MEMORANDUM. Agreement with Open Systems International, Inc. for SCADA/EMS and DMS Equipment/Maintenance

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Caroline Heath
8 years ago
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1 X-C-4 JUNE 2, 2014 MEMORANDUM TO: FROM: MAYOR AND CITY COMMISSION CITY ATTORNEY S OFFICE DATE: June 2, 2014 RE: Agreement with Open Systems International, Inc. for SCADA/EMS and DMS Equipment/Maintenance Attached hereto for your consideration is a proposed Agreement and corresponding contract documents with Open Systems International, Inc. (OSI) for the procurement of a SCADA/EMS system and a Distribution Management System (DMS) for Lakeland Electric. The EMS system will replace the existing GE XA21 Energy Management System (EMS) and maintenance support agreement which will expire at the end of December The DMS system will replace Lakeland Electric s in-house Outage Management System (OMS). The SCADA/EMS system is the integral portion of the City s electrical system that allows real-time metering and remote control of key elements of electrical generation, transmission and delivery of electricity to maintain the balance between load and generation. The DMS is a fully integrated system that will bring multiple interfaces into one system for the Electric System Operators, providing better situational awareness that correlates into improved safety for Lakeland Electric s crews and the general public, as well as enhanced reliability. OSI supplies and supports both of the EMS and DMS platforms. The Agreement with OSI is the culmination of a Joint Utility Project (JUP). The JUP group, which includes Lakeland Electric, Gainesville Regional Utilities (GRU), City of Tallahassee (Tallahassee), Memphis Light, Gas and Water (MLGW), Minnkota Power Cooperative (Minnkota), City of South Mississippi Electric Power Association (SMEPA) and Wolverine Power Supply Cooperative (WPSC) issued a Request for Qualifications (RFQ) through KEMA, Inc. a/k/a DMV KEMA (KEMA), its SCADA/EMS consultant since 2003, seeking proposals from companies interested in supplying the EMS services beyond the expiration date of the GE contract. OSI was selected as the JUP s vendor of choice. On April 21, 2014, the City Commission approved a Task Order with KEMA to provide additional procurement services (including DMS), contract preparation and commence contract negotiations with OSI. As a member of the JUP, Lakeland Electric is able to leverage its position with KEMA to provide these services under one Agreement. In conjunction with the JUP selection process, Lakeland Electric staff evaluated multiple vendors of EMS and DMS platforms since these systems are fully integrated and work simultaneously with

(OSI) for the procurement of a SCADA/EMS system and a Distribution Management System (DMS) for Lakeland Electric.

2 each other. Throughout the evaluation process it became apparent that choosing one vendor for both the EMS and DMS, afforded multiple benefits to Lakeland Electric and its customers including, but not limited, to the following: Major cost savings % reduction of EMS/DMS cost as a concurrent system vs. stand-alone market priced systems. Single support source---single point of contact 24/7 365 day 2 hour response for vendor support. Single maintenance contract---all maintenance applies to both systems from single source, ensuring coordination and efficiencies. Elimination of systems integration---both systems built together by one vendor eliminating major integration expense/issues. Single source security and software patching--all security and patch updates thoroughly tested to perform properly on both systems. Combined software licensing---database and software joint use reducing multiple license fees. Combined software and system upgrades---contract will require periodic system upgrades for EMS/DMS; one vendor ensures these are coordinated and functional. Implementation coordination---ems/dms built in conjunction at OSI and implemented as one. Combined training on unified platform systems---major efficiencies involved with combined training for Electric System Operators and EMS staff due to one combined system provided by OSI. Enhanced North American Electric Reliability Corporation (NERC) Critical Infrastructure Protection (CIP) compliance all CIP documentation/ security requirements are coordinated between the systems by OSI as one product. Factory Acceptance Testing and Site Acceptance Testing typically require 3 to 5 weeks of staff time and travel to vendor site. Independent vendors and systems would double this expense and staff time. The Agreement shall become effective upon approval by the City Commission and execution by the parties and will continue in accordance with a mutually approved schedule until completion. Upon final acceptance of the System, the Agreement will continue for a period of ten (10) years. The base

to the following: Major cost savings---25-40% reduction of EMS/DMS cost as a concurrent system vs. stand-alone market priced systems.

3 cost for the EMS system deliverables and the first year of maintenance that will begin upon system acceptance in January 2016 is $1,341,000. The maintenance cost for years two (2) through ten (10) is $182,723 per year, or $1,644,507 over the ten (10) year period, bringing the total cost of the EMS system for equipment/maintenance over the ten (10) years to $2,985,507. The total cost reflects a total JUP discount for the EMS system deliverables/maintenance for the ten (10) year period of $869,482. The cost for the DMS system deliverables, if purchased in conjunction with the EMS under the JUP umbrella, is estimated at $780,000 compared to a standalone purchase cost of $1,400,000. With the addition of the first year s maintenance, the base cost of the DMS is $912,600. The maintenance cost for years two (2) through ten (10) is estimated to be $132,600 per year, or $1,193,400 over the ten (10) year period, bringing the total estimated cost of the DMS system, including maintenance, to $2,106,000. The consolidated ten (10) year cost for both the EMS and DMS is as follows: EMS DMS (Estimated Cost) TOTAL System $1,341,000 $912,600 $2,253,600 Deliverables & Year 1 Maintenance Maintenance for $1,644,507 $1,193,400 $2,837,907 Years 2 through 10 TOTAL: $2,985,507 $2,106,000 $5,091,507 Payments are based on specified milestones identified in the Agreement. The capital cost for the EMS system is included in Lakeland Electric s capital budget. While the DMS system is not currently budgeted, Lakeland Electric anticipates the DMS system being budgeted. However, in the event funds for the DMS system are not budgeted, it will be postponed until such time as sufficient budgeted funds are available. Furthermore, if the actual DMS cost exceeds the estimates specified above, any increase will be handled in accordance with the City s standard procurement practices/policies and will be brought to the City Commission for final approval. It is recommended that the appropriate City officials be authorized to execute this Agreement with OSI for the EMS and DMS systems, including maintenance, provided that approval of the DMS system shall be contingent upon available funds in Lakeland Electric s budget. RS attachment

ten (10) years to $2,985,507. The total cost reflects a total JUP discount for the EMS system deliverables/maintenance for the ten (10) year period of $869,482.

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