Meeting Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
NOVEMBER 19, 2020
Subject
SUBJECT: PARTS WASHER SERVICES FOR METRO BUS AND RAIL MAINTENANCE FACILITIES
Action
ACTION: APPROVE CONTRACT MODIFICATION
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to execute Modification No. 5 to Contract No. PS193893601 with FRS Environmental, Inc., to provide parts washer leasing, maintenance and repair services to increase contract value by $100,000 from $1,346,202 to a total not-to-exceed contract amount of $1,446,202 and extending the period of performance from January 31, 2021 to April 30, 2021.
Issue
ISSUE
The existing contract will expire on January 31, 2021. To continue providing the required parts washer leasing, maintenance and repair services, additional funding is necessary to ensure service continuity and avoid any interruption to Metro’s operations while Metro procures a new parts washer services contract for board consideration in February 2021.
Background
BACKGROUND
On September 24, 2015, Metro Board of Directors awarded Contract No. PS193893601 to FRS Environmental, Inc., the lowest responsive and responsible bidder, for parts washing services effective October 1, 2015.
Under the existing contract, parts washing services are performed throughout Metro Maintenance facilities. The parts washers are used to remove dirt, grime, and grease from parts, tools, and equipment using aqueous (water or solvent-based) solutions. These units support the diverse production requirements of Metro Central Maintenance Shops as well as bus and rail operating divisions.
Discussion
DISCUSSION
Thirty-nine of the sixty-seven parts washers currently leased by Metro are located at the Central Maintenance Facility (CMF). CMF is responsible for providing heavy bus maintenance support to the operating divisions including but not limited to: failed engine and transmission dismantling, rebuilding and replacement, major accident repair, complete bus painting, and the rebuilding of components for power plant assemblies. Operating divisions also utilize parts washer equipment to support their daily maintenance requirements.
The contracted services include the provision of contractor-owned parts washing equipment, refilling these machines to their optimal level and removing hazardous waste materials for proper disposal (off-site), and performing preventative maintenance on the units. These services are performed at various scheduled intervals dependent on specific location requirements/applications. FRS Environmental, Inc., a Small Business Prime (Set-Aside), made a 100% Small Business Enterprise (SBE) commitment. Based on payments, the contract is 96% complete and the current SBE participation is 100%.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
The approval of this item will ensure that CMF and the operating divisions will continue to maintain equipment and cleaned parts needed to repair and maintain buses and trains in accordance with Metro Maintenance standards.
Financial_Impact
FINANCIAL IMPACT
Funding of $100,000 is included in the FY21 Budget under cost center 3366 - Central Maintenance Shops (CMS), account 50308, Service Contract Maintenance, project 306002; cost center 3942 - Red Line, account 50308, Service Contract Maintenance, project 300044; cost center 3943 - Green Line, account 50308, Service Contract Maintenance, project 300033.
Impact to Budget
The current source of funding for this action is State and Local sources including sales tax and fares that are eligible for Operations. Using these funding sources maximizes the project funding allocations allowed by approved provisions and guidelines.
Implementation of Strategic Plan Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
This Board action supports Strategic Goal 5: Provide responsive, accountable, and trustworthy governance within the Metro organization. Metro objectives for this contract are to increase efficiency, minimize costs, maintain infrastructure free of unwanted vegetation through the application of pre-emergent herbicides, contact herbicides and growth inhibitors and comply with all applicable Federal, State and Local laws.
Alternatives_Considered
ALTERNATIVES CONSIDERED
Staff considered providing this service through Metro in-house staff. This alternative is not recommended for the following reasons: Metro would have to purchase the equipment, costing approximately $300,000, and handle the maintenance and periodic repair of the equipment; the degreasing agents used in the parts washer units are considered hazardous materials that require specialized certification for handling and disposal; the removal and transportation of hazardous waste must be performed by a licensed transporter; the treatment and disposal of the waste can only be performed by a permitted Treatment, Storage and Disposal Facility.
Next_Steps
NEXT STEPS
Upon approval by the Board, staff will execute Modification No. 5 to Contract No. PS193893601 with FRS Environmental Inc. to increase the contract value, to provide parts washer services for Metro maintenance facilities. Also, staff will continue the process to procure a new contract for parts washer services for board consideration in February 2021.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - Contract Modification/Change Order Log
Attachment C - DEOD Summary
Prepared_by
Prepared by: James Pachan, Division Maintenance Superintendent, Executive Director, Maintenance (213) 922-5804
Alan Tang, Sr. Manager, Equipment Maintenance, (213) 922-5707
Reviewed_By
Reviewed by: James T. Gallagher, Chief Operations Officer, (213) 418-3108
Debra Avila, Chief Vendor/Contract Management Officer, (213) 418-3051
