rfp 43-14: streetcar operations & maintenance ... - DocumentCloud
RFP 43-14: STREETCAR OPERATIONS & MAINTENANCE SERVICE CONTRACT Cincinnati Streetcar Project June 2015
O&M timeline March 2015 - O&M RFP proposals due April-May 2015 – Proposal evaluation and negotiations June 2015 – City Council selects preferred method
July 2015 - SORTA Board approves contract award July-August 2015 – O&M contractor mobilization Sept. - Dec. 2015 - vehicle delivery April 2016 - completion of civil construction September 2016 - start of passenger service
SORTA’s objectives • Competitively procure an Operations & Maintenance contractor for the streetcar using Federal procurement guidelines • Use the level of service established in the FTA grant applications and funding established by City
• Assure the best value for the City in terms of quality and price
Roles
• City selects the method of service delivery (turn-key or management contract) • SORTA conducts the procurement and awards the contract
The two methods All proposers were required to submit two methods: Turn-key contract – contractor provides all employees; fixedprice contract. Contractor assumes financial risks for operating based on contract scope. Management contract - contractor manages operations and maintains the system for a fixed price. At an additional cost, SORTA provides certain employees (streetcar operators, facility maintenance/janitorial). Total cost of operating the streetcar would change based on several factors including negotiations with new bargaining unit. Risk is shared.
Strict Federal procurement process • Not a simple Invitation for Bid process -- low price • Request for Proposal (RFP) -- best overall value • Same model SORTA uses for other O&M procurements, including Access paratransit operator • Evaluation committee: SORTA and City representatives • Multi-step rating process, interviews and negotiations
Timeline for procurement process • RFP issued in January; proposals received by end of March • Evaluation of proposals in April; all proposers interviewed • Best and final offers requested from all firms and negotiations with top firms in May • City Council selection of preferred method in June • SORTA contract award in July to keep project on schedule
Evaluation criteria RFP evaluation criteria, in order of importance: • Project approach: understanding of what is required; safety and customer service; maximizing resources, etc. • Qualifications: experience of the firm and staff assigned to Cincinnati Streetcar • Price: fixed price to operate and maintain • Specific plans: start-up preparations and testing; operations and maintenance of the vehicles and electrical system; operating facility maintenance, etc.
What is being shared today The best-value pricing for the Cincinnati Streetcar operations and maintenance, based on: • The selected proposal for the turn-key contract
• The selected proposal for the management contract – Tentative costs related to SORTA-provided employees for management contract approach only • Costs for City’s and SORTA’s respective responsibilities
What is being shared today For both turn-key and management contract methods: • Contractor cost (fixed price) • SORTA’s streetcar costs, reimbursed by the City: – Administration including support for Federal compliance, contract oversight, customer service, communications, etc.
– Direct costs including electricity to operate the streetcar, fare media, ticket vending machine maintenance, etc. • City’s costs
Additional SORTA-provided employee costs: management contract method only Estimated wages and benefits for streetcar operators and facility maintenance/janitorial employees provided by SORTA These tentative costs are based on: • June 2 preliminary agreement with ATU Local 627 • Comparable Metro wages and benefits • Comparable work rules for Metro represented employees, which would add additional positions NOTE: There are a number of cost factors that cannot be fully known until a collective bargaining agreement is negotiated
Turn-key contract method Based on service plan in FTA grant and O&M Agreement Contractor’s price proposal (fixed)
Startup
City’s additional SORTA costs paid costs for services/ by City (fixed) administration*
Electric and other direct costs
$1,100,000
Total projected cost
City funding
$1,100,000
$1,100,000
Year 1 Year 2 Year 3 Year 4 Year 5 Total, Year 1-5
$3,269,921 $3,308,166 $3,478,734 $3,616,542 $3,701,930 $17,375,293
$261,594 $264,653 $278,299 $289,323 $296,154 $1,390,023
$257,234 $248,386 $264,951 $253,168 $272,900 $258,053 $281,087 $263,043 $289,519 $268,143 $1,365,690 $1,290,792
$4,037,135 $4,090,938 $4,287,985 $4,449,996 $4,555,746 $21,421,800
$4,200,000 $4,284,000 $4,369,680 $4,457,074 $4,546,215 $21,856,969
Option Year 1 Option Year 2 Option Year 3 Option Year 4 Option Year 5 Total, OY 1-5
$3,736,259 $3,861,183 $3,972,753 $4,096,655 $4,191,127 $19,857,977
$298,901 $308,895 $317,820 $327,732 $335,290 $1,588,638
$298,205 $273,353 $307,151 $278,677 $316,365 $284,118 $325,856 $289,679 $335,632 $295,361 $1,583,209 $1,421,189
$4,606,718 $4,755,906 $4,891,057 $5,039,922 $5,157,410 $24,451,014
$4,637,139 $4,729,882 $4,824,480 $4,920,969 $5,019,389 $24,131,859
Grand Total
$38,333,271
$2,978,662
$2,948,900 $2,711,981
$46,972,813
$47,088,828
*Not yet finalized
Management contract method Based on service plan in FTA grant and O&M Agreement Contractor’s price proposal (fixed) Startup
SORTA-provided labor costs*
City’s additional SORTA costs paid costs for services/ by City administration**
$950,000
$323,216
Year 1
$2,531,750
$1,365,578
$311,786
$257,234
Year 2
$2,537,284
$1,404,922
$315,376
Year 3
$2,679,399
$1,446,731
Year 4
$2,800,774
Year 5 Total, Year 1-5
Electric and other direct costs
Total projected cost City funding $1,273,216
$1,100,000
$248,386
$4,714,734
$4,200,000
$264,951
$253,168
$4,775,701
$4,284,000
$330,090
$272,900
$258,053
$4,987,172
$4,369,680
$1,491,230
$343,360
$281,087
$263,043
$5,179,495
$4,457,074
$2,878,227 $13,427,434
$1,538,666 $7,247,127
$353,351 $1,653,965
$289,519 $1,365,690
$268,143 $1,290,792
$5,327,907 $24,985,008
$4,546,215 $21,856,969
Option Year 1
$2,893,299
$1,589,311
$358,609
$298,205
$273,353
$5,412,777
$4,637,139
Option Year 2
$2,973,407
$1,643,461
$369,350
$307,151
$278,677
$5,572,047
$4,729,882
Option Year 3
$3,043,532
$1,701,446
$379,598
$316,365
$284,118
$5,725,060
$4,824,480
Option Year 4
$3,124,554
$1,763,624
$391,054
$325,856
$289,679
$5,894,767
$4,920,969
Option Year 5
$3,205,990
$1,830,392
$402,911
$335,632
$295,361
$6,070,286
$5,019,389
Total, OY 1-5
$15,240,783
$8,528,234
$1,901,521
$1,583,209
$1,421,189
$28,674,936
$24,131,859
Grand Total
$29,618,217
$16,098,576
$3,555,486
$2,948,900
$2,711,981
$54,933,160
$47,088,828
*Will change based on negotiations with new bargaining unit, training costs, etc.
** Not yet finalized
Comparison of best value proposals Based on service plan in FTA grant and O&M Agreement Total Streetcar Pricing
City funding Startup
Management contract
Difference between contract methods
1,100,000
$ 1,100,000
$ 1,273,216
$
(173,216)
Year 1
4,200,000
$ 4,037,135
$ 4,714,734
$
(677,599)
Year 2
4,284,000
4,090,938
4,775,701
(684,763)
Year 3
4,369,680
4,287,985
4,987,172
(699,187)
Year 4
4,457,074
4,449,996
5,179,495
(729,499)
Year 5
4,546,215
4,555,746
5,327,907
(772,161)
21,856,969
$ 21,421,800
$ 24,985,008
$ (3,563,209)
Option Year 1
4,637,139
4,606,718
5,412,777
(806,059)
Option Year 2
4,729,882
4,755,906
5,572,047
(816,140)
Option Year 3
4,824,480
4,891,057
5,725,060
(834,003)
Option Year 4
4,920,969
5,039,922
5,894,767
(854,845)
Option Year 5
5,019,389
5,157,410
6,070,286
(912,876)
Total, OY 1-5
24,131,859
$ 24,451,014
$ 28,674,936
$ (4,223,922)
$ 46,972,813
$ 54,933,160
$ (7,960,347)
Total, Year 1-5
Grand Total
$
Turn-key
$
$
47,088,828
City Council policy guidance In response to City of Cincinnati motion #201401401: SORTA requests that City Council provide guidance regarding the preferred method by the end of June: - Turn-key contract - Management contract Contract must be awarded by SORTA in July 2015 to meet deadlines related to first vehicle delivery in September. Delays will add cost to the project.
Questions & discussion
O&M timeline March 2015 - O&M RFP proposals due April-May 2015 – Proposal evaluation and negotiations June 2015 – City Council selects preferred method
July 2015 - SORTA Board approves contract award July-August 2015 – O&M contractor mobilization Sept. - Dec. 2015 - vehicle delivery April 2016 - completion of civil construction September 2016 - start of passenger service
SORTA’s objectives • Competitively procure an Operations & Maintenance contractor for the streetcar using Federal procurement guidelines • Use the level of service established in the FTA grant applications and funding established by City
• Assure the best value for the City in terms of quality and price
Roles
• City selects the method of service delivery (turn-key or management contract) • SORTA conducts the procurement and awards the contract
The two methods All proposers were required to submit two methods: Turn-key contract – contractor provides all employees; fixedprice contract. Contractor assumes financial risks for operating based on contract scope. Management contract - contractor manages operations and maintains the system for a fixed price. At an additional cost, SORTA provides certain employees (streetcar operators, facility maintenance/janitorial). Total cost of operating the streetcar would change based on several factors including negotiations with new bargaining unit. Risk is shared.
Strict Federal procurement process • Not a simple Invitation for Bid process -- low price • Request for Proposal (RFP) -- best overall value • Same model SORTA uses for other O&M procurements, including Access paratransit operator • Evaluation committee: SORTA and City representatives • Multi-step rating process, interviews and negotiations
Timeline for procurement process • RFP issued in January; proposals received by end of March • Evaluation of proposals in April; all proposers interviewed • Best and final offers requested from all firms and negotiations with top firms in May • City Council selection of preferred method in June • SORTA contract award in July to keep project on schedule
Evaluation criteria RFP evaluation criteria, in order of importance: • Project approach: understanding of what is required; safety and customer service; maximizing resources, etc. • Qualifications: experience of the firm and staff assigned to Cincinnati Streetcar • Price: fixed price to operate and maintain • Specific plans: start-up preparations and testing; operations and maintenance of the vehicles and electrical system; operating facility maintenance, etc.
What is being shared today The best-value pricing for the Cincinnati Streetcar operations and maintenance, based on: • The selected proposal for the turn-key contract
• The selected proposal for the management contract – Tentative costs related to SORTA-provided employees for management contract approach only • Costs for City’s and SORTA’s respective responsibilities
What is being shared today For both turn-key and management contract methods: • Contractor cost (fixed price) • SORTA’s streetcar costs, reimbursed by the City: – Administration including support for Federal compliance, contract oversight, customer service, communications, etc.
– Direct costs including electricity to operate the streetcar, fare media, ticket vending machine maintenance, etc. • City’s costs
Additional SORTA-provided employee costs: management contract method only Estimated wages and benefits for streetcar operators and facility maintenance/janitorial employees provided by SORTA These tentative costs are based on: • June 2 preliminary agreement with ATU Local 627 • Comparable Metro wages and benefits • Comparable work rules for Metro represented employees, which would add additional positions NOTE: There are a number of cost factors that cannot be fully known until a collective bargaining agreement is negotiated
Turn-key contract method Based on service plan in FTA grant and O&M Agreement Contractor’s price proposal (fixed)
Startup
City’s additional SORTA costs paid costs for services/ by City (fixed) administration*
Electric and other direct costs
$1,100,000
Total projected cost
City funding
$1,100,000
$1,100,000
Year 1 Year 2 Year 3 Year 4 Year 5 Total, Year 1-5
$3,269,921 $3,308,166 $3,478,734 $3,616,542 $3,701,930 $17,375,293
$261,594 $264,653 $278,299 $289,323 $296,154 $1,390,023
$257,234 $248,386 $264,951 $253,168 $272,900 $258,053 $281,087 $263,043 $289,519 $268,143 $1,365,690 $1,290,792
$4,037,135 $4,090,938 $4,287,985 $4,449,996 $4,555,746 $21,421,800
$4,200,000 $4,284,000 $4,369,680 $4,457,074 $4,546,215 $21,856,969
Option Year 1 Option Year 2 Option Year 3 Option Year 4 Option Year 5 Total, OY 1-5
$3,736,259 $3,861,183 $3,972,753 $4,096,655 $4,191,127 $19,857,977
$298,901 $308,895 $317,820 $327,732 $335,290 $1,588,638
$298,205 $273,353 $307,151 $278,677 $316,365 $284,118 $325,856 $289,679 $335,632 $295,361 $1,583,209 $1,421,189
$4,606,718 $4,755,906 $4,891,057 $5,039,922 $5,157,410 $24,451,014
$4,637,139 $4,729,882 $4,824,480 $4,920,969 $5,019,389 $24,131,859
Grand Total
$38,333,271
$2,978,662
$2,948,900 $2,711,981
$46,972,813
$47,088,828
*Not yet finalized
Management contract method Based on service plan in FTA grant and O&M Agreement Contractor’s price proposal (fixed) Startup
SORTA-provided labor costs*
City’s additional SORTA costs paid costs for services/ by City administration**
$950,000
$323,216
Year 1
$2,531,750
$1,365,578
$311,786
$257,234
Year 2
$2,537,284
$1,404,922
$315,376
Year 3
$2,679,399
$1,446,731
Year 4
$2,800,774
Year 5 Total, Year 1-5
Electric and other direct costs
Total projected cost City funding $1,273,216
$1,100,000
$248,386
$4,714,734
$4,200,000
$264,951
$253,168
$4,775,701
$4,284,000
$330,090
$272,900
$258,053
$4,987,172
$4,369,680
$1,491,230
$343,360
$281,087
$263,043
$5,179,495
$4,457,074
$2,878,227 $13,427,434
$1,538,666 $7,247,127
$353,351 $1,653,965
$289,519 $1,365,690
$268,143 $1,290,792
$5,327,907 $24,985,008
$4,546,215 $21,856,969
Option Year 1
$2,893,299
$1,589,311
$358,609
$298,205
$273,353
$5,412,777
$4,637,139
Option Year 2
$2,973,407
$1,643,461
$369,350
$307,151
$278,677
$5,572,047
$4,729,882
Option Year 3
$3,043,532
$1,701,446
$379,598
$316,365
$284,118
$5,725,060
$4,824,480
Option Year 4
$3,124,554
$1,763,624
$391,054
$325,856
$289,679
$5,894,767
$4,920,969
Option Year 5
$3,205,990
$1,830,392
$402,911
$335,632
$295,361
$6,070,286
$5,019,389
Total, OY 1-5
$15,240,783
$8,528,234
$1,901,521
$1,583,209
$1,421,189
$28,674,936
$24,131,859
Grand Total
$29,618,217
$16,098,576
$3,555,486
$2,948,900
$2,711,981
$54,933,160
$47,088,828
*Will change based on negotiations with new bargaining unit, training costs, etc.
** Not yet finalized
Comparison of best value proposals Based on service plan in FTA grant and O&M Agreement Total Streetcar Pricing
City funding Startup
Management contract
Difference between contract methods
1,100,000
$ 1,100,000
$ 1,273,216
$
(173,216)
Year 1
4,200,000
$ 4,037,135
$ 4,714,734
$
(677,599)
Year 2
4,284,000
4,090,938
4,775,701
(684,763)
Year 3
4,369,680
4,287,985
4,987,172
(699,187)
Year 4
4,457,074
4,449,996
5,179,495
(729,499)
Year 5
4,546,215
4,555,746
5,327,907
(772,161)
21,856,969
$ 21,421,800
$ 24,985,008
$ (3,563,209)
Option Year 1
4,637,139
4,606,718
5,412,777
(806,059)
Option Year 2
4,729,882
4,755,906
5,572,047
(816,140)
Option Year 3
4,824,480
4,891,057
5,725,060
(834,003)
Option Year 4
4,920,969
5,039,922
5,894,767
(854,845)
Option Year 5
5,019,389
5,157,410
6,070,286
(912,876)
Total, OY 1-5
24,131,859
$ 24,451,014
$ 28,674,936
$ (4,223,922)
$ 46,972,813
$ 54,933,160
$ (7,960,347)
Total, Year 1-5
Grand Total
$
Turn-key
$
$
47,088,828
City Council policy guidance In response to City of Cincinnati motion #201401401: SORTA requests that City Council provide guidance regarding the preferred method by the end of June: - Turn-key contract - Management contract Contract must be awarded by SORTA in July 2015 to meet deadlines related to first vehicle delivery in September. Delays will add cost to the project.
Questions & discussion
