Meeting_Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
SEPTEMBER 17, 2026
Subject
SUBJECT: P2000 LIGHT RAIL VEHICLE (LRV) OVERHAUL PROGRAM CONSULTANT SUPPORT SERVICES
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to execute Contract Modification No. 34 to Contract No PS20113000, a cost plus fixed-fee contract with CH2M Hill, Inc. for the P2000 Light Rail Vehicle (LRV) Overhaul Program Consultant Support Services, increasing the Not-To-Exceed (NTE) contract price by $810,985.32, from $11,012,090.20 to $11,823,075.52, and extending the period of performance from September 30, 2026 through June 30, 2034. This requested increase to the NTE contract price is within the current P2000 LOP budget.
Issue
ISSUE
The current consulting service has provided Metro with program and technical support for the P2000 LRV Modernization Contract, originally awarded in March 2017. Technical consultant support is required throughout the P2000 LRV Modernization warranty period to track the performance of 52 post-modernization vehicles. From the latest project schedule update, it is projected that the final modernized LRV will complete its warranty approximately Q1 2034. A firm end date cannot be set at this time, as the conclusion of the warranty period is dependent on when all warranty issues are satisfactorily resolved. Based on current projections, technical consultant support is expected to be required through June 30, 2034.
In addition, the project has experienced several unforeseen technical challenges that required significant additional effort, investigation, testing, development, and coordination. These included multiple fleet defects and warranty-related issues across multiple systems, as well as software and communications upgrades required to support operational readiness for the P2000 fleet on the A and C Lines.
Lastly, there have been delays in achieving Conditional Acceptance of the final LRVs, primarily due to the need for parts replacement and ongoing fault-finding and troubleshooting, which have continued to extend the project schedule and shift the warranty period.
Background
BACKGROUND
At its March 2017 meeting, the Board approved the award of Contract No. PS20113000, a cost-plus, fixed fee contract to CH2M Hill, Inc. in the amount of $5,829,626 (base contract) for technical and program management services in support of the P2000 LRV Modernization Project. The base contract duration was five years. A no-cost contract modification was issued in February 2022, extending the base contract from March 2022 through September 2022.
At its September 2022 meeting, the Board approved extending project support activities by an additional $1,231,187.71, from October 1, 2022, through June 30, 2023. This contract modification was issued through June 2023 to align with anticipated project activities and Metro’s fiscal year for project budgeting purposes.
At its May 2023 meeting, the Board approved extending project support activities by an additional $1,861,372.68 through June 30, 2024, with subsequent contract modifications within staff authority to extend the period of performance to December 31, 2025.
At its July 2025 meeting, the Board approved extending the project support activities for an additional $1,448,394.00 through June 30, 2026, with subsequent contract modifications within staff authority per Attachment B.
CH2M Hill 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 on an as-needed basis and directed by the Metro P2000 Project Team through issued Task Orders using fixed labor rates. The Consulting staff is managed daily by Metro's P2000 Project Manager. This requested increase to the NTE contract price is within the current P2000 LOP budget.
Discussion
DISCUSSION
Findings
Since the subject contract was awarded in March 2017, CH2M Hill, 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 now concluding the Conditional Acceptance phase, which enables the Modernized LRVs to enter revenue service (only two of the 52 total LRVs remain pending Conditionally Accepted).
The identification and resolution of fleet defects provide added value by improving fleet reliability, safety, maintainability, and long-term system performance, while ensuring the contractor addresses issues within their contractual responsibilities. The software updates will also ensure the P2000 fleet is ready for operations on the C and K Lines, supporting future fleet relocation plans aligned with Metro Management and Operations objectives.
The next phase includes the LRV’s Reliability Demonstration, which measures the performance of the Conditionally Accepted LRVs in revenue service against contractual reliability targets. Also, the project will soon complete the LRV Final Acceptance and enter the warranty period.
Considerations
Approval of the recommendation modifies Contract No. PS20113000 to allow for continuation of technical and program management support on the P2000 LRV Modernization Project. Staff requires this project support to navigate and mitigate the remaining technical issues to achieve final acceptance and completion of the warranty period for 52 modernized P2000 LRVs, which is projected to end by June 2034.
This is an existing professional services support contract required to ensure continuity, seamless project execution, and completion of the LRV Modernization project. Approving the recommendation ensures the successful completion of the Overhaul/Midlife Modernization Project and ensures that technical issues are properly solved during the next project stages. This will help to provide accessible and affordable transportation for all who ride Metro’s light rail system.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
The approval of the additional NTE funds for the consultant services will ensure team continuity and maintain overall system safety, service quality, system reliability, maintainability, and customer satisfaction.
The P2000 LRV Modernization Project permits Metro to maintain the P2000 LRV fleet in a State of Good Repair (SGR).
Financial_Impact
FINANCIAL IMPACT
The requested new NTE contract price of $11,823,075.52is within the overall Board-approved project LOP budget of $180,853,926.
The Contract Price increase of $810,985.32 is included in Cost Center 3043, Rail Vehicle Acquisition, Account 50316, under project number CP 206044, P2000 LRV Overhaul Program.
Since this is a multi-year contract, the Cost Center Manager, Sr. Project Manager, and Sr. Executive Officer of Vehicle Acquisitions will be responsible for future fiscal-year budgeting.
Impact to Budget
The current budget for this action includes Proposition A 35% and Federal 5337. These funds are eligible for rail operating and capital projects.
Equity_Platform
EQUITY PLATFORM
The P2000 LRV Modernization Project enables the successful delivery of these vehicles on Metro’s existing LRV lines. These lines serve many Equity Focus Communities (EFCs), including those in Downtown LA, Chinatown, Long Beach, LAX (including the Crenshaw and Aviation areas), Santa Monica, Foothills, etc., as these cars are modernized to run on all of Metro’s existing LRV Lines. Having safe, reliable LRVs provides residents of EFCs with options, who are more likely to use public transit to commute seamlessly to work, school, and other opportunities.
CH2M Hill, Inc. (Jacobs Engineering Group) (CH2M) made a 24.81% Disadvantaged Business Enterprise (DBE) commitment on this task-order-based contract. However, the U.S. Department of Transportation has issued an Interim Final Rule that makes changes to the DBE Program, including the suspension of goals, counting participation, and enforcement effective October 3, 2025. While the DBE commitment is not a factor in the staff recommendation, three certified small businesses are participating in this contract.
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 investment 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 #1.2 - Optimize the speed, reliability, and performance of the existing system by revitalizing and upgrading Metro’s transit assets. The completion and rollout of the P2000 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, directly impacting the overall project. These activities include, but are not limited to, witnessing commissioning tests for the last two LRVs, reviewing test reports, reviewing the Project Schedule, providing LRV commissioning acceptance, LRV reliability, and LRV 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 affect the completion of the P2000 LRV Modernization Project due to the loss of the required resources provided under this Consulting Services contract. The potential adverse impacts may include compromised quality and SGR of the Modernized LRVs, and a reduction in the number of LRVs available for rollout to meet current passenger demand.
Next_Steps
NEXT STEPS
Upon Board approval, staff will execute Contract Modification No. 34 to increase the contract NTE amount by $810,985.32 with CH2M Hill, 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: Cecil Bailey, Senior Manager, Project Control, (213) 922-3188
Annie Yang, Deputy Executive Officer, Rail Vehicle Acquisition, (213) 922-3284
Jesus Montes, Senior Executive Officer, Vehicle Acquisition, 213-418-3277
Debra Avila, Deputy Chief Vendor/Contract Management Officer, (213) 418-3051
Reviewed_By
Reviewed by: Conan Cheung, Chief Operations Officer, (213) 418-3034
