REPORT TO COUNCIL
SUBJECT
Title
Action on Amendment to the Software Maintenance Agreement with ABB Enterprise Software Inc. [Council Pillar: Deliver and Enhance High Quality Efficient Services and Infrastructure]
Report
BACKGROUND
Silicon Valley Power (SVP) operates a Supervisory Control and Data Acquisition (SCADA) system in order to monitor and control the City's power grid. The current SCADA system is supplied by ABB Enterprise Software (ABB) and operates on proprietary ABB software.
SVP initially purchased the ABB SCADA system in 1997 after a competitive solicitation process. Since that time, the system has been maintained and upgraded using Software Maintenance Agreements with ABB similar to the attached. When SVP updates the system with new versions of the ABB software and associated hardware, ABB charges only for the labor required to migrate the system to the new platform. No new licensing costs are incurred. It is difficult, and not very cost effective, to move to new platforms given the complexity of the systems, and the amount of SVP intellectual property that would have to be recreated in a new platform. Typically utilities do not switch SCADA systems unless the utility is unsatisfied with the vendor, or its offering. Since implementation of the system in 1997, ABB has provided excellent service and response time.
DISCUSSION
Under this proposed Amendment, ABB will provide maintenance and support services for the SCADA system as required to maintain operational reliability and cyber security for this critical system. Staff recommends entering into an Amendment to the original Agreement to extend the term for five years. The term of the proposed Amendment to the Agreement is September 1, 2020 through August 31, 2025 with a total cost not to exceed $896,293. ABB is currently undergoing a process to divest its Power Grids Business to Hitachi. Staff recommends that the City Manager is granted authority to execute any agreements associated w...
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