Port=~
of Seattle
PORT OF SEATTLE
MEMORANDUM

Date:      October 22,2009
To:      Port Commission
From:    John Christianson, General Manager, Aviation Maintenanc
Subject:    Notification that the Port intends to renew the Five (5) Year Sole Source
Technical Assistance Agreement with Bombardier Transportation Inc.
Amount ofThis Request:  $1,535,803.32
Source of Funds:   Airport Development Fund; specifically budgeted in Aviation
Maintenance annual operating budget

Notification
This is for the authorization to execute a Sole Source Technical Assistance Agreement on this
vital people-mover system. For the safety ofthe general public and maintaining the reliability of
the operation ofthe Satellite Transit System, we will require factory-certified, technical
expertise, with access to the systems source codes, to assist with programming changes and
maintenance work on this proprietary system. Please see the attached Bombardier Justification
Letter from Aviation Maintenance for additional details.

October 5, 2009
To:        Central Procurement Office
From:     John Christianson, General Manager, Aviation Maintenance
SUbject    Sole Source for Bombardier Transportation Technical Assistance Agreement
This memorandum requests approval for sole source procurement of the Bombardier
Transportation Technical Assistance Agreement based on the following detailed information.
In 2003, the PORT completed a capital improvement project to upgrade the existing STS
(Satellite Transit System), Capital Improvement Project (CIP) project 100783. Since this was an
upgrade to the system, the Bombardier proprietary system was the winning selection. As with
most new systems or upgrades, an initial maintenance service warranty was provided.
Port technicians were trained on the daily maintenance requirements but we still have a need
for factory-certified technical expertise to assist with major programming changes and
maintenance work on this proprietary system. This includes software upgrades and
modifications. In addition, parts for the STS are proprietary and only available from the
manufacturer.
To budget and pay for the Bombardier Technical support, and other factory supported technical
expertise, we need to have in place a Technical Assistance Agreement with Bombardier for this
system. We believe that the best method to provide long-term technical support is to implement
a five-year Technical Assistance Agreement.
Bombardier's on-site support has contributed to maintaining an operating efficiency of over
99%. Their representative has been a resource for parts issues, troubleshooting, providing test
procedures, mentoring POS mechanics, training new employees, and providing a conduit to
support services at Bombardier's home office in Pittsburg.
Due to the proprietary nature of the system, Bombardier is the only entity that is factory-certified
to provide these on-going technical assistance services and parts to the Port. The value of this
contract will be $1,535,803.32 over a five (5) year term.

APproved:'
~~-
Date:
10/6/0'1
Nora Huey, Director, Central Procu  ent Office
IM~~ 
Approved:                         Date: _IU-+-,6-=-(o/--/o--/.1e...-
Craig Watson, Legal

Approved:,       :, ,' . 0.1./1 ..
f" 
/7 7-    Date:  Ie /~  /0 f
Ralph Graves, Managing Director, Capita(Development Division'

PORT OF SEATTLE
MEMORANDUM
DATE:   October 14,2009
TO:     Central Procurement Office
FROM:   John Christianson, General Manager Aviation Maintenanc
SUBJECT: Sole Source for Bombardier Transportation Technical Assistance Agreement

1. How was it determined that Bombardier is a sole source?
The existing STS (Satellite Transit System) was completed by Bombardier under CIP number
100783 in 2003, replacing their previous system that was in operation since 1973. Bombardier
has provided Technical support for the Satellite Transportation System throughout its operating
tenure at Seattle-Tacoma International Airport. There are no other sources that could provide the
support needed for the operation and reliability ofthe STS. The services provided by Bombardier
include support for new train controls, a conduit for subsystem support, and product safety
management. These specialized tasks are provided by Bombardier at other facilities that use
similar train systems.
2.  Why is no other design suitable for your requirements?
Any change in design to the current Bombardier Satellite Transportation System would require
major changes to the infrastructure and would be cost prohibitive.
3.  Are there unique skills or, knowledge required for the Bombardier STS?
The Satellite Transportation System has proprietary controls that Bombardier's Technical
Representative has thorough knowledge of and can support in a timely manner. The proprietary
controls include a new Communication Based Train Control (CBTC), Bombardier CITYFLO
650 Automatic Train Operation and Protection software, supporting equipment, and subsystems.
Quick response times to address systems issues are crucial to maintaining a high level of
operating standards and reliability.
4.  Mandate from Federal or State Government required.
There are no Federal or State Government mandates required.
Bombardier mandates specific safety requirements for the Satellite Transportation System with
the Technical Representative playing a significant role in managing those requirements. The onsite
Bombardier Technical Representative updates current employees on safety issues and trains
new employees on safety requirements.
5.  What are the consequences ofnot approving the sole source request?
Not having a factory trained representative on site could result in system failures that puts the
passengers at risk of injury and cause flight delays. Their representative has been a resource for
Page 1 of4

Memorandmn
Page 2 of4

parts issues, troubleshooting, providing test procedures, rnentoring POS mechanics, training new
employees, and providing a cOnduit to support services at Bombardier'shome office in Pittsburg.
6. What negative consequences wiD result by formally bidding this requirement?
There are no other service providers that could support the requirements of the Bombardier
Satellite Transportation System. STS operations could be adversely affected without adequate
support in place.
7. What is the estimated cost ofthis request?
The total cost of the Bombardier Transportation Technical Support Agreement will be
$1,535,803.32 over a contract term of (5) years. A table is attached showing the monthly
payment details per contract year.
Proposed Monthly
Year Escalation                 Total Annual Payments
Payment
1           24,593.13           295,117.50
2 2.00"'{'    25,084.99         301,019.85
3   2.00%     25,586.69           307,040.25
4   2.00%     26,098.42           313,181.05
5   2.00%     26,620.39           319,444.67

8.  How was this cost determined to be reasonable?
Similar operations where Bombardier provides full service support the cost is twice what our inhouse
resources, including our on-site technical representative, budget to provide a safe and
reliable transportation system. Our Satellite Transportation System Maintenance department has
consistently maintained a system reliability rate of over 990./0. The reliability rate is higher than
any other similar Bombardier system at any location.
The cost of support for the Satellite Transportation System is required to maintain system
reliability and compliance to operating standards. This contract provides immediate response to
issues by the on-site Technical Representative and an efficient conduit for parts and services
from Bombardier support in Pittsburg.
9.  Is this request a one time requirement?
No. This Bombardier Transportation Technical Service Agreement will be required through the
life ofthe Satellite Transportation System.

Memorandum
Page 3 of4

10. What are other costs incurred from this request?
The POS will provide the Bombardier Engineer with office space, administrative support
services, communications, and parking privileges.
11. What other methods offulfilling this requirement have been explored?
Due to the proprietary nature ofthe Satellite Transportation System and the specialized technical
knowledge required, alternative vendors are likely to be more expensive and will be unable to
provide the required service level that Bombardier can provide.
Service support provided by Bombardier solely through their Pittsburg home office would result
in delays for service and parts thus affecting operating efficiencies. Support personnel would
have to be scheduled to fly to our site and the exact nature of system problems may not be
diagnosed until a Bombardier Engineer arrives on site.

Memorandum
Page4of4

Certification that Aviation Maintenance Department personnel making this recommendation to the
Port of Seattle Senior Manager, Procurement Services has/have no financial or other beneficial
interest in Bombardier Transportation, a Division ofBombardier Inc.
I warrant and covenant that I have no direct or indirect pecuniary or proprietary interest, and that
they shall not acquire any such interest which conflicts in any manner or degree with the
performances ofthe work and services provided by Bombardier Transportation, a Division of
Bombardier Inc. In the event that the Port or any ofits Consultants or its agents, employees or
representatives hereafter acquires such a conflict ofinterest, the Port shall immediately disclose
such interest to the Port of Seattle Legal Department, and take action immediately to elirni~ 
the conflict. In addition, with my signature below I further state that I am not nor will I within
18 months ofthis justification seek employment with this firm. I hold that the information
provided is true and complete to the best ofmy knowledge under the penalties ofperjury in the
State ofWashing!:on.
If~    \0 \\<{(~ 
John R Christianson                       Date \
General Manager, Aviation Maintenance
Seattle Tacoma International Airport



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9
GaryP. Richer                          Date
Maintenance Manager, Electronic Systems
Seattle Tacom Inte  tional Airport

om Q'Day
Maintenance Manager, Electr ic S sterns
Seattle Tacoma International Airport