1 Date: June 27, 2022
To: Jim Mercurio
Executive Vice President & General Manager
From: Jenti Vandertuig
Procurement Director
Subject: Recommendation for Award for Lutron Technology Support for Levi’s Stadium
Recommendation
Recommend approval and award an agreement to Lutron Services Co., Inc. (Lutron) to provide a proprietary technology support plan for the Lutron lighting system at Levi’s Stadium (Stadium), for a three year term, to commence on July 15, 2022 and expire on July 14, 2025, in an amount not to exceed $46,091.00 per contract year. Total compensation, in the aggregate, shall not exceed $138,273.00 over the three year period. The term for subsequent fiscal years shall be conditioned upon approval of the Santa Clara Stadium Authority (SCSA) budget for the applicable fiscal year that includes the amounts due under this contract.
Reasons for Recommendation
The Stadium opened in 2014 and the original Stadium construction plans specified, designed and installed a proprietary Lutron lighting system. The lighting system infrastructure is comprised of devices such as sensors, controls, and addressable ballasts, throughout all areas of the Stadium. The lighting system allows the Stadium Engineering staff to schedule, monitor, and change the lighting throughout the Stadium from a web based user interface. The lighting software also provides actionable data to manage energy use and space utilization, which decreases energy consumption and improves the lighting environment.
Stadium Manager has had a Lutron service plan to maintain the lighting system and software since the Lutron lighting system was installed in 2014. The service plan provides support, troubleshooting, training, maintenance, and diagnostics. The service plan includes elective onsite support visits for preventive maintenance and programming needs. Stadium Manager has a need to continue the service plan to provide the necessary support and maintenance of the existing Lutron lighting system.
Failure to execute a service agreement can lead to outdated and unsupported software, which can become a security vulnerability. Additionally, without the troubleshooting and maintenance support, any issues with the system may render portions or all of the lighting system unusable. Alternative devices can be purchased through third party suppliers and contractors, but they usually carry large cost markups and long lead times and the device
2 programming still requires a Lutron trained technician. The Stadium Engineering staff will lose functionality of the lighting system without a service agreement.
Lutron is a single source of the proprietary software and service for the existing lighting system.
The Lutron devices are only compatible with the Lutron software. Replacing the existing Lutron devices would be time consuming, and exceptionally expensive, and therefore is not viable at this time. The Lutron service plan is the most economical option to support and maintain the Stadium lighting system.
As requested by Stadium Manager, Lutron provided a three year Technology Support Plan with various options. Stadium Manager evaluated the needs and selected the Gold Technology Support Plan option with eight utility days onsite annually. The support plan includes software license updates but not major software upgrades. In the event Stadium Manager decides to upgrade the software, the Gold Technology Support Plan option is automatically trued up to maintain the current system and configuration. The cost of a three year Gold Technology Support Plan is $46,091.00 per year.
Stadium Manager and Lutron representatives addressed the proposed terms and conditions included in the Lutron Technology Support Plan Order Form which is included as supporting documentation.
Therefore, approval is sought to enter into an agreement with Lutron for a three year period in an amount not to exceed $46,091.00 per year, with a total not to exceed amount of $138,273.00 for the term of the agreement.
Next Steps
Once Stadium Manager receives approval from the SCSA Board, an agreement will be executed with Lutron and an executed copy forwarded to the Board. Supporting documentation has been provided for review and approval.
The cost for this purchase is covered in the FY22/23 SCSA Budget, Engineering Department, as a shared expense.
Submitted By: __________________________________ Date: ___________________ Jenti Vandertuig, Procurement Director
Approved By: ___________________________________ Date: ____________________ Jim Mercurio, Executive Vice President & General Manager