8h. Memo

PSE Contract Amendment for SCADA

AGENDA MEMORANDUM                        Item No.          8h 
ACTION ITEM                            Date of Meeting       March 8, 2022 
DATE:     February 25, 2022 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Eileen Francisco, Interim Director Aviation Facilities and Capital Programs 
Wayne Grotheer, Director, Aviation Project Management Group 
SUBJECT:  SCADA (Supervisory Control and Data Acquisition System) project (CIP #800699)
Puget Sound Energy contract Text 
Amount of this request:                $186,000 
Total estimated project cost:          $1,200,000 
Request Commission authorization for the Executive Director to amend and increase the Notto-Exceed
amount of the Puget Sound Energy (PSE) Engineering Services and Construction
Agreement (ESCA) required for the SCADA Project  (CIP #C800699) from $1,014,000 to
PSE successfully completed Bow Lake substation upgrades in the spring of 2021. This now
allows for safe automated switching between PSE's electrical power grid and the Port's recently 
completed Alternate Utility Facility which is a backup power source.  Unfortunately, during 
PSE's engineering and construction, PSE exceeded the not-to-exceed contract value and is
requesting an Amendment to the PSE ESCA to authorize an additional $186,000 in contract
value to bring the total authorized value to $1,200,000. 
The cost overruns were due to the following: 
Additional testing of the newly wired components to allow for safe return to operation. 
COVID construction delays associated with safety protocols. 
Crew overtime to complete all the work in the Port's desired spring 2021 outage window 
PSE exceeded the not-to-exceed contract value and completed this project in good faith to keep
on schedule and avoid any additional operational risk exposure associated with processing a
contract change order. This project is closed out from PSE's end and no additional charges are 
anticipated above the new proposed not to exceed value.  The project team consulted with
Port Legal on this and their recommendation was to pay the additional amount.

Template revised April 12, 2018.

COMMISSION AGENDA  Action Item No. 8h                                  Page 2 of 2 
Meeting Date: March 8, 2022 
There are no attachments to this memo. 

Template revised September 22, 2016; format updates October 19, 2016.

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