File #: 2024-1059   
Type: Contract Status: Agenda Ready
File created: 11/7/2024 In control: Executive Management Committee
On agenda: 11/21/2024 Final action:
Title: AUTHORIZE the Chief Executive Officer (CEO) to: A. EXECUTE Modification No. 1 to Contract No. PS108564000 with McKinsey & Company, Inc. (McKinsey) to provide consultant support services for hiring process improvements, continued job classification analysis, and execution of strategies to reduce vacancy rates and retain talent, in an amount Not-to-Exceed (NTE) $3,477,500, increasing the contract value from $497,500 to $3,975,000 and extend the period of performance from June 30, 2025 to December 31, 2025 and; B. AMEND the FY25 budget in the amount of $3,477,500 to fund the contract modification.
Indexes: Budget, Budgeting, Contracts, Governmental And Oversight Activities (Project), Metro Transit Ambassadors, Procurement, Promotion, Safety, Transit safety, Volume
Attachments: 1. Attachment A - Metro Preliminary Talent Diagnostics, 2. Attachment B - Procurement Summary, 3. Attachment C - Contract Modification/Change Order Log, 4. Attachment D - DEOD Summary, 5. Presentation
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Meeting_Body
EXECUTIVE MANAGEMENT COMMITTEE
NOVEMBER 21, 2024

Subject
SUBJECT: RECRUITMENT STRATEGIC ASPIRATION SERVICES

Action
ACTION: APPROVE RECOMMENDATION

Heading
RECOMMENDATION

Title
AUTHORIZE the Chief Executive Officer (CEO) to:

A. EXECUTE Modification No. 1 to Contract No. PS108564000 with McKinsey & Company, Inc. (McKinsey) to provide consultant support services for hiring process improvements, continued job classification analysis, and execution of strategies to reduce vacancy rates and retain talent, in an amount Not-to-Exceed (NTE) $3,477,500, increasing the contract value from $497,500 to $3,975,000 and extend the period of performance from June 30, 2025 to December 31, 2025 and;

B. AMEND the FY25 budget in the amount of $3,477,500 to fund the contract modification.

Issue
ISSUE

Given the unprecedented number of new rail openings and initiatives through 2027, staff anticipates more than 1,000+ recruitments will need to take place to support the A Line to Pomona, D Line Extensions, the Transit Ambassador transition, and the implementation of the Transit Community Public Safety Department, as well as managing for normal attrition. Contract No. PS108564000 was awarded in July 2024 to McKinsey, a strategy and global management consulting firm, focused on advancing the pursuit of sustainability, inclusion, and growth. The contract includes consultant support for the evaluation of Metro's hiring department structure and job classifications, assessment of hiring processes, and review of collective efforts aimed at retaining employees, and reducing vacancy rates while remaining compliant with legal requirements. Preliminary talent diagnostics (Attachment A) identified opportunities to improve hiring speed and volume, decrease time-to-hire, and reduce vacancies. As a result, staff has determined that immediate support is needed to implement these opportunities.

Background
BACKGROUND

Currently, Metro has over 740 vacancies. On average, ...

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