File #: 2018-0485   
Type: Contract Status: Agenda Ready
File created: 7/24/2018 In control: Operations, Safety, and Customer Experience Committee
On agenda: 11/15/2018 Final action:
Title: APPROVE a Modification to Contract No. P3010 with Kinkisharyo International, LLC for Request for Change (RFC) No. 28, Crenshaw Final Cutover Automatic Train Control (ATC) Software Release, for a firm fixed price of $2,350,680 increasing the total Contract value from $921,755,722 to $924,106,402. The contract increase is within the Life of Project Budget.
Sponsors: Operations, Safety, and Customer Experience Commit
Indexes: Active Transportation Program, Airport Metro Connector (AMC) Station Project, Budgeting, Contracts, Crenshaw District, Crenshaw/LAX Transit Corridor Project, Equipment Procurement (Project), Inglewood, Light rail vehicles, Long range planning, Long Range Transportation Plan, Los Angeles International Airport, Metro Crenshaw Line, Metro Exposition Line, Metro Green Line, Metro Rail C Line, Metro Rail E Line, Metro Rail K Line, Procurement, Project, Safety, Strategic planning, Suppliers, Westchester
Attachments: 1. Attachment A - Procurement Summary, 2. Attachment B - Contract Modification Authority Summary, 3. Attachment C - DEOD Summary
Related files: 2018-0784
Date Action ByActionResultAction DetailsMeeting DetailsAudio
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Meeting_Body

OPERATIONS, SAFETY AND CUSTOMER EXPERIENCE COMMITTEE

NOVEMBER 15, 2018

 

Subject

SUBJECT:                     P3010 LIGHT RAIL VEHICLE PROCUREMENT

 

Action

ACTION:                     APPROVE CHANGE ORDER

 

Heading

RECOMMENDATION

 

Title

APPROVE a Modification to Contract No. P3010 with Kinkisharyo International, LLC for Request for Change (RFC) No. 28, Crenshaw Final Cutover Automatic Train Control (ATC) Software Release, for a firm fixed price of $2,350,680 increasing the total Contract value from $921,755,722 to $924,106,402. The contract increase is within the Life of Project Budget.

 

Issue

ISSUE

 

P3010 Light Rail Vehicles (LRV’s) are intended to support service on all Metro’s light rail lines, including the Crenshaw/LAX Line. In 2013, when the P3010 design was being finalized, the Crenshaw design was still in development.

 

For the P3010 vehicles to support service on the new Line it is necessary for the ATC and the Automatic Train Protection (ATP) systems to be upgraded and qualified for compatibility with the Crenshaw/LAX wayside system to ensure safe and reliable operation.

 

As the RFC amount exceeds Metro’s Chief Executive Officer’s delegated negotiating authority of $1,000,000, staff is requesting Board approval for the contract change.

 

Background

BACKGROUND

 

In April 2012, Kinkisharyo International, LLC was awarded the P3010 LRV contract for a base order of 78 LRVs. Four options, for an additional 157 LRVs, were subsequently exercised, for a total of 235 vehicles to be delivered.  In accordance with Metro’s Long Range Transportation Plan, the P3010 LRVs are intended to support service on all Metro’s light rail lines, including the Crenshaw/LAX Line.

 

 

 

Discussion

DISCUSSION

 

P3010 vehicles are currently not compatible with the wayside signaling system being implemented on the Crenshaw/LAX Line. In 2013, when the P3010 design was being finalized, information was not available to ensure compatibility of the P3010 LRVs with the Crenshaw/LAX Line as the Crenshaw design was still in development.  For the P3010 vehicles to support service on the new line, it is necessary to upgrade the ATC and the ATP systems to ensure safe and reliable operation.

 

Approval of this Change Order is necessary for Kinkisharyo to work with its signaling system supplier, Ansaldo-STS, to design and deliver new ATC/ATP software and then qualify the new software in the field before it is installed on the P3010 Base Order and Option order vehicles.

 

Successful implementation of this upgrade will ensure compliance with Metro’s Long Range Transportation Plan, and ensure safe and reliable operation on existing lines and the new Crenshaw/LAX Line. It will ensure a consistent fleet configuration to preserve enhanced levels of vehicle performance and passenger experience. Application of the change will have no impact to current project schedule and is within the remaining contingency of the Life of Project budget.

 

Determination_Of_Safety_Impact

DETERMINATION OF SAFETY IMPACT

 

This board action will ensure that safety is preserved by equipping the vehicles with the latest safety related software releases. Without application of these software upgrades, the vehicles will have to operate in degraded mode which can compromise service.

 

Financial_Impact

FINANCIAL IMPACT

 

Adoption of the recommendation to approve the subject RFC will increase the Contract price by $2,350,680 from $921,755,722 to $924,106,402. This amount is within the project LOP of $972,000,000. Funding for the change will be reflected in the FY19 budget in Cost Center 3043 - Strategic Vehicle and Infrastructure Delivery, Account 53105 - Acquisition of Revenue Vehicle, Project 206035 - P3010 LRV Project including options.

 

Since this is a multi-year contract, the Cost Center Manager and Project Manager will ensure that the balance of funds are budgeted in the future years, including all options exercised.

 

Impact to Budget

The current source of funds for this action is Measure R, Federal STIP, and Proposition A35. Use of these funding sources maximizes allowable project funding allocations given established provisions and guidelines.

 

Implementation_of_Strategic_Plan_Goals

IMPLEMENTATION OF STRATEGIC PLAN GOALS

 

Approval of this recommendation supports the following Metro Strategic Plan Goal:  Deliver outstanding trip experiences for all users of the transportation system. This project will improve safety, service, and reliability in an effort to provide a world-class transportation system that enhances quality of life for all who live, work, and play within LA County.

 

Alternatives_Considered

ALTERNATIVES CONSIDERED

 

The alternative is to not upgrade the P3010 LRVs and this alternative is not recommended as the vehicles will not recognize the new track circuits and will lead to many in-service failures. To operate, trains will need to operate in degraded mode which will compromise service and operation on the Crenshaw/LAX and connecting lines.

 

Next_Steps

NEXT STEPS

 

If this item is approved, staff will issue a contract modification to Kinkisharyo and will then work with the supplier and the Crenshaw/LAX Project Management team to design, test, and implement the software upgrades on the P3010 base and option order vehicles to ensure safe and reliable operation on the Crenshaw/LAX and existing lines.

 

Attachments

ATTACHMENTS

 

Attachment A - Procurement Summary

Attachment B - Contract Modification Authority (CMA) Summary

Attachment C - DEOD Summary

 

Prepared_by

Prepared by:                      Annie Yang, Sr. Director of Rail Vehicle Acquisition, (213) 922-3254
Wayne Okubo, Director of Contract Administration, (213) 922-7466
Jesus Montes, Sr. EO, Vehicle Acquisition, (213) 418-3277

 

Reviewed_By

Reviewed by:                      James T. Gallagher, Chief Operations Officer, (213) 418-3108
Debra Avila, Chief Vendor/Contract Management Officer, (213) 418-3051