File #: 2020-0164   
Type: Contract Status: Agenda Ready
File created: 2/21/2020 In control: Finance, Budget and Audit Committee
On agenda: 3/18/2020 Final action:
Title: AUTHORIZE the Chief Executive Officer to execute Modification No. 3 to Contract No. OP39497-2000 to exercise three (3), one-year options with Los Angeles Federal Armored Services, Inc. to provide currency processing services, in the amount of $572,000 for Option Year 2, $629,000 for Option Year 3, and $686,400 for Option Year 4, for a combined total amount of $1,887,400, increasing the contract value from $972,400 to $2,859,800, and extending the contract term to December 31, 2022.
Sponsors: Finance, Budget and Audit Committee
Indexes: Budgeting, Contractors, Contracts, Procurement
Attachments: 1. Attachment A - Procurement Summary, 2. Attachment B - Contract Modification Change Order Log, 3. Attachment C - DEOD Summary
Related files: 2017-0672, 2020-0246
Date Action ByActionResultAction DetailsMeeting DetailsAudio
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FINANCE, BUDGET AND AUDIT COMMITTEE
MARCH 18, 2020

Subject
SUBJECT: CURRENCY PROCESSING SERVICES

Action
ACTION: APPROVE CONTRACT MODIFICATION

Heading
RECOMMENDATION

Title
AUTHORIZE the Chief Executive Officer to execute Modification No. 3 to Contract No. OP39497-2000 to exercise three (3), one-year options with Los Angeles Federal Armored Services, Inc. to provide currency processing services, in the amount of $572,000 for Option Year 2, $629,000 for Option Year 3, and $686,400 for Option Year 4, for a combined total amount of $1,887,400, increasing the contract value from $972,400 to $2,859,800, and extending the contract term to December 31, 2022.

Issue
ISSUE

This Contract is for a currency processing service company to process single, unstacked, loose bills from bus farebox operations from the Metro Central Cash Counting Office , of which Metro collects about $55 million per year.

To continue providing the currency processing services, a contract modification is required to exercise each of the one-year options, extending the period of performance through December 31, 2022.

Discussion
DISCUSSION

On January 1, 2018, Metro entered into a five-year contract to Los Angeles Federal Armored Services, Inc. in the amount not-to-exceed $2,859,800 inclusive of four one-year options, of which $972,000 has been completed and paid, leaving $1,887,400 for the remaining three (3) one-year options.

Staff is requesting Board authorization to exercise each of the remaining option terms. Staff has determined that expenditures over the remaining life of this contract will not exceed the anticipated annual contract value.

Determination_of_Safety_Impact
DETERMINATION OF SAFETY IMPACT

Processing currency via the services of the outside agency on a daily basis aid in the safekeeping and accounting of Metro funds.

Financial_Impact
FINANCIAL IMPACT

Funding required for the current fiscal year was included in the FY2020 Adopted Budget. Since this is a multi...

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