File #: 2020-0249   
Type: Contract Status: Agenda Ready
File created: 3/20/2020 In control: Operations, Safety, and Customer Experience Committee
On agenda: 4/16/2020 Final action:
Title: CONSIDER: AUTHORIZING the Chief Executive Officer to: A. AWARD an indefinite delivery indefinite quantity Contract No. OP1484230003367 to American Reclamation, Inc. to provide waste management services throughout Metro B Line (Red), Metro G Line (Orange), Pasadena L Line (Gold) and various bus and rail locations within the geographical area, specified as the North Region, for a not-to-exceed amount of $3,904,317 for the five-year base period, and $1,571,479 for the one, two-year option term, for a combined not-to-exceed amount of $5,475,796, effective May 1, 2020 through April 30, 2027, subject to resolution of protest(s), if any; and B. AWARD an indefinite quantity/delivery Contract No. OP1484240003367 to American Reclamation, Inc. to provide waste management services throughout Metro A Line (Blue), Metro C Line (Green), E Line (Expo), Gateway Headquarters Building and various bus and rail locations within the geographical area, specified as the South Region, for a not-to-exceed a...
Sponsors: Operations (Department)
Indexes: Budgeting, Contract administration, Contractors, Contracts, Housing, Landfills, Light rail transit, Metro Blue Line, Metro Busway G Line, Metro Exposition Line, Metro Gold Line, Metro Green Line, Metro Orange Line, Metro Rail A Line, Metro Rail B Line, Metro Rail C Line, Metro Rail E Line, Metro Rail L Line, Metro Red Line, Off peak periods, Procurement, Resolution, Small Business Enterprise, Waste management
Attachments: 1. Attachment A - Region Maps, 2. Attachment B - Procurement Summary, 3. Attachment C - DEOD Summary
Related files: 2019-0863, 2020-0186, 2020-0312
Date Action ByActionResultAction DetailsMeeting DetailsAudio
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Meeting Body

OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE

APRIL 16, 2020

 

Subject

SUBJECT:                     WASTE MANAGEMENT SERVICES

 

Action

ACTION:                     APPROVE CONTRACT AWARD

 

Heading

RECOMMENDATION

 

Title

CONSIDER:

 

AUTHORIZING the Chief Executive Officer to:

 

A.                     AWARD an indefinite delivery indefinite quantity Contract No. OP1484230003367 to American Reclamation, Inc. to provide waste management services throughout Metro B Line (Red), Metro G Line (Orange), Pasadena L Line (Gold) and various bus and rail locations within the geographical area, specified as the North Region, for a not-to-exceed amount of $3,904,317 for the five-year base period, and $1,571,479 for the one, two-year option term, for a combined not-to-exceed amount of $5,475,796, effective May 1, 2020 through April 30, 2027, subject to resolution of protest(s), if any; and

 

B.                     AWARD an indefinite quantity/delivery Contract No. OP1484240003367 to American Reclamation, Inc. to provide waste management services throughout  Metro A Line (Blue), Metro C Line (Green), E Line (Expo), Gateway Headquarters Building and various bus and rail locations within the geographical area, specified as the South Region, for a not-to-exceed amount of $3,218,989 for the five-year base period, and $1,325,033 for the one, two-year option term, for a combined not-to-exceed amount of $4,544,022, effective May 1, 2020 through April 30, 2027, subject to resolution of protest(s), if any.

 

Issue
ISSUE

 

The existing waste management services contract will expire on October 31, 2020. To continue providing the required integrated waste management services, two new regional contract awards are required effective May 1, 2020. This action is necessary to allow the incoming contractor sufficient time to acquire new trash and recycling bins for all Metro facilities.

 

Background

BACKGROUND

 

On October 25, 2012, Metro Board of Directors authorized the Chief Executive Officer to award a seven-year, Contract No. PS11064106R to Consolidated Disposal Service, the lowest responsive and responsible bidder for waste management services in an amount not to exceed $6,993,296 effective December 1, 2012.

 

To avoid service interruptions and continue providing these critical services, two (2) new contract awards are required effective May 1, 2020.

 

Discussion

DISCUSSION

 

The existing waste management services contract is being replaced with two new regional service contracts split geographically. This action is necessary to expand opportunities for small business participation while maintaining service efficiency and continuity.

 

The existing contract includes transport and recycling or disposal of solid waste from Metro facilities, provides roll-off containers and dumpsters, and submittal of monthly diversion reports. Most containers are serviced on a regular schedule while others are on an on-call as-needed basis.

 

Improved diversion is one of many ways that Metro is striving to reduce its environmental impact. These two new contracts are an integral part of Metro's Environmental Management System. The contractor will support the Environmental Compliance and Services unit of the Transit Project Delivery department in education and waste disposal change efforts with front-line employees at all Metro operating facilities. In addition, the contractor will provide on-going analysis of Metro's efforts to reduce landfill waste and improve in-house recycling programs to exceed waste diversion requirements.

 

Currently, all local government organizations in California are required to divert at least 50% of their waste from landfills. To meet this requirement, Metro's trash-hauling contractor separates and recycles suitable materials from waste materials it collects from all Metro operating, support, office, and passenger facilities. These contracts set goals to improve and exceed the 50% waste diversion requirements over the next seven-years.

 

The existing contract is due to expire October 31, 2020. However, the two new contracts are required effective May 1, 2020. This action is necessary to allow the outgoing contractor sufficient time to perform all necessary administrative processes associated with contract closeout, and to provide the incoming contractor ample time to acquire new trash and recycling bins for all Metro facilities.

 

The Diversity and Economic Opportunity Department (DEOD) established a 7% Small Business Enterprise (SBE) and 3% Disabled Veteran Business Enterprise (DVBE) goal for this solicitation. American Reclamation made a 7% SBE and 3% DVBE participation commitment for each of the North region and the South region contracts.

 

Determination_Of_Safety_Impact

DETERMINATION OF SAFETY IMPACT

 

Timely and efficient removal of trash and recycling are important elements of a safe and responsible waste management program.

 

Financial_Impact

FINANCIAL IMPACT

 

The FY20 budget for waste management services is $941,600, contained in Cost Center 8370 - Contracts and Administration, account 50308 - Service Contract maintenance, in various Operating projects. Current waste management services contracts expire on October 31, 2020 (FY21). To allow for seamless transition to a new contractor and avoid contractual interruptions, this action will put the contract in place for FY21 implementation. 

 

Since these are multi-year contracts, the cost center manager and Sr. Executive Officer, Maintenance and Engineering will be accountable for budgeting the all costs in future fiscal years.

 

Impact to Budget

 

The current source of funding for this action are State and Local sources including sales tax and fares. Using these funding sources maximizes the project funding allocations allowed by approved provisions and guidelines.

 

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.  Metro objectives for this contract are to increase efficiency, minimize costs, improve Metro’s recycling and landfill diversion programs, reduce the amount of waste that Metro disposes and comply with all applicable Federal, State and Local laws.

 

Alternatives_Considered
ALTERNATIVES CONSIDERED

 

Staff considered providing this service through Metro in-house staff. This would require the hiring and training of additional personnel, purchase of additional equipment, vehicles, and supplies to support the expanded responsibility. Staff's assessment indicates that this is not a cost-effective option for Metro.

 

Next_Steps
NEXT STEPS

 

Upon approval by the Board, staff will execute Contracts OP1484230003367 and OP1484240003367 with American Reclamation, Inc. to provide integrated waste management services for the North and South Regions, respectively, effective May 1, 2020.

 

Attachments

ATTACHMENTS

 

Attachment A - Region Maps

Attachment B - Procurement Summary

Attachment C - DEOD Summary

 

Prepared_by

Prepared by:                      Brady Branstetter, DEO, Facilities Maintenance, (213) 922-6767
Lena Babayan, DEO, Facilities Maintenance, (213) 922-6765

 

Reviewed_By

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