Los Angeles

Port of LA

September 07, 2023 Item #8

Agenda Item 8

8. RESOLUTION NO. ____________ - FIRST AMENDMENT TO AGREEMENT 20-3776\nBETWEEN THE CITY OF LOS ANGELES HARBOR DEPARTMENT AND\nINTERNATIONAL BUSINESS MACHINES CORPORATION FOR THE CYBER\nRESILIENCE CENTER PROJECT\nSummary: Staff requests approval of the First Amendment to Agreement No. 20-3776 with\nInternational Business Machines Corporation for the Cyber Resilience Center project. The\nproposed First Amendment is to continue enhancements and operation of the CRC, a first-of-\nits-kind solution that reduces the risk of a port-wide cyber incident that could disrupt the flow of\ncargo at the Port of Los Angeles by serving as an early warning system for its ecosystem with\nimproved quality, quantity, and speed of cyber information sharing. The Port of Los Angeles\necosystem are stakeholders that consist of terminal operators, shipping lines, railroad\ncompanies, trucking companies, chassis providers, cross-sector companies, marine exchange,\nthe Port’s Cyber Security Operations Center, and relevant cyber-physical intelligence sources.\nBy sharing relevant Port of Los Angeles cyber information across the ecosystem, the CRC\nresults in greater collective knowledge and stronger Port community cyber resiliency. The\nproposed First Amendment will extend the term of Agreement No. 20-3776 by two additional\nyears, for a total of five years, and increase the not-to-exceed compensation by an additional\n$5,000,000, for a total not-to-exceed compensation amount of $11,800,000. The proposed First\nAmendment is for hardware, software and services required to continue to enhance, operate,\nmaintain, and support the turn-key CRC solution. The recommendation to select IBM for\nAgreement No. 20-3776 was based on the competitive Request for Proposals process\nperformed by the City of Los Angeles Harbor Department. IBM is headquartered in New York,\nwith offices throughout Southern California. The Harbor Department will continue to be\nfinancially responsible for the payment of expenditures incurred under the Agreement.\nRecommendation: Board resolve to (1) find that the Director of Environmental Management has\ndetermined that the proposed action is administratively exempt from the requirements of the\nCalifornia Environmental Quality Act (CEQA) under Article II Section 2(f) of the Los Angeles City\nCEQA Guidelines; (2) find that, in accordance with the Los Angeles City Charter Section 1022,\nit is more feasible for outside contractors to perform this work than City employees; (3) approve\nthe First Amendment to Agreement No. 20-3776 with International Business Machines\nCorporation to extend the term of the existing Agreement to five years and increase the not-to-\nexceed compensation amount to $11,800,000 in order to continue to enhance, operate, maintain\nand support the turn-key Cyber Resilience Center solution; (4) direct the Board Secretary to\ntransmit said Agreement to the Los Angeles City Council for approval pursuant to Section 373\nof the Charter of the City of Los Angeles and Section 10.5 of the Los Angeles Administrative\nCode; (5) authorize the Executive Director to execute and the Board Secretary to attest the said\nFirst Amendment to Agreement No. 20-3776 for and on behalf of the Board; and (6) adopt\nResolution No._________.\nOffice of the City Attorney