
DDC system has been expanded after these projects in a "Sole Source" capacity. The DDC
System operates the HVAC, water, smoke control, train ventilation, exhaust, heating, cooling,
steam, gas, air, sanitary pumping, industrial waste, and other systems. In 2008, Siemens was the
low bidder on the Rental Car Facility Project, designed as a stand-alone DDC system that was
"open" bid with no sole source requirements. The system has yet to be installed as construction
is currently underway.

The existing system at the Airport contains over 75,000 control points and 15,000 devices
controlled by 180 Master Building Controllers (MBC). The DDC system is integrated into the
infrastructure of the Airport and projects will connect and add to the existing infrastructure. The
DDC system ensures that infrastructure operates as intended, including infrastructure that
protects life safety, prevents release of products into the environment, continued Airport
Operations including the terminal and airfield, occupant comfort, critical environment exhaust,
utility metering, master planning, troubleshooting, and maintenance.

There are multiple existing control systems that service facilities at the Seaport, the largest of
which is Siemens DDC system at Pier 69 which is intended to service multiple facilities within
that particular area.

2.   Why is no other design suitable for your requirements?

DDC systems transmit and receive signals using a specific language, frequency and timing in
order to control and monitor electrical and mechanical equipment. If another design were
introduced into the existing system, it would be analogous to having an English-speaking
network try to integrate a Spanish language component. Obviously, an interpreter becomes
necessary to integrate signals to and from the Spanish language portion. Since the Life Safety
duties of the DDC System require data reliability and speed in order to function, delays and
mistakes caused by the attempt to integrate separate languages not only result in excessive costs

Page 1 of 4

Memorandum
Page 2 of 4

in hardware, software and training, they also result in lack of Code compliance (speed of
response for the Smoke Control System), and potential human life endangerment.

3.   Are there unique skills or knowledge required for Siemens DDC systems?

Port Maintenance, Facilities, Operations, and Fire Department have integrated the Siemens DDC
system into everyday operating and maintenance activities. The system is utilized for controlling
and/or monitoring the cooling, heating, air handlers, pumps, air conditioners, boilers, chillers,
heat exchangers, smoke control life safety systems, general exhaust, kitchen exhaust systems,
welding exhaust systems, critical operations exhaust systems, parking garage exhaust systems,
natural gas systems, domestic water systems, airfield lighting vaults, emergency generators,
storm water pumping, sanitary sewer pumping, industrial waste pumping, utility metering
system, pneumatic and other systems. The operating engineers at the airport utilize over 1,250
graphic display screens within the system every day. The operating engineers have attended a
minimum of 40 hours training just to begin operating the system and further hours of advanced
training has been required for proficient operation of the system.  Integration of an additional
system would require a significant investment in training and everyday use in order to gain the
magnitude of knowledge the maintenance department possesses in this system.

4.   Mandate from Federal or State Government required.

No

5.   What are the consequences of not approving the sole manufacturer request?

Costs will go up in order to perform the activities presently controlled and monitored by the
Siemens DDC system. Systems normally controlled by the DDC may fail to operate due to the
training gaps and "language" inoperability. Additional equipment, software programs, training,
and knowledge of new interconnection systems would be required. The interconnection systems
may also be proprietary and reliability risk may be integrated into the existing DDC systems.
The added costs and FTE allocated time has not been included in the Aviation Maintenance
Budget.

The infrastructure is required to operate 24 hours a day 365 days a year with absolute reliability.
The existing DDC system has been operating at the Airport continuously since the 1980's and
has proven to be robust and dependable, ensuring that the Airport operates as intended for the
general population as well as the internal operations of the systems it controls and monitors.
Without this reliability, the infrastructure is at risk of not protecting life safety, the environment,
and critical operations that would ultimately leave the community and region at risk.

6.   What negative consequences will result by formally bidding this requirement?

The DDC system has been open bid multiple times in the past. The Siemens DDC system has
proven to be consistently economical in comparison to other DDC systems that routinely bid this
scope of work. A formal bid by another DDC system would be required to be integrated into the
existing DDC system and show the same robust proven reliability that the existing DDC system
possesses.

Memorandum
Page 3 of4

A highly developed technical specication that requires Siemens DDC system compatibility and
components would be required. Language, timing, transmission rates and frequencies would be
necessary components of the specication. This specication would only be attainable by
Siemens Building Technologies. This approach could possibly result in complaints by
competing manufacturers that the Port specication represents essentially a de facto sole
manufacturer.  For this reason, it is preferable to formally request sole manufacturer approval in
advance. In addition, every effort will be made to provide competition for components within
the specication wherever possible, providing a better cost to the Port of Seattle without
compromising quality or reliability. Examples would include sensors, enclosures, ow meters,
variable frequency drives, controllers, actuators, etc.

7.   What is the estimated cost of this request?

The project is estimated at $550,000 for the necessary upgrade. The portion requiring Sole,
Source justicatgr'l isoapproximately $400,000.
'
8.   How was this cost determined to be reasonable?

The cost of the work is reviewed and estimated independently for each project as if it were bid to
a minimum of three vendors. The estimate is then compared to the bid amount to determine that
it is reasonable. The scope is always determined prior to the nal design and expected outcomes
are evaluated.  The scope generally consists of providing and installing programming, points,
wiring, and hardware expected for the system.  Furthermore, the numbers of controlled devices
and the type of monitoring and control desired dictate the system complexity.

9.   Is this request a one time requirement?

Port staff intends to continue to ask that Siemens Building Technologies Direct Digital Controls
to be the sole manufacturer of the DDC system on future projects.  Similar requests have been
approved in the past.

10. What are other costs incurred from this request?

This request should not incur any other costs.

11. What other methods of fullling this requirement have been explored?

None, except those as mentioned above.

Memorandum
Page 4 of4

12. Certication that the preparer(s) making this recommendation to the Port Project Manager
has/have no nancial or other benecial interest in Siemens Building Technologies Direct
Digital Controls products?

The Port of Seattle (Employees listed below) warrant and covenant that they have no direct or
indirect pecuniary or proprietary interest, and that they shall not acquire any such interest which
conicts in any manner or degree with the performances ofthe work and services required to
complete this request.  In the event that the Port or any of its Consultants or its agents, employees
or representatives hereafter acquires such a conict of interest, the Port shall immediately
disclose such interest to the Port of Seattle Legal Department, and take action immediately to
eliminate the conict. In addition, with my signature below I further state that I am not nor will I
within 18 months of this justication seek employment with this rm. I hold that the
information provided is true and complete to the best ofmy knowledge under the penalties of
perjury in the State of Wgshington.
S


1  6 Smith                                                                     Date
Manager Mechanical Infrastructure Systems
Facilities & Inastructure


Mechanical Maintenance Senior Manager
Aviation Maintenance
SeaTac International Airport
V/eox1227%;//                 K924 cg
Nora Huey                                                    ate
Director Central Procurement Ofce
?04'*\~\                         O/Z%7
Date
Craig Watson
General Counsel
MAAAW     Io'Z8=09
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Port 25:;
of Seattle

PORT OF SEATTLE
MEMORANDUM

DATE:     October 8, 2009

TO:        Ralph Graves, Managing Director, CDD
Craig Watson, General Counsel
Nora Huey, Director CPO
Paul Powell, Sr. Manager, CPO Construction

FROM:    Mike Smith, Manager, Mechanical Systems Aviation Facilities and Infrastructure

SUBJECT:  Sole Manufacturer Justification  Siemens Building Technologies Direct Digital
Controls (DDC) for Project 103884 Steam Distribution Systems Upgrade.

1.   How was it determined that Siemens DDC is a sole manufacturer?

Siemens Direct Digital Controls (DDC) system was the low bidder on the original Concourse A
expansion in the 1980s. Siemens was also the low bidder on the 1991 Concourse B, C and D
Upgrade project. The above projects were "open" bids with no sole source requirements. The
DDC system has been expanded after these projects in a "Sole Source" capacity. The DDC
System operates the HVAC, water, smoke control, train ventilation, exhaust, heating, cooling,
steam, gas, air, sanitary pumping, industrial waste, and other systems.  In 2008, Siemens was the
low bidder on the Rental Car Facility Project, designed as a stand-alone DDC system that was
"open" bid with no sole source requirements. The system has yet to be installed as construction
is currently underway.

The existing system at the Airport contains over 75,000 control points and 15,000 devices
controlled by 180 Master Building Controllers (MBC). The DDC system is integrated into the
infrastructure of the Airport and projects will connect and add to the existing infrastructure. The
DDC system ensures that infrastructure operates as intended, including infrastructure that
protects life safety, prevents release of products into the environment, continued Airport
Operations including the terminal and airfield, occupant comfort, critical environment exhaust,
utility metering, master planning, troubleshooting, and maintenance.

There are multiple existing control systems that service facilities at the Seaport, the largest of
which is Siemens DDC system at Pier 69 which is intended to service multiple facilities within
that particular area.

2.   Why is no other design suitable for your requirements?

DDC systems transmit and receive signals using a specific language, frequency and timing in
order to control and monitor electrical and mechanical equipment. If another design were
introduced into the existing system, it would be analogous to having an English-speaking
network try to integrate a Spanish language component. Obviously, an interpreter becomes
necessary to integrate signals to and from the Spanish language portion. Since the Life Safety
duties of the DDC System require data reliability and speed in order to function, delays and
mistakes caused by the attempt to integrate separate languages not only result in excessive costs

Page 1 of 4

Memorandum
Page 2 of 4

in hardware, software and training, they also result in lack of Code compliance (speed of
response for the Smoke Control System), and potential human life endangerment.

3.   Are there unique skills or knowledge required for Siemens DDC systems?

Port Maintenance, Facilities, Operations, and Fire Department have integrated the Siemens DDC
system into everyday operating and maintenance activities. The system is utilized for controlling
and/or monitoring the cooling, heating, air handlers, pumps, air conditioners, boilers, chillers,
heat exchangers, smoke control life safety systems, general exhaust, kitchen exhaust systems,
welding exhaust systems, critical operations exhaust systems, parking garage exhaust systems,
natural gas systems, domestic water systems, airfield lighting vaults, emergency generators,
storm water pumping, sanitary sewer pumping, industrial waste pumping, utility metering
system, pneumatic and other systems. The operating engineers at the airport utilize over 1,250
graphic display screens within the system every day. The operating engineers have attended a
minimum of 40 hours training just to begin operating the system and further hours of advanced
training has been required for procient operation of the system.  Integration of an additional
system would require a significant investment in training and everyday use in order to gain the
magnitude of knowledge the maintenance department possesses in this system.

4.   Mandate from Federal or State Government required.

No

5.   What are the consequences of not approving the sole manufacturer request?

Costs will go up in order to perform the activities presently controlled and monitored by the
Siemens DDC system. Systems normally controlled by the DDC may fail to operate due to the
training gaps and "language" inoperability. Additional equipment, software programs, training,
and knowledge of new interconnection systems would be required. The interconnection systems
may also be proprietary and reliability risk may be integrated into the existing DDC systems.
The added costs and FTE allocated time has not been included in the Aviation Maintenance
Budget.

The infrastructure is required to operate 24 hours a day 365 days a year with absolute reliability.
The existing DDC system has been operating at the Airport continuously since the 1980's and
has proven to be robust and dependable, ensuring that the Airport operates as intended for the
general population as well as the internal operations of the systems it controls and monitors.
Without this reliability, the infrastructure is at risk of not protecting life safety, the environment,
and critical operations that would ultimately leave the community and region at risk.

6.   What negative consequences will result by formally bidding this requirement?

The DDC system has been open bid multiple times in the past. The Siemens DDC system has
proven to be consistently economical in comparison to other DDC systems that routinely bid this
scope of work. A formal bid by another DDC system would be required to be integrated into the
existing DDC system and show the same robust proven reliability that the existing DDC system
possesses.

Memorandum
Page 3 of 4

A highly developed technical specication that requires Siemens DDC system compatibility and
components would be required. Language, timing, transmission rates and frequencies would be
necessary components of the specication. This specication would only be attainable by
Siemens Building Technologies. This approach could possibly result in complaints by
competing manufacturers that the Port specication represents essentially a de facto sole
manufacturer.  For this reason, it is preferable to formally request sole manufacturer approval in
advance. In addition, every effort will be made to provide competition for components within
the specication wherever possible, providing a better cost to the Port of Seattle without
compromising quality or reliability. Examples would include sensors, enclosures, ow meters,
variable frequency drives, controllers, actuators, etc.

7.   What is the estimated cost of this request?

The project is estimated at $140,000 for the necessary upgrade. The portion requiring Sole
Source jagtigza'tigisnapproximately $40,000.

8.   How was this cost determined to be reasonable?

The cost of the work is reviewed and estimated independently for each project as if it were bid to
a minimum of three vendors. The estimate is then compared to the bid amount to determine that
it is reasonable. The scope is always determined prior to the nal design and expected outcomes
are evaluated.  The scope generally consists of providing and installing programming, points,
wiring, and hardware expected for the system.  Furthermore, the numbers of controlled devices
and the type ofmonitoring and control desired dictate the system complexity.

9.   Is this request a one time requirement?

Port staff intends to continue to ask that Siemens Building Technologies Direct Digital Controls
to be the sole manufacturer of the DDC system on future projects.  Similar requests have been
approved in the past.

10. What are other costs incurred from this request?

This request should not incur any other costs.

11. What other methods of fullling this requirement have been explored?

None, except those as mentioned above.

Memorandum
Page 4 of4

12. Certication that the preparer(s) making this recommendation to the Port Project Manager
has/have no nancial or other benecial interest in Siemens Building Technologies Direct
Digital Controls products?

The Port of Seattle (Employees listed below) warrant and covenant that they have no direct or
indirect pecuniary or proprietary interest, and that they shall not acquire any such interest which
conicts in any manner or degree with the performances of the work and services required to
complete this request.  In the event that the Port or any of its Consultants or its agents, employees
or representatives hereafter acquires such a conict of interest, the Port shall immediately
disclose such interest to the Port of Seattle Legal Department, and take action immediately to
eliminate the conict.  In addition, with my signature below I further state that I am not nor will I
within 18 months of this justication seek employment with this rm. I hold that the
information provided is true and complete to the best ofmy knowledge under the penalties of
pe 'ury in the State of Washington.
(7%      my.W
Smith                                                Date
Manager Mechanical Infrastructure Systems
Facilities    Infrastructure
SeaT t' al  'rport


Mechanical Maintenance Senior Manager
Aviation Maintenance
SeaTac International Airport
{VW    IO/a. Ij 09
.

N.                                       Date
Nora Huey            ( >
Director Central Procurement Ofce
Wv"\  '       Ava/07'
Craig Watson                                                        Date
General Counsel
WWW   (04x <3?
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Port 2.
of Seattle

PORT OF SEATTLE
MEMORANDUM

DATE:     October 8, 2009

TO:        Ralph Graves, Managing Director CDD
Craig Watson, General Counsel
Nora Huey, Director CPO
Paul Powell, Sr. Manager, CPO Construction

FROM:    Mike Smith, Manager, Mechanical Systems Aviation Facilities and Infrastructure

SUBJECT:  Sole Manufacturer Justification  Siemens Building Technologies Direct Digital
Controls (DDC) for Project 103547 CMP Ethernet Control System Upgrade.

1.   How was it determined that Siemens DDC is a sole manufacturer?

Siemens Direct Digital Controls (DDC) system was the low bidder on the original Concourse A
expansion in the 1980s. Siemens was also the low bidder on the 1991 Concourse B, C and D
Upgrade project. The above projects were "open" bids with no sole source requirements. The
DDC system has been expanded after these projects in a "Sole Source" capacity. The DDC
System operates the HVAC, water, smoke control, train ventilation, exhaust, heating, cooling,
steam, gas, air, sanitary pumping, industrial waste, and other systems.  In 2008, Siemens was the
low bidder on the Rental Car Facility Project, designed as a stand-alone DDC system that was
"open" bid with no sole source requirements. The system has yet to be installed as construction
is currently underway.

The existing system at the Airport contains over 75,000 control points and 15,000 devices
controlled by 180 Master Building Controllers (MBC). The DDC system is integrated into the
infrastructure of the Airport and projects will connect and add to the existing infrastructure. The
DDC system ensures that infrastructure operates as intended, including infrastructure that
protects life safety, prevents release of products into the environment, continued Airport
Operations including the terminal and airfield, occupant comfort, critical environment exhaust,
utility metering, master planning, troubleshooting, and maintenance.

There are multiple existing control systems that service facilities at the-Seaport, the largest of
which is Siemens DDC system at Pier 69 which is intended to service multiple facilities within
that particular area.

2.   Why is no other design suitable for your requirements?

DDC systems transmit and receive signals using a specific language, frequency and timing in
order to control and monitor electrical and mechanical equipment. If another design were
introduced into the existing system, it would be analogous to having an English-speaking
network try to integrate a Spanish language component. Obviously, an interpreter becomes
necessary to integrate signals to and from the Spanish language portion. Since the Life Safety
duties of the DDC System require data reliability and speed in order to function, delays and
mistakes caused by the attempt to integrate separate languages not only result in excessive costs

Page 1 of 4

Memorandum
Page 2 of 4

in hardware, software and training, they also result in lack of Code compliance (speed of
response for the Smoke Control System), and potential human life endangerment.

3.   Are there unique skills or knowledge required for Siemens DDC systems?

Port Maintenance, Facilities, Operations, and Fire Department have integrated the Siemens DDC
system into everyday operating and maintenance activities. The system is utilized for controlling
and/or monitoring the cooling, heating, air handlers, pumps, air conditioners, boilers, chillers,
heat exchangers, smoke control life safety systems, general exhaust, kitchen exhaust systems,
welding exhaust systems, critical operations exhaust systems, parking garage exhaust systems,
natural gas systems, domestic water systems, airfield lighting vaults, emergency generators,
storm water pumping, sanitary sewer pumping, industrial waste pumping, utility metering
system, pneumatic and other systems. The operating engineers at the airport utilize over 1,250
graphic display screens within the system every day. The operating engineers have attended a
minimum of 40 hours training just to begin operating the system and further hours of advanced
training has been required for proficient operation of the system.  Integration of an additional
system would require a significant investment in training and everyday use in order to gain the
magnitude of knowledge the maintenance department possesses in this system.

4.   Mandate from Federal or State Government required.

No

5.   What are the consequences of not approving the sole manufacturer request?

Costs will go up in order to perform the activities presently controlled and monitored by the
Siemens DDC system. Systems normally controlled by the DDC may fail to operate due to the
training gaps and "language" inoperability. Additional equipment, software programs, training,
and knowledge of new interconnection systems would be required. The interconnection systems
may also be proprietary and reliability risk may be integrated into the existing DDC systems.
The added costs and FTE allocated time has not been included in the Aviation Maintenance
Budget.

The infrastructure is required to operate 24 hours a day 365 days a year with absolute reliability.
The existing DDC system has been operating at the Airport continuously since the 1980's and
has proven to be robust and dependable, ensuring that the Airport operates as intended for the
general population as well as the internal operations of the systems it controls and monitors.
Without this reliability, the infrastructure is at risk of not protecting life safety, the environment,
and critical operations that would ultimately leave the community and region at risk.

6.   What negative consequences will result by formally bidding this requirement?

The DDC system has been open bid multiple times in the past. The Siemens DDC system has
proven to be consistently economical in comparison to other DDC systems that routinely bid this
scope of work. A formal bid by another DDC system would be required to be integrated into the
existing DDC system and show the same robust proven reliability that the existing DDC system
possesses.

Memorandum
Page 3 of4

A highly developed technical specication that requires Siemens DDC system compatibility and
components would be required. Language, timing, transmission rates and frequencies would be
necessary components of the specication. This specication would only be attainable by
Siemens Building Technologies. This approach could possibly result in complaints by
competing manufacturers that the Port specication represents essentially a de facto sole
manufacturer.  For this reason, it is preferable to formally request sole manufacturer approval in
advance. In addition, every effort will be made to provide competition for components within
the specication wherever possible, providing a better cost to the Port of Seattle without
compromising quality or reliability. Examples would include sensors, enclosures, ow meters,
variable frequency drives, controllers, actuators, etc.

7.   What is the estimated cost of this request?

The project is estimated at $150,000 for the necessary upgrade.
. \ \
8.
Howitliiscbs't%3trmined
to be reasonable?

The cost of the work is reviewed and estimated independently for each project as if it were bid to
a minimum of three vendors. The estimate is then compared to the bid amount to determine that
it is reasonable. The scope is always determined prior to the nal design and expected outcomes
are evaluated.  The scope generally consists of providing and installing programming, points,
wiring, and hardware expected for the system.  Furthermore, the numbers of controlled devices
and the type of monitoring and control desired dictate the system complexity.

9.   Is this request a one time requirement?

Port staff intends to continue to ask that Siemens Building Technologies Direct Digital Controls
to be the sole manufacturer of the DDC system on future projects.  Similar requests have been
approved in the past.

10. What are other costs incurred from this request?

This request should not incur any other costs.

11. What other methods of fullling this requirement have been explored?

None, except those as mentioned above.

Memorandum
Page 4 of 4

12. Certication that the preparer(s) making this recommendation to the Port Project Manager
has/have no nancial or other beneficial interest in Siemens Building Technologies Direct
Digital Controls products?

The Port of Seattle (Employees listed below) warrant and covenant that they have no direct or
indirect pecuniary or proprietary interest, and that they shall not acquire any such interest which
conicts in any manner or degree with the performances of the work and services required to
complete this request. In the event that the Port or any of its Consultants or its agents, employees
or representatives hereafter acquires such a conict of interest, the Port shall immediately
disclose such interest to the Port of Seattle Legal Department, and take action immediately to
eliminate the conict.  In addition, with my signature below I further state that I am not nor will I
within 18 months of this justication seek employment with this rm. I hold that the
information providedIS true and complete to the best ofmy knowledge under the penalties of
pe     in the State of Washington.
M   M25" 04'
e Smith                                                    Date
Manager Mechanical Infrastructure Systems
Facilit'      Infrastru ture
ifaort
lb @('aa
_
Date
chanical   a1ntenance Senior Manager
Aviation Maintenance
SeaTac International Airport
W'A'b/      10/31/06
Nora Huey                                                  Date
Director Central Procurement Ofce
W    [6/26/97
Craig Watson                                                       Date
General Counsel

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