SUBJECT:
title
Approval of a resolution authorizing the President & CEO, or her designee, to finalize and execute a contract with MTM, Inc. for contracted Demand Response Pickup and CapMetro Access Services for a base period of five (5) years, plus one (1) three (3) year option, and two (2) one (1) year options totaling ten (10) years potential contract length, for a total cost including 5% contingency in an amount not to exceed $731,510,509.
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 CapMetro’s Paratransit & Pickup services, this contracted Contractor will play a key role in delivering the mission as defined by the strategic plan.
BUSINESS CASE: The Demand Response department is responsible for coordinating the operations and activities of all CapMetro Contractors for Paratransit (CapMetro Access) & Microtransit (Pickup). 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 CapMetro’s Paratransit & Pickup services, this contracted Contractor (contractor) will play a key role in delivering the mission as defined by the strategic plan.
COMMITTEE RECOMMENDATION: This item will be presented to the full board on July 22, 2024.
EXECUTIVE SUMMARY:
The 82nd Texas Legislature passed Senate Bill 650 in 2011, which requires that all transit services provided by CapMetro either be operated by direct employees of the Authority or operated by private contractors after a competitive procurement. Accordingly, CapMetro’s Paratransit & Pickup services have been fully operated by contracted Contractors since August 2012.
The current contract for Paratransit & Pickup services with MTM Transportation is set to expire on December 31, 2024.
Overview
Under this contract, the operation of all CapMetro’s Paratransit & Pickup services will be provided by a single Contractor. 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 data-driven continuous improvement processes.
This Contractor will also provide maintenance services for all Demand Response buses and CapMetro support vehicles. Additionally, they will be responsible for building and equipment maintenance at 509 Thompson Lane (DR South base), 817 W Howard Lane (DR North base), and 4811 E 7th St (Overflow Lot).
Designated operations, maintenance, and administrative areas at the North base, South base, and overflow lot will be provided to the Contractor for use by their staff. CapMetro will provide all revenue vehicles, fuel, radios, utilities, and large shop equipment necessary to support the service. Additionally, CapMetro 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 Paratransit & Pickup Services within the CapMetro Service Area.
The Contractor will provide administration of Paratransit & Pickup 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.
• Abide by all ADA, FTA, and DOT guidance to appropriately provide Paratransit services to Americans with Disabilities.
The operations and maintenance of transit services include CapMetro Access, and Pickup services. CapMetro Bikeshare is operated by a different contractor. Fixed schedule transit service, including regular routes, express routes, campus routes and public services to special events is operated by a different contractor. The rail service is operated by a different contractor as well.
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 of 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 February 2023 with development of the scope of services required. In July 2023, CapMetro completed an Expression of Interest process in which interested firms had the opportunity to provide feedback on the draft scope of services document. From August 2023 until issuance of solicitation in February 2024 CapMetro diligently developed a scope, passthrough cost model, and operating model in line that is best suited to provide best-in-class Paratransit & Pickup services to the public.
The formal procurement process launched with the issuance of the solicitation on February 27, 2024, and a pre-proposal conference on March 21, 2024. After several rounds of written questions and answers, initial proposals were received on April 24, 2024.
Site visits were conducted for each proposing firm. 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 May 2024, 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 (FPR).
Final proposals were received on June 4, 2024, 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 MTM, Inc. The MTM, Inc. proposal includes the following elements:
• Experienced Management Team
General Manager - Christopher Westbrook. Over 20 years of experience in the public transit industry working with various transportation modes and agencies. Has worked as the General Manager for CapMetro Demand Response North Base since 2016.
Asst. General Manager (South Base) - Raul Vela. Over 15 years of experience in the public transit industry to include working for CapMetro from 2016 to 2018. He joined MTM in 2018 as an Asst. General Manager and has been serving as the General Manager at Demand Response South Base since 2021.
Asst. General Manager (North Base) - David Chapa. Over 15 years of experience in the public transit industry. He joined MTM in 2014 as a Dispatch Supervisor, and has been promoted to Dispatch Manager, then Operations Manager, and now Asst. General Manager due to his continued high performance and dedication to transit employees and customers.
• Commitment to a smooth and collaborative relationship with CapMetro and Labor
• Commitment to an excellent customer experience
• Creating a strong safety culture, including a data-driven approach
• Thorough work plans for service delivery, vehicle maintenance, building maintenance, recruiting/hiring, and staffing management.
DBE/SBE PARTICIPATION: A 0% DBE goal was assigned to this project due to limited subcontract opportunities. The Contractor selected has committed to $4,126,996.55/.056% DBE participation that will be counted as Race-Neutral participation and tracked during the term of the contract. CapMetro will work with the firm to ensure any future opportunities, should they arise, are evaluated for additional DBE/SBE participation.
PROCUREMENT: A Request for Proposals was issued in February 2024 and formally advertised. By the closing date of April 24, 2024, three proposals were received from the following firms:
1) Keolis Transit Services, LLC
2) MTM Transit, Inc.
3) MV Transportation, Inc.
The technical evaluation factors listed below 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. Each firm’s proposal was ranked using the following five (5) 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) Experience and Ability to Provide Quality Customer Service to Customers within Paratransit and Micro Transit Demographic
5) Quality of Mobilization Plan
The proposal from MTM, Inc. was determined to be the best value to the Authority, price and other factors considered. The cost and price analysis demonstrated that the price provided by MTM, Inc. offers a fair and reasonable price. The contract is a fixed price contract. The term of the Contract is a five (5) year base with one (1) three (3) year renewable option, and two (2) one (1) year renewable options. In total, there is potential for ten (10) contracted service years under this agreement with MTM, Inc. The pricing offered is as follows. Service under this contract is anticipated to commence on January 1, 2025.
|
Total Pricing Base Period (Years 1-5) |
$294,788,603.66 |
|
Total Pricing Option Period 1 (Years 6-8) |
$225,752,155.57 |
|
Total Pricing Option Period 2 (Year 9) |
$85,293,787.86 |
|
Total Pricing Option Period 3 (Year 10) |
$90,842,127.64 |
|
Sub Total |
$696,676,674.73 |
|
5% Contingency |
$34,833,833.74 |
|
GRAND TOTAL |
$731,510,508.46 |
RESPONSIBLE DEPARTMENT: Demand Response & Innovative Mobility
RESOLUTION
OF THE
CAPITAL METROPOLITAN TRANSPORTATION AUTHORITY
BOARD OF DIRECTORS
STATE OF TEXAS
COUNTY OF TRAVIS
AI-2024-1193
WHEREAS, the Capital Metropolitan Transportation Authority Board of Directors and CapMetro management endeavor to provide the highest quality Paratransit & Pickup services to the community; and
WHEREAS, through a competitive procurement process MTM, Inc. was determined to be the firm that offers the best value to CapMetro in providing these services.
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 MTM, Inc. for contracted bus operations and maintenance services for a base period of five years plus one three-year option and two one-year options, including a 5% contingency, in a total amount not to exceed $731,510,509.
____________________ Date: ____________________
Secretary of the Board
Becki Ross