Meeting_Body
OPERATIONS, SAFETY AND CUSTOMER EXPERIENCE COMMITTEE
MARCH 21, 2024
Subject
SUBJECT: CONSULTANT SUPPORT SERVICES FOR NEW HR5000 HEAVY RAIL VEHICLE (HRV) PROCUREMENT
Action
ACTION: APPROVE AWARDS
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to:
A. AWARD Contract No. PS11758001 with Hatch Associates Consultants, Inc. for Element A, Consultant for Heavy Rail Vehicle Acquisition, Technical Support Services, in the not-to-exceed amount of $23,072,507.51, for a period of 87 months from issuance of a Notice to Proceed, subject to the resolution of any protest(s), if any;
B. AWARD Contract No. PS11758002with AtkinsRealis USA Inc. for Element B, Consultant for Heavy Rail Vehicle Acquisition, Program Management Support Services, in the not-to-exceed amount of $11,263,545.59, for a period of 87 months from issuance of a Notice to Proceed, subject to the resolution of any protest(s), if any; and
C. APPROVE a combined Life of Project (LOP) budget of $47,530,870.10, which includes the cost of the two professional services contracts of $34,336,053.10, Metro administration cost of $8,873,829, and Contract Modification Authority of $4,320,988.
Issue
ISSUE
The recent procurement of 182 new HRVs will support the operational service requirements of Section 2 and Section 3 of the Purple Line Extension and augment service levels by replacing the aging 74 Option Order A650 HRVs.
However, Metro does not have sufficient resources and subject matter experts available to review all elements of this contract. Therefore, Technical and Program Management consultant support is needed to augment Metro’s staff to ensure timely delivery of the HR5000 HRVs and associated deliverables. Due to the complexity of managing a new vehicle procurement, the consultant services will be split into two elements to be awarded to two separate firms. This approach has been used to successfully manage multiple past rail vehicle procurement contracts at Metro
Background
BACKGROUND
In January 2024, the Board authorized the award of the HR5000 vehicle procurement contract to the Hyundai Rotem Company. Metro will require Technical and Program Management Support Services to provide oversight of Hyundai Rotem to review and facilitate the timely delivery of the HR5000 HRVs and associated deliverables. Timely delivery is critical for this contract, with 42 HRVs required to be delivered by the 2028 Olympics and Paralympic Games.
. A Request for Proposals (RFP) was issued to solicit proposals for Technical Support Services (Element A) and Program Management Support Services (Element B) to support the delivery of the HRV contract.
Discussion
DISCUSSION
Hatch Associates Consultants, Inc (Hatch) and AtkinsRealis USA Inc. (Atkins)were found to represent the Highest Rated and Best Value to Metro when all experience and price factors are considered in accordance with the RFP criteria. The Procurement Summary (Attachment A) further provides the detailed evaluation results and rankings for all proposers, including the weighted scores associated with each evaluation factor for each Element.
For the Technical Support Services (Element A), Hatch was found to have the highest rated and best value offer. The Element A scope of services shall include, but not be limited to, reviewing and preparing correspondence in response to technical submissions; support of Project Reviews; document control; test and inspection activity oversight; and other technical support services as directed by Metro.
For the Program Management Services (Element B), Atkins was found to have the highest rated and best value offer. The Element B scope of services shall include, but not be limited to providing oversight of the project status; identifying any variances from schedule and deliverable requirements and recommending corrective action; assessing and reporting on project performance; supporting Project Reviews; document control; reviewing Change Order requests; commissioning activity oversight; and other program management support services as directed by Metro.
Subject to Metro’s direction, the Consultants shall apply appropriate technical, engineering, and program management support services and resources to facilitate the timely production and delivery of the HR5000 HRVs and associated deliverables.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
The approval of these contract awards will have a direct and positive impact on system safety, service quality, system reliability, and overall customer satisfaction. The replacement of aging A650 Option HRVs will provide enhanced comfort level including improved communication systems and system reliability in addition to better maintainability to both our customers and stakeholders.
Financial_Impact
FINANCIAL IMPACT
The planned expenditure of $1,744,400 is included in the FY24 budget in cost center 3043, Rail Vehicle Acquisition, Account 50316. This amount includes both Metro Labor, Professional and Technical Services, and contingency currently under CP 206037 - Heavy Rail Vehicle Procurement and will be transferred to a new Capital project number for HR5000 Heavy Rail Vehicle (HRV) Consultant Support Services upon board approval.
Impact to Budget
The current source of funds for this action is Proposition A 35%, which is eligible for rail operating and capital projects. Staff will pursue additional Federal, State, and Local funds as they become available to maximize the intent of allowable funding allocations given approved guidelines and provisions.
Equity_Platform
EQUITY PLATFORM
Part of the new HR5000 rail vehicles will be used to replace the existing aged A650 Option vehicles and the remaining will be used on the D Line Extensions. Approving the recommendations in this board report will support the identified fleet expansion and service needs. The existing B and D Heavy Rail Lines currently serve customers in majority Equity Focus Communities (EFC) who rely on public transportation to commute to their jobs and other life commitments. With the D Line Extensions, Metro customers will have expanded access to opportunities in the Westside Cities/West Central Los Angeles subregions. The new HR5000 fleet is required to accommodate such expansions. Based on the 2019 Customer Survey, the B and D Heavy Rail Lines serve the following ridership:
• 27.7% below the poverty line
• 56.4% had no car available
Rider Ethnicity:
• Latino 38.9%;
• Black 13.1%;
• White 25.8%;
• Asian/Pacific Islander 15.2%;
• Other 6.5%
In addition, these areas include Union Station to Downtown LA, Koreatown (Wilshire/Western), Hollywood, Universal City, and North Hollywood.
The Diversity & Economic Opportunity Department (DEOD) established a twenty-seven percent (27%) Disadvantaged Business Enterprise (DBE) participation goal for this procurement, more details can be found in Attachment B - DEOD Summary.
Element A - Hatch listed three (3) subcontractors to perform the required scope of work. Certification verification revealed that Ramos Consulting Services and Virginkar & Associates, Inc. are DBE-certified. Hatch exceeded the goal by making a 29.27% DBE commitment.
Element B - Atkins listed two (2) subcontractors to perform the required scope of work. Certification verification revealed that Capitol Government Contract Specialist and Raul V. Bravo + Associates are DBE certified. Atkins has proposed to meet the 27% DBE commitment.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
These recommendations support Metro Strategic Plan Goal No. 5) to “provide responsive, accountable, and trustworthy governance within the Metro organization”. This goal strives to position Metro to deliver the best possible mobility outcomes and improve business practices so that Metro can perform more effectively and adapt more nimbly to the changing needs of our customers.
Alternatives_Considered
ALTERNATIVES CONSIDERED
Staff considered the following alternatives: using in-house Metro resources to perform this work. This approach is not recommended as Metro does not have sufficient resources and SMEs available to perform this work. This approach is not recommended for the lack of staff capabilities listed above.
The Board of Directors may choose not to authorize the Contract award for this project; however, this alternative is not recommended by Metro staff because the HR5000 HRV Procurement Program is critical to having sufficient vehicles to meet future service needs for PLE Section 2 and 3 as well as the 2028 Olympics and Paralympics.
Next_Steps
NEXT STEPS
Upon Board approval, a contract will be awarded and a Notice-to-Proceed will be issued to Hatch Associates Consultants, Inc. for Element A and AtkinsRealis USA Inc. for Element B, respectively. Metro and the two consulting firms will mobilize the required resources and SMEs to ensure the timely completion of deliverables by the Rail Vehicle Contractor.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - DEOD Summary
Prepared_by
Prepared by: Ray Saito, Sr. Manager, Project Control, (213) 922-3141
Annie Yang, DEO, Rail Vehicle Acquisition, (213) 922-3254
Debra Avila, Deputy Chief Vendor/Contract Management Officer, (213) 418-3051
Reviewed_By
Reviewed by: Conan Cheung, Chief Operations Officer, (213) 418-3034
