HomeMy WebLinkAbout8 Consideration to Award Contracts for a Physical Security Plan Final
AGENDA ITEM # 8
MEETING DATE: March 31, 2021
TO: Board of Directors
FROM: Stephen Moore, Electric Operations Manager
SUBJECT: Consideration to Award Contracts for Development of a
Physical Security Plan and Third Party Evaluation
APPROVED BY______________________________
Joe Horvath P.E., Electric Utility Director/Assistant General Manager
RECOMMENDATION:
a) Authorize the Board President to sign a Confirmation under the Support Services
Program Agreement with Northern California Power Agency for AESI to provide
Utility Physical Security Plan Technical Advisory in the amount of $31,500, plus a
10% change order authorization for a total not to exceed contract amount of
$34,650 plus NCPA’s administrative fee.
b) Authorize the Board President to sign a Confirmation under the Support Services
Program Agreement with Northern California Power Agency for TRC to provide
Independent Evaluation Services in the amount $6,100, plus a 10% change order
authorization for a total not to exceed amount of $6,710 plus NCPA’s administrative
fee.
BACKGROUND:
On January 10, 2019, the California Public Utilities Commission (CPUC) approved
Decision 19-01-018 (Attachment 1) requiring all electric utilities to develop and implement
a plan (“Utility Physical Security Plan”) that (1) identifies electric distribution facilities that
require increased security and (2) specifies measures to reduce the identified risks and
threats to those facilities. The Utility Physical Security Plan requirements are modeled on
the security plan requirements set forth by the North American Electric Reliability
Corporation’s (NERC) Critical Infrastructure Protocol (CIP-014). The overarching goal of
the Utility Physical Security Plan is to describe the utility’s approach to risk management
and physical security for utility distribution facilities, with appropriate consideration of
resiliency, impact, and cost.
Utility Physical Security Plans require an assessment of electric distribution assets that
may merit special mitigation measures to address identified risks and threats. Decision 19-
01-18 suggests that Utility Physical Security Plans should consider the following:
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1. The existing system resiliency and/or redundancy solutions (e.g., switching the load
to another substation or circuit capable of serving the load, temporary circuit ties,
mobile generation and/or storage solutions);
2. The availability of spare assets to restore a particular load;
3. The existing physical security protections to reasonably address the risk;
4. The potential for emergency responders to identify and respond to an attack in a
timely manner;
5. Location and physical surroundings, including proximity to gas pipelines and
geographical challenges, and impacts of weather;
6. History of criminal activity at the Distribution Facility and in the area;
7. The availability of other sources of energy to serve the load (e.g., customer owned
back-up generation or storage solutions);
8. The availability of alternative ways to meet the health, safety, or security; and
9. Requirements served by the load (e.g., back up command center or water storage
facility).
Pursuant to Decision 19-01-018, POUs must complete the identification and plan
development process and provide the CPUC with notice that the POU’s governing board
has adopted the plan by July 10, 2021. The requirements of Decision 19-01-018 also
require ongoing plan review, revision, and adoption by the governing board and
submission to the CPUC every five years moving forward.
In response to the CPUC’s Utility Physical Security Plan requirements, Northern California
Power Agency (NCPA) issued a Request for Proposal (RFP) on December 15, 2020, to
solicit proposals from qualified consultants to provide services that would: (1) provide
technical advisory support for the development of Members’ Physical Security Plans; and
(2) independently evaluate Members’ Physical Security Plans.
On January 15, 2021, NCPA concluded the RFP process and has executed agreements
with four vendors to provide Utility Physical Security Plan Technical Advisory and/or
Independent Evaluation Services. As a NCPA member, the District can utilize the Support
Services Program Agreement (SSPA) for materials and support. The SSPA was approved
by the District Board on November 2, 2016. District staff requested proposals from the
original four approved vendors on February 16, 2021, and received four responses. A staff
committee of three members was selected and a two-step process was used to review the
proposals. Criteria considered in reviewing the proposals was:
Project Organization and Key Personnel (10%);
Experience and Technical Competence (15%);
Executive Summary of proposed work (25%);
Proposed Project Schedule (5%);
Local Vendor (5%);
Exceptions to Contractual Arrangements (10%); and
Cost (30%).
The initial proposal review considered only the technical criteria (excludes cost) and
resulted in the ranking given below:
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Technical Scoring
Vendor Rank
AESI 1
TRC 2
Guidehouse 3
Iparametrics 4
The cost proposals were then reviewed and a point ranking was developed with the results
shown below:
Cost Scoring
Vendor Rank
Iparametrics 1
AESI 2
TRC 3
Guidehouse 4
Finally, an aggregated ranking (technical & cost) of the proposers was developed:
Overall Scoring
Vendor Rank
AESI 1
TRC 2
Iparametrics 3
Guidehouse 4
Staff finds that the proposal from AESI is the most advantageous to the District and
recommends that the Board consider the award of a contract to AESI for the development
of a Physical Security Plan. To ensure that the work completed to develop the plan can be
thoroughly reviewed, another consultant should be engaged to review and comment on the
plan. Therefore, staff also recommends that the Board award a contract to TRC for Third
Party Independent Evaluation Services for the Physical Security Plan.
The planned schedule for this project is:
April 7, 2021 - Board Approval;
April 8, 2021 - Execute Confirmation with NCPA; NCPA to Issue the Notice to Proceed
and Purchase Orders;
April 16, 2021 - Discovery/Assessment phase;
May 7, 2021 - Draft Physical Security Plan for review and comment;
May 21, 2021 - Third Party Evaluation of Physical Security Plan;
July 1, 2021 - Complete Third Party Evaluation;
July 7, 2021 - Present Physical Security Plan to the Board for consideration of formal
adoption; and
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July 10, 2021 Submit Physical Security Plan to CPUC.
This item is in support of the following objectives and goals identified by the District.
1.05.020 Objectives:
1. Responsibly serve the public.
4. Provide reliable and high-quality electric supply and distribution system to meet current
and future needs.
1.05.030 Goals:
1.3 Promote communication and cooperation with other public and private agencies.
4.1 Develop and implement Rick Management Policy that considers quality and quantity of
all energy supply and transmission contracts and facilities.
4.6 Provide an effective, efficient, and safe operations program.
FISCAL IMPACT:
The development of a Physical Security Plan is a newly mandated CPUC safety related
matter and is not a budgeted item. Staff anticipates the overall Electric department’s
operation budget can absorb this cost. However, this early in the fiscal year, annual
expenses cannot be readily forecasted. The $41,360 expense may create an expense
overage, and the Physical Security Plan is proposed to be funded from Electric’s General
Operating Fund reserve balance, which was $11.4 million as of December, 31, 2020.
ATTACHMENTS:
1 – CPUC Decision 19-01-018, Utility Physical Security Plan
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