Fort Walton Beach Council agenda — 02-26-08 regular agenda — reading text

request for Council authorization to waive the formal bid procedures and award new telemetry equipment to Data Flow Systems, Inc., Melbourne, FL, in the amount of $ 21, 370 Utilities Director) Council Action 1 St 2nd Vote: Agenda Item Number: 4  CITY OF FORT WALTON BEACH MEMORANDUM To: Joyce Shanahan, City Manager From: Michael Beedie, Utilities Operations Manager Through: John Hofstad, Utilities Director- Date: February 18, 2008 Subject: - Sole Source Purchase of Telemetry System Components Background: The City of Fort Walton Beach provides water and wastewater services to over 21, 000 citizens. The water system consists of approximately 119 miles of water mains, nine ( 9) water wells, four ( 4) elevated water storage tanks, and four (4) ground storage tanks. The wastewater system consists of approximately 116 miles of sanitary sewer gravity mains, thirteen ( 13) miles of sanitary sewer force mains, forty -four (44) lift stations, two (2) pump stations, and one (1) wastewater treatment plant. To provide continuous monitoring of the City's water wells and tanks and wastewater lift stations, pump stations, and wastewater treatment plant, the City selected and installed a Supervisory Control And Data Acquisition ( SCADA) system. A SCADA system collects data from various sensors throughout the water and wastewater systems and sends the data to a central computer ( server) which then manages and controls the data. The broad architecture of a SCADA solution involves physical equipment such as switches, pumps, and other devices able to be controlled by a Remote Telemetry Unit (RTU). The dual roles of the master computers are to provide the information such as meter readings and equipment status to human operators in a digestible form and to allow the operators to control the field equipment in predefined ways. Most SCADA deployments choose to restrict access to the master computers, and interface with the system using operator consoles which communicate with the master computers over a network. One of the key processes of SCADA is the ability to monitor an entire system in real time. This is facilitated by data acquisitions including meter reading, checking statuses of sensors, etc. that are communicated at regular intervals depending on the system. Besides the data being used by the RTU, it is also displayed to a human that is able to interface with the system to override settings or make changes when necessary. While the SCADA human -machine interface (HM1) usually allows operators to view the state of any well, tank, lift station, or wastewater treatment plant equipment, most operator interaction with the system .is driven by alarms. Alarms are automatically detected during abnormal conditions in the plant equipment that require operator attention, and may require operator intervention to keep things running smoothly. Discussion: The City purchased the TAC II SCADA System from Data Flow Systems, Inc. in Melbourne, Florida, in the 1990s. The Utilities Department has standardized all of the City's water and wastewater telemetry systems to the TAC II SCADA System, which allows for parts and equipment interchangeability. Data Flow Systems, Inc. is the sole source supplier and authorized repair center for the TAC II SCADA System, which includes the HyperTAC II SCADA Software, Remote Terminal Units ( BTUs), Forwarding Terminal Units ( FTUs), DFS Modules, and TAC Packs TCUs utilized at the City's water and wastewater facilities. As part of the ongoing operation and maintenance of the telemetry system, numerous circuit boards that have become obsolete are in need of replacement. Three ( 3) divisions of the Utilities Department will benefit from the purchase of the new telemetry equipment: 1. Sewer Collections requires the purchase of five ( 5) Radio Interface Modules ( RIM) and two (2) Pump Control Modules for installation at various lift stations. This equipment is quoted at $ 10,149.00. 2. Sewer Operations requires the purchase of five. (5) Radio Interface Modules and three (3) Power Supply Modules for installation at the wastewater treatment plant. This equipment is quoted at $9, 419.00. 3. Water Operations requires the purchase of two (2) Digital Control /Monitor Modules for installation at various water tanks and wells. This equipment is quoted at $ 1, 802.00. The total amount of the required telemetry equipment purchase is $ 21, 370.00. According to City Administrative Policy 102 — Purchasing Policies, sole source purchases must be justified based on three ( 3) criteria: 1. How was determination made that the goods / services being purchased are only available from one source? a. The telemetry system used by the Utilities Department is manufactured by Data Flow Systems, Inc. The printed circuit boards, design, and software is proprietary in nature and has been patented. Attached is a letter from Mrs. Debbie Wilkinson, the Sales Administrator with Data Flow Systems, Inc. that indicates that they are the sole source supplier and authorized repair center for the TAC II SCADA System that is used at the City's water and wastewater facilities. 2. What contacts (if any) were made in an attempt to identify alternate sources? a. Contact was made with two ( 2) other vendors that are capable of supplying motor control and telemetry systems. The two vendors, Poljak Pumps and Rexel USA, were unable to provide quotes because Data Flow Systems, Inc. products are proprietary. 3. What is the rationale that the goods / services being purchased cannot be substituted with similar goods / services from other sources? a. Each printed circuit board within the telemetry system functions as a designed piece of a larger SCADA system. All equipment within the City's SCADA system was completely manufactured by one company, Data Flow Systems, Inc. Since Data 2  Flow's system is proprietary, no other systems will function with their computer logic. The equipment of other vendors would also not be compatible. Based on the above information, Staff recommends approval for a sole source purchase of the required telemetry equipment from Data Flow Systems; Inc. of Melbourne, Florida, to upgrade obsolete SCADA components throughout the water and wastewater system. Recommendation: Staff requests Council authorization to waive the formal bid procedures and award the purchase of new telemetry equipment to Data Flow Systems, Inc. of Melbourne, Florida, in the amount of 215370.00. If approved, sufficient funding is available in account 401 -1310 -533 -4680 (Miscellaneous Plant and System Materials) in the amount of $3, 500.00 for the Water Operations equipment, account 401 -1320 -535 =6406 ( Data Flow Equipment Replacement) in the amount of $10,000.00 for the Sewer Operations equipment, and account 401 -1350 -535 -4680 ( Telemetry Components) in the amount of $ 10,300.00 for the Sewer Collections equipment. Submitted By: Michael Beedie, Utilities Operations Manager Date Date a1& &aFr Lisa A er, Finance Director Date Reviewed and Concur: a 2 1% Q foy S anahan, City Manager Date Additional Materials Folder: 1. Sole Source Justification Staff Memorandum from Joe Coker, Collection System Supervisor 2. Purchase Order Quote for Telemetry Equipment 3. Quote No. 070312- 03 -dcw from Data Flow Systems, Inc. 4. Sole Source Justification from Data Flow Systems, Inc. 5. " No Bid" E -Mail from Poljak Pumps, dated 01/ 25/ 2008 6. " No Bid" E -Mail from Rexel USA, dated 01 / 24/ 2008 3  City of Fort Walton Beach, Florida Utilities .Department / Wastewater Collections Div. To: John Hofstad, Utilities Director 07 February 2008 From: Joseph Coker, Collections Supervisor Subject: Sole Source Purchase —Telemetry Components Cy: Michael Beedie: Utilities Manager I would like to request a " sole source" purchase authorization for the procurement of critical spare parts for the Utilities Department's telemetry system. The funds were authorized in the 2007 — 2008 budget. The justification for this request is in the following statements. 1. The telemetry system used by the Utilities Department is manufactured by Data Flow Systems Inc., their printed circuit boards, design, and software is proprietary in nature and has been patented. A letter from Debbie Wilkinson the sales administrator with Data Flow Systems Inc. indicates that they are the only source for these parts. 2. Contact has been made with two vendors that can supply motor control and telemetry systems. This was done to see if they were able to procure these components. Both indicated that that was not possible for Data Flow Systems parts. 3. Each printed circuit board within the telemetry system functions as a designed piece of a large supervisory controlled data acquisition system. It was completely manufactured by one company. No other company builds these components for this particular brand. The computer logic of one operating system will not generally function with a differing system, let alone the printed circuit board actually fitting in to the quick -change ports / slots that hold it in place for wiring. Joseph Coker Collection System Supervisor Utilities Department  City of Fort Walton Beach, Utilities Department Water and Sewer Request for Purchase Order Quote Phone: 850 -833 -9617, Nextel: 186* 13224 *2 Fax: 850 -833 -9690 E -mail: jcoker@fwb.org Date: 0111712008 Requested By: Joe Coker Material required in: 4 -6 weeks Location / Job: Utilities Telemetry System Work Being Done: Up -grade Obsolete / Degraded Components Suggested Vendor: Data Flow Systems Inc. Quoted By: Debbie Wilkinson Qtv_ Unit Descrintien Cost Tot_Cost 1 Lot Telemetry Components ( Printed Circuit Boards) 10, 149. 00 Utilities —Sewer Collections) freight Mfg: Data Flow Systems Inc. a. 5ea —Radio Interface Module, RIM -006, ($ 1, 525. 00ea) b. 2ea —Pump Control