SCADA System Procurement Alternatives
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1 SCADA System Procurement Alternatives 2017 Automation Committee Seminar August 24, 2017 Terry M. Draper, PE, PMP Discussion Topics SCADA Overview System Hardware / Software Procurement Additional System Configuration Options Summary 2 Presentation Goals Discussion of options available for procurement of SCADA Systems Compare relative strengths and weaknesses of each approach Provide general recommendations for each method 3 Technolgy 1
2 Definitions / Acronyms SCADA = Supervisory Control And Data Acquisition PCS = Plant Control System / Process Control System PLC = Programmable Logic Controller RTU = Remote Terminal Unit HMI = Human Machine Interface DCS = Distributed Control System 4 SCADA Systems An application of computer technology which: gathers information from field devices displays it for use by an operator executes automatic control sequences stores and displays data for analysis. 5 Elements of a Typical SCADA System Remote Communications Human Machine Interface (HMI) Interface to Remote Areas Historical Server Field Controller Networks 6 Technolgy 2
3 Procurement Alternatives Traditional Design/Bid/Build Traditional with Vendor Prequalification Evaluated Procurement Separate SCADA Systems Integrator Design/Build Approach Utility Direct Procurement 7 Procurement Alternatives Traditional Design/Bid/Build Traditional with Vendor Prequalification Evaluated Procurement Separate SCADA Systems Integrator Design/Build Approach Utility Direct Procurement 8 Traditional Design/Bid/Build Most common approach Detailed plans and specifications Low bid procurement Build phase provides oversight of contractors Often part of a larger physical improvement project, such as plant upgrade or rehabilitation project 9 Technolgy 3
4 Traditional Design/Bid/Build Advantages Lowest initial cost General Contractor responsible for coordination Disadvantages Limited Utility input or control Qualifications of system integrators and/or panel shops may vary Requires significant oversight to ensure compliance with specifications 10 Traditional D/B/B Recommendations Develop detailed vendor qualifications Name specifics wherever possible SCADA software Computer hardware Network hardware Specifications for screen development and workshops Extensive, detailed testing 11 Procurement Alternatives Traditional Design/Bid/Build Traditional with Vendor Prequalification Evaluated Procurement Separate SCADA Systems Integrator Design/Build Approach Utility Direct Procurement 12 Technolgy 4
5 DBB with Vendor Prequalification Maintains low bid procurement Detailed plans and specifications Adds list of prequalified system integrators Prequalification can be based on previous experience at an individual utility or with the Engineer Prequalification can be based on structured evaluation 13 D/B/B with Vendor Prequalifications Advantages Maintains low cost bidding environment GC remains responsible for coordination Only prequalified SI firms allowed to bid Disadvantages General Contractor perceptions of limited choices for subs No assurance the right team from SI will be on project Requires oversight to ensure compliance with specifications 14 D/B/B with Vendor Prequal Recommendations Everything we discussed for traditional D/B/B Develop methodology for prequalification of SI Specific experience Training Project experience (similar size and complexity) Maintain ability to allow additional System Integrators to petition to be qualified during bid period Verify approach with Utility procurement staff 15 Technolgy 5
6 Procurement Alternatives Traditional Design/Bid/Build Traditional with Vendor Prequalification Evaluated Procurement Separate SCADA Systems Integrator Design/Build Approach Utility Direct Procurement 16 Evaluated Procurement using RFP Typically used for stand-alone SCADA projects, but can be used for construction projects Functional specifications are part of Request for Proposal (RFP) System Integrator / Software Supplier responds to RFP SI outlines project approach in RFP Selection is Based on detailed evaluation of technology, approach and price what is the best value for the Utility? 17 Evaluated Procurement using RFP Advantages Allows SI / Software Vendor to propose their best approach Selected on qualifications and price, not price alone (best value) Disadvantages Cost to develop and evaluate RFP Typically not done for construction projects Can be contested, delaying project 18 Technolgy 6
7 Evaluated Procurement Recommendations Detailed RFP with functional requirements Detailed, objective evaluation criteria Allow sufficient time for proposers to develop responses Verify approach with utility procurement staff 19 Procurement Alternatives Traditional Design/Bid/Build Traditional with Vendor Prequalification Evaluated Procurement Separate SCADA Systems Integrator Design/Build Approach Utility Direct Procurement 20 Separate SCADA Systems Integrator Used as part of a physical expansion or rehab project Separate SCADA SI performing in parallel with General Contractor (GC) SI Selected by methods outlined previously Separate contract between utility and SI 21 Technolgy 7
8 Separate SCADA Systems Integrator Advantages Increased Utility control over SI Useful if more than one contract is underway at same facility Disadvantages No clear contractual relationship between SI and GC Additional coordination by Owner / Engineer Potential for schedule conflict and fingerpointing 22 Separate Systems Integrator Recommendations Detailed scope of work for systems integrator Coordinate between GC Contract and SI Contract to eliminate gaps Clearly outline schedule and contract interface requirements Scheduling techniques to minimize effect of schedule slip 23 Procurement Alternatives Traditional Design/Bid/Build Traditional with Vendor Prequalification Evaluated Procurement Separate SCADA Systems Integrator Design/Build Approach Utility Direct Procurement 24 Technolgy 8
9 Background Concepts: Design-Build Project Delivery Design-Bid Build Construction Management at Risk Design-Build Design-Build-Operate Design-Build-Finance-Operate Design-Build-Own-Operate-Transfer DBB CMAR DB DBO DBFO DBOOT 25 Background Concepts: Design-Build What is Design-Build Design-build is a method of project delivery in which one entity - the design-build team - works under a single contract with the project owner to provide design and construction services. Types of Design-Build Performance Based Design-Build Prescriptive Design-Build Progressive Design-Build 26 Background Concepts: Design-Build OWNERS RERESENTATIVE OWNER DESIGN BUILD TEAM Designer Builder Design-Build: A Single Organization Offering Both Construction and A-E Services Through One Contract to an Owner Consultant Consultant Consultant Trade Contractor Trade Contractor Trade Contractor 27 Technolgy 9
10 Background Concepts: Design-Build Why Design-Build (again, from DBIA) Faster delivery Cost savings Better quality Singular responsibility Decreased administrative burden Reduced risk (to Owner/Utility) Reduced litigation claims 28 Design-Build Pros / Cons Pros: Cons Shortest schedule Major effort during Appropriate risk selection process transfer Limited case law Creative technology (better every year) solutions Loss of control over Potential lower costs design by Utility Owner guarantee of Multiple solutions design is a non-issue must be evaluated Trust and synergy QBS as a selection factor is a challenge 29 Advantages of Progressive DB Offers flexibility and Owner input, with final cost determined during design Best when Owner wants design input and design to budget Performance guarantee by D-B team Provides early price certainty and Owners off-ramp If agreement on Guaranteed Maximum Price (GMP) can t be reached Off-ramp Overall GMP can be determined as early as 30% Can support multiple phased GMPs 30 Technolgy 10
11 Progressive Design-Build Flow 30% Design- Prelim Cost Est 60% Design- With GMP Execute Contract to Construct Substantial Completion Team Selection Design Concept Review Solicit Sub & Vendor Quotes Receive and Review Pricing Price/Scope Review Finalize Design/ Build Contract Finalize Design Startup and Performance Testing Construction Operator Training Project Acceptance Permitting Progress Meetings LEGEND Crowder-HDR Team Action O&M Manuals Scope/Price Development CMUD B&V Action Milestone Event/ Checking Stop Implementation 31 The Progressive Part of Design-Build The Progressive Design-Build approach: Design Process Continues at least until Guaranteed Maximum Price Set For many utilities, a full biddable set is produced Owner provides input throughout the design Progress Design-Build provides benefits: Innovation during Design Flexibility for Equipment Selection Operations Input and Flexibility Cost Benefit Schedule Benefit 32 Procurement Alternatives Traditional Design/Bid/Build Traditional with Vendor Prequalification Evaluated Procurement Separate SCADA Systems Integrator Design/Build Approach Utility Direct Procurement 33 Technolgy 11
12 Utility Direct Procurement Utility contracts directly with System Integrator / Vendor No Engineer involvement in design or construction/configuration oversight Selection of SI based on low bid or prequalifications 34 Utility Direct Procurement Advantages No Engineering Fees Cost Advantage based on Procurement Methods May have Schedule Advantage Disadvantages Relies on In-House Expertise for Functional Requirements No Structured Design to take advantage of new technologies Increased Workload on Utility Staff throughout Implementation 35 Utility Direct Procurement Recommendations Develop Detailed Functional Requirements, Including Testing and Documentation Clearly Outline Schedule Ensure Sufficient Utility Staff for Oversight and Testing Observation Ensure Procurement Staff is On-Board with Direct Procurement Discuss with Professional Engineers Board regarding Design Responsibility 36 Technolgy 12
13 Additional System Configuration Approaches Utility provided programming Utility approved single programming vendor Engineer provides programming Other variations 37 Utility Provides Programming Advantages Highest level of control over final product Lower capital costs for programming Familiar with facility and usually with the process being controlled Disadvantages Utility is in critical path Burden on utility resources 38 Engineer Provides Programming Advantages Access to Process Experts Most Knowledgeable of Design Intent Increased Level of Utility Input and Control Selected on Qualifications Disadvantages Engineer in Critical Path Higher Cost Technolgy 13
14 Other Variations Engineer Subcontracts with Desired Integrator Contract Allowance for Systems Integration Owner Direct Contract with SI, SI coordinating with General Contractor 40 Summary SCADA Procurement Design-Build is gaining in popularity and usage Design-Bid-Build is still the predominant method Regardless of method used: Evaluate Existing Systems Plan for Migration Develop Implementation Plans Develop firm requirements / specifications Test / Test Again Extensive Training 41 Terry Draper tdraper@ema-inc.com Technolgy 14
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