AUTHORIZE NEGOTIATION AND APPROVE CONTRACT AWARD
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1 Los Angeles County One Gateway Plaza Metropolitan Tknsportation Authority Los Angeles, CA OPERATIONS COMMITTEE JULY 15,2010 SUBJECT: CONTRACT OP , METRO EXPOSITION SCADA INTEGRATION ACTION: AUTHORIZE NEGOTIATION AND APPROVE CONTRACT AWARD A. The Board finds that there is only a single source of procurement to upgrade the existing Supervisory Control and Data Acquisition (SCADA) System to include the Metro Exposition Phase-I Light Rail. The Board hereby authorizes purchase of the software for the sole purpose of upgrading the system already in use. Requires Two-Thirds Vote B. Authorize the Chief Executive Officer to negotiate and award a firm-fixed price Contract No. OP to ARINC Inc. in an amount not-to-exceed $1,700,000, effective August I, 2010; and C. Amend the FYI 1' budget to add $300,000 to Project , Metro Exposition Line, Phase-I, using approved Expo Construction Authority funding. SCADA is a system that enables remote monitoring and control of train operations and facilities from the Rail Operations Control Center. All existing MTA light rail line SCADA systems were provided by ARINC Inc. In August of 2002, MTA competitively awarded Contract No. OP to ARINC Inc. for a firm-fixed price of $8,718,158 to provide the Light Rail SCADA system for the Blue, Green and Gold lines. The system was designed to accommodate future rail expansion for Eastside and Exposition without the need for a complete system. replacement. In July 2008, MTA awarded Contract No OP to ARINC Inc. for a firm-fixed price of $1,624,452 to expand the existing SCADA to incorporate the Gold Line Eastside to Atlantic/Pomona. As the sole owner of proprietary software essential to the design and operation of the existing SCADA system, ARINC Inc. is the only source that can expand the existing SCADA to incorporate the Exposition Phase-I Light Rail.
2 The expansion of the existing SCADA would provide Rail Operations with the most efficient method of operating the Exposition Phase-I Light Rail. Operating a new standalone system for the Exposition Light Rail would require additional labor support for maintenance and operation as well as additional space not available at the Rail Operations Center. The Metro Exposition Light Rail Transit Line (Expo Line) is currently under Phase-I construction with a forecast revenue operations date of July Advanced negotiation and award authority is sought to preserve the SCADA upgrade development and test schedule, as integration of the Expo Line SCADA is projected to require at least one year for completion. ARlNC Inc. provided a proposal on March 31, and our Management Audit Services Department (MASD) is in the process of performing an audit of this single source contract. Staff anticipates that the amount of time to complete the audit and final negotiations to arrive at a fair and reasonable firm fixed price could push the contract Notice to Proceed beyond an acceptable date. Board approval of the recommended action would allow MTA to immediately provide a limited notice to proceed to ARlNC Inc. while the audit and negotiations are being completed. POLICY IMPLICATIONS The recommendation is consistent with the Board approved memorandum of understanding (MOU) between MTA and the Exposition Metro Line Construction Authority (Expo). The MOU contains the agreement between MTA and Expo as required by State law including the MTA defined role in construction and testing to ensure the line will be compatible with MTA's existing rail system. OPTIONS The only alternative considered is to utilize a competitive bid process which is not recommended. This would significantly delay the project completion, increase costs and not provide the guarantee required for system operations. A competitive bid would necessitate the development of detailed Scope of Work, specifications and design information and would require additional procurement of consultant services. Staff anticipates that a competitive bid would require the installation of a new SCADA system for the Expo Line. This would complicate operations by requiring staff to be trained on new equipment and utilize two systems to operate the Blue Line. FINANCIAL IMPACT The funding of $1,000,000 for this action is included in the FYI 1 budget in Cost Center 3960, Transit Systems Engineering under Project Mid City Exposition Blvd LRT and line item 50508, Service Contract Maintenance. Approval of this action will
3 provide $300,000 in funding from the Expo LOP budget. There will be no LOP increase as a result of this action. Since this is a multi-year contract, the cost center manager and Chief Operations Officer will be accountable for budgeting the cost in future years, including any option exercised. Impact to Bus and Rail Operating and Ca~ital Budaet The source of funds for this action will come from the Expo project STlP Funds. No other sources of funds were considered for this activity because it is fully funded by the Expo Construction Authority. This activity will not impact ongoing operating costs because the expanded system does not require an increase of maintenance staff, spare parts inventory or expanded contract maintenance. BACKGROUND This contract award is for equipment and services to integrate the new Exposition phase-1 rail territory into the existing Metro Light Rail SCADA system. This requires installation of additional computer hardware, updates to databases and display, implementation of new functions, as well as updates to documentation and training. The recommended Contract award of the Light Rail SCADA system will allow rail operations to be remotely supervised and controlled from a central location. SCADA supports remote supervision and control for the following major functions: Train Movement Station Electrical Power Rail Traction Power Station and Tunnel Ventilation Fire, Gas, Seismic Detection Station Elevator and Escalator Operation Security Systems and Roll-Up Gates Remote supervision and control also satisfies firelsafety, California Public Utilities Commission and other regulatory requirements and is essential to the continuance of safe, effective and efficient rail service. NEXT STEPS Upon Board approval, staff will immediately issue a limited notice to proceed to ARlNC Inc., for mobilization of project resources and completion of work items identified as necessary to preserve project schedule. Staff will then negotiate and award a firrn-fixedprice contract in accordance with the Board approved recommendations. Staff will be responsible for technical project management and system integration with the Exposition Authority provided equipment to ensure the on-time delivery of a quality system.
4 A. Procurement Summary A-I Procurement History A-2 List of Subcontractors Prepared by: Charles Weissman, Supervising Engineer Nicole Dang, Contract Administrator
5 chief Operations Offi~cer - Arthur T. Leahy Chief ~xecutiv-e Officer EXPO SCADA Integntion
6 BOARD REPORT ATTACHMENT A PROCUREMENT SUMMARY METRO EXPOSITION SCADA INTEGRATION % DBE I February 1 1,201 0 B. Disadvantaged Business Enterprise Anticipated Level of Participation (DALP): 0%. Details are in Attachment A Request for Proposal Data: Notifications Sent: 1 Evaluation Information: A. Proposers Names: 1) ARINC lnc. Proposals Picked up: 0 Pro~osal Amount: 1) $1,759,835 Proposals Received: 1 Best and Final Offer Amount: $1,700, B. Evaluation Methodology: Details are in Attachment A-1.C Protest Information: A. Protest Period End Date: NIA-Sole Source B. Protest Receipt Date: NIA C. Disposition of Protest Date: NIA Contract Administrator: Nicole Dang Project Manager: Charles Weissman Transit Systems Operations Program Manager Telephone Number: (2 1 3) Telephone Number: (323)
7 A. Backaround on Contractor BOARD REPORT ATTACHMENT A-I PROCUREMENT HISTORY METRO EXPOSITION SCADA INTEGRATION ARlNC Incorporated (ARINC) is a provider of transportation communications and systems engineering solutions for several major industries: aviation, airports, transportation, government and defense. ARlNC is a $558 million company headquartered in Annapolis, Maryland with a local office in Marina Del Rey, California. The Marina Del Rey facility specializes in providing off-the-shelf, fully integrated Supervisory Control and Data Acquisition (SCADA) and Train Control systems. ARlNC provides advanced communication solutions to both transit and non-transit railway operators. ARlNC has provided systems engineering solutions based on their proposed Advanced Information Management (AIM) platform for the following rail transportation agencies: Metropolitan Atlanta Rapid Transit Chicago Transit Authority Greater Cleveland Regional Transit Authority Metro-Dade Transit Authority Metro-North Commuter Railroad Company Northeast Illinois Regional Commuter Railroad New York City Transit 63rd Street MTA Baltimore LRT Massachusetts Bay Transportation Authority New Jersey Transit HB LRT New Jersey Transit TMAC Southeastern Pennsylvania Transportation Authority Edmonton Transit Calgary Transit B. Procurement Backaround Metro competitively awarded Contract No. OP , to ARlNC Inc. in August 2002 to design and install the light rail SCADA system for Metro Blue, Green, and Gold Lines. Metro awarded a follow-on non-competitive Contract No. OP to expand the Metro's existing SCADA to ARlNC Inc., in July 2008 to incorporate the Gold Line Eastside extension. Staff determined that a sole source procurement was necessary because ARlNC Inc., owns proprietary software and design rights to the existing SCADA that can not be purchased in the open market in a timely and efficient manner. Furthermore, in order to have the system available for revenue service by the projected Expo Rail revenue service target date of July 201 1, staff recommends that contract award authority be granted while audit and negotiations are being completed. 7
8 The base contract period is for approximately one-year. Additionally, equipment and software will be covered under warranty for two years. The contract period of performance is anticipated to begin on or about August 1,2010. The Diversity and Economic Opportunity department (DEOD) does not recommend a Disadvantaged Business Enterprise Anticipated Level of Participation (DALP) for this procurement based on a level of participation that could reasonably be expected in this type of contract. C. Evaluation of Proposals This procurement is being conducted in accordance, and complies with, standard Procurement Policies and Procedures for Sole Source procurements. The Proposal submitted by ARINC, Inc. was determined to be responsive, responsible and qualified to perform the required services based on the RFP's minimum requirements and technical evaluation by the Project Manager. D. Price Analvsis and Explanation of Variances Staff shall rely heavily upon the audit being performed by Metro's Management and Audit Services Department. A fair and reasonable price shall be established after cost analysis, Independent Cost Estimate and Technical Evaluations are all completed. EXPO SCADA Integiation
9 BOARD REPORT AlTACHMENT A-2 LIST OF SUBCONTRACTORS METRO EXPOSITION SCADA INTEGRATION PRIME CONTRACTOR - ARINC, Inc. Disadvantaged Business Enterprise Anticipated Level of Participation (DALP): Subcontractor's Name Commitment None 0% TOTAL DALP-COMMITMENT 0% Comments: Bidder's responsiveness to the DBE DALP established for this project is voluntary.
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