Metro. Board Report SUBJECT: METRO EXPRESSLANES OPERATIONS AND MAINTENANCE TECHNICAL OVERSIGHT SUPPORT

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1 29 Metro Metro Board Report Los Angeles County Metropolitan Transportation Authority One Gateway Plaza 3rd Floor Board Room Los Angeles, CA File#: , Version: 1 AD HOC CONGESTION REDUCTION COMMITTEE MAY 20, 2015 SUBJECT: METRO EXPRESSLANES OPERATIONS AND MAINTENANCE TECHNICAL OVERSIGHT SUPPORT ACTION: APPROVE RECOMMENDATIONS RECOMMENDATION A. Award and execute a three year, cost plus fixed fee (CPFF) Contract No. PS to Jacobs Engineering Group, Inc. (Jacobs) in the amount of $3,097,404 for Expresslanes operations and maintenance technical oversight support. ISSUE B. Amend the FY 15 budget by $100,000 in cost center 2220 to cover expenditures for the remainder of the fiscal year. The ongoing operation and maintenance of the Express lanes is a complex task requiring technical skills and resources beyond those currently available within Metro. Thus, Metro staff requires assistance in overseeing the operation of the Express lanes with specific functions, including but not limited to, toll vendor performance compliance, transition from existing transponder technology to new technology, monitoring and analysis of the dynamic pricing algorithm, toll system data collection and performance analysis, analysis of potential impacts of new and pending legislation, and monitoring the performance and maintenance of the tolling equipment located on the and freeways. In addition, staff will require technical assistance in implementing the Board approved FY 15/16 Biannual Work Plan with the installation of new enforcement lights, new toll gantries and new signage. Contracting for technical oversight of a tolling project is common in the industry for agencies that are new to the operation of tolling facilities. As systems mature, the requirement for this type of oversight lessens over time. In addition, the long-term goal of Express lanes management is to hire staff with the technical capabilities enabling Metro to bring most, if not all of the oversight support in-house. Since the receipt of indefinite tolling authority in the fall of 2014, we have begun this process by hiring a new staff person to further assist with the more technical aspects of the program. Over the next Metro Page 1 of 5 Printed on 5/8/2015 powered by Legistar"'

2 File#: , Version: 1 few years, we are planning to bring on more staff with the tolling experience and technical expertise to enable us to become less reliant on outside contractors for technical oversight. DISCUSSION The toll operations and maintenance of the 110 and 10 Express Lanes is managed by three contracts: 1) The operations and maintenance agreement with Caltrans - responsible for and reimbursed by Metro for the Express Lanes roadway maintenance and Metro is responsible for the toll system and toll equipment maintenance; 2) The toll operations and maintenance contractor, Atkinson/Xerox- responsible for the daily toll operations, customer service and toll equipment maintenance; and, 3) The toll operations and maintenance oversight consultant, Jacobs- responsible for providing technical oversight of the toll operations and maintenance contractor performance. This board report relates to this contract. Currently support is being provided in the following critical areas: Toll System Operations- verification of all toll system data for performance monitoring and analysis, evaluation of the functionality of the dynamic pricing algorithm, analysis of the Business Rules, and monitoring and testing of system changes implemented by the toll vendor. Oversight of Customer Service Center Operations - monitoring of back office activities to ensure compliance with Standard Operating Procedures (SOPs), reviewing of toll vendor's monthly financial and performance reporting, monitoring key performance elements related to customer account maintenance and violation processing, and monitoring compliance with performance measures and regulatory requirements. Toll System Lane Equipment Operations and Maintenance- reviewing of toll vendor's maintenance activities and processes, oversight of any needed equipment repairs, reviewing of spare parts inventory management, and monitoring lane system equipment availability and reliability. Vendor Contract Administration Support- assistance in the preparation and negotiation of toll vendor change orders, reviewing and tracking of vendor contract deliverables and Metro Page 2 of 5 Printed on 5/8/2015 powered by Leg1star "'

3 File#: , Version: 1 performance against the scope of work, and reviewing reports and invoices. The new Contract No. PS will require similar oversight responsibilities as those outlined above with some additional requirements: monitoring and assisting in California's transition from Title 21 to 6C technology for transponder and lane equipment; monitoring and advising on national tolling interoperability requirements of MAP-21; assisting in the set-up and monitoring of performance of a video occupancy detection demonstration; assisting in the preparation of a new Toll Vendor Operations and Maintenance Request for Proposal; and, transitioning from existing Toll Operations and Maintenance contractor to a new contractor. DETERMINATION OF SAFETY IMPACT The Board action will not have an impact on the safety of Metro's patrons or employees. FINANCIAL IMPACT The total cost for this contract is $3,097,404 which is funded by toll revenues. The FY15 budget increases by $100,000, in Cost Center 2220 (Congestion Reduction), and is split between Project numbers (Expresslanes 1-110) and (Expresslanes 1-10). Since this is a multi-year project, the cost center manager and Executive Officer of Congestion Reduction will be responsible for budgeting the cost in future years. Impact to Budget The source of funds for this effort will be from toll revenues. No other sources of funds were considered. ALTERNATIVES CONSIDERED The Board may decline to approve the recommended actions. This is not recommended as it could result in less than optimal performance of the Expresslanes and poor customer experience. Metro Page 3 of 5 Printed on 5/8/2015 powered by Leglstar om

4 File#: , Version: 1 NEXT STEPS Upon Board approval, staff will update the FY15 budget and execute the contract to commence work. ATTACHMENTS Attachment A- Procurement Summary Prepared by: Kathy McCune, Director, (213) Metro Page 4 of 5 Printed on 5/8/201 5 powered by Legistar'M

5 File#: , Version: 1 Executive Officer, Congestion Reduction Initiative Interim Executive Director Vendor/Contract Management Chief Executive Officer Metro Page 5 of 5 Printed on 517/2015 powered by LegistarTM

6 ATTACHMENT A PROCUREMENT SUMMARY EXPRESSLANES OPERATIONS AND MAINTENANCE TECHNICAL OVERSIGHT SUPPORT 1. Contract Number: PS Recommended Vendor: Jacobs Engineering Group, Inc. 3. Type of Procurement (check one): D IFB [gj RFP 0 RFP-A&E D Non-Competitive D Modification D Task Order 4. Procurement Dates: A. Issued: January 12, 2015 B. Advertised/Publicized: January 12, 2015 C. Pre-proposal/Pre-Bid Conference: January 23, 2015 D. Proposals/Bids Due: February 3, 2015 E. Pre-Qualification Completed: March 6, 2015 F. Conflict of Interest Form Submitted to Ethics: February 4, 2015 G. Protest Period End Date: May 26, Solicitations Picked Bids/Proposals Received: up/down loaded: Contract Administrator: Telephone Number: Aielyn Dumaua Project Manager: Telephone Number: Kathleen McCune A. Procurement Background This Board Action is to approve Contract No. PS issued to provide operations and maintenance technical oversight in support of the on-going operations of the and Metro Expresslanes. The statement of work includes: Project Management- Contractor shall designate a Project Manager for the management of the overall contract and delivery of services. Advisory Services- Contractor shall provide strategic advice on Expresslanes Operations. Operations and Maintenance Oversight Support- Contractor shall support Metro in the management of the toll system vendor contract(s). The RFP was issued as an open solicitation in accordance with Metro's Acquisition Policy and Procedure Manual and the contract type is a Cost Plus Fixed Fee. This solicitation is exempt from the Small Business Set-Aside Program guidelines. Therefore, the contract may be awarded to a non-sbe firm. PS ExpressLanes Operations and Maintenance Technical Oversight Support

7 Two amendments were issued during the solicitation phase of this RFP: Amendment No. 1, issued on January 20, 2015, clarified the schedule of the Preproposal Conference and provided responses to proposer questions. Amendment No. 2, issued on January 27, 2015, provided electronic copies of the Plan-Holders' List and sign-in sheets for the pre-proposal conference, and provided responses to additional proposer questions. The solicitation was available for download from Metro's website. Advertisements were placed in four (4) leading publications within Los Angeles County (Los Angeles Daily News, L.A. Watts Times, La Opinion and Asian Week) and in two (2) popular tolling websites (tollroadsnews.com and ibtta.org) to notify potential proposers of this solicitation. Further, Metro notified potential prime contractors identified by the Project Office and other potential proposers from Metro's vendor database based on applicable North American Industry Classification System (NAICS) codes. A pre-proposal conference was held on January 23, 2015, attended by nine (9) participants representing eight (8) firms. The solicitation period was for 23 days. Seventy-nine (79) firms downloaded the RFP and were included on Metro's planholders' list. Twelve questions were received regarding the solicitation and responses were released prior to the proposal due date. Firms did not request for any extension of the proposal due date. One proposal was received on February 3, Since only one proposal was received, Metro staff canvassed the potential proposers to determine why there were no other proposers. The following is a summary of the market survey: 1. Potential proposer did not have available resources to prime the project. 2. Potential proposer chose to focus on other opportunities at Metro. 3. Potential proposer cannot provide a competitive proposal since they did not have appropriate resources available. 4. Potential proposer did not have sufficient time to identify and commit team members including subcontractors. 5. Potential proposer was looking for subcontracting opportunities only. Metro staff determined that the solicitation was not restrictive and, based on the market survey, the decisions not to propose were based on individual business considerations. A majority of the firms surveyed indicated that sufficient time was made available for firms to respond. Adequate competition existed as the solicitation was performed in an environment where all proposers believed that competition was available. Therefore, this solicitation can be awarded as a competitive award. PS ExpressLanes Operations and Maintenance Technical Oversight Support Page 2

8 B. Evaluation of Proposals/Bids A Proposal Evaluation Team (PET) consisting of staff from Metro's Countywide Planning and Development, Congestion Reduction Initiative and Construction Management was convened and conducted a comprehensive technical evaluation of the proposal received. The proposal was evaluated based on the following evaluation criteria and weights: Qualification and Experience of the FirmfTeam 15% Qualification and Experience of Key Personnel 30% Project Understanding and Approach 15% Work Plan 15% Partnering with SBEs (Small Business Preference) 10% Partnering with DVBEs (DVBE Preference) 5% Price 10% The evaluation criteria are appropriate and consistent with criteria developed for similar procurements for operations and maintenance technical oversight of express lanes. Several factors were considered when developing these weights, giving the greatest importance to the qualification and experience of key personnel. The PET evaluated the proposal according to the pre-established evaluation criteria and reasonableness of the technical proposal. Jacobs Engineering Group, Inc. (Jacobs), the incumbent, was the only proposer that responded to this solicitation. During February 4, 2015, to February 13, 2015, the PET met and scored the proposal received. On February 17, 2015, an oral presentation was held. Jacobs' project manager and key team members had an opportunity to present each firm's qualifications and respond to the evaluation committee's questions. In general, Jacobs' presentation addressed the requirements of the RFP, experience with all aspects of the required tasks, and stressed each firm's commitment to the success of the project. Based on a thorough evaluation of the proposal, the PET determined Jacobs to be technically qualified to perform the work. Qualifications Summary of Firms Within the Competitive Range: Jacobs Engineering Group, Inc. The recommended firm, Jacobs, has been in business for 68 years. It provides a wide range of engineering and toll consulting services from initial facility planning through operations and maintenance. Jacobs currently provides Metro with operations and technical maintenance oversight support for the on-going operations of the and Expresslanes. The Jacobs team is seasoned, professional and has four years of experience with the Metro Expresslanes. The Jacobs Team PS ExpressLanes Operations and Maintenance Technical Oversight Support Page 3

9 includes a SBE subcontractor that will provide field oversight support, and has been a member of the Jacobs team for two years. Jacobs added as part of its team a local DVBE subcontractor that will provide on-call staffing solutions for specialty field projects and assist with trend analysis of Expresslanes data. Following is a summary of the PET scores: Weighted Average Factor Average 1 FIRM Score Weight Score Rank 2 Jacobs Engineering Group, Inc. Qualification and Experience of the 3 Firm % Qualification and Experience of Key 4 Personnel % Project Understanding and 5 Approach % Work Plan % Partnering with SBEs % Partnering with DVBEs % Price % Total % C. Cost/Price Analysis The recommended price has been determined to be fair and reasonable based upon the pre-award audit, Project Manager's technical analysis, and cost analysis which includes a comparison of proposed rates with rates approved for similar Metro contracts. Although the negotiated price is 13.8% higher than the ICE, it took into consideration additional technical oversight staffing required as a result of recent changes that rapidly occurred in the tolling industry and the Metro Expresslanes. Through fact-finding, clarifications and the technical analysis, it was determined that additional level of effort was required for the following tasks: California's transition from Title 21 to 6C for transponders and lane equipment; Nationallnteroperability between all toll operators; Video occupancy detection capabilities on the Expresslanes; Dynamic pricing algorithm and High Occupancy Vehicle (HOV) only occurrences; Collection of general purpose lane data; and Data analysis and reporting requirements. Proposer Name Proposal Negotiated Amount Metro ICE Amount 1. Jacobs Engineering $3,204,998 $2,720,823 $3,097,404 Group, Inc. PS ExpressLanes Operations and Maintenance Technical Oversight Support Page 4

10 D. Background on Recommended Contractor The recommended firm, Jacobs, headquartered in Pasadena, California has been in business for 68 years. It is an international engineering, architecture and construction firm. It provides a wide range of technical expertise including toll consulting services from initial facility planning through operations and maintenance. Jacobs currently provides Metro with operations and maintenance technical oversight support for the on-going operations of the and 1-10 Express lanes. The Congestion Reduction Department indicated that the services provided by Jacobs since February 2013 have been satisfactory. The Jacobs team is composed of transportation professionals that bring with them a broad base of skills and experience having provided similar services for both the private and government sector. It has a proven track record in providing operations and maintenance oversight support of the Express lanes. The Project Manager (PM) has over 20 years of experience in tolling. The PM is skilled at the financial integration of toll systems and the performance of complex cost-revenue analysis. The PM has over four years of experience with the Metro Expresslanes, two years under the current contract and two years as a member of Metro's construction management team. E. Small Business Participation The Diversity and Economic Opportunity Department (DEOD) established a 7% Small Business Enterprise (SBE) goal and 3% Disabled Veterans Business Enterprise (DVBE) for this project. Jacobs Engineering Group, Inc. exceeded the goal by making a 7.21% SBE commitment and a 3.07% DVBE commitment. SMALL SBE7% SMALL SBE 7.21% BUSINESS DVBE 3% BUSINESS DVBE 3.07% GOAL COMMITMENT SBE/DVBE Subcontractors SBE% DVBE% Committed Committed 1. Power Tech Engineers (SBE) 7.21% Casamar Group, LLC (DVBE) 3.07% Total Commitment 7.21% 3.07% PS ExpressLanes Operations and Maintenance Technical Oversight Support Page 5

11 F. Living Wage and Service Contract Worker Retention Policy Applicability The Living Wage and Service Contract Worker Retention Policy is not applicable to this contract. G. All Subcontractors Included with Recommended Contractor's Proposal Subcontractor Services Provided 1. Power Tech Engineers, Inc. Toil systems field oversight 2. Casamar Group, LLC Temporary staffing and trend analysis PS ExpressLanes Operations and Maintenance Technical Oversight Support Page 6

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