TEXAS DEPARTMENT OF TRANSPORTATION STATEWIDE RAILROAD FLAGGING SERVICES

TEXAS DEPARTMENT OF TRANSPORTATION STATEWIDE RAILROAD FLAGGING SERVICES SPECIFICATION NO. PUBLICATION This specification is a product of the Texas Department of Transportation (TxDOT). This specification may not be sold for profit or monetary gain. If this specification is altered in any way, the header, and any and all references to TxDOT, must be removed. TxDOT does not assume nor accept any liability when this specification is used in the procurement process by any other entity. 1. SCOPE: This solicitation is to provide statewide railroad flagging services when TxDOT personnel are performing work, as approved by the affected operating railroad, on or near a railroad right-of-way or in close proximity to railroad tracks, throughout the state of Texas. 2. DEFINITIONS AND ACRONYMS 2.1. BNSF Burlington Northern Santa Fe Railway Company 2.2. FLSA Fair Labor Standards Act 2.3. KCS Kansas City Southern Railway 2.4. RRD-RH Rail Division, Rail Highway Section 2.5. UPRR Union Pacific Railroad Company 3. APPLICABLE LAWS AND STANDARDS: The vendor shall provide the specified service requirements in accordance with all applicable federal, state and local laws, standards and regulations necessary to perform the services, including, but not limited to: 3.1. 49 CFR, Part 214, Railroad Workplace Safety 3.2. 29 U.S.C. 201, et seq., The FLSA of 1938, as amended 4. HISTORY 4.1. Flagging services are required for the safety of TxDOT personnel performing services on a railroad right-of-way, within 25 feet of a railroad track, or where TxDOT personnel can fall into this zone. Services are needed to safely direct trains and other railroad traffic through construction and maintenance zones, while work is being performed. The UPRR, BNSF and KCS have elected to use one vendor to provide railroad flagging services. The selection of one vendor to provide railroad flagging services was initiated in November 2015 by BNSF and UPRR, and finalized as best practice in the fall and winter of 2016. The vendor providing flagging services is required to have approval from each of the three railroads to provide services on railroad rights-of-way. 4.2. Flaggers are not conventional traffic control flaggers and are required to observe work activities that are within 25 feet of a railroad track or have the potential to tip or fall and be within 25 feet of a railroad track and to contact the operating railroad to stop trains, if needed. The flagger is in contact with affected trains daily. 4.3. TxDOT contacts the vendor providing flaggers, and on the day before the project begins, the flagger contacts the appropriate railroad to coordinate activities, provide a train bulletin, as needed, then travels to the work site to set up any equipment and provide briefings to TxDOT s project personnel. The flagger performs flagging services for TxDOT employees; and, upon conclusion of the TxDOT project or end of bulletin hours, removes the equipment prior to leaving the work site. 1-8

5. RESPONDENT QUALIFICATIONS: The respondent shall: SPECIFICATION NO. 5.1. Be a company engaged in the business of providing certified railroad flaggers and administrative services (i.e., providing required documentation, invoicing, etc.) to support flagging services for a minimum of three years within the last five years. Recent start-up businesses do not meet the requirements of this solicitation. NOTE: A start-up business is defined as a new company that has no previous operational history or expertise in the relevant business and is not affiliated with a company that has that history or expertise. Two companies are affiliated if the two companies have a common parent company or if one is the parent or subsidiary of the other. 5.2. Have an Individual Letter of Statement from UPRR, BNSF and KCS, stating respondent has been approved to provide flagging services on the respective railroad s property. 5.3. Be in good financial standing and current in payment of all taxes and fees such as state franchise fees. TxDOT reserves the right to request a copy of the respondent s audited or un-audited financial statement. TxDOT may request a statement from the president, owner or financial officer on company letterhead certifying that the company is in good financial standing and current in payment of all taxes and fees. When financial statements are requested, TxDOT will review the respondent's audited or un-audited financial statement in accordance with Texas Government Code, Title 10, Subtitle D, Section 2156.007, to evaluate the sufficiency of the respondent's financial resources and ability to perform the contract or provide the service required in the solicitation. TxDOT will be the sole judge in determining the sufficiency of the respondent's financial resources and ability to provide the service. Factors to be reviewed include: 5.3.1. Balance sheets 5.3.2. Net working capital 5.3.3. Current asset ratio 5.3.4. Liquidity ratio 5.3.5. Auditor(s) notes 5.3.6. Any notes to the financial statements 6. RESPONDENT REFERENCES: The respondent should submit a minimum of three references to substantiate the qualifications and experience requirements for similar services completed for three years within the last five years. References shall illustrate respondent s ability to provide the services outlined in the specification. References shall include name, point of contact, telephone number and dates services were performed. The response may be disqualified if TxDOT is unable to verify qualification and experience requirements from the respondent s references. The response may be disqualified if TxDOT receives negative responses. TxDOT will be the sole judge of references (Ref. Respondent References). 7. FLAGGER QUALIFICATIONS: The respondent shall provide flaggers trained and certified in accordance with 49 CFR 214. 8. VENDOR REQUIREMENTS: The vendor shall: 8.1. Adhere to the TxDOT Terms and Conditions identified on the solicitation. 2-8

8.2. Provide a primary point of contact. SPECIFICATION NO. 8.3. Provide proof of flagger training and copies of certification for each flagger providing services for TxDOT projects (Ref. Para. 19.2.3.). 8.4. Provide proof of new or replacement flaggers training and copies of certification within a minimum of 10 days prior to the new or replacement flagger providing services on TxDOT projects. 8.5. Provide flaggers fluent in English with the ability to receive, give and understand written and oral instructions. Should bilingual flaggers be required, the requirement will be listed on the solicitation. 8.6. Provide flagger with all equipment in accordance with 49 CFR 214. 8.7. Coordinate with TxDOT the number of flaggers required for each flagging request. 8.8. Respond to requests for flagging services with a list of all certified flaggers to provide flagging services and flaggers availability a minimum of two business days prior to services being performed. 8.9. Provide transportation for or reimbursement to flaggers for personal vehicle mileage to and from the work site(s) or to a different work site location, if a change is made in location during the day, as required by the FLSA. NOTE: Locations may change during the day and flaggers may be required to work independently at separate locations. Should the work site change during the day, the vendor shall be responsible for adhering to the FLSA. 8.10. Monitor employees driver license records and ensure all personnel driving to and from TxDOT work locations and on a railroad right-of-way shall: 8.10.1. Have a current valid driver license acceptable in the state of Texas. 8.10.2. Have no Driving Under the Influence (DUIs) or Driving While Intoxicated (DWIs) on driving record within the past three years. 8.10.3. Have no more than three moving violations on driving record within the past three years. NOTE: Failure by the vendor to monitor employees driver license records may result in the purchase order being canceled for cause, due to a violation of the Transportation Code, Chapter 521, Section 021. TxDOT may request the vendor to provide a statement from the vendor s insurance provider attesting to the valid status of vendor employees driver licenses. 9. SERVICE REQUIREMENTS: The vendor shall: 9.1. Begin work within 10 business days of award of the purchase order or on the agreed upon date between TxDOT and the vendor. 9.2. Respond to the designated TxDOT representative to confirm locations within four hours after telephone notification of the need for flagging services. 9.3. Perform flagging services in accordance with the latest revision of 49 CFR 214. 9.4. Adhere to the safety requirements and instructions from the applicable railroad. 9.5. Provide flaggers, as needed, seven days a week 24 hours per day, unless otherwise specified in the solicitation. 3-8

SPECIFICATION NO. 9.6. Provide monthly reports to RRD_RH on usage of flagging services to include, but not be limited to, location, hours flagging services were provided, and total dollar amount. After award of the purchase order, TxDOT and vendor will determine the date the reports are due. 9.7. Provide a log of flagger activities and work hours for each scheduled flagging service with the invoice (Ref. Para. 17.2.). 10. LOCATION(S): Location(s) are any TxDOT work site throughout the state of Texas where a TxDOT right-of-way has to be accessed near a railroad track or requires entering a railroad right-of-way. 11. VENDOR PERFORMANCE: Vendor performance will be monitored on a regular basis by TxDOT. 11.1. An unsatisfactory performance determination includes, but is not limited to: 11.1.1. One instance of providing an uncertified flagger (Ref. Paras. 7, 8.3. and 8.4.). 11.1.2. Two instances within one year of failure to respond to a telephone notification of the need for flagging services within four hours (Ref. Para. 9.2.). NOTE: Unsatisfactory performance may result in a negative vendor performance report, termination of the blanket purchase order, or both. 11.2. An exceptional performance determination includes, but is not limited to: 11.2.1. Flaggers arrive early upon request of TxDOT. 11.2.2. Vendor commended for exceptional service. Exceptional service is defined as services exceeding the minimum requirements of the specification. 12. PERSONNEL CONTINUITY AND REPLACEMENT 12.1. TxDOT recognizes that events beyond the control of the vendor such as the death, physical or mental incapacity, long-term illness, or the voluntary termination of employment of a flagger assigned to a TxDOT project will require the vendor propose a replacement. In the event such a replacement is necessary, vendor agrees that personnel shall not begin work on the project without prior written approval from TxDOT. 12.2. The flagger assigned to a project shall remain available for the entirety of a project throughout the term of the purchase order, as long as that individual is employed by the vendor. 12.3. If TxDOT determines a flagger is unable to perform in accordance with the service requirements or to communicate effectively, the vendor shall immediately remove that person. 12.4. Proposed replacement flaggers shall meet minimum qualifications and have experience comparable to the person(s) being replaced. Replacement personnel shall be provided at no additional cost to TxDOT. Proof of training and copies of certifications will be requested for the proposed replacement(s). TxDOT may reject any replacement that does not have a current and valid certification. TxDOT will be the sole judge of the qualifications of the proposed replacement personnel. 13. VENDOR PERSONNEL SAFETY: The vendor shall provide all required safety equipment in accordance with 49 CFR 214 and instruct personnel to observe all safety policies, rules and requirements of TxDOT and the applicable railroad at all times including, but not limited to, hard hats, safety shoes, goggles, etc. 4-8

14. WORK HOURS SPECIFICATION NO. 14.1. Regular work hours for performance of the service are defined in the TxDOT Terms and Conditions, latest revision. 14.2. Off-shift hours are defined as hours worked in the performance of this service in excess of 40 hours per week or performed beginning at 5:01 p.m. through 7:59 a.m. local time, Monday through Friday, and 5:01 p.m. Friday through 12:00 a.m. local time Sunday. 14.3. Premium hours are defined as hours worked in the performance of this service from 12:01 a.m. Sunday through 7:59 a.m. local time Monday and federal holidays. 14.4. Vendor employees shall adhere to an agreed-on work schedule. However, vendor employees shall be available to work on a modified work schedule during special conditions such as holidays or weekends as requested by the designated TxDOT representative. TxDOT will pay for hours worked according to the specific time involved, regular hours, off-shift hours or premium hours. All modifications to the approved work schedule, off-shift and premium hours shall be approved in writing by the designated TxDOT representative. 14.5. Work hours may be flexible, based on TxDOT requirements and railroad requirements. Work hours will be determined by the designated TxDOT representative. Vendor employees shall be available to work on an as-needed basis. TxDOT will pay for hours worked according to the specific time involved, regular hours, off-shift hours or premium hours. All off-shift and premium hours shall be approved in writing by the designated TxDOT representative. 15. TRAVEL: All travel and per diem shall be pre-approved in writing by the designated TxDOT representative. If approved, expenses will be reimbursed as follows: 15.1. Reimbursable travel expenses include: Personal vehicle mileage, commercial transportation, lodging, parking and meals 15.2. In-state reimbursement for lodging will be the listed rate on the following website for the specific location and month: https://fmx.cpa.state.tx.us/fm/travel/travelrates.php 15.3. The maximum meal reimbursement for in-state travel is $41. Travelers may substitute all or a portion of the $41 meal allowance to increase the amount paid for lodging. 15.4. Meals for non-overnight travel may be reimbursed up to $41 for the actual cost of meals if the travel period is greater than six hours and the travel is to a location outside the district in which the vendor s primary work location is located. NOTE: The Internal Revenue Service has ruled that the meal reimbursements related to non-overnight travel are taxable as additional income. Taxes shall be withheld at a rate of 25% of the reimbursement amount. The vendor shall be responsible for withholding this tax. 15.5. Out-of-state reimbursement will be at current legislated rates and comply with the current state travel laws and rules. Guidelines are available at: https://fmx.cpa.state.tx.us/fm/travel/travelrates.php 15.6. Personal vehicle mileage reimbursement will be the listed rate on the following website for Automobile Mileage: https://fmx.cpa.state.tx.us/fm/travel/travelrates.php 5-8

SPECIFICATION NO. 15.7. Rental cars are permitted when the cost is equal to or less than the cost of calculated mileage. NOTE: When a rental car is approved, personal mileage is not reimbursed without prior approval from the designated TxDOT representative. 15.8. Air travel is allowed only if the travel charges that include air, parking, mileage, fuel and rental car are equal to or less than the rate of the standard travel charges. Air travel must be approved by the designated TxDOT representative prior to travel. 15.9. Travel expenses on the day before a meeting or work that begins at 1:00 p.m. or on the day after a meeting or work that ends at 12:00 p.m. will not be reimbursed unless prior approval from the designated TxDOT representative has been granted. Approval will be based upon whether the following circumstances would warrant additional travel expenses: 15.9.1. More than 200 miles one way from the vendor s home base to the meeting or work location 15.9.2. More than four hours of driving time one way from the vendor s home base to the meeting or work location 15.9.3. Inclement weather 15.9.4. Mileage for the vendor s employees to drive back and forth to the meeting or work site that is 50 miles or more from the vendor s home base may be allowed with the written approval of the designated TxDOT representative. 15.10. Travel expenses shall be clearly detailed and receipts attached to the email sent to the designated TxDOT representative. NOTE: TxDOT will not reimburse tips, gratuities, or alcoholic beverages. 16. CONFLICT OF INTEREST: The vendor, vendor s personnel and vendor s subcontractor(s) shall affirm not to have, nor acquire, any interest during the term of the purchase order that would conflict in any manner with the performance of the vendor s obligations in regards to services authorized. 17. INVOICING INSTRUCTIONS: The vendor shall submit: 17.1. ORIGINAL INVOICE: A comprehensive and detailed invoice with reference to the line item on the purchase order for each item charged. The original invoice shall be e-mailed to the e-mail address indicated on the purchase order to ensure timely payment and shall include the following: 17.1.1. Complete purchase order number 17.1.2. Vendor Employer Identification Number (EIN) 17.1.3. Date and time of service 17.1.4. Location of service 17.1.5. Flagger s name with hours totaled NOTE: Invoices requiring correction shall be re-submitted with a new invoice date. 17.2. COPY OF INVOICE AND SUPPORTING DOCUMENTATION: A copy of the invoice and original documentation that validates the invoice charges shall be e-mailed to the designated TxDOT representative to include, but not be limited to: 6-8

SPECIFICATION NO. 17.2.1. A copy of the log of flagger activities and work hours for each scheduled flagging service (Ref. Para. 9.7.) 17.2.2. Receipts for travel expenses (Ref. Para. 15.10.) 18. TxDOT RESPONSIBILITIES: TxDOT will: 18.1. Provide a contract manager to act as the TxDOT point of contact. 18.2. Adhere to vendor s normal practices including minimum notification requirement to request a flagger and to cancel a flagger. 18.3. Establish approved breaks, such as lunch, prior to the beginning of work each day to ensure that all work sites are occupied and manned at all times while work is performed. NOTE: Should a flagger need to take an unscheduled break, the flagger shall notify the vendor s lead worker. The vendor s lead worker will notify TxDOT. 18.4. Coordinate with flagger how unscheduled breaks are handled. 18.5. Notify the vendor by telephone 24 hours prior to the need for flagging services and follow up by e-mail or facsimile. Additionally, if nighttime flagging is needed due to unavoidable delays during the day, the designated TxDOT representative will notify the flagging supervisor as soon as possible during the day, but no later than 1:00 pm, on the afternoon of the day the nighttime flagging will be needed. 18.6. Coordinate with the vendor the date monthly reports are due (Ref. Para. 9.6.). 19. RESPONSE SUBMISSION 19.1. The following shall be submitted with the response. Failure by the respondent to submit the documentation listed below will disqualify the respondent from further consideration: 19.1.1. Section 1 - Invitation for Bid (IFB): Original, signed, dated, and completed IFB 19.1.2. Section 2 - Schedule 1 Respondent Qualifications and Experience: Complete and return detailing respondent qualifications and experience. 19.1.3. Section 3 - Schedule 2 Flagger Qualifications and References 19.1.4. Section 4 - Individual Letter of Statement: Copies of the Individual Letter of Statement from each railroad (Ref. Para. 5.2.) 19.2. The following should be submitted with the response. Failure by the respondent to submit the documentation listed below may disqualify the respondent from further consideration. 19.2.1. Section 5 Financial Standing: Statement from the president, owner or financial officer on company letterhead certifying that the company is in good financial standing, current in payment of all taxes and fees (Ref. Para. 5.3.) 19.2.2. Section 6 - Respondent References 19.2.3. Section 7 - Proof of Flagger Training and Copy of Certification: Provide proof of training and copy of certification for each Schedule 2 Respondent Personnel Qualifications and References submitted. 20. AWARD: TxDOT reserves the right to award a single purchase order to the most responsive, responsible respondent meeting the specification. 7-8

SPECIFICATION NO. 21. POST AWARD MEETING: Vendor(s) may be requested to attend a post award meeting in person or via teleconference with TxDOT within seven calendar days after the award of the purchase order. The purpose of the meeting is to discuss the terms and conditions of the purchase order and to provide additional information regarding the purchase order. Vendor(s) and TxDOT shall identify specific goals, strategies and activities planned for meeting particular program area objectives. 22. CONTRACT ADMINISTRATION: Administration of the purchase order is the responsibility of TxDOT. TxDOT Procurement Division staff will be responsible for administering the contractual business relationship with the vendor. 22.1. Any proposed changes to work to be performed, whether initiated by TxDOT or the vendor, must receive final written approval in the form of a Purchase Order Change Notice signed by the authorized TxDOT purchasing agent. 22.2. Upon issuance of purchase order, TxDOT will designate an individual to serve as the Contract Manager and point of contact between the agency and the vendor. The Contract Manager does not have any express or implied authority to vary the terms of the purchase order, amend the purchase order in any way or waive strict performance of the terms or conditions of the purchase order. This individual s contract management and contract administration responsibilities include, but are not limited to: 22.2.1. Monitoring the vendor s progress and performance and ensuring services conform to established specification requirements 22.2.2. Managing the financial aspects of the contract including approval of payments 22.2.3. Meeting with the vendor as needed to review progress, discuss problems and consider necessary action 22.2.4. Identifying a breach of contract by assessing the difference between contract performance and non-performance 22.2.5. Other areas as identified by the Comptroller of Public Accounts Contract Management Guide, latest edition 8-8