Meeting_Body
CONSTRUCTION COMMITTEE
JULY 15, 2026
Subject
SUBJECT: CONSTRUCTION MANAGEMENT SUPPORT SERVICES - CAPITAL PROJECTS
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to execute a contract modification to Contract No. AE76301MC081000 with Zephyr Rail to increase the total authorized contract funding by $328,417, increasing the total Not-To-Exceed (NTE) amount from $9,269,211.94 to $9,597,628.94, for final contract closeout.
Issue
ISSUE
Contract No. AE76301MC081000 is a cost-plus fixed fee contract with Zephyr Rail to provide construction management support services for projects, such as Link US, Transportation Communication Network, Division 9 and El Monte Transit Center Charger Installation, and NoHo to Pasadena BRT Program. Under this contract structure, task orders are issued using established labor classifications and provisional indirect cost/overhead rates. Indirect cost rates are subject to reconciliation because final overhead rates may differ from the allowed provisional rates used at the time of invoicing. Metro has completed an overhead reconciliation for work performed from 2022 through 2025, which identified a total underbilling across Task Orders 01 through 17.
The requested contract modification does not authorize new scope, new services, or additional level of effort. The action provides sufficient contract authority to reconcile overhead costs for work already performed, invoiced, reviewed, and accepted under existing task orders. The reconciliation is necessary to complete contract administration and support closeout of the applicable task order adjustments.
Background
BACKGROUND
The primary role of Zephyr Rail under Contract No. AE76301MC081000 was to provide skilled and qualified staff to augment Metro staff in the performance of construction management services for Metro capital projects, adjacent projects, joint development, and related work. Zephyr Rail s...
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