SUBJECT:
title
Approval of a resolution authorizing the President & CEO, or her designee, to finalize and execute a contract modification with MTM, Inc. (formerly Ride Right, LLC) for operation of the North Demand Response Operation that will extend the contract for three additional months from October 1 to December 31, 2024, in a total amount not to exceed $1,602,430.
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FISCAL IMPACT:
Funding for this action will be made available in the FY2025 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:
The strategy of this modification is to align the contract life cycle end date to the end of the calendar year instead of the fiscal year. This alignment is important to match employee benefit cycles.
BUSINESS CASE:
Adjustment to the end of contract life cycle from Sept 30th, 2024, to Dec 31st, 2024, is necessary to allow for labor employees to select their benefits effectively under the forthcoming awarded Contractor. Benefit cycles align with the calendar year, not the fiscal year. If the Demand Response North Base contract were to end with the CapMetro fiscal year instead of the calendar year, it would cause administrative difficulties for benefit processing under the new Employer.
COMMITTEE RECOMMENDATION: This item was presented and recommended for approval at the Operations, Planning and Safety Committee meeting on April 10th, 2024.
EXECUTIVE SUMMARY:
MTM, Inc. (MTM) was awarded Contract #132939 to provide North Base Demand Response services via a competitive procurement process with Board resolution CMTA-2014-5. The North Base contractor provides vehicle operators, window dispatch, maintenance, administrative staff, and management with contractor-owned vehicles, facility, fuel.
The cost impact of this pending contract modification requires Board of Director approval for additional funds. The three-month contract extension will add an additional $7,138,338.90 to the total contract cost. The new contract Not-To-Exceed (NTE) total will be $135.260,606.22 if the contract modification is executed. The previous BOD approval for this contract is $133,658,177. The Demand Response department is requesting the BOD to increase the contract NTE total by $1,602,429.22 to match the new contract total being proposed by MTM for three more months of their services.
DBE/SBE PARTICIPATION: This contract has a 9% DBE goal.
PROCUREMENT:
On October 17th, 2023, Procurement was informed of the intended change modification to the MTM contract. On December 23rd, 2023, MTM provided their change proposal to CapMetro based on the intent to extend their contract three (3) additional months from October 1, 2024, to December 31, 2024. The change proposal by MTM was determined to be fair and reasonable on January 10, 2024.
There are no scope changes made to the contract with MTM’s change proposal. The only change to the contract agreement is to the duration of the contract and the cost impacts of extending the contracted services by an additional three months.
The Board of Directors approval is requested to fund the additional three (3) months:
|
Current BOD Approval |
$133,658,177.00 |
|
Proposed New Contract Total |
$135,260,606.22 |
|
Additional BOD Approval Required |
$1,602,430 |
In summary, $1,602,430 needs board approval to not exceed the contract summary amount before the contract ends on December 31st, 2024.
RESPONSIBLE DEPARTMENT: Demand Response
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RESOLUTION
OF THE
CAPITAL METROPOLITAN TRANSPORTATION AUTHORITY
BOARD OF DIRECTORS
STATE OF TEXAS
COUNTY OF TRAVIS
AI-2024-1090
WHEREAS, MTM, Inc. is a contractor providing services at CapMetro’s North Base Demand Response location that includes vehicle operators, dispatch, maintenance, administrative staff, and management; and
WHEREAS, MTM’s current contract expires at the end of the CapMetro’s current fiscal year; and
WHEREAS, ending the contract at the end of the fiscal year is likely to cause administrative difficulties for both employees and a potential new contractor, as employee benefit cycles generally align with the calendar year.
NOW, THEREFORE, BE IT RESOLVED by the Capital Metropolitan Authority Board of Directors that the President & CEO, or her designee, is authorized to finalize and execute a contract modification with MTM, Inc. for operation of the North Demand Response Operation that will extend the contract three additional months from October 1 to December 31, 2024, in a total amount not to exceed $1,602,430.
____________________ Date: ____________________
Secretary of the Board
Becki Ross