REPORT TO COUNCIL
SUBJECT
Title
Action to Delegate Authority to the City Manager to Negotiate and Execute Amendment No. 2 to the Software Maintenance Agreement with Hitachi Energy USA, Inc.
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City of Santa Clara's Electric Utility, Silicon Valley Power (SVP), operates a Supervisory Control and Data Acquisition (SCADA) system to monitor and control its electric utility infrastructure. SCADA is computer-based control system that allows staff to remotely control operations, monitor equipment status, and analyze historical and real-time data.
SVP monitors the system 24/7, and it is operated in accordance with the Critical Infrastructure Protection (CIP) Reliability Standards of the North American Electric Reliability Corporation (NERC). The system is operated by North Electric and Water System Operators who are NERC certified.
The SCADA system was originally procured in 1997 and supplied by ABB Enterprise Software (ABB). On October 10, 2017, the City Council approved a Software Maintenance Agreement with ABB to provide maintenance and support for the SCADA system (Agenda Item 13.B2). Under the agreement, ABB provides hardware and software support for third party software, access to the support portal, remote diagnostic services, and data debugging.
On October 17, 2020 (RTC #20-940), the City Council authorized an amendment to the Software Maintenance Agreement to extend the term for five years from September 1, 2020, through August 31, 2025. This amendment included the transfer of ABB's software division to Hitachi Energy USA, Inc. (Hitachi), which now serves as the current software maintenance services provider.
The current agreement for the SCADA software maintenance and support services is set to expire on August 31, 2025.
DISCUSSION
The Purchasing Division Manager has determined this procurement to be exempt from the sole source prohibitions unde...
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