Meeting_Body
REVISED
SYSTEM SAFETY, SECURITY AND OPERATIONS COMMITTEE
JANUARY 19, 2017
Subject/Action
SUBJECT: METRO RED/PURPLE LINE TUNNEL WASHING SERVICES
ACTION: REJECT ALL BIDS, CANCEL THE PROCUREMENT, AND REPROCURE
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to reject all bids in response to IFB No. OP28589 for Metro Red/Purple Line Tunnel Washing Services, cancel the procurement and issue a new Invitation for Bids for the Tunnel Washing Services.
Issue
ISSUE
According to Metro Acquisition policy and procedures for Rejecting All Bids, Board approval is required to reject the bids and cancel the procurement after bid opening if the contract value is over $2M $1M.
Discussion
DISCUSSION
On August 10, 2016, Metro received two bids in response to IFB No. OP28589 for Metro Red/Purple Line Tunnel Washing Services. The low bid came in at $2,414,156 and the remaining bid was $3,472,155. Metro’s Independent Cost Estimate (ICE) was $3,065.400. Staff’s assessment concluded the low bidder was not appropriately licensed, therefore non-responsive, and the 2nd bidder was 13% over Metro’s ICE. A market review determined that it would be in Metro’s best interest to reject all bids and re-issue a new solicitation.
Currently there is no contract in place for these services.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
The approval of this item to reject all bids in response to IFB No. OP28589 will not impact safety. Upon issuance of a new IFB, review of bids received and recommendation for award, the new contract will improve Metro tunnels overall safety and cleanliness conditions as well as improve the air quality within the stations in an effort to continue providing, safe, clean, quality, on-time, and reliable services to our customers and the public.
Financial_Impact
FINANCIAL IMPACT
There is no financial impact at this time.
Impact to Budget
There is no budget at this time.
Alternatives_Considered
ALTERNATIVES CONSIDERED
Staff considered awarding to the second lowest responsive, responsible bidder. Staff's assessment indicated that this was not a cost-effective option and did not meet Metro’s values in demonstrating fiscal responsibility and maximizing fair and open competition.
Next_Steps
NEXT STEPS
Upon approval by the Board, staff will notify all bidders that bids received in response to IFB No. OP28589 have been rejected and the IFB has been cancelled. A new solicitation will be issued to procure for Metro tunnel washing services.
Prepared_by
Prepared by: Brady Branstetter, DEO, Facilities Maintenance, (213) 922-6767
Lena Babayan, Senior Director, Facilities Maintenance, (213) 922-6765
Reviewed_By
Reviewed by: James T. Gallagher, Chief Operations Officer, (213) 922-4424
Debra Avila, Chief, Vendor/Contract Management Officer, (213) 418-3051
