Meeting_Body
SYSTEM SAFETY, SECURITY AND OPERATIONS COMMITTEE
OCTOBER 17, 2019
Subject
SUBJECT: UNIFORM RENTAL SERVICES
Action
ACTION: APPROVE CONTRACT MODIFICATION
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to Execute Modification No. 3 for Contract No. OP671430003367 with Prudential Overall Supply, to continue providing uniform rental services by exercising and increasing the value of the one, three-year option term by $600,000, from $3,372,104.00 to $3,972,104.00, increasing the not-to-exceed contract value from $3,447,304.00 to $7,419,408.00, and extending the contract term from February 1 2020 to January 31, 2023.
Issue
ISSUE
Per the current ATU and TCU Collective Bargaining Unit agreements Metro is required to provide each of the unit employees 11 uniforms per person as well as provide laundry services for such regulation uniforms. Currently, uniform rental services are provided to over 2,585 Metro represented labor employees as well as providing vehicle seat covers and laundry services for hand towels and floor mats.
The existing three-year base contract term expires on January 31, 2020. The contractor has been providing satisfactory uniform rental services.
To avoid uniform rental services interruption, a contract modification is required to exercise and increase the one, three-year option term from $3,372,104.00 to $3,972,104.00, and extend the period of performance through January 31, 2023.
...Background
BACKGROUND
On January 19, 2017, Metro Board of Directors awarded Contract No. OP671430003367 to Prudential Overall Supply to provide uniform rental services for approximately 2,300 Metro represented labor employees as well as providing vehicle seat covers and laundry services for hand towels and floor mats.
...Discussion
DISCUSSION
Under the existing contract, 8% SBE/DVBE goal was established. The contractor exceeded the goal with 2.7% SBE commitment and 6.3% DVBE commitment for a total combined commitment of 9%.
For the existing contract, the number of employees receiving uniform rental services has increased by 285 from 2,300 to 2,585 to accommodate expansion projects and maintenance needs system-wide.
In addition, during FY20, 200 bus mechanics’ uniforms will change from the cotton blend to the Flash Resistant (FR) uniforms to accommodate their job duties performing maintenance services on Metro’s new fleet of electric buses.
These changes will result in a cost increase of $600,000 for the one, three-year option term, from $3,372,104.00 to $3,972,104.00.
Staff continues to work closely with the ATU representatives and employees to ensure delivery of timely and quality services. Under this contract, improvements implemented include but are not limited to replacing all 376 aged lockers with new bigger size units throughout Metro bus and rail facilities, posting signs throughout Metro facilities to improve employee awareness of the scheduled uniform pick-up dates, implementing new uniform service request procedures and forms, along with ongoing oversight of contractor’s performance and service delivery, and maintaining effective communications among all parties involved to ensure quality and timely service delivery.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
The approval of this item will ensure the supply of uniforms that clearly identify Metro represented labor employees and continue delivering safe, quality, on-time and reliable services system-wide.
Financial_Impact
FINANCIAL IMPACT
Funding of $937,936 for this contract is included in the FY20 budget cost center 8370 - Contracts and Administration, account 50215, F/B Uniforms, under various projects.
Since this is a multi-year contract, the Sr. Director, Facilities Maintenance, and the Sr. Executive Officer, Maintenance and Engineering will be accountable for budgeting the cost in future years.
Impact to Budget
The source of funds for this action will come from state and local funds including fares that are eligible for Bus and Rail Operating Projects. These funding sources will maximize funds used on approved funding allocation provisions.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
This board action supports Strategic Goal 5; Provide responsive, accountable, and trustworthy governance within the Metro organization. By providing uniforms to represented employees, Metro is in compliance with both ATU and TCU Collective Bargaining Unit agreements.
Alternatives_Considered
ALTERNATIVES CONSIDERED
Staff considered purchasing uniforms, hand towels, mats, and vehicle seat covers, along with providing in-house laundry services. This consideration would require the hiring and training of additional personnel, purchase of additional equipment, vehicles, and supplies to support the expanded responsibilities. The staff assessment indicates this is not a cost-effective or efficient option for Metro.
Next_Steps
NEXT STEPS
Upon approval by the Board, staff will execute Modification No. 3 for Contract No. OP671430003367 with Prudential Overall Supply, to continue providing uniform rental services by exercising and increasing the value of the one, three-year option term by $600,000, from $3,372,104.00 to $3,972,104.00, increasing the total contract not-to-exceed amount from $3,447,304.00 to $7,419,408.00, and extending the contract term from February 1, 2020 to January 31, 2023.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - Contract Modification/Change Order Log
Attachment C - DEOD Summary
Prepared_by
Prepared by: Brady Branstetter, DEO, Facilities Maintenance, (213) 922-6767
Lena Babayan, Sr. Director, Facilities Maintenance, (213) 922-6765
Reviewed_By
Reviewed by: James T. Gallagher, Chief Operations Officer, (213) 922-4424
Debra Avila, Chief Vendor/Contract Management Officer, (213) 418-3051
