Meeting_Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
NOVEMBER 21, 2024
Subject
SUBJECT: METRO MICRO PILOT SERVICES
Action
ACTION: APPROVE CONTRACT AWARDS
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to:
A. AWARD an Indefinite Delivery/Indefinite Quantity (IDIQ) Contract No. OP122943001 for the Metro Micro Contracted Services - North Region to Nomad Transit, LLC, a wholly owned subsidiary of Via Transportation, Inc. to provide on-demand Microtransit operations services in the Not-to-Exceed (NTE) amount of $45,008,012.36 for the three-year base term and $47,058,021.47 for the three-year option term, for a total combined NTE amount of $92,066,033.83, effective December 16, 2024, subject to the resolution of all properly submitted protest(s), if any; and
B. AWARD an Indefinite Delivery/Indefinite Quantity (IDIQ) Contract No. OP122943002 for the Metro Micro Contracted Services - South Region to Nomad Transit, LLC, a wholly owned subsidiary of Via Transportation, Inc. to provide on-demand Microtransit operations services in the NTE amount of $21,002,472.24 for the three-year base term and $21,951,012.21 for the three-year option term, for a total combined NTE amount of $42,953,484.45, effective December 16, 2024, subject to the resolution of properly submitted protest(s), if any.
Issue
ISSUE
When initially proposed, the goal for the average cost per ride was $20-$25. However, as of September 2023, the average cost per ride was $42 - more than four times the average cost per ride on the Metro bus system. At $42 per ride, the program's sustainability becomes a challenge. At its September 2023 meeting, the Board approved the extension of the current Micro Transit contract until March 2025 to allow staff time to move forward with a new operational business model to improve overall performance and support a more sustainable on-demand transit service program. As indicated in the Next Steps of the September 2023 Board...
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