Metro - File #: 2025-0455

• File #: 2025-0455
• Type: Contract
• Status: Agenda Ready
• File created: 5/16/2025
• In control: Board of Directors - Regular Board Meeting
• On agenda: 5/22/2025
• Title: CONSIDER: A. RATIFYING the procurement and award of Contract No. OP239906000HR5000 (HR5000 Contract) to the Hyundai Rotem USA Corporation (Hyundai Rotem), and the HR5000 Contract as amended by Modifications 1-3 for the manufacturing and delivery of 182 new heavy rail vehicles (HRVs), in the amount of $663,688,303 for the base contract buy, exclusive of one contract option for an additional 50 HRVs, totaling 232 HRVs for a total of $730,057,133; B. RATIFYING the procurement and award of Contract No. OP245126000A650HRV (A650 Contract) to Woojin IS America (Woojin), and the A650 Contract as amended by Modifications 1-3 for the refurbishment of 74 A650 HRVs, in the amount of $213,587,542.63 for 70 base HRVs, and one contract option for an additional 4 HRVs, totaling 74 HRVs; and C. ADOPTING the resolutions attached as Attachment A and Attachment B, affirming that modifications made to the HR5000 and A650 Contracts to bring the Contracts into compliance with the Manufacturing Careers Po...
• Sponsors: Board of Directors - Regular Board Meeting
• Indexes: 2028 Mobility Concept Plan, Audit, Bids, Budgeting, Contract administration, Contractors, Contracts, Grant Aid, Guidelines, Hourly, Labor, Olympic games, Payment, Policy, Procurement, Program, Railroad commuter service, Request For Proposal, Resolution, Rolling stock, Subcontractors, System safety

Meeting_Body
REGULAR BOARD MEETING
MAY 22, 2025

Subject
SUBJECT: RATIFICATION OF HR5000 HEAVY RAIL VEHICLE (HRV) CONTRACT AND THE A650 HRV REFURBISHMENT CONTRACT

Action
ACTION: RATIFICATION OF CONTRACTS

Heading
RECOMMENDATION

Title
CONSIDER:

A. RATIFYING the procurement and award of Contract No. OP239906000HR5000 (HR5000 Contract) to the Hyundai Rotem USA Corporation (Hyundai Rotem), and the HR5000 Contract as amended by Modifications 1-3 for the manufacturing and delivery of 182 new heavy rail vehicles (HRVs), in the amount of $663,688,303 for the base contract buy, exclusive of one contract option for an additional 50 HRVs, totaling 232 HRVs for a total of $730,057,133;

B. RATIFYING the procurement and award of Contract No. OP245126000A650HRV (A650 Contract) to Woojin IS America (Woojin), and the A650 Contract as amended by Modifications 1-3 for the refurbishment of 74 A650 HRVs, in the amount of $213,587,542.63 for 70 base HRVs, and one contract option for an additional 4 HRVs, totaling 74 HRVs; and

C. ADOPTING the resolutions attached as Attachment A and Attachment B, affirming that modifications made to the HR5000 and A650 Contracts to bring the Contracts into compliance with the Manufacturing Careers Policy (MCP) are consistent with Metro's goals to implement the MCP into the HR5000 and A650 Contracts, and do not fundamentally alter the HR5000 and A650 Contracts so as to warrant rebidding the contracts.

Issue
ISSUE

On December 1, 2022, the same date that the HR5000 Contract solicitation was authorized, the Board adopted the MCP as a new policy. The MCP modified Metro's prior U.S. Employment Program (USEP) and Local Employment Program (LEP) guidelines and combined them into a single policy. The HR5000 RFP, which had been drafted prior to the adoption of the MCP, as well as the initially executed HR5000 Contract, did not mirror certain elements of the MCP. The procurement did, however, require proposers to include USEP plans in their p...