Meeting_Body
EXECUTIVE MANAGEMENT COMMITTEE
APRIL 12, 2018
Subject
SUBJECT: MICROTRANSIT PILOT PROJECT (MTP)
Action
ACTION: AWARD CONTRACTS FOR MICROTRANSIT PILOT PROJECT (MTP)
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to award the following firm fixed price contracts to firms to partner with Metro for planning, designing, testing and evaluating a new transportation technology-based service for traveling short distances, subject to resolution of protest(s), if any:
A. Contract No. PS46292001 to RideCo in the amount of $219,650.26 for 6 months;
B. Contract No. PS46292002 to NoMad Transit LLC in the amount of $348,684.69 for 6 months; and
C. Contract No. PS46292003 to Transdev in the amount of $316,912.31 for 6 months.
Issue
ISSUE
To drive the best value in pilot design, Metro is using a pre-development agreement contracting model that will allow the agency to maximize integration of privately developed technologies and approaches, promote shared risk and reward with private partners, and drive attainment of project performance goals. The pre-development agreement consists of two parts, Part A (“planning and design”) and Part B (“implementation and evaluation”).
The recommendation of multiple awards for Part A, the planning and design of a financially and technically feasible on-demand MicroTransit service ensures the agency will receive the most effective solution and increases the likelihood of success for what is a very new and untested technology. These three contracts will serve as the agency’s first pre-development P3s.
Upon delivery of Part A, Metro, in its sole discretion, will determine if the proposed services meet established feasibility criteria. If achieved, Metro will offer the right of first negotiation for Part B, implementation and evaluation of the MicroTransit service.
Discussion
DISCUSSION
Metro’s desire is to improve the customer experience and service level for existing Metro riders and drive new customer acquisition. We will do this by operating a new demand-responsive service that offers reservation, payment, and real-time customer information available through a mobile application.
The goal of the project is to determine whether a Metro-provided on-demand service can provide a convenient new travel option in a primarily fixed-route transit network for current customers while also encouraging new customers to use transit.
On October 25, 2017, Metro issued a Request for Proposal (RFP) to procure services from qualified firms or Contractor Team(s) to partner with Metro for planning, designing, testing and evaluating a new transportation technology-based service for traveling short distances.
New Award Contracts
The up-front investment in Part A will increase the likelihood that Metro will receive solutions that can achieve the agency’s policy and project performance goals within existing project constraints. Awarding contracts to multiple Contractor Teams is reflected within and supported by the language included in the RFP.
The three Contractor Teams that are awarded Part A will be responsible for the delivery of three feasibility studies. Each study will consist of 7 tasks:
• Task 1: Transportation Planning and Analysis
• Task 2: Software/Technology Solution Plan
• Task 3: Performance Plan
• Task 4: Cost Structure, Payment & Recovery
• Task 5: Capital Programming
• Task 6: Communications Plan
• Task 7: Innovation
Metro will own the resulting deliverables and work product for Part A, including any associated intellectual property rights.
DETERMINATION OF SAFETY IMPACT
Metro’s on-demand service offering is intended to improve safety and security for current and future Metro customers. Meeting or exceeding Metro’s safety standards will be a core consideration in service design and delivery.
Financial_Impact
FINANCIAL IMPACT
The funding for Part A is included in FY18 and FY19 budgets in Project 100002, Cost center 2031 and Account 50316.
Impact to Budget
State and local funds (Prop A, C, and TDA Administrative funds) are being utilized to fund Part A. These funds are not eligible for bus and rail operations. There is no impact to existing federal funding.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The Board may decide not to authorize the execution of these Contracts. This alternative is not recommended as this project is included in the Board approved Twenty-Eight by ’28 projects.
Next_Steps
NEXT STEPS
Upon Board approval, Metro staff will execute the new Contracts with all three firms. The feasibility studies will be completed by the end of 2018. If Metro selects to move forward to Part B, Metro staff will then bring the life of project budget to the Board for consideration. Upon Board approval, MicroTransit service will begin operations in 2019.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - DEOD Summary
Prepared_by
Prepared by: Rani Narula-Woods, Sr. Director, Special Projects, Office of Extraordinary Innovation, (213) 922-7414
Reviewed_By
Reviewed by: Dr. Joshua L. Schank, Chief Innovation Officer, (213) 922-5533
Debra Avila, Chief Vendor/Contract Management Officer, (213) 418-3051
