6b mem
PORT OF SEATTLE MEMORANDUM COMMISSION AGENDA Item No. 6b Date of Meeting July 7, 2009 DATE: May 19, 2009 TO: Tay Yoshitani, Chief Executive Officer FROM: Arif Ghouse, Director, Seaport Security Rod Jackson, Capital Project Manager SUBJECT: Department of Homeland Security (DHS) Round 7 Seaport Security Grant components for a total authorization of $1,624,090 ($873,500 reimbursable grant by DHS and $750,590 in Port costs). ACTION REQUESTED: Request Commission authorization for the Chief Executive Officer to: 1. To perform permitting and in-house design; prepare contract documents, execute service agreements and to perform contract administration for the Transportation Worker Identification Credential (TWIC) Project at Port of Seattle (Port) Waterfront Facilities in the amount of $227,090. 2. To perform TWIC integration and configuration to support enrollment and access control. ICT will procure and execute service agreements for the TWIC Project in the amount of $1,103,000 to assist in the design. 3. To perform a series of Port of Seattle and interagency collaborative training and exercises, drills; and response and recovery planning efforts. Also to support mission specific training, such as boat training for the Port of Seattle Police officers, as the security boat equipment purchased through previous grant funding is deployed for a cost of $294,000. SYNOPSIS In an effort to increase security at the nation's strategic and economically important seaports, DHS established a Port Security Grant Program. The Port has applied for and received grant funding through this program in 2002, 2003, 2004, 2006, and 2007 and completed many projects on its own facilities to further the objectives of enhanced maritime security. In addition, the Port has provided Grant Administration services for other ports that were not able to commit their own staff and project management resources to implement the requirements of administering COMMISSION AGENDA T. Yoshitani, Chief Executive Officer May 19, 2009 Page 2 of 6 federal grants. The Port of Tacoma will administer the Round 8 of the Port Security Grant Program. The Seaport Division requests approval to perform three DHS Round 7 Seaport Security Grant projects totaling $1,624,090. These projects involve in-house design of the TWIC card reader infrastructure and the software design, integration and configuration of the TWIC card system, as well as the provision of security training and exercises. The total cost of the two TWIC-related projects is $1,330,090. Each project is reimbursable by DHS at 75% of allowable costs. The award of the grant from DHS requires a 25% funding match from the Port for the total cost of the Program, less all non-reimbursable Port labor (FTE) and labor contingencies. DHS will reimburse the Port $873,500, and the Port's matching contribution, including direct costs and FTE, is $750,590 for all three projects. It is necessary for the Port to proceed with these two TWIC projects to remain in compliance with DHS security regulations, specifically as enumerated in Title 33, Code of Federal Regulations, Parts 101 and 105. Failure to comply with these regulations would result in the Port's ineligibility to receive certain Maritime Transportation Security Act (MTSA) regulated vessels, and would preclude business at T-91. The Port is required to conduct or attend regulatory and operational security training and exercises on an on-going basis. This grant finding will help the Port meet its training requirements. The total projected cost of training and exercises is $294,000 of which $220,500 is eligible for reimbursement by DHS. Design of TWIC card reader infrastructure Design and Construction of the TWIC card reader infrastructure is estimated to be $1,077,090. Construction is estimated at $850,000, of which a maximum of 75% ($637,500) of allowable costs will be reimbursed by DHS. FTE costs of $227,090 for in-house design are not reimbursable. Software design and implementation for the TWIC card system Costs for the TWIC integration and configuration to support enrollment and access control will be in the amount of $1,103,000. Port FTE and labor contingency costs of $232,000 are nonreimbursable. Equipment and implementation costs of $871,000 are reimbursable at a maximum of 75% ($653,000) by DHS. FTE costs of $450,000 for in-house design are not reimbursable. Training and Exercises Training and exercises will support the Port's security and emergency preparedness planning objectives, as well as promote opportunities for interagency cooperation and collaboration in preparation for the recovery and increased resiliency of the Port facilities and Puget Sound COMMISSION AGENDA T. Yoshitani, Chief Executive Officer May 19, 2009 Page 3 of 6 Marine Fire Fighting Association infrastructure in response to terrorist attacks. The total project cost is $294,000 of which a maximum of 75% ($220,500) is eligible for reimbursement by DHS. PROJECT DESCRIPTION/SCOPE OF WORK Project Statement: This project will complete the TWIC infrastructure no later than December 31, 2010. Project Objectives: Project will be on budget at minimum cost (Life Cycle). Project will be delivered on-time to meet schedule milestones. Project will use technology to meet future project needs and reduce recurring expenses. Project will have seamless operation of the system with no card reader issues. Scope of Work: Scopes include the design and preparation of contract documents for cable, conduit, power, fiber optics, card readers and cameras necessary to operate the existing TWIC physical infrastructure systems installed at Port of Seattle waterfront facilities previously funded through the DHS Round 6 grant. The scope also includes the development of the POS network, including infrastructure integration and configuration to support enrollment and access control under the TWIC requirements. The Port has elected to utilize in-house staff to design the project. Port funds will be utilized to cover the FTE costs. FTE costs are not reimbursable for this grant to meet and comply with Federal TWIC regulations. Staff will return to Commission for authorization(s) at a later date to request additional funding for advertisement, bidding and construction including any necessary Port of Seattle cost match (25%). STRATEGIC OBJECTIVES This project supports the Port strategy to "Ensure Airport and Seaport Vitality" through enhancing safety by providing an additional level of security to the Port of Seattle Waterfront operations. ADDITIONAL FUNDING NEEDED Port staff will return to the Commission for additional funding for the TWIC card infrastructure construction once the design work is completed. We estimate that another $850,000 will be required, of which an estimated $637,000 will be reimbursed by DHS. Original expectations for this project included the primary use of consultants and contractors to complete the design. However, utilizing Port FTE staff would allow the project to be completed six months sooner. This would guarantee installation of the work by the federal grant end date and also realize savings from eliminating on-site security guards for those six months. COMMISSION AGENDA T. Yoshitani, Chief Executive Officer May 19, 2009 Page 4 of 6 FINANCIAL IMPLICATIONS Budget/Authorization Summary Original Budget 0 Previous Authorizations for this CIP 0 Current request for authorization $1,624,090 Total Authorizations, including this request $1,624,090 Remaining budget to be authorized (Estimated Infrastructure Construction Cost) $ 850,000 Total Estimated Project Cost $2,474,090 Project Cost Breakdown This Grant TWIC Card Reader Infrastructure Request Reimbursement POS Costs Design costs (In-house engineering-FTE) $128,530 $0 $128,530 Design contingency (In-house engineering-FTE) $13,060 $0 $13,060 ICT costs (Design Review FTE) $20,000 $0 $20,000 Seaport PM and soft costs $45,500 $0 $45,500 Permitting $20,000 $0 $20,000 Sub-Total $227,090 $0 *$227,090 *The above FTE costs for the in-house design are not reimbursable. Future construction costs are estimated to be $850,000 of which approximately $637,500 of the total estimated construction cost is reimbursable under the Round 7 Grant program. This will be a future Commission Request. This Grant ICT Implementation Request Reimbursement POS Costs ICT costs (Network Configuration-FTE) $17,000 $0 $17,000 ICT equipment (Network ) $96,000 $72,000 $24,000 ICT costs (Integration & Configuration-FTE) $215,000 $0 $215,000 ICT equipment (Readers & Cameras) $340,000 $255,000 $85,000 Implementation costs $435,000 $326,000 $109,000 Sub-Total $1,103,000 $653,000 *$450,000 *The above FTE costs for the in-house ICT cost breakdown are not reimbursable. Approximately $653,000 of the above total estimated cost is reimbursable under the Round 7 Grant program. This Grant Training and Exercises Request Reimbursement POS Costs Training Exercises $294,000 $220,500 $73,500 Sub-Total $294,000 $220,500 $73,500 COMMISSION AGENDA T. Yoshitani, Chief Executive Officer May 19, 2009 Page 5 of 6 Summary of Authorization, Grant This Grant Reimbursement and Port Cost Request Reimbursement POS Costs Total $1,624,090 $873,500 $750,590 Source of Funds The infrastructure and ICT implementation capital projects were included in the 2009 Plan of Finance under CIP #C800165, Seaport Security Grant Round 7. The POS cost portion of these projects will be funded from the General Fund. The training and Exercises Expense project was included in the 2009 Operating Budget. The POS cost portion of these projects will be funded from the General Fund. Financial Analysis Summary CIP Category Compliance Project Type Health, Safety and Security Risk adjusted Discount rate N/A Key risk factors Final design requires higher expenditures Project cost for analysis $2,474,090 Business Unit (BU) Seaport Cruise, Docks & Industrial Properties Effect on business performance The TWIC Card Reader Infrastructure Capital project would add $215,418 in Depreciation in years 1-5. The ICT Implementation Capital Project would add $110,300 in Depreciation in years 1-10. The Training and Exercises expense project would have grant revenues of $220,500 and expenses of $294,000 for a net income of a negative ($73,500). Yearly Operations and Maintenance costs of $71,700. IRR/NPV NPV negative ($1,383,100). ENVIRONMENTAL SUSTAINABILITY/COMMUNITY BENEFITS No impact to the environment is anticipated as a result of this project. Upgrades will be constructed with materials that have demonstrated long life and durability. COMMISSION AGENDA T. Yoshitani, Chief Executive Officer May 19, 2009 Page 6 of 6 PROJECT SCHEDULE: Start Finish Design July 14, 2009 December 30, 2009 Bid Advertisement TBD/ 2010 TBD / 2010 Contract Award TBD / 2010 Construction Start TBD / 2010 Construction Complete TBD / 2010 PREVIOUS COMMISSION ACTION The Commission authorized $5,258,078 on November 20, 2007, to receive federal grants, prepare cost estimates, schedules and documents; advertise for, execute and amend outside professional services agreements; execute Memoranda of Agreement with sub-grantees; execute and perform grant administration processes for the Department of Homeland Security Port Security Grant Program (Round 7) and to disburse grant funds.
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