Meeting_Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
MARCH 21, 2024
Subject
SUBJECT: POWER SWEEPING SERVICES
Action
ACTION: APPROVE CONTRACT AWARD
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to award a firm fixed unit rate Contract No. OP1066318370000 to Joe’s Sweeping, Inc. dba Nationwide Environmental Services, to provide systemwide power sweeping services in the not-to-exceed (NTE) amount of $7,162,050 for the three-year base period and $2,588,620 for each of the two, one-year options, for a total NTE amount of $12,339,290, effective June 1, 2024.
Issue
ISSUE
The existing power sweeping services contract expires on May 31, 2024. To avoid a lapse in service and continue providing safe, quality, regularly scheduled, and as-needed power sweeping services systemwide, a new contract award is required, effective June 1, 2024.
Background
BACKGROUND
On April 26, 2018, the Board awarded a firm fixed unit rate Contract No. OP962800003367 to Nationwide Environmental Services to provide regularly scheduled and as-needed power sweeping services throughout Metro facilities and parking lots, effective June 1, 2018.
Under the existing contract, the contractor is required to provide power sweeping services for 110 Metro bus and rail facilities and 40 Caltrans owned Park and Ride (P&R) facilities, for a total of 150 facilities. With the opening of the Metro K line (Crenshaw/LAX) and the acquisition of properties, services were expanded to include an additional 11 bus and rail facilities for an updated total of 161 facilities and parking lots. To date, the contractor has been satisfactorily providing regularly scheduled and as-needed power sweeping services systemwide.
While staff continuously evaluates service levels and explores opportunities for improvements, Metro’s service area was split geographically into North and South regions. These actions are necessary to increase competition and expand opportunities for small business participation.
On November 18, 2021, a new SBE set-aside solicitation was issued to provide power sweeping services under two (2) new contracts for the North and South regions. On December 22, 2021, two (2) bids were received, one (1) per region. However, the bids were deemed non-responsive for not meeting the SBE goals, and the solicitation was canceled on March 17, 2022. A follow-up market survey was conducted to obtain feedback from firms on the plan holders list and the firms that submitted bids. Based on the feedback received, staff re-evaluated Metro’s service area and restructured the scope of services splitting Metro’s service area into three (3) geographical regions, to further enhance competition and small business participation.
On June 23, 2022, the Board approved Modification No. 11, extending the existing contract period of performance from August 31, 2022, through March 31, 2023, and increasing the contract authority by $995,000 from $5,846,346 to $6,841,346 to ensure service continuity and allow time for a re-solicitation. Concurrently, in preparation for the re-solicitation, two (2) outreach events were conducted on June 21, 2022, and June 29, 2022, where staff provided an overview of the upcoming procurement for the newly restructured three (3) regional contracts.
The new SBE prime set-aside solicitation was issued on September 9, 2022, with a bid due date of October 10, 2022. Since no bids were received, staff followed up with a market survey to obtain feedback from plan holders. The market survey revealed that since the COVID-19 pandemic, the private sector for power sweeping on the West Coast has experienced major changes where larger companies began to acquire smaller businesses, resulting in fewer firms capable of providing power sweeping service while facing significant challenges with long lead times for vehicle acquisition, ability to meet South Coast Air Quality Management District (AQMD) regulations and guidelines, and having the available resources to meet market demand. Therefore, staff re-evaluated Metro’s service area and restructured it under one (1) contract to provide systemwide power sweeping services throughout Metro’s bus and rail facilities.
To ensure service continuity, on March 23, 2023, the Board approved Modification No. 14, extending the existing contract period of performance from June 1, 2023, through May 31, 2024, and increasing the contract authority by $1,902,420 from $6,841,346 to $8,743,766. On August 30, 2023, a new open competitive solicitation was issued and one (1) bid was received on October 4, 2023, from Nationwide Environmental Services, Inc.
Discussion
DISCUSSION
Under the new contract recommended for award, the contractor is required to continue providing regularly scheduled and as-needed power sweeping services throughout Metro facilities and parking lots. Services include the removal of trash and debris such as leaves, glass, and metal particles from parking lots, parking structures, and gutters. During the contract period of performance, the number of Metro bus and rail facilities serviced will increase from a total of 161 to 168 with the completion of the Airport Metro Connector (AMC) in late 2024 and the A Line (Blue) Foothill Extension 2B expansion project in early 2025.
This contract is critical to Metro’s operations to mitigate against accumulation of trash and debris and ensure the provision of safe and clean facilities and parking lots for Metro employees and patrons. While the new contract amount is 42% higher than the Independent Cost Estimate (ICE) and the existing contract amount, this reflects the post COVID-19 market factors including the significantly escalated prices of fuel, materials and vehicle acquisitions along with the major changes and mergers within the power sweeping industry resulting in fewer firms capable of providing power sweeping services. Also, the new contract amount accounts for the new locations associated with Metro’s system expansion projects as well as increased service levels to enhance the overall maintenance services. Therefore, the new contract amount is deemed fair and reasonable.
Determination Of Safety Impact
DETERMINATION OF SAFETY IMPACT
The approval of this item will ensure service continuity and meeting Metro maintenance standards by providing regularly scheduled and as-needed power sweeping services with prompt response to deliver safe, quality, on-time, and reliable services, as well as continuously enhancing Metro bus and rail facilities’ overall appearance and cleanliness.
Financial_Impact
FINANCIAL IMPACT
For power sweeping services, funding of $449,000 for the remainder of FY24 is allocated under cost center 8370 - Facilities Contracted Maintenance Services, account 50308, Service Contract Maintenance, under various projects.
Since this is a multi-year contract, the cost center manager and Deputy Chief Operations Officer, Shared Mobility will be accountable for budgeting the cost in future years.
Impact to Budget
The current source of funds for this action includes operating eligible sales tax funding including Passenger Fares, Propositions A/C, Measures R/M, STA, and the Transportation Development Act. These fund sources are eligible for bus and rail operations. Use of these funding sources leverages maximum project fund use given approved guidelines and provisions.
Equity Platform
EQUITY PLATFORM
Regularly scheduled and as-needed power sweeping services contribute to improving Metro bus and rail facilities’ cleanliness and providing a safe, quality, accessible, and reliable environment for Metro’s patrons. Bus and Rail station cleanliness was identified as one of the top areas of concern in the 2020 Customer Experience Survey and the FY23 Metro Budget Survey conducted to develop the Metro Customer Experience Plan 2022 and assist with funds allocation for the FY24 budget.
As part of this solicitation, two (2) Systemwide Metro Connect Outreach events were held on May 31, 2023, and June 14, 2023, with the participation of over 30 attendees representing small and medium size firms within Equity Focus Communities, such as the South Park and Willowbrook communities. The outreach events were advertised to existing businesses registered with Metro’s Diversity and Economic Opportunity Department (DEOD). During the outreach events, staff provided an overview detailing the new enhanced Medium Size Business Enterprise (MSZ) and SBE Program’s policy for competitively negotiated procurements. Staff also provided an overview of the upcoming solicitation scope of services.
The Diversity and Economic Opportunity Department (DEOD) established a 7% SBE goal and a 3% Disabled Veterans Business Enterprise (DVBE) goal. Joe’s Sweeping, Inc. dba Nationwide Environmental Services, made a 7% SBE and 3% DVBE commitment. See Attachment B - DEOD Summary.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
The staff recommendation supports Strategic Goal 2: Deliver outstanding trip experiences for all users of the transportation system. As an identified top area of concern, performing ongoing scheduled and as-needed power sweeping directly improves Metro bus and rail facilities’ cleanliness thereby enhancing customers’ overall transit experience.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The Board may elect not to approve this recommendation. This option is not recommended as it would result in a gap in service impacting Metro’s system safety, cleanliness, and customer experience.
With the completion of a financial based insourcing/outsourcing study based on a quantitative and qualitative assessment, staff has analyzed insourcing/outsourcing options for power sweeping services among other services. Based on the findings, power sweeping services may be considered for insourcing. Approving this recommendation for a contract award will allow staff the time during the three-year base contract term to take the necessary steps for the planning, acquisition of equipment and materials, allocation of resources, training, and implementation to bring power sweeping services in-house.
Next_Steps
NEXT STEPS
Upon approval by the Board, staff will execute Contract No. OP1066318370000 with Joe’s Sweeping, Inc. dba Nationwide Environmental Services to provide power sweeping services throughout Metro’s bus and rail facilities and Caltrans owned P&R facilities effective June 1, 2024.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - DEOD Summary
Prepared_by
Prepared by: Lena Babayan, Executive Officer, Operations Administration (Interim), (213) 922-6765
Carlos Martinez, Director, Facilities Contracted Maintenance Services, (213) 922-6761
Shahrzad Amiri, Deputy Chief Operations Officer, Shared Mobility, (213) 922-3061
Carolina Coppolo, Deputy Chief, Vendor/Contract Management Officer (Interim), (213) 922-4471
Reviewed_By
Reviewed by: Conan Cheung, Chief Operations Officer, Transit Operations,
(213) 418-3034
