File #: 2023-0738   
Type: Contract Status: Passed
File created: 12/4/2023 In control: Operations, Safety, and Customer Experience Committee
On agenda: 1/18/2024 Final action: 1/25/2024
Title: AUTHORIZE the Chief Executive Officer to: A. AWARD Contract No. HR5000-2023 to the Hyundai Rotem Company for the manufacturing and delivery of 182 heavy rail vehicles (HRVs), in the amount of $663,688,303 for the base contract buy, exclusive of one (1) contract option for an additional 50 HRVs, totaling 232 HRVs, subject to resolution of the protest submitted to Metro; B. APPROVE a combined Life of Project (LOP) budget of $730,057,133, which includes the cost of the vehicle contract of $663,688,303 and Contract Modification Authority of $66,368,830; and C. NEGOTIATE AND EXECUTE future contract modifications to the Contract up to $1,000,000.
Sponsors: Board of Directors - Regular Board Meeting
Indexes: Budget, Budgeting, Construction, Contractors, Contracts, Metro Rail D Line, Metro Vision 2028 Plan, Olympic games, Plan, Procurement, Request For Proposal, Revenue Service, Rolling stock, Safety, System safety, Twenty-eight by '28 Initiative, Westside Subway Extension/Purple Line Extension Phase 1, Westside Subway Extension/Purple Line Extension Phase 2, Westside Subway Extension/Purple Line Extension Phase 3
Attachments: 1. Attachment A - Procurement Summary, 2. Attachment B - DEOD Summary, 3. Attachment C - Funding and Expenditure Plan, 4. Presentation
Related files: 2023-0496, 2024-0125
Meeting_Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
JANUARY 18, 2024


Subject
SUBJECT: HR5000 HEAVY RAIL VEHICLE (HRV) PROCUREMENT

Action
ACTION: APPROVE RECOMMENDATIONS

Heading
RECOMMENDATION

Title
AUTHORIZE the Chief Executive Officer to:

A. AWARD Contract No. HR5000-2023 to the Hyundai Rotem Company for the manufacturing and delivery of 182 heavy rail vehicles (HRVs), in the amount of $663,688,303 for the base contract buy, exclusive of one (1) contract option for an additional 50 HRVs, totaling 232 HRVs, subject to resolution of the protest submitted to Metro;

B. APPROVE a combined Life of Project (LOP) budget of $730,057,133, which includes the cost of the vehicle contract of $663,688,303 and Contract Modification Authority of $66,368,830; and

C. NEGOTIATE AND EXECUTE future contract modifications to the Contract up to $1,000,000.

Issue
ISSUE

New HRVs are required to meet the revenue service requirements and enhanced service capacity for Westside D (Purple) Line Extensions (PLE) 2 & 3, as specified in the 30/10 Initiative, as well as replace the existing A650 HRV fleets when they have reached the end of their useful lives.

Background
BACKGROUND

In December 2022, the Board authorized staff to issue a federally funded solicitation for a Best Value Request for Proposals (RFP) utilizing competitive negotiations pursuant to PCC ? 20217 for the procurement of the 182 Base Order and 50 Option HRVs. Metro's Rail Fleet Management Plan FY2020 - FY2040, describes the rail fleet requirements to accommodate anticipated growth in ridership, support line extensions and replace vehicles reaching the end of their useful revenue service lives.

The existing A650 HRV fleets consist of 100 vehicles; 30 Base Buy, DC-motor HRVs of which four (4) have been retired, and 74 Option Buy, AC-motor HRVs. Based on a 30-year useful life, the Base Buy vehicles were scheduled to be retired between 2022 and 2023, and the Option Buy vehicles starti...

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