SUBJECT:
title
Approval of a resolution authorizing the President & CEO, or her designee, to finalize and execute a contract with Rio Grande Pacific Corporation for contracted Commuter Rail Maintenance of Way and Signal Systems services for a base period of five (5) years, plus two (2) two-year options, for a total contract amount not to exceed $145,826,753.
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FISCAL IMPACT:
Funding for this action is available in the proposed FY2027 Operating Budget.
STRATEGIC PLAN:
Strategic Goal Alignment:
☒ 1. Customer ☐ 2. Community
☒ 3. Workforce ☒ 4. Organizational Effectiveness
EXPLANATION OF STRATEGIC ALIGNMENT: This action will allow the CapMetro Rail maintenance of way and signal systems contractor to continue to foster a culture of safety, building a sound infrastructure that drives efficiency, resilience, and lasting performance through track and systems which encompass safe, reliable, and convenient rail transportation. The contractor will play a key role in delivering the mission as defined by the strategic plan.
BUSINESS CASE: The Rail department is responsible for coordinating the maintenance of way and signal systems activities of all CapMetro contractors for commuter rail services. This includes coordination of contract management, data collection, investigations, analysis and quality assurance activities for maintenance of way and signal.
The current contract that includes signal systems and maintenance of way expires in 2026. As the contract mechanism responsible for CapMetro’s track and signal infrastructure this contractor will play a key role in delivering the mission as defined by the strategic plan. CapMetro staff recommends continuing to provide these functions by contract due to the nature of the services to be provided, which require extensive specialization and equipment.
COMMITTEE RECOMMENDATION: This item will be presented to the full board on May 18, 2026.
EXECUTIVE SUMMARY: In March of 2010, CapMetro began commuter rail service on the Red Line between Austin and Leander, TX with our current contractor providing dispatching (commuter and freight), operations, and maintenance on the Red Line. The current contract with Herzog Transit Services, Inc. expires in 2026.
CapMetro completed a competitive procurement process and recommends Rio Grande Pacific Corporation as the vendor for maintenance of way and signal systems. Under this contract, the operation of CapMetro’s Commuter Rail is responsible for providing track, signal, bridge, and communications for the commuter section of the railroad which includes freight only trackage and signal equipment located between the Abbott and Robinson control points. The contractor is responsible for providing all non-revenue and support vehicle, equipment, parts, supplies, qualified personnel, administrative, and management services necessary to operate and maintain the commuter railroad. CapMetro’s stated goal in this procurement was to identify a partner that will be aggressively focused on ensuring the best possible experience for our customers through safety and data-driven continuous improvement processes. If approved by the CapMetro Board, this contract would commence in calendar year 2027.
The Contractor agrees to use all reasonable efforts to:
• Adhere to financial performance and service quality objectives in the service contract.
• Provide superior customer service.
• Assure the finest public image for the transit system.
• Comply with all relevant Federal Regulation Administration regulations and administrative directives.
• Comply with all relevant Texas Department of Transportation regulations and administrative directives.
• Provide data, analysis, investigations, or support as required to all reporting requirements.
• Manage represented employees in accordance with the collective bargaining agreement.
• Abide by all ADA, FRA, and DOT guidance to appropriately provide Commuter Rail services to Americans with Disabilities.
Recommended Firm
The recommended firm is the Rio Grande Pacific Corporation. The Rio Grande Pacific Corporation proposal includes the following elements:
• Experienced Management Team
• Robust Maintenance and Signal Training and Staffing Plan
• Preventative Maintenance/Remediation Plan
• Weather Implementation Plan
SBE PARTICIPATION: To comply with recent changes in federal regulation, CapMetro is pausing setting and enforcing DBE Program goals at this time.
PROCUREMENT: A Request for Proposals was issued on October 21, 2025, and formally advertised. By the closing date of February 2, 2026, three proposals were received.
Technical evaluation factors were used to evaluate and score the proposals. Price was evaluated by a pricing team that was separate from the technical evaluation team. The pricing team also utilized Nancy Edmonson as a cost and price analyst to determine price fair and reasonableness. The proposal from Rio Grande Pacific Corporation was determined to be the best value to CapMetro, price and other factors considered.
The contract is a fixed price contract. The term of the Contract is a five (5) year base with two (2), two (2) year options. In total, there is potential for nine (9) contracted service years under this agreement with Rio Grande Pacific Corporation. The pricing offered is as follows. Service under this contract is anticipated to commence in 2027.
|
Total Pricing Base Period (Years 1-5) |
$ 76,530,688 |
|
Total Pricing Option Period 1 (Years 6-7) |
$ 33,033,070 |
|
Total Pricing Option Period 2 (Year 8-9) |
$ 36,262,995 |
|
GRAND TOTAL |
$145,826,753 |
RESPONSIBLE DEPARTMENT: Rail
body
RESOLUTION
OF THE
CAPITAL METROPOLITAN TRANSPORTATION AUTHORITY
BOARD OF DIRECTORS
STATE OF TEXAS
COUNTY OF TRAVIS
AI-2026-1821
WHEREAS, the Capital Metropolitan Transportation Authority Board of Directors and CapMetro management endeavor to provide the highest quality Commuter Rail services to the community; and
WHEREAS, through a competitive procurement process, Rio Grande Pacific Corporation was determined to be the firm that offers the best value to CapMetro in providing maintenance of way and signal systems services for Commuter Rail.
NOW, THEREFORE, BE IT RESOLVED that the CapMetro Transportation Authority Board of Directors authorizes the President & CEO, or her designee, to finalize and execute a contract with Rio Grande Pacific Corporation for contracted Commuter Rail Maintenance of Way and Signal Systems services for a base period of five (5) years plus two (2) two-year options for a total contract amount not to exceed $145,826,753.
____________________ Date: ____________________
Secretary of the Board
Becki Ross