TO: Indian River County Board of County Commissioners
THROUGH: John A. Titkanich, Jr, County Administrator
Sean C. Lieske, Director of Utility Services
FROM: Howard G. Richards, PE, Manager - Capital Projects
DATE: August 6, 2025
SUBJECT: Recommendation to Approve Agreement with Gray Matter Systems, LLC, for Implementation Services for the Industrial Control Systems Network Upgrade Project, IRCDUS Project ID: 00.23.545
__________________________________________________________________
BACKGROUND
The Indian River County Departments of Information Technology (IT) and Utility Services (IRCDUS) are jointly undertaking the Industrial Control System (ICS) Network Upgrade project (IRCDUS Project ID 00.23.545) for IRCDUS’s Supervisory Control and Data Acquisition (SCADA) system. The upgrade is intended to enhance the operational efficiency and cybersecurity posture of the County’s ICS and SCADA systems.
On January 11, 2022, the Indian River County Board of County Commissioners (BCC) approved the award of Request for Proposal (RFP) 2022014 to Gray Matter Systems, LLC, (Gray Matter) to provide consulting and design services related to the ICS Network Upgrade project. Upon completion of design services, on September 24, 2024, the BCC approved a new agreement with Gray Matter to provide post-design services in the amount of $312,676.98. GrayMatter post-design services included preparation of procurement documents, support for contractor procurement, and services during implementation.
Gray Matter completed and submitted the final procurement package with intent to bid for the deployment, installation and construction of a fully delivered ICS Network Upgrade project, which has been accepted by IRCDUS. The package includes detail hardware/equipment specifications, implementation scope of work, requirements traceability, and a bill of material (BOM) with estimated costs.
ANALYSIS
As noted above, the ICS Network Upgrade project is intended to enhance the operational efficiency and cybersecurity posture of the County’s ICS and SCADA systems. This makes the timeline to complete the project highly critical due to the County’s exposure to cyber threats. Since essentially “time is of the essence”, it is in the County’s interest to seek ways to shorten the project timeline. In addition, the project design contains significant confidential information that is exempt from public record under three sections of Statute: § 119.071(3)(b) Plans depicting internal layout or structural elements a water treatment facility, or other structure owned and operated by County; § 119.0725(1)(b) Information relating to Critical Infrastructure; and § 119.0725(2) Information relating to Cybersecurity. Formal bidding will allow access, although governed by a non-disclosure agreement, to multiple other firms and their subconsultants, as they develop their bids. Gray Matter is already working under a non-disclosure agreement and has access to all applicable protected information. Further, solicitation for this type of work is not required under statute; therefore, the Board has authority to waive the local requirement for bids for projects exceeding $35,000.
Due to the additional time to undergo an open procurement and risk of exposing sensitive information, IRCDUS desires to retain Gray Matter services for the implementation phase of the project. Upon request by IRCDUS, Gray Matter has provided a proposed Professional Services Agreement (PSA) and Exhibit 1 - Scope of Services Proposal for ICS Network Upgrade Implementation. The PSA was reviewed by the Legal and Procurement Departments before finalizing. Exhibit 1 was reviewed by IRCDUS and IT staff and found to be complete and acceptable. The PSA (excluding Exhibit 1) is attached to this staff report. Exhibit 1 is exempt from public records, as allowed under the three sections of statute previously mentioned and is therefore available to the BCC for review in IRCDUS’s General and Engineering Division.
Gray Matter’s proposed cost for the implementation services is $1,943,589.13 which includes an owner allowance of 10%, or $170,000.00. If approved by the BCC this action will negate any further services under the current agreement for procurement and construction support services and replace with the proposed implementation services under the attached new agreement.
BUDGETARY IMPACT
Expenses, in the amount of $1,943,589.13, for this project will be recorded in the Utilities/WIP/SCADA Cyber Security account, number 471-169000-23545. Since this is an operating capital project, the funds will come from fund balance. Operating funds are derived from water and sewer sales.
|
Account Name |
Account Number |
Amount |
|
Utilities/WIP/SCADA Cyber Security |
471-169000-23545 |
$1,943,589.13 |
PREVIOUS BOARD ACTIONS
On January 11, 2022, the BCC approved Final Ranking of Firms and Award of RFP 2022014 for SCADA/ICS Network Design and award to Gray Matter, for $60,448.
On November 22, 2023, the BCC approved Work Order Change Directive with Gray Matter in the amount of $20,250.00, for changes, updates, and additional meetings related to the Industrial Control Systems Network Design project.
On August 20, 2024, the BCC approved final pay invoice number SIN040409 to Gray Matter in the amount of $4,034.91.
On September 24, 2024, the BCC approved an agreement with Gray Matter to provide post-design services including preparation of procurement documents, support for contractor procurement, and services during implementation for the amount of $312,676.98.
POTENTIAL FUTURE BOARD ACTIONS
IRCDUS does not expect any further BCC actions after the approval of partnering with Gray Matter for the ICS Network Upgrade implementation. There could of course be Change Orders to the prospective agreement, but every effort will be made to adhere to the proposed scope, estimated budget and schedule covered in this staff report.
STRATEGIC PLAN ALIGNMENT
These upgrades are intended to enhance the operational efficiency and cybersecurity posture of the County’s ICS and SCADA systems. The design is compliant with the reference architecture included in National Institute of Standards and Technology (NIST) SP800-82 Rev. 2 Guide to Industrial Control Systems (ICS) Security (2015). It will also align with requirements identified in the County’s America's Water Infrastructure Act (AWIA) risk and resilience assessments (RRAs). This project most close align with the following IRC strategic objectives:
ü Governance: Delivering high quality local government services and managing resources in a financially responsible and sustainable manner, embracing accountability, transparency, innovation, performance, customer service, and community engagement; the hallmarks of good governance.
ü Infrastructure: Planning, constructing, managing, and maintaining critical public infrastructure in response to our current needs, future demands, and the expectations of our community; embracing innovation, technology, and resiliency.
ü Public Safety: Protecting residents and property through effective and responsive fire rescue, emergency medical services, and emergency management. Promoting the safety and well-being of the community through effective planning and enforcement of community and life-safety standards.
STAFF RECOMMENDATION
Recommended Action
Staff recommends that the Indian River County Board of County Commissioners waive the requirement for bids and approve the agreement with Gray Matter Systems, LLC for Implementation Services for the Industrial Control Systems Network Upgrade Project, IRCDUS Project ID: 00.23.545, for a total budget of $1,943,589.13 and authorize the Chair to execute it after review and approval by the County Attorney as to form and legal sufficiency. So long as there are no changes in the dollar amount under the agreement and upon adequate completion of the services set forth in the agreement, staff is directed to make final payment to Gray Matter Systems, LLC.
ATTACHMENTS
• Gray Matter Professional Services Agreement for ICS NW Implementation Services