COMMISSION 
AGENDA MEMORANDUM                       Item No.          8f 
ACTION ITEM                            Date of Meeting     August 10, 2021 
DATE:     July 21, 2021 
TO:        Steve Metruck, Chief Executive Officer 
FROM:    Erik Knowles, Senior Manager, Aviation Maintenance 
Stuart Mathews, Director, Aviation Maintenance 
SUBJECT: Siemens DDC Service Contract 
Amount of this request:               $4,800,000 

ACTION REQUESTED 
Request Commission authorization for the Executive Director to execute a service agreement 
for Maintenance Services for the Airport's (SEA's) Direct Digital Control System for up to five
years, 2022-2026. Total dollar value for the 5-year term is estimated at $4,800,000. 
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, air flow and vibration set-points, and is
considered critical to monitoring the airport infrastructure. With the expansion of the airport
due to IAF and North Star, the system has grown from 108,000 control points to 157,000
control points, an increase of roughly 40%. 
The Siemens DDC system is a proprietary system with proprietary software updates, tools
and training provided only to Siemens technicians. As such, a CPO-5 Policy Waiver was 
approved 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. 
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 low bidder on the 1991 Concourse
B, C, and D Upgrade project. Both of these projects were "open" bids with no competition
waiver requirements.

COMMISSION AGENDA  Action Item No. _8f                                  Page 2 of 5 
Meeting Date: August 10, 2021 

In 2008, Siemens was the low bidder on the Rental Car Facility Project, designed as a standalone
DDC system that was "open" bid with no competition waiver requirements. 
In 2010, Siemens was the successful low bidder for the PC Air system that was "open" bid
with no competition waiver requirements. Between and after these major projects, the DDC
system has been expanded in a "Sole Source" capacity. 
During the current contract period, the number of points being monitored has grown 46% 
and the number of field panels has grown 39%, while costs have remained constant. This
contract's service levels were reduced in 2021 due to COVID-19. 
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. 
This execution of a new 5-year contract will incorporate an option to cancel the contract at
the completion of any year of the contract with 60 days written notice. 

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 effectively. 
DETAILS 
The system monitors multiple functions throughout the airport via a variety of
existing infrastructure and components such as fans, pumps, 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, 2021. 
Two new major installations with included DDC systems, which increase the size of
the system by approximately 40%, have come on-line since the last negotiated

COMMISSION AGENDA  Action Item No. _8f                                  Page 3 of 5 
Meeting Date: August 10, 2021 
contract; IAF and North Star. 
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: 
This agreement will provide services to optimize the system control software, which
ensures the Heating, Ventilation and Cooling (HVAC) Control System is operating
properly. The service will minimize any software problems that would negatively
impact system performance. This service will also ensure reliable and optimized 
communication throughout the Port's HVAC Control System's Building Level Network 
(BLN) of field panels. 
Automation controls can drift out of calibration with changes in mechanical
component performance characteristics, building use, and climatic conditions. This 
service will extend equipment life, reduce energy consumption, and reduce the risk
of costly and  disruptive  breakdowns  through appropriate system component 
calibration. 
This service agreement will provide the Port with new features and enhancements
that will improve building operations and take advantage of the latest software 
version updates, while extending the life of the system investment. This service will
provide the Port with software and documentation updates to the existing system as
they become available (approximately annually) throughout the life of the contract. 
The Port will receive protection for the HVAC Control System's databases of business
information from unforeseen catastrophic events (lightning strike, electrical power
surge, hard drive or controller failure, flood, physical damage, etc.). This service will
provide quarterly database back-ups. 
As part of this service, the contractor will provide unlimited system and software 
troubleshooting and diagnostics via remote and direct phone support. The contractor 
will also provide on-site service during normal business hours. 
This service will provide on-site training to in-house personnel to better respond to
system issues to decrease downtime on operations. 
Schedule 
New service contract is scheduled to be executed in Q3, once approved by commission. The 
current agreement ends December 31, 2021. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Three different variations of the new service contract are proposed below.

COMMISSION AGENDA  Action Item No. _8f                                  Page 4 of 5 
Meeting Date: August 10, 2021 
Alternative 1) 1-year Contract at current service levels 
Cost Implications: Estimated $650,000 for 1 year. 
Pros: 
(1)   Lowest cost option, providing only bare-bones service levels. 
(2)   Allows the Port additional time to negotiate a longer-term contract. 
(3)   Only commits the Port to a short term. 
Cons: 
(1)   Does not account for the 40% system growth coming online like the IAF and North Star. 
(2)   This alternative continues the 20% reduction in service that was negotiated during the
COVID-19 pandemic due to 2020 budget constraints. 
This is not the recommended alternative. 
Alternative 2) Procure a 3-year Contract 
Cost Implications: Estimated $2,760,000 for 3 years. 
Pros: 
(1)   Returns service levels to those prior to the Pandemic, including 40% growth by IAF and
North Star. 
(2)   Reduces risk of system failure due to correct and adequate service levels. 
(3)   Aligns the service contract value (per COMP data) to those utilized by other airports,
e.g. Dulles, LAX, and San Diego. 
Cons: 
(1)   Annual cost returns to pre-COVID level, plus escalation, plus WSST. 
(2)   Commits the Port to a 3-year Contract while the Port still has 5-years left on the CPO-5
Waiver. 
(3)   Requires negotiating a new contract sooner than the 5-year option. 
This is not the recommended alternative. 
Alternative 3) Procure a 5-year Contract 
Cost Implications: Estimated $4,800,000 for 5 years. 
Pros: 
(1)   Returns service levels to those prior to the Pandemic, including 40% growth by IAF and
North Star. 
(2)   This option aligns the length of the service contract with the CPO-5 Policy Waiver. 
(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. 
Cons: 
(1)   This is the highest projected cost option due to the overall length of the term. Escalation
is 3% consistent with all options.

COMMISSION AGENDA  Action Item No. _8f                                  Page 5 of 5 
Meeting Date: August 10, 2021 
(2)   Commits the Port to a 5-year contract, however clauses in the contract would allow the
Port to terminate the contract after years 3 and 4. 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
The costs of this service agreement are included in the annual Aviation Maintenance expense
budget. 
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 and in 2016  -  The  Commission  authorized  five- year  service  agreements  with 
Siemens for DDC system maintenance.