Meeting_Body
SYSTEM SAFETY, SECURITY AND OPERATIONS COMMITTEE
JANUARY 19, 2017
Subject/Action
SUBJECT: EXERCISE OPTIONS FOR P3010 LIGHT RAIL VEHICLE PROCUREMENT CONSULTING SERVICES
ACTION: AUTHORIZE CEO TO EXECUTE OPTION YEARS FOR EXISTING CONTRACTS (OP39602795A & OP39602795B)
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to execute a Contract Modification exercising three one-year options to:
A. Contract No. OP39602795A with LTK Engineering Services for Element A, Consultant for Light Rail Vehicle Acquisition, Technical Support Services, in an aggregate amount of $5,972,304, increasing the total Contract amount from $15,236,445 to a total not-to-exceed amount of $21,208,749; and
B. Contract No. OP39602795B with CH2M Hill Inc. for Element B, Consultant for Light Rail Vehicle Acquisition, Program Management Support Services, in an aggregate amount of $2,291,639, increasing the total Contract amount from $6,087,246 to a total not-to-exceed amount of $8,378,885.
Issue
ISSUE
In April 2012, the Board approved a contract with Kinkisharyo International, LLC (KI) for the manufacture and delivery of 78 new Light Rail Vehicles. Subsequently, the Board approved the award of the four options for the P3010 LRV Project (CP 206035) for an additional 157 vehicles, for a total of 235 vehicles. With the exercise of those quantity options, the last car will not be delivered until later half of 2020. To ensure continuity of consultant support for the P3010 LRV project, it is recommended that Metro award the remaining three one-year options on the existing contracts with LTK Engineering Services and CH2M Hill, Inc.
Discussion
DISCUSSION
To support Metro staff with the management of the P3010 LRV project two sets of consultants were contracted. The consultant support to the project is divided into elements A and B:
• Element A Technical Support Services: LTK Engineering
• Element B Program Management Support Services: CH2M Hill Inc.
On March 22, 2012, the LACMTA Board awarded a base five-year contract, No. OP39602795A, to LTK Engineering (LTK) to provide technical support services for the P3010 LRV Procurement Project. The base contract is for five years and will expire March 25, 2017.
On March 22, 2012, the LACMTA Board also awarded Contract No. OP39602795B, to CH2M Hill Inc. to provide program management support services for the P3010 LRV Procurement project. The base contract is for five years and will expire March 25, 2017.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
The approval to execute the three options years for the Technical Support and Program Management Support Services will ensure continuity of the LRV Procurement Project and will assist with maintaining overall system safety, service quality, system reliability and overall customer satisfaction.
Financial_Impact
FINANCIAL IMPACT
Funding for P3010 consultant support services has been allocated and initial LOP budget of $30,000,000 for Consulting Services for Light Rail Vehicle Procurement was approved by the Board in 2012. Funds required in fiscal year 2017 are included in Cost Center 3043, Capital Project (CP) 206036. Since this is a multi-year project, the Chief Operating Officer and the Project Manager are responsible for budgeting in future years. Within CP 206036, there are two consultant supporting services specified: Technical Support and Program Management Support Services. Executing the three one-year options to continue the consultant support services will not increase the Board-approved LOP of $30,000,000.
Impact to Budget
Funding for these services will come from Proposition A 35% Rail. This funding source is eligible for Rail Capital Projects and will maximize fund use based on funding allocation provisions.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The Board may choose not to execute the three one-year options years. This alternative is not recommended as critical project activities being supported by consultant staff will be interrupted, likely impacting project schedule. These activities include, but are not limited to: auditing manufacture and assembly site activities, witnessing commissioning tests, reviewing test procedures and test reports, providing warranty support, reviewing car history books prior to submittal to CPUC, and conducting schedule and milestone reviews. The Metro project team currently does not have the resources to absorb this work.
Next_Steps
NEXT STEPS
Upon Board approval exercise the three one-year options with each CH2M Hill and LTK Engineering Services.
Attachments
ATTACHMENTS
Contract No.: OP39602795A - LTK Engineering Services
Attachment A - Procurement Summary
Attachment B - Contract Modification Log
Attachment C - DEOD Summary
Contract No.: OP39602795B - CH2M Hill, Inc.
Attachment A - Procurement Summary
Attachment B - Contract Modification Log
Attachment C - DEOD Summary
Prepared_by
Prepared by: Annie Yang, Sr. Director, Rail Vehicle Acquisition, (213) 922-3254
Jesus Montes, Sr. EO, Vehicle Acquisition, (213) 922-3838
Reviewed_By
Reviewed by: James T. Gallagher, Chief Operations Officer, (213) 922-4424
Debra Avila, Chief Vendor/Contract Management Officer
(213) 418-3051
