Meeting_Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
JULY 17, 2025
Subject
SUBJECT: P2000 LIGHT RAIL VEHICLE (LRV) OVERHAUL PROGRAM CONSULTANT SUPPORT SERVICES
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to:
A. EXECUTE Contract Modification No. 31 to Contract No PS20113000, a cost plus fixed-fee contract with CH2M Hill, Inc. for the P2000 Light Rail Vehicle (LRV) Overhaul Program Consultant Support Services, increasing the Not-To-Exceed (NTE) contract price by $1,448,394.00 from $9,563,696.20 to $11,012,090.20, and extending the period of performance from December 31, 2025, to June 30, 2026; and
B. EXECUTE individual contract modifications within the Board-approved contract modification authority.
Issue
ISSUE
This Contract provides the agency with program and technical consultant support for the P2000 LRV Modernization Contract that is set to expire on December 31, 2025. Due to the newly identified obsolete components, unforeseen technical issues and systems impacting performance and the global pandemic recovery, which continue to impact the supply chain, availability of resources, inspections, and test activities, the project schedule continues to be affected with the Final Acceptance of all existing P2000 LRVs (52 LRVs total) deferred to June 2026.
Background
BACKGROUND
The P2000 LRV Midlife Modernization Project permits Metro to maintain the P2000 LRV fleet in a State of Good Repair (SGR). At its March 2017 meeting, the Board approved Contract No. PS20113000, a cost plus, fixed fee contract to CH2M Hill, Inc., in the amount of $5,829,626 (base contract) for technical and program management services in support of the P2000 LRV Modernization Project. The base contract duration was five years. A no-cost contract modification was issued in February 2022, extending the base contract from March 2022 through September 2022.
At its September 2022 meeting, the Board approved an extension of project support activities for the additional amount of $1,231,187.71, from October 1, 2022, through June 30, 2023. This contract modification was issued through June 2023 to align with anticipated project activities and Metro’s fiscal year for project budgeting purposes.
At its May 2023 meeting, the Board once again approved an extension of project support activities through June 30, 2024, for an additional $1,861,372.68, with subsequent contract modifications within staff authority, issued to extend the period of performance up to December 31, 2025, per Attachment B.
CH2M Hill Inc. currently provides staff support in the following disciplines, as directed by Metro:
- Project Management
- Systems Engineering
- Systems Integration
- Inspection & Testing Activities at LRV Production/Modernization Site
- LRV Commissioning and acceptance Activities
- Quality Assurance
- Document Control
All work and assignments are on an as-needed basis and directed by the Metro P2000 Project Team through issued Task Orders using fixed labor rates. The Consulting staff is managed daily by Metro's P2000 Project Manager.
Discussion
DISCUSSION
Since the subject contract was awarded in March 2017, CH2M Hill, Inc. has provided Metro’s Project Team with technical and program management support, including review of all technical documents, oversight of system and combined-system level integration efforts, witnessing verification and validation tests, and inspection of workmanship at the production/modernization site. The Project is now concluding the Conditional Acceptance phase, which enables the Modernized LRVs to enter revenue service. The next phases include the LRV’s Reliability Demonstration, which measures the performance of the Conditionally Accepted LRVs in revenue service against contractual reliability targets, LRV Final Acceptance, and Warranty.
The Project schedule continues to be impacted by the remaining effects of the pandemic. Examples of the effects include supply chain disruptions, which delayed the start and completion of manufacturing, assembly, inspection, and test activities.
Approval of the recommendation modifies Contract No. PS20113000 to allow for the continuation of technical and program management support for the P2000 LRV Modernization Project. Metro staff requires this Project support to help navigate and mitigate the remaining technical issues to achieve final delivery and acceptance of the 52 modernized P2000 LRVs. The final delivery and acceptance is forecasted to complete by June 2026.
This is an existing professional services support contract required to ensure continuity, seamless project execution, and completion of the LRV Modernization project. Approving the recommendation ensures the successful completion of the Overhaul/Midlife Modernization Project, which provides accessible and affordable transportation for all who ride Metro’s light rail system.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
The approval of the additional NTE funds for the consultant services will ensure team continuity and maintain overall system safety, service quality, system reliability, maintainability, and customer satisfaction.
Financial_Impact
FINANCIAL IMPACT
The requested new NTE contract price of $11,012,090.20 is within the overall Board-approved LOP budget of $180.9 million for project 206044, P2000 LRV Overhaul Program.
The Contract Price increase of $1,448,394.00 has been included in Cost Center 3043, Rail Vehicle Acquisition, under project number CP 206044, P2000 LRV Overhaul Program.
Since multi-year projects are funding this recommendation, the Chief Operations Officer, Chief Program Management Officer, and respective Project Managers will be responsible for future fiscal year budgeting.
Impact to Budget
The current budget for this action includes Proposition A, Measure M, and Federal 5337. These funds are eligible for rail operating and capital projects. Using these funding sources maximizes the allocation intent given the fund guidelines and provisions.
Equity_Platform
EQUITY PLATFORM
The P2000 LRV Modernization Project enables the successful delivery of these vehicles for use on Metro’s existing LRV lines, such as the A and E lines. These lines serve Equity Focus Communities (EFCs) across LA County, in areas such as Downtown LA, Chinatown, Long Beach, and others. Having safe, reliable LRVs provides transit options to our majority low-income and BIPOC customer base, which often relies on public transit to seamlessly commute to work, school, and other opportunities.
CH2M Hill, Inc. (CH2M) made an overall 24.81% Disadvantaged Business Enterprise (DBE) commitment, and the current DBE participation is 21.13%, representing a 3.68% shortfall. CH2M’s efforts to mitigate the shortfall can be found in Attachment C - DEOD Summary.
Vehicle_Miles_Traveled _Outcome
VEHICLE MILES TRAVELED OUTCOME
VMT and VMT per capita in Los Angeles County are lower than national averages, the lowest in the SCAG region, and on the lower end of VMT per capita statewide, with these declining VMT trends due in part to Metro’s significant investment in rail and bus transit.* Metro’s Board-adopted VMT reduction targets align with California’s statewide climate goals, including achieving carbon neutrality by 2045. To ensure continued progress, all Board items are assessed for their potential impact on VMT.
This item supports Metro’s systemwide strategy to reduce VMT through rail vehicle modernization activities that will improve and further encourage transit ridership, ridesharing, and active transportation. Metro’s Board-adopted VMT reduction targets were designed to build on the success of existing investments, and this item aligns with those objectives.
*Based on population estimates from the United States Census and VMT estimates from Caltrans’ Highway Performance Monitoring System (HPMS) data between 2001-2019.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
The recommendation supports strategic plan Goal #1.2 - Optimize the speed, reliability, and performance of the existing system by revitalizing and upgrading Metro’s transit assets. The completion and rollout of the P2000 LRVs are state-of-the-art assets that will significantly improve the integrity of Metro’s overall transit network.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The Board may choose not to approve the recommendation for increasing the contract amount. This is not recommended as critical project activities currently supported by consulting staff will be interrupted, with direct impacts on the overall project schedule. These activities include, but are not limited to: witnessing commissioning tests, reviewing test reports, reviewing the Project Schedule, and providing LRV commissioning acceptance, LRV reliability, and LRV warranty support. The Metro Project Team does not have the in-house resources to undertake all the necessary Project tasks as described.
Not approving the recommendation will also adversely impact the P2000 LRV Modernization Project completion due to the loss of the required technical expertise and manpower provided through this Consultant Support Services contract. The potential adverse impacts may include compromised quality and SGR of the Modernized LRVs, and a reduction in available LRVs for rollout to meet the evolving passenger demands that continue to inch towards pre-pandemic levels.
Next_Steps
NEXT STEPS
Upon Board approval, staff will execute Contract Modification No. 31 to increase the contract NTE amount by $1,448,394.00 with CH2M Hill, Inc. for the continuation of services.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - Contract Modification Log
Attachment C - DEOD Summary
Prepared_by
Prepared by: Eduardo Maycotte, Senior Manager, Project Control, (213) 922-3376
Jason Yaw, Senior Director, Rail Vehicle Acquisition (213) 922-3325
Annie Yang, Deputy Executive Officer, Rail Vehicle Acquisition (213) 922-3284
Jesus Montes, Senior Executive Officer, Rail Vehicle Acquisition (213) 418-3277
Debra Avila, Deputy Chief Vendor/Contract Management Officer, (213) 418-3051
Reviewed_By
Reviewed by: Conan Cheung, Chief Operations Officer, (213) 418-3034
