Meeting_Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
FEBRUARY 19, 2026
Subject
SUBJECT: ABOVE GROUND FACILITIES IMPROVEMENTS & REPAIRS
Action
ACTION: AWARD CONTRACT
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to:
A. AWARD an Indefinite Delivery/Indefinite Quantity (IDIQ) Contract No. OP133873(2)000 to Craft Construction & Development, Inc., for Above Ground Facilities Improvement & Repairs, in the Not-To-Exceed (NTE) amount of $116,613,949.83 for the five-year base period and $16,880,142.79 for the first one-year option, $16,690,870.59 for the second one-year option, and $16,874,837.00 for the third one-year option, for a combined NTE amount of $167,059,800.21, subject to the resolution of any properly submitted protest(s), if any; and
B. EXECUTE individual contract modifications within the Board-approved contract modification authority.
Issue
ISSUE
Metro’s Infrastructure Maintenance & Engineering Department is responsible for a wide variety of modernization and reengineering projects for Bus and Rail facilities. Metro has an immediate need to advance various enhancements across its transit system that are essential to meeting life-cycle requirements, system reliability, and improving customer experience. The broad and complex scope of these initiatives represents one-time, non-recurring projects that specialized contractors can perform to support Metro’s near-term goals.
Award of this contract will enhance Metro’s construction capacity, enable Metro to maintain system continuity and minimize service disruptions, thus ensuring the reliable delivery of transit services to Metro’s riders and support the agency’s objective of showcasing transit excellence.
Background
BACKGROUND
Metro’s Vertical Transportation (VT) Modernization Program was established in FY2020 to address elevators and escalators that are nearing the end of their useful life and require upgrades to minimize equipment downtime and impacts to Metro’s riders. Metro’s VT Modernization Program will upgrade the outdated systems and controls of 117 elevators and replace 81 escalators, while improving current service availability. This action is necessary to support the advancement of Metro’s Vertical Transportation Modernization Capital Improvement Program while supporting and advancing Metro's long-term transit system goals.
Discussion
DISCUSSION
Metro has several robust rehabilitation initiatives to improve the customer experience and address the state of good repair backlog. Key areas identified as requiring a variety of modernizing, enhancing, altering, reengineering, redesigning, and improvements that include various trades consisting of, but not limited to, electrical, mechanical, plumbing, painting, carpentry, drywall, roofing tasks, and an elevator constructor to support modernization of LA Metro’s Vertical Transportation (VT) modernization and monitoring systems throughout the County of Los Angeles for all elevators and escalators. The work includes both Bus and Rail facilities and Maintenance of Way (MOW) systems, including light and heavy rail maintenance yards and stations, and other general enhancements, such as the Rail Operations Center (ROC) expansion projects and tenant improvements associated with new building acquisitions, State of Good Repair structural enhancements at aerial structures, and facility improvements such as Metro wide back-up power systems for all Rail and Bus divisions, including the Gateway Building.
The recommended contract will be structured as an IDIQ contract and administered through individual task orders with firm fixed pricing. The IDIQ contract will establish an NTE amount, which represents the maximum expenditure authority for the contract term.
Task orders will be issued at Metro’s discretion and will be limited in scope, duration, and amount specified in each approved task order. There is no obligation for Metro to issue any minimum quantity of work under this contract. The award amount represents the maximum contractual value authorized under the IDIQ contract; actual expenditures will depend on the number of task orders issued and may be less than the authorized amount, including zero. This contract will support Metro’s modernization and capital improvement projects, such as its Vertical Transportation Modernization, State of Good Repair (SGR), and Bus and Rail facilities programs. The contractor will provide construction services, including improvements for mechanical, electrical, communications, plumbing, civil, and architectural. This contract contrasts with Metro’s Job Order Contracting (JOC) program, where the emphasis is on projects capped at $1M in support of maintenance repairs.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
Award of this contract will ensure that all operating facilities comply with Metro’s SGR requirements and Transit Asset Management (TAM) Plan, ensuring the delivery of safe, quality, on-time, and reliable services to our customers and the public.
Financial_Impact
FINANCIAL IMPACT
The total contract value is $167,059,800.21, over a five-year base period plus three one-year options. This is an on-call contract, and funding for this contract is included in the Infrastructure Renewal Program (cost center 3960). Funding for task orders issued under this contract will be provided, subject to availability, from Metro’s bus and rail facilities, vertical transportation, and MOW capital programs. Funding levels are reviewed and allocated annually based on approved budgets and projected work requirements. The projects currently sponsoring this contract are four capital projects: 202814 - Bus Division Improvements V, 204817 - Rail Facility Maintenance & Improvements II, 204805 Elevator Modernization & Escalator Replacement Project, and 290013 Metro Downtown Hub. The combined Life of Project (LOP) budget is $298,000,000, which is within the project budget.
Currently, the FY26 Annual Budget is $5,040,180. However, any annual budget shortfalls shall be addressed through the relocation of FY26 monies from existing capital projects that may have underspent their allocated annual budget funds.
Since this is a multi-year contract, the Project Manager will ensure the balance of funds is budgeted in future fiscal years, including any option exercised.
Impact to Budget
The current funding sources for this action are local funds, which are eligible for bus and rail operating and capital projects.
Equity_Platform
EQUITY PLATFORM
Metro is committed to maintaining transit assets and ensuring reliable and equitable transportation service for Metro riders. The equity benefits of this action improve passenger and operational reliability of Metro transit services by ensuring that transit infrastructure assets are maintained in a state of good repair, including assets that provide transit services for disadvantaged communities. This allows Metro to deliver safe, affordable, dependable transit services connecting riders to jobs, housing, education, food services, family, and health care. Public transportation provides an important lifeline for the residents in underserved communities, and the award of this contract ensures Metro maintains that lifeline.
The Diversity and Economic Opportunity Department (DEOD) established a 8% Disadvantaged Business Enterprise (DBE) goal. Although Craft Construction made a DBE commitment, the U.S. Department of Transportation (USDOT) has issued an Interim Final Rule (IFR) that makes changes to the Disadvantaged Business Enterprise (DBE) program, including suspension of goals and enforcement, effective October 3, 2025. While the DBE commitment is not a factor in the staff recommendation, there are three (3) certified small businesses participating in this contract, including the prime contractor, Craft Construction.
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 capital improvements of Metro operations and facilities 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
Approval of this recommendation supports the following Metro Strategic Plan Goals:
Goal # 1 Provide high-quality mobility options that enable people to spend less time traveling.
Goal # 2 Deliver outstanding trip experiences for all users of the transportation system.
Goal # 3 Enhance communities and lives through mobility and access to opportunity.
This project helps maintain system service, reliability, and safety standards to provide a world-class transportation system that enhances the quality of life for all who live, work, and play within Los Angeles County.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The alternative would be to solicit each project construction work through a full competitive bidding process. However, this approach is not recommended because it would require significantly more time and resources to award schedule critical work under a standard procurement process. This approach would include multiple procurement cycles increasing award times and failure to meeting 2028 system modernization goals. In addition, procuring services on a per-assignment basis would require more resources for Vendor/Contract Management (V/CM), as staff are already fully committed to supporting ongoing full-cycle procurements, further impacting delivery of schedule-critical work.
Next_Steps
NEXT STEPS
Upon approval by the Board, staff will execute Contract No. OP133873(2)000 to provide maintenance and repair services on a task order basis for various transit facility projects, for a five-year base period plus three one-year options.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - DEOD Summary
Prepared_by
Prepared by: Daniela Amores, Senior Director Project Control, (213) 617-6283
Rudy Loera, Deputy Executive Officer, Facilities Engineering, Operations (213-617-6225)
Errol Taylor, Deputy Chief Operations Officer, Infrastructure Maintenance and Engineering, (213) 922-3227
Debra Avila, Deputy Chief Vendor/Contract Management (213) 418-3051
Reviewed_By
Reviewed by: Conan Cheung, Chief Operations Officer, (213) 418-3034
