Meeting_Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
SEPTEMBER 18, 2025
Subject
SUBJECT: CONSULTANT SUPPORT SERVICES FOR THE A650 HEAVY RAIL VEHICLE (HRV) OVERHAUL PROGRAM, TECHNICAL AND PROGRAM MANAGEMENT SUPPORT SERVICES
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to:
A. EXECUTE Contract Modification No. 19 to Contract No. OP30433488, a cost plus fixed-fee contract with HATCH Associates Consultants, Inc. (HATCH) for the A650 Heavy Rail Vehicle (HRV) Overhaul Program Consultant Support Services, increasing the Not-To-Exceed (NTE) amount by $11,930,792 from $8,615,474 to $20,546,266, and extending the period of performance from October 5, 2025, to June 30, 2031; and
B. EXECUTE individual contract modifications within the Board-approved contract modification authority.
Issue
ISSUE
This contract modification will approve funding for continued Technical and Program Management Support Services that HATCH is providing for the A650 Refurbishment contract with Woojin IS. Additional funding is needed for HATCH due to the change in the A650 vehicle contractor after the termination of the previous contractor, Talgo, Inc. This change in contractor resulted in additional costs, including re-procurement support, reworking vehicles that were previously modified under the terminated Overhaul and Critical Component Replacement Program (OCCRP) contract, additional vehicle systems that became obsolete in the 8 years between contracts, additional travel, and inflation. Refurbishing the existing A650 fleet is critical to comply with Metro’s Rail Fleet Management Plan and to meet future service needs.
Background
BACKGROUND
The A650 Option Buy fleet consists of 74 HRVs originally manufactured by Breda Costruzioni Ferroviarie. The fleet's average age is nearly 25 years, and many obsolete components require refurbishment to maintain a State of Good Repair through the 2028 Olympics and beyond.
In September 2016, the Board authorized a contract for the midlife overhaul of 74 A650 Option Buy HRVs. HATCH (previously known as LTK Engineering Services) was awarded the Technical and Program Management Support Services (TPMSS) contract for the A650 OCCRP. Concurrently, Talgo was awarded the OCCRP contract. The TPMSS contract value increased in subsequent Board actions to $8,615,474. However, in the Spring of 2022, Talgo’s contract was terminated.
In March of 2024, the Board authorized a new contract with Woojin IS for the Refurbishment of the A650 vehicles. Metro continued its contract with HATCH for support services for the Refurbishment of the A650 HRVs.
Discussion
DISCUSSION
The Refurbishment contract with Woojin is significantly more complex than the OCCRP contract with Talgo. Additional components and systems have become obsolete on the A650 vehicles in the eight years between the two contract issuances, requiring those components to be included in the Refurbishment contract scope. Vehicles that were modified during the OCCRP contract will also need to be carefully reverted back to their original configurations in order to deliver a unified A650 fleet. These complexities, combined with inflation, additional travel, and inspections needed due to the design and prototype vehicles being manufactured in South Korea, resulted in the Refurbishment TPMSS costs being significantly higher than the original OCCRP TPMSS costs. This estimated cost was developed by the Project Team and reflected in the additional LOP awarded in February 2024.
Therefore, a contract modification is now required to properly align funding with contract OP30433488 and permit uninterrupted support services for the A650 Refurbishment contract. The contract with HATCH to support the A650 Refurbishment is already in place, and the Board has already authorized the additional consultant funding. No material change is being made to the contract or the project approach with Hatch as they continue to provide TPMSS services for the remainder of the A650 Refurbishment contract.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
The approval of this NTE contract value increase will have a direct and positive impact on system safety, service quality, system reliability, maintainability, and overall customer satisfaction. The continued A650 TPMSS support services will ensure that the A650 Refurbishment Program will be executed safely and reliably.
Financial_Impact
FINANCIAL IMPACT
Board approval of the action will have no budget impact for FY26, as the budget is included in CP 214010. The overall Board-approved LOP for the A650 Refurbishment contract with Woojin is $264,662,611.20, inclusive of $19,621,538.46 allocated for Professional Services.
Impact to Budget
The funding source for this action is Prop A Rail Set Aside 35%, which is eligible for Rail Capital and Operating Projects. Staff is also pursuing additional Federal, State, and Local funding sources, such as Cap and Trade and similar sources, as they become available to meet the funding needs for the project.
Equity_Platform
EQUITY PLATFORM
The A650 Option vehicles will be used on the B Line, the current D Line, and the upcoming D (Purple) Line Extension. Approving the recommendations in this Board report will improve service reliability and provide a more comfortable experience on these lines that serve the majority of Equity Focus Communities (EFCs) who rely on public transportation. Based on the 2019 Customer Survey, the B and D heavy rail lines serve the following:
- Ridership Demographic:
- 27.7% below the poverty line
- 56.4% had no car available
- Rider Ethnicity:
- Latino 38.9%;
- Black 13.1%;
- White 25.8%;
- Asian/Pacific Islander 15.2%;
- Other 6.5%
HATCH Associates Consultants made a 30.74% Disadvantaged Business Enterprise (DBE) commitment on this contract, and the current level of DBE participation is 23.82%, representing a 6.92% shortfall of the DBE commitment. HATCH has a shortfall mitigation plan on file and is implementing corrective measures, as identified in Attachment C. This shortfall is as expected at this phase of the project, since DBE participation in rail vehicle acquisition projects is typically backloaded with inspection and commissioning tasks being performed by DBE firms.
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 operational activities that will maintain 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
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. This approach is not recommended as Metro does not have sufficient resources and subject matter experts available to perform this work. This approach is not recommended due to the lack of staff capabilities listed above.
The Board may choose not to authorize the increase of Contract value for this project; however, this alternative is not recommended by Metro staff because the A650 HRV Refurbishment Program is critical to having sufficient vehicles to meet future service needs for PLE Sections 2 and 3, as well as the 2028 Olympic and Paralympic Games.
Next_Steps
NEXT STEPS
Upon Board approval, staff will execute Contract Modification No. 19 to increase the contract NTE amount by $11,930,792 with HATCH, and a new task order shall be awarded for the continued TPMSS services for the A650 Refurbishment Contract.
Attachments
ATTACHMENTS
Attachment A – Procurement Summary
Attachment B – Contract Modification Log
Attachment C – DEOD Summary
Prepared_by
Prepared by: Ray Saito, Senior Manager, Project Control, (213) 922-3141
Jesus Montes, Sr. 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
Digitally approved by Stephanie Wiggins, Chief Executive Officer