SUBJECT:
title
Approval of a resolution authorizing the President & CEO, or her designee, to finalize and execute a contract with Keolis Transit Services, LLC for contracted bus operations and maintenance services for a base period of three (3) years, plus two (2) one-year options, with a 5% contingency, in an amount not to exceed $753,651,081.
end
FISCAL IMPACT:
Funding for this action is available in the FY2024 Operating Budget
STRATEGIC PLAN:
Strategic Goal Alignment:
☒ 1. Customer ☒ 2. Community
☒ 3. Workforce ☐ 4. Organizational Effectiveness
Strategic Objectives:
☒ 1.1 Safe & Reliable Service ☒1.2 High Quality Customer Experience ☒ 1.3 Accessible System
☐ 2.1 Support Sustainable Regional Growth ☐ 2.2 Become a Carbon Neutral Agency
☒ 2.3 Responsive to Community and Customer Needs ☐ 2.4 Regional Leader in Transit Planning
☐ 3.1 Diversity of Staff ☒ 3.2 Employer of Choice ☒ 3.3 Expand Highly Skilled Workforce
☐ 4.1 Fiscally Responsible and Transparent ☐ 4.2 Culture of Safety ☐ 4.3 State of Good Repair
EXPLANATION OF STRATEGIC ALIGNMENT: As the contract mechanism responsible for all Capital Metro’s bus services, this contracted service provider will play a key role in delivering the mission as defined by the strategic plan.
BUSINESS CASE: The Operations and Maintenance Oversight department is responsible for coordinating the operations and activities of all CapMetro service providers for bus services. This includes coordination of contract management, data collection and analysis and quality assurance activities for both vehicle operations, vehicle maintenance and building maintenance. As the contract mechanism responsible for all Capital Metro’s bus services, this contracted service provider (contractor) will play a key role in delivering the mission as defined by the strategic plan.
COMMITTEE RECOMMENDATION: This item was presented and recommended for approval by the Operations, Planning and Safety Committee on September 13, 2023.
EXECUTIVE SUMMARY:
The 82nd Texas Legislature passed Senate Bill 650 in 2011, which requires that all transit services provided by Capital Metro either be operated by direct employees of the Authority or operated by private contractors after a competitive procurement. Accordingly, Capital Metro’s bus services have been fully operated by contracted service providers since August 2012.
The current contract for bus services with MV Transportation is set to expire on December 31, 2023. One option year remains available on the contract through December 31, 2024.
Overview
Under this contract, the operation of all Capital Metro’s bus services will be provided by a single service provider. Capital Metro’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 data-driven continuous improvement processes.
This service provider will also provide maintenance services for all Capital Metro buses and Capital Metro support vehicles. Additionally, they will be responsible for building and equipment maintenance at North Ops, East Fifth Ops, and the Capital Metro Administrative Annex located at 624 N. Pleasant Valley Road.
Designated operations, maintenance, and administrative areas at the North Ops and East Fifth garages will be provided to the service provider for use by their staff. Capital Metro will provide all revenue vehicles, fuel, radios, utilities, and large shop equipment necessary to support the service. Additionally, Capital Metro will provide designated transit-specific computer software and associated computer hardware.
The key responsibilities CapMetro is seeking with this contract is a qualified Contractor to operate and maintain its Bus Services within the CapMetro Service Area.
The Contractor will provide administration of Bus Transit Services, including the direct management of all Frontline Personnel CapMetro staff will establish the strategies and tactics needed to ensure excellent service daily.
The Contractor will employ and manage an engaged workforce of Frontline Personnel and ensure a positive and effective relationship with ATU Local 1091.
The Contractor shall establish and maintain the employment, labor relations functions and human resource processes to provide exemplary transit services and create an exemplary workplace environment.
The Contractor shall employ and manage represented employees and provide the personnel management services for those positions.
The Contractor agrees to use all reasonable efforts to accomplish:
• Increase ridership.
• Develop and implement FTA’s National Public Transportation Safety Program and its Safety Management System Framework.
• 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 Transit Administration regulations and administrative directives.
• Comply with all relevant Texas Department of Transportation regulations and administrative directives.
• Provide data, analysis, or support as required to all reporting requirements.
• Manage represented employees in accordance with the collective bargaining agreement.
• Maintain a good working relationship with local 1091 of the Amalgamated Transit Union.
The operations and maintenance of transit services described herein include fixed route, fixed schedule transit service, including regular routes, express routes, campus routes and public services to special events. The rail service is operated by a different contract operator, but this contract supports the rail service with bus bridges as required by notice from CapMetro.
The Contractor is responsible for the Personnel Management of employees associated with providing transit functions for all line operations, direct support functions and their supervision functions. CapMetro oversees and directs the work plans associated with providing the transit functions for all line operations. This contract does not include the staff functions beyond those associated with personnel employee management. CapMetro personnel manage the accounting, marketing, purchasing, grant administration, budget administration, service planning, general management and related functions. Employees of the Contractor are required to follow all established standard operating policies as developed and established by CapMetro.
The Contractor shall provide all supplies required to support staff engaged in the personnel management of employees associated with providing transit functions. The fleet, support vehicles, fuel tanks, bus wash, lift equipment, passenger shelters, transit centers and operations facility are owned by CapMetro and will remain available to the Contractor for the sole use as the CapMetro transit system.
Process Overview
The process undertaken to select a firm for a contract of this nature is extensive. The process began in September 2022 with development of the scope of services required. In March 2023, Capital Metro completed an Expression of Interest process in which interested firms had the opportunity to provide feedback on the draft scope of services document.
The formal procurement process launched with the issuance of the solicitation on May 12, 2023, and a pre-proposal conference on June 7, 2023. After several rounds of written questions and answers, initial proposals were received on July 6, 2023.
Site visits were conducted for each firm proposing. On these visits, CapMetro staff met with staff at peer agencies to gain an understanding of how each firm performed on contracts of a similar size and scope.
In August 2023, two full days of oral interviews were held with each firm. The first day of oral interviews focused on the technical proposal while the second day focused on the price proposal. Following oral interviews, each firm was sent a detailed set of questions along with a request to submit a final proposal revision.
Final proposals were received on August 29, 2023, and a final technical evaluation was completed, considering information gleaned throughout the entire process. Once technical ratings were established, the team selected a recommended firm. The recommended firm was selected based on a combination of technical and price combined and has been determined to provide the best value for CapMetro.
Recommended Firm
The recommended firm is Keolis Transit Services, LLC. The Keolis Transit Services, LLC proposal includes the following elements:
• Experienced Management Team
Mike Ake, Vice President/General Manager, has more than 30 years of experience leading large public and private urban multi-modal transit operations with successes in building and growing high performance teams and exceeding performance standards.
The team of 7 managers slated to lead this effort have a combined total experience of over 170 years.
• Keolis’ structure is driven by four keys to a successful partnership with CapMetro:
1. A collaborative and transparent partnership
2. Preserving a positive work culture
3. Excellence in operational fundamentals
4. A focus on employee and community engagement
- Employee Retention, Health/Wellness, DEI, Community Engagement
Price Analysis
Nancy Edmonson, Cost & Price Analyst, supported CapMetro staff in analyzing the proposed pricing of all firms. This analysis demonstrated that the price provided by Keolis Transit Services, LLC offers a fair and reasonable price to CapMetro and funding adequate to fulfill the terms of the contract.
DBE/SBE PARTICIPATION: Since this contract is for the provision of personnel management, the contractual fees are for the payment of labor and related costs. No goal was established due to the lack of subcontracting opportunities.
PROCUREMENT: On May 12, 2023, a Request for Proposals was issued and formally advertised. By the closing date of July 6, 2023, three (3) proposals were received from Keolis Transit Services, LLC, MTM Transit, LLC, and MV Transportation, Inc. The following 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, and which included price analysis from a Cost & Price Analyst to determine price fair and reasonableness. Each firm’s proposal was ranked using the following four (4) evaluation factors:
1) Management Competence and Staffing/Labor Relations Plan
2) Quality of Service Delivery, Safety and Performance Monitoring
3) Capability, Experience and Past Performance of the Firm
4) Quality of Mobilization Plan
The proposal from Keolis Transit Services, LLC was determined to be the best value to the Authority, price and other factors considered. Nancy Edmonson, Cost & Price Analyst, supported Capital Metro staff in analyzing the proposed pricing of all firms. This analysis demonstrated that the price provided by Keolis Transit Services, LLC offers a fair and reasonable price. The contract is a fixed price contract. The term of the Contract is a three (3) year base with two (2) unilaterally renewable options periods of one (1) year each, for pricing offered as follows. Service is anticipated to commence on January 1, 2024.
|
Total Pricing Base Period (Years 1-3) |
$414,953,301 |
|
Total Pricing Option Period 1 (Year 4) |
$148,612,118 |
|
Total Pricing Option Period 2 (Year 5) |
$154,197,515 |
|
Sub Total |
$717,762,934 |
|
5% Contingency |
$35,888,147 |
|
GRAND TOTAL |
$753,651,081 |
RESPONSIBLE DEPARTMENT: Bus Operations and Maintenance
RESOLUTION
OF THE
CAPITAL METROPOLITAN TRANSPORTATION AUTHORITY
BOARD OF DIRECTORS
STATE OF TEXAS
COUNTY OF TRAVIS
AI-2023-952
WHEREAS, the Capital Metropolitan Transportation Authority Board of Directors and Capital Metro management endeavor to provide the highest quality bus services to the community; and
WHEREAS, through a competitive procurement process Keolis Transit Services, LLC was determined to be the firm that offers the best value to Capital Metro in providing these services.
NOW, THEREFORE, BE IT RESOLVED that the Capital Metropolitan Transportation Authority Board of Directors authorizes the President & CEO, or her designee, to finalize and execute a contract with Keolis Transit Services, LLC for contracted bus operations and maintenance services for a base period of three years plus two one-year options, with a 5% contingency, in an amount not to exceed $753,651,081.
____________________ Date: ____________________
Secretary of the Board
Becki Ross