Item Coversheet

Resolutions - C7  J




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Jimmy L. Morales, City Manager 
DATE:February  12, 2020
 



SUBJECT:

A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER TO AWARD AN AGREEMENT, PURSUANT TO REQUEST FOR PROPOSALS (RFP) 2018-233-KB FOR DESIGN, BUILD, OPERATE AND MAINTAIN WATER, WASTEWATER AND STORMWATER SUPERVISORY CONTROL AND DATA ACQUISITION (SCADA) & PROGRAMMABLE LOGIC CONTROLLER (PLC) (THE "PROJECT"), AND AUTHORIZING THE ADMINISTRATION TO ENTER INTO SIMULTANEOUS NEGOTIATIONS WITH (1) SICE, INC. ("SICE"), THE TOP RANKED PROPOSER, AND (2) DATA FLOW SYSTEMS, INC. ("DFS"), THE SECOND RANKED PROPOSER; AND FURTHER, PROVIDING THAT THE FINAL SELECTION OF THE RECOMMENDED PROPOSER AND APPROVAL OF MATERIAL TERMS FOR THE PROJECT SHALL BE SUBJECT TO THE PRIOR APPROVAL OF THE MAYOR AND CITY COMMISSION.


RECOMMENDATION

The Administration recommends that the Mayor and City Commission of the City of Miami Beach, Florida approve the resolution accepting City Manager’s recommendation pertaining to bids received, pursuant to Request for Proposals (RFP) 2018-233-KB for Design, Build, Operate and Maintain Water, Wastewater and Stormwater Supervisory Control and Data Acquisition (SCADA) & Programmable Logic Controller (PLC).

BACKGROUND/HISTORY

Supervisory Control and Data Acquisition (SCADA) generally refers to an industrial computer system that monitors and controls a process. In the case of the transmission and distribution elements of utilities, SCADA monitors substations, transformers and other electrical assets. Sensors (either digital or analog) and control relays that directly interface with the managed system. Remote Telemetry Units (RTUs) serve as local collection points for gathering reports from sensors and delivering commands to control relays.

 

Additionally, SCADA systems are crucial for industrial organizations and companies in the public and private sectors to control and maintain efficiency, distribute data for smarter decisions, and communicate system issues. The SCADA software processes, distributes and displays the data helping operators and employees analyze the data and make important decisions. State and municipal utility departments use SCADA to monitor and regulate water flow, reservoir levels, pipe pressure and other factors. Effective SCADA systems can result in significant savings of time and money.

 

The current SCADA system in the City of Miami Beach is outdated and no longer applicable for software updates. Therefore, the system requires removal and replacement with a new SCADA contract. In order to consider a contract, the City of Miami Beach is seeking qualified proposers to respond to this RFP for an all-inclusive SCADA package that includes engineering, design, integration and installation of a radio-based or equal form of communication, internet accessible SCADA system including PLC. The SCADA system will be for remote monitor and control of potable water storage tanks and pumping station, wastewater pumping stations, stormwater pumping stations, and all associated monitoring stations (flow, pressure, etc.).

ANALYSIS

On June 6, 2018, the City Commission approved the issuance of RFP 2018-233-KB and the RFP was issued. The RFP stipulated a two-step, phased evaluation process.  Phase I considers the qualifications, experience and availability of the proposers and key members of the design-build team. Firms short-listed in Phase I are then invited to submit technical and price proposals as part of Phase II. Phase I proposals were received on August 15, 2018. The Phase I proposals were evaluated on September 13, 2018 by an Evaluation Committee appointed by the City Manager pursuant to LTC# 456-2018 (see Attachment A). On October 17, 2018, via resolution No. 2018-30541 (see Attachment B), the Mayor and the City Commission approved the shortlisting of the three top-ranked proposers, namely (1) SICE, Inc., (2) Data Flow Systems, Inc., and (3) Revere Control Systems, Inc., to be further considered in Phase II of the evaluation process.

Subsequent to the completion of Phase I short-listing and as a result of questions from short-listed bidders, the City realized that, in order to get the best responses and facilitate the proposal review process, it was necessary to provide more information to bidders in the form of design criteria requirements (DCR), which establishes the minimum technical requirements for the SCADA and PLC system. Accordingly, the Administration engaged Hazen and Sawyer Engineering towards the latter end of 2018 to develop the DCR. The RFP had to be placed on hold while the DCR was being developed. Once Hazen and Sawyer Engineering completed the DCR, the RFP was reinitiated on June 21, 2019.

Following the release of the DCR, Phase II proposals were received from the short-listed firms on October 18, 2019. Prior to the due date for Phase II proposals, Revere Control Systems, Inc. notified the City that it had elected not to participate in Phase II. Once the Phase II proposals were received, Hazen and Sawyer completed its full review of the compliance of each proposal with the requirements of the DCR. In order to proceed with the Evaluation Committee’s review of the Phase II proposals and presentations by the proposers so that an award recommendation can be completed, it was necessary to make an adjustment to the composition of the Evaluation Committee to replace a prior member that is no longer employed by the City.

Accordingly, on January 8, 2020 via LTC # 007-2020 (Attachment C) the City Manager made changes to the evaluation committee. The Committee convened on January 13, 2020 to consider proposals received under Phase II. The Committee was comprised of Mina Samadi, Senior Capital Project Coordinator, Capital Improvement Projects Office, City of Miami Beach; Roy Coley, Director, Public Works Department, City of Miami Beach; Jose Perez, Capital Project Coordinator, Capital Improvement Projects Office, City of Miami Beach; Frank Quintana, Division Director, Information Technology Department, City of Miami Beach; Margarita Wells, Assistant Director, Environment and Sustainability Department, City of Miami Beach.

The Committee was provided an overview of the project, information relative to the City’s Cone of Silence Ordinance and the Government Sunshine Law. The Committee was also provided general information on the scope of services, references, and a copy of the proposal. The Committee was instructed to score the proposal pursuant to the evaluation criteria established in the RFP. The evaluation process resulted in the scoring of the proposal received as indicated in Attachment D.

The following is a brief summary of the two (2) firms as articulated in each firm's proposal pursuant to Phase I.

Data Flow Systems, Inc.:

Data Flow Systems, Inc. (DFS) was established in 1981 to manufacture SCADA solutions specifically for water and wastewater utility applications. DFS has gained national recognition for its durable and obsolescence-proof TAC II SCADA System, as well as its technical capabilities and guaranteed radio links.

Today, DFS is recognized as an industry leader, providing remote monitoring and control for remote facilities, and water & wastewater treatment plant automation systems. Our patented product, "Symphony – Harmonious Pump & Flow Management" has been proven to significantly reduce lift station pump run times and pumping energy costs.

The TAC II SCADA System is MADE IN THE USA. The Company's corporate headquarters is located in Melbourne, Florida and consists of a 30,843 square foot facility encompassing sales, engineering, radio study and FCC licensing, customer service, product manufacturing, a certified UL-508A panel shop, and stock warehousing. DFS currently employs nearly 100 full-time employees – all dedicated to water and wastewater SCADA systems and applications.

Its combination of design, manufacturing, system commissioning, and technical service allows DFS to offer complete SCADA solutions. DFS places emphasis on developing a good long-term partnership with each end-user. At the present time there are over 400 TAC II SCADA Systems with more than 25,000 RTUs installed and operational throughout the United States. DFS’ TAC II SCADA System installation base ranges from small Water Control Districts to large WW Collection Systems, and Automated Plant Control Systems. Its single largest user currently has over 700 DFS RTUs for the monitor and control of their sewer lift stations.

SICE, Inc.:

SICE understands the technical challenges of this Project and the importance of teaming with the proper local and experienced resources to able to successfully implement it. As a result, SICE has partnered with design and engineering partners, Nova consulting and 300 Engineering Group. Their Team offers the best expertise of the three organizations by complementing and leveraging technical skills and local capabilities to deliver an exceptional DBOM project to the City of Miami Beach.

SICE is the Prime Contractor. SICE is a Multinational Technology Integration Company, whose primary activity is to render value-added services through technology implementation and integration using either proprietary or third-party software. They deliver the best solution specifically tailored for each client. SICE has successfully delivered and maintained hundreds of projects for public and private customers in a wide range of sectors and business areas, such as ITS, tolling systems, lighting, environmental and energy efficiency services, communications infrastructure and safety and process control systems.

SICE has successfully delivered DBOM projects for the remote command, remote control and automation of all processes for the transport and treatment of drinking, irrigation, and wastewater in countries like Spain, Algeria or Perú. In the US, SICE has successfully deployed its SCADA solution for the Port of Miami Tunnel which is capable of integrating, managing and controlling different systems and devices installed by SICE and third parties under a single platform with the objective of optimizing and simplifying the day to day management of the tunnel operations. Currently, they are deploying our SCADA solution for the Alaskan Way Tunnel in Seattle which is anticipated to be accepted by the end of this year. Additionally, SICE has delivered ITS systems for complex transportation projects such as I-595 Corridor Improvement Project, recognized at the America’s Transportation Awards National Competition.

FINANCIAL INFORMATION

Final project costs to be determined via negotiations. 

CONCLUSION

I have reviewed the submissions, the Evaluation Committee’s rankings and commentary. I have also considered review of proposals completed by Hazen and Sawyer, the engineering firm tasked with assisting the City with this process, regarding how each firm has addressed the project requirements included in the RFP. It is important to note that, in the opinion of the City’s consultant, both firms deviated from the specifications included in the RFP. However, the specifications developed by the City’s consultants were intended to establish a basis of design and, given that each firm has a slightly different approach to completing the project, it is understood that the final specifications will vary, but must ultimately deliver a system that suits the City’s requirements for the project.

 

DFS is a full-service manufacturer and installer of its system and is proposing to install its own proprietary system that has deployed extensively throughout the U.S. After extensive consideration, I find that both firms appear to be well qualified to successfully complete the project. While there are some differences between the proposals, staff believes either firm is capable of delivering a quality system. Sice is an engineering firm that does not manufacturer its own equipment. Sice is proposing to install non-proprietary third-party equipment and software from various manufacturers; and, as such, the issues of proprietary system do not apply to Sice. Staff and the City’s consultant have reviewed the issue of a proprietary system and find that it is not a major concern, either way, in the selection of a firm to implement the SCADA system. The reality is that this project is a major infrastructure investment and, once a system is selected (regardless of manufacturer), it is very likely that the City would remain with the same system and its components for its useful life.

 

While staff and the City’s consultant believe that both proposed systems can result in a quality implementation, both proposals contain a number of pros and cons, as well as some areas that require clarification and input from the City. For example, a number of elements of each system still need to be worked out. For example, DFS has not provided a turn-key cost for maintenance for the life of the system. Instead, it has only provided allowances for any required maintenance that do not cap the City’s exposure to future costs. In turn, while Sice has provided annual maintenance costs, it has not provided full details of its warranty program. DFS appears to have provided a more comprehensive training program, which is necessary for the proper functioning of the system, than has Sice. Further, Sice appears to have provided a more detailed service level agreement, which establishes the level of service the City can anticipate, than has DFS. Additionally, the matters of equipment obsolence, technical communications, implementation schedule and replacement parts inventory must still be finalized with each firm. Finally, there is a significant difference in cost between the two proposals. As such, following clarification of the matters outlined herein, I propose that both firms submit a best and final offer (BAFO) for the City’s consideration.

 

Therefore, based on technical review mentioned above, I recommend that the Mayor and City Commission of the City of Miami Beach, Florida accept the recommendation of the City Manager to award an agreement, pursuant to Request For Proposals (RFP) 2018-233-KB for Design, Build, Operate And Maintain Water, Wastewater and Stormwater Supervisory Control and Data Acquisition (SCADA) Programmable Logic Controller (PLC) (the “Project”); authorize the Administration to enter into simultaneous negotiations with (1) Sice, Inc. (“SICE”), the top ranked proposer, and (2) Data Flow Systems, Inc. (“DFS”), the second ranked proposer; and further provide that the final selection of the recommended proposer, project costs and approval of material terms for the Project shall be subject to the prior approval of the Mayor and City Commission.

Applicable Area

Citywide
Is this a Resident Right to Know item? Does this item utilize G.O. Bond Funds?
Yes No 
Legislative Tracking
Public Works/Procurement

ATTACHMENTS:
Description
Attachment A
Attachment B
Attachment C
Attachment D
Resolution