Meeting_Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
OCTOBER 15, 2026
Subject
SUBJECT: P2550 LIGHT RAIL VEHICLE (LRV) MIDLIFE MODERNIZATION CONSULTANT SUPPORT SERVICES
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to execute Contract Modification No. 12 to Contract No. PS73193000-P2550, a cost plus fixed-fee contract with Hatch Associates Consultants, Inc. (formerly LTK Consultant Services, Inc.) to provide consultant support services for the P2550 Light Rail Vehicle Modernization Project, increasing the Not-To-Exceed (NTE) contract price by $4,796,082, from $7,038,584 to $11,834,666, and extend the period of performance from October 31, 2026 through December 31, 2031.
Issue
ISSUE
This Contract provides program and technical consulting support for the P2550 LRV Modernization Contract. Continued technical support is necessary to oversee the remaining thirty-three (33) vehicle acceptances and manage warranty requirements. With the final LRV projected for conditional acceptance in 2028 and a subsequent three-year warranty period, consultant support is needed through December 31, 2031.
Background
BACKGROUND
In March 2021, the Board approved Contract No. PS73193000-P2550, a cost-plus fixed-fee contract to Hatch Associates Consultants, Inc. (formerly LTK Consultant Services, Inc.) in the amount of $6,470,848.47 for technical and program management services in support of the P2550 LRV Midlife Modernization Project. The base contract duration was five years.
Hatch Associates Consultants, 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 issued as needed and directed by the Metro P2550 Project Team through Task Orders using fixed labor rates, while Metro's P2550 Project Manager manages the consulting staff daily.
Discussion
DISCUSSION
Since the contract award in March 2021, Hatch Associates Consultants, Inc., has been providing 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, witness of verification and validation tests, as well as inspection of workmanship at the corresponding Metro Divisions. The Project is currently in the Production, Commissioning, and Conditional Acceptance phase. Conditional acceptance enables the Modernized LRVs to enter revenue service. The next phase includes the LRVs’ Reliability Demonstration, which measures the performance of the Conditionally Accepted LRVs in revenue service against contractual reliability targets.
Approval of the recommendation modifies Contract No. PS73193000-P2550 to allow for the continuation of technical and program management support for the P2550 LRV Modernization Project. Metro staff requires this Project support to accept the remaining LRVs, navigate and mitigate any technical issues to achieve final acceptance, and provide warranty support until expiration.
This existing professional services support contract is required to ensure continuity, seamless project execution, and completion of the LRV Modernization Project. Approving the recommendation supports the successful completion of the Overhaul/Midlife Modernization Project and ensures technical issues are properly resolved during the next project stages. This will help provide accessible and affordable transportation for all who ride Metro’s light rail system.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
Approving the additional NTE funds for consultant services will ensure team continuity and maintain overall system safety, service quality, system reliability, maintainability, and customer satisfaction. The P2550 LRV Modernization Project permits Metro to maintain the P2550 LRV fleet in a State of Good Repair (SGR).
Financial_Impact
FINANCIAL IMPACT
The requested new NTE contract price of $11,834,666 is within the overall Board-approved project LOP budget of $206 million. The Contract Price increase of $4,796,082 is included in Cost Center 3043, Rail Vehicle Acquisition, Account 50316, under project number CP 214003, P2550 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 35%, Measure M 2% State of Good Repair, and Federal 5337. These funds are eligible for rail operating and capital projects. Using these funding sources maximizes the allocation intent given fund guidelines and provisions.
Equity_Platform
EQUITY PLATFORM
The P2550 LRV Midlife Modernization Project enables the successful delivery of these vehicles on Metro’s existing LRV lines, such as the A and E lines. These lines serve many Equity Focus Communities (EFCs) in areas such as Downtown LA, Chinatown, Long Beach, and others. Safe, reliable LRVs give Metro customers more mobility, as many rely on public transit to commute seamlessly to work, school, and other opportunities.
At the time of award, Hatch Associates Consultants Inc. made a 25.49% DBE commitment on this contract. However, the U.S. Department of Transportation (USDOT) issued an Interim Final Rule (IFR) that changes the DBE Program, including suspending goals, counting participation, and enforcement, effective October 3, 2025. While the DBE commitment is not a factor in the staff recommendation, one (1) Metro-certified small business is participating.
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.
As part of these ongoing efforts, this item is expected to contribute to further reductions in 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) to provide high-quality mobility options that enable people to spend less time traveling. The completion and rollout of the P2550 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 to the overall project. These activities include, but are not limited to, witnessing commissioning for the remaining LRVs, reviewing test reports, reviewing project schedules, and providing LRV commissioning acceptance, reliability, and 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 completion of the P2550 LRV Midlife Modernization Project due to the loss of the required technical expertise, labor, and manpower provided through this Consulting Services contract. Potential adverse impacts may include compromised quality and State of Good Repair of the Modernized LRVs, and reduced available LRVs for rollout to meet passengers’ current demand.
Next_Steps
NEXT STEPS
Upon Board approval, staff will execute Contract Modification No. 12 to increase the contract NTE amount by $4,796,082 with Hatch Associates Consultants, Inc. to continue services.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - Contract Modification/Change Order Log
Attachment C - DEOD Summary
Prepared_by
Prepared by: Paul Park, Sr. Manager, Project Control, (213) 392-8471
Debra Avila, Deputy Chief Vendor/Contract Management Officer, (213) 418-3051
Reviewed_By
Reviewed by: Conan Cheung, Chief Operations Officer, (213) 418-3034
Mat Antonelli, Chief Vendor/Contract Management Officer, (213) 893-7114
