Meeting_Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
JANUARY 15, 2026
Subject
SUBJECT: CONSULTANT SUPPORT SERVICES FOR THE HR4000 HEAVY RAIL VEHICLE (HRV) PROCUREMENT PROGRAM, TECHNICAL MANAGEMENT SUPPORT SERVICES
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to:
A. EXECUTE Contract Modification No. 21 to Contract No. OP24162700030433487, a cost plus fixed-fee contract with HATCH Associates Consultants, Inc. (HATCH), formerly LTK Engineering Services for the HR4000 Heavy Rail Vehicle (HRV) Acquisition, Technical Support Services, increasing the Not-To-Exceed (NTE) amount by $7,857,071 from $23,557,400 to $31,414,471 and extending the period of performance from May 1, 2026, to July 30, 2031; and
B. EXECUTE individual contract modifications within the Board-approved contract modification authority.
Issue
ISSUE
To ensure continuity of technical consultant support for the HR4000 Heavy Rail Vehicle Project, it is recommended that Metro extend the existing HR4000 consultant contract.
This contract modification will include additional funding and an extension of the period of performance for Hatch’s existing technical support contract on the HR4000 New Heavy Rail Vehicle Acquisition Project.
Background
BACKGROUND
On June 15, 2016, the Board approved Contract No. OP16523-30433487 (Now contract OP24162700030433487), HR4000 Consulting Services for Heavy Rail Vehicle Acquisition, Technical Support Services to Hatch in the amount of $13,028,744 to provide technical program management support to Metro staff responsible for managing the HR4000 contract for the acquisition and on-time delivery of a base order of 64 heavy rail vehicles (HRVs). Due to the continuous delay with delivery and final acceptance of all 64 rail vehicles, Metro issued multiple modifications within staff delegated authority to extend the period of performance to April 30, 2022, and increase the NTE Total Contract Price by $1,199,504.
On April 21, 2022, the Board approved Contract Modification No. 14 to extend the period of performance by 24 months and increase the NTE Total Contract Price by $5,618,956. Additionally, Metro issued a no-cost Contract Modification No. 18, to extend the period of performance to April 30, 2026, and Contract Modification No. 19 to increase the NTE Total Contract Price by $3,710,196. A complete list of contract modifications is outlined in Attachment B.
This procurement addresses the need to:
• Expand the rail fleet to accommodate anticipated ridership growth and planned line extensions.
• Replace vehicles reaching the end of their useful service life; and
• Support the Maintenance Department by maintaining adequate spare ratios to prevent deferred maintenance issues.
The objective of Hatch consulting services for Heavy Rail Vehicle Acquisition and Technical Support is to assist Metro’s Project Manager in providing engineering and technical oversight of the rail vehicle contractor. This oversight ensures performance consistent with the delivery requirements of the HR4000 HRV procurement.
The consultant provides staff support in the following key disciplines:
• Systems Engineering
• Systems Integration
• Quality Assurance
• Design Conformance Testing
• Inspection and Audit of Fabrication and Assembly Site Activities
All work is performed on an as-needed basis, as directed by Metro through written task orders issued under the consultant contract. Task orders use not-to-exceed pricing based on the fixed labor rates established in the contract. The consultant’s staff operates under the daily management and direction of Metro’s HR4000 HRV Project Manager.
Discussion
DISCUSSION
Approval of the recommendation will increase the contract value and corresponding Contract Modification Authority for the existing HATCH Technical Support Services Contract, enabling continued technical support for the HR4000 HRV project. Metro staff require this support to address remaining technical issues and delays, ensuring the final delivery and acceptance of the 64 base HR4000 HRVs and the completion of the warranty period, forecasted for July 2031.
The Scope of Services will include, but is not limited to, oversight of testing and inspection activities; supervision of the Vehicle Contractor’s supply chain processes; review and preparation of correspondence in response to technical submissions; support for Project Reviews; document control; and other technical support tasks as directed by the Metro HR4000 Project Manager.
Since the HR4000 HRV Procurement Project contract award in June 2016, HATCH has continuously provided technical support to Metro’s Project Team. This included reviewing technical documents, overseeing system and combined-system level integration, witnessing verification and validation of design levels, and inspecting vehicle assembly to identify issues.
The project is currently in the delivery and commissioning phase, a critical period that requires continued support as Metro approves HRV shipments. Pandemic-related restrictions and travel bans extended the time needed for in-person meetings, design reviews, testing validation, and first article inspections. To mitigate delays, Metro on-site testing has been relocated to China, necessitating longer staffing at vendor and manufacturing locations than originally planned. Additionally, importation challenges for car shells and equipment have introduced further delays.
Approval of this recommendation will modify HATCH’s existing contract, ensuring uninterrupted technical support for the HR4000 HRV project (206037). This support is essential for addressing the remaining technical issues, achieving final delivery and acceptance of all 64 base HR4000 HRVs, completing the warranty period, and closing out the project, which is forecasted for June 2031.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
Approval of the increased NTE contract value and extended period of performance will directly enhance system safety, service quality, reliability, maintainability, and overall customer satisfaction. Continued HR4000 technical support services will ensure the safe and reliable execution of the HR4000 Heavy Rail Vehicle Program.
Financial_Impact
FINANCIAL IMPACT
Board approval of the action will have no budget impact for FY26, as budget is allocated under CP 206037. The Board-approved Life-of-Project budget (LOP) for the HR4000 Procurement Contract is $239,203,000, inclusive of the technical support services contract. With this requested contract amendment, no adjustment to the Board-approved LOP is needed.
Impact to Budget
The funding source for this action is Prop A Rail Set Aside 35%, Measure R 2%, and other Local funds, which are eligible for Rail Capital and Operating Projects. Since this is a multi-year project, the Chief Operating Officer and respective Project Managers will be responsible for budgeting in future fiscal years.
Equity_Platform
EQUITY PLATFORM
The HR4000 vehicles will operate on the B Line, the current D Line, and the upcoming D (Purple) Line Extensions. Approval of the recommendations in this Board report will enhance service reliability and provide a more comfortable experience on lines serving the majority of Equity Focus Communities (EFCs) that depend on public transportation. According to the 2019 Customer Survey, the B and D heavy rail lines serve the following:
• Ridership Demographics:
o 27.7% below the poverty line
o 56.4% had no car available
• Rider Ethnicity:
o Latino 38.9%;
o Black 13.1%;
o White 25.8%;
o Asian/Pacific Islander 15.2%;
o Other 6.5%
While HATCH Associates Consultants made a 22.63% Disadvantaged Business Enterprise (DBE) commitment on this contract, the U.S. Department of Transportation (USDOT) has issued an Interim Final Rule (IFR) that makes changes to the DBE Program. As such, contract goals, enforcement, and counting of participation are temporarily suspended effective October 3, 2025. Although the DBE commitment is not a factor in the staff recommendation, there are two certified small businesses 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 by promoting operational activities that sustain and encourage transit ridership, ridesharing, and active transportation. Metro’s Board-adopted VMT reduction targets 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
These recommendations support Metro Strategic Plan Goal No. 5) to “provide responsive, accountable, and trustworthy governance within the Metro organization”. This goal strives to position Metro to deliver the best possible mobility outcomes and improve business practices so that Metro can perform more effectively and adapt more nimbly to the changing needs of our customers.
Alternatives_Considered
ALTERNATIVES CONSIDERED
Staff considered using in-house Metro resources to perform this work as an alternative. However, this approach is not recommended due to insufficient resources and a lack of subject matter expertise.
The Board may choose not to authorize an increase in the contract value for this project. Metro staff does not recommend this alternative, as the HR4000 HRV Procurement Program is essential to ensure an adequate fleet to meet future service needs for PLE Sections 1, 2, and 3, as well as requirements for the 2028 Olympic and Paralympic Games.
Next_Steps
NEXT STEPS
Upon Board approval, staff will execute Contract Modification No. 21 to increase the contract's NTE amount by $7,857,071 with HATCH and extend the period of performance through July 30, 2031. Additionally, a new task order will be issued to continue technical support services for the HR4000 Procurement Contract.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - Contract Modification/Change Order Log
Attachment C - DEOD Summary
Prepared_by
Prepared by: David McDonald, Senior Director, Project Control, (213) 922-3221
Annie Yang, Deputy Executive Officer, Rail Vehicle Acquisition (213) 922-3254
Matt Dake, Deputy Chief Operations Officer, 213-922-4061
Debra Avila, Deputy Chief Vendor/Contract Management Officer, 213-418-3051
Reviewed_By
Reviewed by: Conan Cheung, Chief Operations Officer, (213) 418-3034
