Meeting_Body
FINANCE, BUDGET, AND AUDIT COMMITTEE
JULY 16, 2026
Subject
SUBJECT: TECHNICAL ENHANCEMENT AND BUSINESS PROCESS ADVISORY SERVICES
Action
ACTION: AWARD CONTRACTS
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer (CEO) to:
A. AWARD a five-year on-call firm fixed unit rate Contract No. PS132584000 to KPMG LLP to provide custom application development and maintenance in Oracle, Salesforce, and Microsoft SharePoint in the Not to Exceed (NTE) amount of $12,198,522, subject to the resolution of any properly submitted protest(s), if any;
B. AWARD a five-year on-call firm fixed unit rate Contract No. PS132584001 to Crowe LLP to provide business improvement process studies related to Metro financial/accounting functions in the NTE amount of $1,562,830, subject to the resolution of any properly submitted protest(s), if any; and
C. AWARD a five-year on-call firm fixed unit rate Contract No. PS132584002 to KPMG LLP to provide organizational and resource planning and management in the NTE amount of $1,201,825, subject to the resolution of any properly submitted protest(s), if any.
Issue
ISSUE
Metro’s Strategic Financial Management (SFM) requires access to specialized business processes and technical expertise on an as-needed basis. These services will support Metro’s custom financial, budget, and accounting technology applications, business process improvement initiatives, and resource planning and management functions.
This approach enables SFM to respond promptly to time-sensitive policy analysis and procedural implementation demands that arise outside regular budgetary and financial cycles. It also ensures continued financial sustainability while safeguarding internal controls in compliance with multi-governmental funding partners and oversight requirements.
Background
BACKGROUND
The Strategic Financial Management (SFM) cabinet is responsible for maintaining Metro’s financial stability, ensuring robust cash flow, and delivering a balanced budget. As Metro accelerates rail infrastructure construction to complete the countywide network envisioned by Measure R and Measure M, implements “putting people first” safety, security, and customer-focused transit service enhancements, and prepares to “welcome the world” for the upcoming global events, financial management challenges are increasing in complexity.
These demands are further compounded by volatile economic conditions. In response, SFM seeks to acquire specialized technical development and business process advisory services on an on-call basis. These services will augment SFM’s capabilities in financial technology, business process improvement, and resource planning to address one-time, customized, and dynamic financial demands.
Discussion
DISCUSSION
The three proposed on-call technical enhancement and process advisory contracts will provide SFM with specialized skillsets tailored to Metro’s financial technology platforms. They will also provide independent, external perspectives to assess process gaps, strengthen internal controls, and support organizational resource planning to sustain financial performance.
1. Custom Application Development and Maintenance in Oracle, Salesforce, and Microsoft SharePoint
Metro’s Budget, Accounting, Treasury, TAP, and Procurement functions rely on a combination of customized Oracle, Salesforce, and Microsoft platforms. On-call technical services will enable SFM to efficiently incorporate new Collective Bargaining Agreement (CBA) provisions, legal requirements, and grant conditions into existing financial systems, ensuring continued alignment between business rules and system functionality.
2. Business Improvement Process Studies
As SFM advances initiatives to safeguard Metro assets and ensure responsible stewardship of public funds, independent process studies will objectively identify inefficiencies, process gaps and control weaknesses through a compliance-focused lens. This effort will enhance audit trails and reduce financial and operational risk.
3. Organizational and Resource Planning and Management
These services will evaluate current resource utilization and recommend strategies to optimize workforce and financial resource alignment. This is critical as Metro expands its transit and transportation investments and associated financial obligations.
Staff recommends that the Board award three on-call contracts each with a five-year term. Task orders will be issued on an as-needed basis. This structure will allow SFM to respond effectively to emerging needs while maintaining continuity in ongoing financial operations. The contracts will provide access to specialized expertise to advance financial business process best practices, support the development of applications for tracking revenue and funding sources, and align resource allocation with strategic priorities.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
This Board action has no direct impact on safety.
Financial_Impact
FINANCIAL IMPACT
Awarding these contracts will not have a financial impact on the FY27 budget. Funding has been included in SFM budget in various projects and cost centers. The individual tasks to be completed by the contractors will be funded with funding sources identified for the specific project. Since this is a multi-year contract, the cost center managers and Chief Financial Officer will be responsible for budgeting costs in the future years.
Impact to Budget
The funding for these services is general overhead and/or general fund that could consist of federal, state, or local funds.
Equity_Platform
EQUITY PLATFORM
Awarding the contracts will support SFM in its oversight of Metro’s Equity-based budget process, to ensure the Agency allocates fair and equitable funding for projects and activities that result in reliable and safe service to the citizens of Los Angeles County.
The Diversity and Economic Opportunity Department (DEOD) established an overall 10% Small Business Enterprise (SBE) goal for this solicitation. Proposers could meet the overall SBE goal through any combination of SBE and/or DVBE participation. Each prime consultant, KPMG LLP and Crowe LLP, committed to meeting the overall 10% SBE goal.
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.
*Based on population estimates from the United States Census and VMT estimates from Caltrans’ Highway Performance Monitoring System (HPMS) data between 2001-2019.
While this item does not directly encourage taking transit, sharing a ride, or using active transportation, it is a vital part of Metro operations, as it will ensure appropriate budget and funding are allocated for a reliable and safe transit system. Because the Metro Board has adopted an agency-wide VMT Reduction Target, and this item supports the overall function of the agency, this item is consistent with the goals of reducing VMT.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
The recommendation supports strategic plan goal #5 “Provide responsive, accountable, and trustworthy governance within the LA Metro organization. It promotes efficient use of Metro resources and allows the department to more effectively manage Metro’s budget and funding.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The Board can decide not to award the three contracts as recommended. However, this will take away SFM’s ability to timely incorporate terms for CBA, Legal and Grant compliance into current processes, explore industry expertise to deploy best practices in financial process, as well as plan resource needs accordingly. Not awarding these contracts will hinder Metro’s expediency in responding to emerging financial challenges.
Next_Steps
NEXT STEPS
Upon Board approval, staff will execute Contract Nos. PS132584000 and PS132584002 with KPMG LLP and Contract No. PS132584001 with Crowe LLP.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - DEOD Summary
Prepared_by
Prepared by: Thu Nguyen, Senior Executive Officer, Finance, (213) 922-4490
Carolina Coppolo, Deputy Chief Vendor/Contract Management Officer, (213) 922-4471
Melissa Wang, Deputy Chief Financial Officer, Finance, (213) 922-6024
Reviewed_By
Reviewed by: Michelle Navarro, Chief Financial Officer (Interim), (213) 922-3056
