Meeting Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
FEBRUARY 20, 2020
Subject
SUBJECT: WASTE MANAGEMENT SERVICES
Action
ACTION: APPROVE CONTRACT AWARD
Heading
RECOMMENDATION
Title
CONSIDER:
AUTHORIZING the Chief Executive Officer to:
A. Award an indefinite delivery indefinite quantity Contract No. OP1484230003367 to American Reclamation, Inc. to provide waste management services throughout Metro B Line (Red), Metro G Line (Orange), Pasadena L Line (Gold) and various bus and rail locations within the geographical area, specified as the North Region, for a not-to-exceed amount of $3,904,317 for the five-year base period, and $1,571,479 for the one, two-year option term, for a combined not-to-exceed amount of $5,475,796, effective March 1, 2020 through February 28, 2027, subject to resolution of protest(s), if any.
B. Award an indefinite quantity/delivery Contract No. OP1484240003367 to American Reclamation, Inc. to provide waste management services throughout Metro A Line (Blue), Metro C Line (Green), E Line (Expo), Gateway Headquarters Building and various bus and rail locations within the geographical area, specified as the South Region, for a not-to-exceed amount of $3,218,989 for the five-year base period, and $1,325,033 for the one, two-year option term, for a combined not-to-exceed amount of $4,544,022, effective March 1, 2020 through February 28, 2027, subject to resolution of protest(s), if any.
Issue
ISSUE
The existing waste management services contract will expire on July 31, 2020. To continue providing the required integrated waste management services, two new regional contract awards are required effective March 1, 2020. This action is necessary to allow the incoming contractor sufficient time to acquire new trash and recycling bins for all Metro facilities.
Background
BACKGROUND
On October 25, 2012, Metro Board of Directors authorized the Chief Executive Officer to award a seven-year, Contract No. PS11064106R to Consolidated Disposal Service, the lowest responsive and responsible bidder for waste management services in an amount not to exceed $6,993,296 effective December 1, 2012.
To avoid service interruptions and continue providing these critical services, two (2) new contract awards are required effective March 1, 2020.
Discussion
DISCUSSION
The existing waste management services contract is being replaced with two new regional service contracts split geographically. This action is necessary to expand opportunities for small business participation while maintaining service efficiency and continuity.
The existing contract includes transport and recycling or disposal of solid waste from Metro facilities, provides roll-off containers and dumpsters, and submittal of monthly diversion reports. Most containers are serviced on a regular schedule while others are on an on-call as-needed basis.
Improved diversion is one of many ways that Metro is striving to reduce its environmental impact. These two new contracts are an integral part of Metro's Environmental Management System. The contractor will support the Environmental Compliance and Services unit of the Transit Project Delivery department in education and waste disposal change efforts with front-line employees at all Metro operating facilities. In addition, the contractor will provide on-going analysis of Metro's efforts to reduce landfill waste and improve in-house recycling programs to exceed waste diversion requirements.
Currently, all local government organizations in California are required to divert at least 50% of their waste from landfills. To meet this requirement, Metro's trash-hauling contractor separates and recycles suitable materials from waste materials it collects from all Metro operating, support, office, and passenger facilities. These contracts set goals to improve and exceed the 50% waste diversion requirements over the next seven-years.
The existing contract is due to expire July 31, 2020. However, the two new contracts are required effective March 1, 2020. This action is necessary to allow the outgoing contractor sufficient time to perform all necessary administrative processes associated with contract closeout, and to provide the incoming contractor ample time to acquire new trash and recycling bins for all Metro facilities.
The Diversity and Economic Opportunity Department (DEOD) established a 7% Small Business Enterprise (SBE) and 3% Disabled Veteran Business Enterprise (DVBE) goal for this solicitation. American Reclamation made a 7% SBE and 3% DVBE participation commitment for each of the North region and the South region contracts.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
Timely and efficient removal of trash and recycling are important elements of a safe and responsible waste management program.
Financial_Impact
FINANCIAL IMPACT
The FY20 budget for waste management services is $941,600, contained in Cost Center 8370 - Contracts and Administration, account 50308 - Service Contract maintenance, in various Operating projects. Current waste management services contracts expire on July 31, 2020 (FY21). To allow for seamless transition to a new contractor and avoid contractual interruptions, this action will put the contract in place for FY21 implementation.
Since these are multi-year contracts, the cost center manager and Sr. Executive Officer, Maintenance and Engineering will be accountable for budgeting the all costs in future fiscal years.
Impact to Budget
The current source of funding for this action are State and Local sources including sales tax and fares. 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, improve Metro’s recycling and landfill diversion programs, reduce the amount of waste that Metro disposes 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 would require the hiring and training of additional personnel, purchase of additional equipment, vehicles, and supplies to support the expanded responsibility. Staff's assessment indicates that this is not a cost-effective option for Metro.
Next_Steps
NEXT STEPS
Upon approval by the Board, staff will execute Contracts OP1484230003367 and OP1484240003367 with American Reclamation, Inc. to provide integrated waste management services for the North and South Regions, respectively, effective March 1, 2020.
Attachments
ATTACHMENTS
Attachment A - Region Maps
Attachment B - Procurement Summary
Attachment C - DEOD Summary
Prepared_by
Prepared by: Brady Branstetter, DEO, Facilities Maintenance, (213) 922-6767
Lena Babayan, Senior Director, Facilities Maintenance, (213) 922-6765
Reviewed_By
Reviewed by: James T. Gallagher, Chief Operations Officer, (213) 418-3108
Debra Avila, Chief, Vendor/Contract Management Officer, (213) 418-3051
