Port of Whitman County Request for Proposal for Washington State Grain Train Strategic Plan

Transcription

1 Port of Whitman County Request for Proposal for Washington State Grain Train Strategic Plan The Port of Whitman County is hereby announcing an RFP for firms interested in providing professional services to develop a ten-year strategic plan for the Washington State Grain Train Program. This program is a program that provides Washington state farmers with access to state and port-owned grain cars used in shipping agricultural products (predominantly wheat and barley) to both domestic and foreign markets. Background The Washington State Grain Train is a program that provides Washington state farmers with access to state and port-owned grain cars used in shipping agricultural products (predominantly wheat and barley) to both domestic and foreign markets. The program celebrated 20 years of operation in 2014, marking the occasion with record tonnage due to inadequate supply of Class I-owned grain cars in the western half of the United States. The program continues to be an important tool for Washington state farmers to compete globally through access to efficient multimodal transportation options. History of the Washington Grain Train The program began in 1994, when Washington state received federal funds, which were used to purchase the initial 29 state cars in the program. Class I railroads prioritize use of their grain cars to longer distance shipments, because they often provide better revenue opportunities. When grain car supply is tight due to large crop size or other factors, Washington state farmers are often unable to cost-effectively gain access to Class I grain cars due to the relative short distance between wheat producing fields of eastern Washington and the grain export terminals located along the lower Columbia River. This results in farmers resorting to longer truck trips to reach the market. WSDOT partners with three port districts (Walla Walla, Whitman County and Moses Lake) in the management and oversight of the program. Grain cars are apportioned between several short line railroads in the state. Those railroads have the responsibility to manage day-to-day operations of the cars. Program Goals Move Washington-grown products reliably and efficiently to domestic and international markets. Help preserve Washington s short line railroads by generating revenue that may lead to better maintained or upgraded rail lines and support long-term infrastructure needs. Reduce greenhouse gas emissions and saves fuel by reducing truck shipments. Help reduce wear and tear on local roadways by reducing truck vehicle miles traveled (VMT). Support a healthy multi-modal transportation system that improves economic vitality and enables development in the region. Be self-sustaining and provide funds for the maintenance and preservation of the state-owned short line railroad when adequate funds are available to do so. What & Where? The cars are primarily used to transport wheat and barley to both Upper and Lower Columbia River terminals and ports. Increasingly, cars are being used to move commodities to domestic

2 markets. In the future, some cars will be used to move wheat short distances between elevators within the state, improving efficient operations on Class I railroads. To better understand how well the Grain Train is working, we talked to program users in July What did we hear? The programmatic goals are sound and still relevant. Funding for car replacement is important, but not considered a priority (most of the existing fleet is operational through 2031). The program has grown from 29 to cars and continuing to grow the program should be priority over transferring funds to short line railroad maintenance. The economics of grain transport in Washington has changed. There are fewer and larger shippers now than in Some shippers get squeezed out of equipment. Those that have equipment are very protective of it. Those that want equipment have valid, unmet commercial needs. Shippers have differing purposes for using the equipment. A car allocation strategy should be implemented ensure access to equipment is as fair and possible. Develop a business plan that better addresses demand through improved car utilization will be challenging, but provides the best way to address the current unmet needs of the program. The Need for a Strategic Plan In order to update the Business Plan for the Washington Grain Train Program, WSDOT and the managing ports must first develop a 10-year Strategic Plan. The plan will develop a set of recommendations that will be considered for adoption and inclusion into an updated Business Plan. The Strategic Plan must evaluate the program s operational effectiveness as well as the programs current assets and future needs. In order to do this, WSDOT and the managing ports have developed the following goals, which the Strategic Plan will achieve. Due to the technical nature of the detailed operations analysis as well as the asset optimization that will be conducted, a consultant will be hired to perform some of this work. In addition, a consultant will provide expertise in managing the outreach and feedback, ensuring all stakeholders input is considered. Funding for the plan will come from existing Grain Train Reserve accounts currently managed by each of the port districts. Strategic Plan Goals The plan will follow WSDOT s Practical Solutions approach to make recommendations on a Railcar Fleet Size and Allocation Strategy, which addresses the following: o Operations - Use demand forecasts and stakeholder input to evaluate the effectiveness of the current operating plan. Alternative operational models will also be considered. This analysis will be used to determine if demand can be met through changes in operations or if the grain car fleet size would need to be expanded. o Sustainability - Assess the current revenue stream and determine if it meets the program sustainability goals. Through financial analysis, evaluate how alternative operational models would impact program revenue and sustainability. The analysis should pay particular attention to what level of fleet expansion can continue to maintain adequate revenue. The plan will also determine whether the transfer of funds to short line railroad preservation and maintenance should continue to be a programmatic goal or if those funds are necessary to sustain the grain train program. o Cost Analysis - Look at current and future maintenance expenses, as well as, projected car procurement costs to determine a plan to replace existing equipment and consider 1 Currently, WSDOT owns 96-grain cars and Port of Walla Walla owns 18-grain cars.

3 when (and if) to procure additional equipment. The plan will recommend either fleet expansion or fleet replacement be prioritized based on both operational and financial analysis. o Grain Car Allocation - After considering alternative operational models, the plan will recommend an allocation methodology that maintains adequate revenue, improves the existing utilization and continues to meet the programmatic goals. o Performance Management - Develop performance metrics for the program that help to both measure and communicate the program s value and effectiveness to stakeholders and the state. The plan will identify improvement strategies and alternatives with stakeholder engagement, including: o Stakeholder interviews (current shippers and those interested in participating in the program including cooperatives, short line and Class I railroads) consisting of questions designed to achieve the Strategic Plan Goals above. o Stakeholder outreach meetings to present the draft plan and recommended strategies and receive feedback on those recommendations. Tasks Task 1: Research trends in rail car availability and utilization (consultant driven) Rail equipment utilization has changed in the past 20 years the Grain Train program has been in operation. Considering the Strategic Plan goals, this task will investigate current rail car strategies and examine future trends used by Class I railroads, short line railroads, private leasing firms and other public sector programs including: Multicar or shuttle program efficiency and its impact on short line railroads and small shippers. Class I car pricing/access strategies designed to incent highest and best use and their impact on Washington state shippers transport behaviors. Examining the availability cars provided by private companies to efficiently address peaks in demand or other issues that result in car access restraints. Reviewing car program models inside and outside of agricultural-based uses to inform potential operation strategies to be considered. Task 1 Deliverable: Technical Memorandum that will inform on the current trends in car availability, utilization and operational strategies. This memo will be used to guide stakeholder interviews and the development of plan recommendations. Task 2: Stakeholder Interviews (consultant driven) Guided by the Strategic Plan goals and using information learned in Task 1 as well as other financial and operational data, the consultant will develop a Stakeholder Interview Questionnaire. The consultant will interview current grain car users as well as those interested in having access to the cars. Grain car users should, at a high level, provide a picture of future demand for equipment and consider ways to improve car utilization. The interviews will also have a section that will focus on short line railroads that currently have access to grain cars as well as those interested in participating in the program. In order to best understand future trends in car supply and how best to position the program in the future, the consultant will interview both of the Class I railroads and will also interview one or more of the grain export terminals, which receive and unload cars. Other destination elevator operators may be interviewed as appropriate.

4 Task 2 Deliverable: Technical Memorandum that will analyze how effective the grain car program is today and consider changes to improve operational performance in the future. The technical memo should clearly document stakeholder feedback including common themes and topics where stakeholders hold alternate or opposing views from one another. The memo will also provide guidance on an optimal car fleet size, considering both demand for equipment as well as strategies for efficient car utilization. Task 3: Stakeholder Engagement Meetings & Plan Recommendations (consultant driven) Working with WSDOT and the managing ports, the consultant will synthesize information received in both the research and interview process and create a draft strategic plan and a presentation that will be used to communicate draft recommendations based on information gathered to this point. The consultants will be tasked with leading the outreach effort, receiving comments on draft recommendations, reporting the results back to WSDOT and the managing ports on the feedback received as well as any proposed changes to the draft plan recommendations. Task 3 Deliverables: 1. Develop a draft plan including recommendations for review. 2. Develop a communications plan, which includes various communication tools used to present information and draft plan recommendations at 2-3 stakeholder engagement meetings. Meetings will be coordinated with managing ports and/or MPO/RTPO meetings. 3. Receive and document verbal and written feedback on draft plan recommendations, including appropriate feedback loop. 4. Propose and document changes to recommendations that lead to the final plan recommendations. Task 4: Final Plan: Washington State Grain Train Strategic Plan (consultant driven) The consultant will incorporate all previous tasks, including WSDOT and the managing ports edits, to the draft plan into a concise final plan document. The plan will include an overview of each of the tasks as well as findings from all work performed. The document will also include plan recommendations that are tied back to the programmatic goals and the Strategic Plan goals. The plan must also include feedback received during the process. In addition to the final document, an Executive Summary and PowerPoint presentation summarizing the plan will also be required. All documents should be online compatible. Revisions to the RFP The Port of Whitman County reserves the right to revise the RFP and/or to issue amendment(s) to the RFP. The Port of Whitman County also reserves the right to cancel or to reissue the RFP in whole or in part, prior to the execution of a contract. This RFP does not obligate the Port of Whitman County to contract for services specified herein. RFP Timeline Issue RFP April 7, 2016 Consultant Submittals Due by 4:00 PM, PST* April 26, 2016 Consultant Interviews (if required) May 12, 2016 Send Notification of of Apparently Successful Consultant (if required) May 17, 2016 *Pacific Standard Time

5 Port of Whitman County reserves the right to revise the above timeline. Selection of a Consultant The Consultant(s) must have the requisite experience to implement the work to be performed for this project. Most Favorable Terms Port of Whitman County reserves the right to make an award without further discussion of the submittal. Therefore, the submittal should incorporate the most favorable terms that the Consultant can offer. There will be no best and final offer procedure. The Port of Whitman County does reserve the right to contact a Consultant for clarification of its submittal during the evaluation process. In addition, if a submittal is selected, the Port of Whitman County reserves the right to enter into contract negotiations with the Apparent Successful Consultant, which may include discussion regarding the Consultant s approach to meeting the terms of the service contract. Contract negotiations may result in incorporation of some, or the Consultant s entire proposal. The Consultant should be prepared to accept this RFP for incorporation into a contract. RFP Evaluation The process for awarding this RFP may be done in phased sections. The Consultant s proposal will be evaluated based on the process outlined below. The top scoring Consultant(s) will proceed to the next step, if necessary, in this RFP process. Proposals with tied scores will be treated equally and the tied Consultant s proposals will be forwarded to the next phase if they are among the top scoring consultants. Consultant Interviews Top Submittals will proceed on to the interview phase, if needed. A Review Panel consisting of representation from the Port of Whitman County, the Washington State Department of Transportation, the Port of Walla Walla and the Port of Moses Lake will evaluate the submittals and will also conduct the interviews. Review Panel evaluations will be based on the written responses submitted by Consultants to the entire RFP. The scores of the written responses will determine the top-qualifying Consultants. Each portion of the written responses shall be reviewed by Review Panel which will determine the submittal most responsive to the requirements stated in this RFP. The Review Panel will rank Consultants, and short-listed Consultants may be interviewed. References will be checked for one or more of the final candidates. The Review Panel reserves the right to select a Consultant based solely on written submittals and to not convene oral interviews. Oral presentations may be utilized in selecting the winning submittal. The top scoring finalists from the written evaluation may make an oral presentation, which will determine the final contract award. The Port of Whitman County will contact top-scoring Consultant(s) to schedule a time. Commitments made by the Consultant at the oral interview, if any, will be considered binding. Oral presentations, if requested, will be limited to one hour (1:00) of which forty-five (45) minutes will be for the Consultant s presentation and Fifteen (15) minutes for questions from the interview team.

6 Presentations shall include an overview of the proposed approach and project methodology they intend to use to successfully manage and control this project. References to a recent relevant successful projects and other relevant work are desirable and should be included with your Submittal. If necessary, interviews will be held over the phone on or near May 12 th, Consultant s that have submitted the top submittals and have been selected to participate in the interview phase will be contacted no later than May 5 th, Further instructions may be provided at that time. Evaluation and Weighting of Submittals The following weighting and points will be assigned to the proposal for evaluation purposes: Criteria RFP Compliance Review Business References Technical Proposal (50%) Cost Proposal (25%) Relevant Previous Experience (15%) Best Value (10%) This section scored all or nothing Total Points Possible Score Pass/Fail Pass/Fail 500 points 250 points 150 points 100 points 1000 points Selection of consultants The evaluation process is designed to award this procurement not necessarily to the Consultant of least cost, but rather to the Consultant whose submittal best meets the requirements of this RFP. However, Consultants are encouraged to submit proposals that are consistent with government efforts to conserve financial resources. Completion Date All work related to this project must be completed on or before January 15, Submittal Interested firms should submit one (1) electronic copy of an RFP to the Port of Whitman County by four (4) p.m., April 26, RFP should be submitted to the below. Late submissions will not be considered. Please contact Joseph R. Poire, Executive Director by phone or at or port@portwhitman.com for general questions. The Port of Whitman County is an equal opportunity employer. Joseph R. Poire, Executive Director Port of Whitman County 302 N Mill Street Colfax, WA (509) port@portwhitman.com