Agenda Report

Attachments:1. Contract ModificationAnalysis2. D/M/WBE Details

Voting Requirements:  Majority

DATE:     January 14, 2014 SUBJECT:

   Exercise Contract Option and Contract Modification for Paratransit andInnovative Services

RECOMMENDATION

Approval of a resolution authorizing the President/Executive Director or his designee, subject to legalreview and approval, to exercise the five-year option and modify the contract for Paratransit andInnovative Services with MV Transportation, Inc. [Contract No. C-1019730-01] to:

Modify the contract to include an equitable adjustment for trip reductions, exclusions, and on call routeadditions. Modify the contract to include an adjustment to the taxi/vehicle mix, technologyimprovements, adjust passenger load time, reduce ride time, add one additional KPI, adjust applicationof liquidated damages and a new On Call zone for the Park Cities area for a total unchanged amountnot to exceed $185,981,120.

Exercise the five-year option, as modified.

COMMITTEE CONSIDERATIONS

. On December 10, 2013 the Security, Safety, Public Relations & Operations Committee discussedthis item and deferred action until the next Committee meeting.

FINANCIAL CONSIDERATIONS

. On January 24, 2012 (Resolution No. 120015), the Board approved a two-year pilot and one,five-year option with MV Transportation, Inc. for Paratransit and Innovative Services in theamount of $185,981,120, and funding for the seven years was included in the Twenty-YearFinancial Plan.

. The five-year option and modification for Paratransit and Innovative Services are included in theMobility Management Services Department's approved FY 2014 operating budget.

. Sufficient funding for the five-year option and modification is included in both the MobilityManagement Services Department's FY 2014 Operating Expense budget and the OperatingExpense line item of the FY 2014 Twenty-Year Financial Plan.

AGENDA ITEM NO. 8

Contract Mod 1/8/2014 1:24:19 PM1

. The table below shows the existing contract value, reduction of costs, equitable adjustmentsrequested, and total modified costs by year.

 Total Costof OriginalContract

Reduction ofCost due toFewer Trips

ContractModification

AdditionContingencies

RevisedTotal

EstimatePer Year

FY13 $23,267,826 ($3,380,525) $1,313,538   $21,200,839FY14 $23,298,592 ($4,101,955) $3,439,871   $22,636,507FY15 $25,052,323 ($4,703,625) $3,410,170 $55,035 $23,813,903FY16 $26,460,572 ($5,296,639) $3,548,090 $621,930 $25,333,952FY17 $27,988,643 ($5,946,617) $3,703,742 $693,159 $26,438,927FY18 $29,224,591 ($6,556,324) $3,904,388 $760,173 $27,332,829FY19 $30,688,573 ($7,246,159) $4,115,253 $833,184 $28,390,851           Total $185,981,120 ($37,231,845) $23,435,052 $2,963,480 $175,147,808

. Although staff recommendation is to retain the existing Not to Exceed (NTE) it is staff's intent toseek board approval prior to utilizing funds above the current projected contract amount. Staff isrecommending to retain the NTE amount to ensure that funding on the contract is available if anyadditional On Call Zones or Late Night/Shared Ride Service is added in the future or current typeof trips exceed projections. Additionally, the funding will allow for any increase in ADAParatransit service.

BUSINESS PURPOSE

. Accessible Services Policy No. III.14

. This contract currently operates paratransit and innovative services modes of transportation forDART.

. The initial two-year pilot period for this contract will expire on September 30, 2014.

. Contract Option: Exercise the single, five-year option to extend contract services throughSeptember 30, 2019.

. DART staff has worked with MV Transportation, Inc. to determine appropriate contractmodifications based on current trending, customer feedback, and lessons learned within thecritical first year of the base contract period. These modifications require an internal compositionadjustment only. There is no financial adjustment required, as all adjustment-related costs arecovered by the reduction in trips originally budgeted in the contract, operating budget, andfinancial plan. Modifications are listed in detail below:

  . Trip Reduction: Modify the contract to compensate the Contractor for the difference in actualtrips from the original solicitation estimate. The number of actual trips is less than theestimated annual quantity stated in the contract. While DART continues to benefit from thesavings in the contract trip rate, MV Transportation, Inc. is unable to recover its fixed costsallocated to each trip based on the almost 5% over estimate by DART of the total number oftrips. Modification of the contract is required to fairly compensate the Contractor for its fixed

Contract Mod 1/8/2014 1:24:19 PM2

costs associated with the reduced number of trips.  . Exclusions: The Contractor is experiencing a higher level of oversized mobility device riders

than other communities. DART will pay a $13.00 cost difference between cab and dedicatedvan for the number of oversized mobility device rider trips exceeding the industry standard ofthree percent and for discretionary exclusions.

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  . Adjust Taxi Vehicle Mix: The existing taxi fleet has created challenges within the existingservice delivery model. For this reason MV Transportation, Inc. and DART agree thatobtaining a more uniform fleet with more accessible vehicles will greatly benefit DART'sparatransit riders. This modified fleet will now include 66 side-loading minivan taxicabswhich will be pre-approved by DART to meet DART's specifications.

  . Technology Improvements: Through customer feedback, we have determined that there are anumber of technological improvements which would benefit our riders. The recommendedmodifications will include smart phone apps, voice call-outs, email, and text notifications ofride/bus locations and expected arrival times. These requirements were not included in theoriginal solicitation requirements.

  . On Call zone for the Park Cities Area: The Contract provides for the addition of On Callservices. This service covers parts of Highland Park, University Park and Dallas and isanchored at Mockingbird Station.

. The following table identifies the history of this contract from date of award:

Date ActionContractChangeAmount

Total BoardAuthorized

Amount1/30/2012 Contract Award $0 $185,981,120       

PROCUREMENT CONSIDERATIONS

. Since the contract award, DART has concluded the final year of the previous Contract in FY12(the final year of the previous service delivery model), initiated service delivery in a two-yearpilot beginning on October 1, 2012.

. The Contractor completed the first year of the two-year pilot on September 30, 2013.

. The Contractor submitted a request for equitable adjustment on August 19, 2013. MVTransportation, Inc. and DART staff have negotiated in good faith since that time.

. DART may elect to exercise the five-year option, issue an RFP for a new contract, or negotiate acontract extension for a shorter term.

. DART staff recommends exercising the five-year option and modifying the contract.

D/M/WBE CONSIDERATIONS

. The goals for this contract were established in 2011 at 25% MBE and 7% WBE participation.

. MV Transportation, Inc., the prime contractor, has committed to exceed the MBE goal and meet aportion of the WBE goal.

. The contractor's M/WBE analysis and Equal Employment Opportunity (EEO-1) information areincluded in Attachment 2. The prime contractor's actual EEO-1 report is available upon request.

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LEGAL CONSIDERATIONS

. Section 452.055 of the Texas Transportation Code authorizes DART to contract for the provisionof goods and services.

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Attachment 1

Dallas Area Rapid Transit Authority CONTRACT MODIFICATION ANALYSIS

Modification No. 3 Contract Information A. Contract Description: Paratransit and Innovative Services B. Contractor: MV Transportation C. Contract Number: C-1019730-01 D. Contractual Action: Exercise the single, five-year option and modify the contract as

follows: 1) Trip Reduction Equitable Adjustment 2) Exclusions Equitable Adjustment 3) Taxi Vehicle Mix 4) Technology 5) Changing Load Time to Actual 6) Long Lead Times 7) On Call zone for Park Cities

E. Current Board Authorization Amount: $185,981,120 F. Modified Board Authorization Amount: $0 G. New Contract Amount: Not to exceed $185,981,120 H. Contract Type: Indefinite Quantity/Indefinite Delivery I. Current Term of Contract/Performance Period: Two years: 10/01/2012 through

9/30/2014 J. Remaining Options Available: None K. Price Considerations: Negotiations were based on actual certified cost and price data

submitted by the Contractor. Cost and price was compared to current contract rates, the independent cost estimate, and rates in other communities.

L. Negotiation Memorandum: Available for review in the contract file. M. Determinations Required: None N. Funding: Local O. Determination of Responsibility: Bond Check: Yes Reference Check: Satisfactory Financial Responsibility Survey: Satisfactory Insurance Check: Insurance certificate on file

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Attachment 1

Debarred/Suspended list: Not on the debarred/suspended list Determination and Recommendation MV Transportation is a responsible contractor. The modified contract price is determined to be fair and reasonable. Therefore, exercising this option and modifying this contract is recommended.

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Attachment 2

Exercise Contract Option and Contract Statement of Work Modifications for Paratransit and Innovative Services

M/WBE Considerations The goals for this contract were established in 2011 at 25% MBE and 7% WBE participation. MV Transportation, Inc., the prime contractor, has committed to exceed the MBE goal and meet a portion of the WBE goal utilizing the following certified firms: MBE PARTICIPATION:

VENDOR LOCATION ETHNICITY SERVICE AMOUNT %

2M Business Products Dallas, TX Indian Male

Office Supplies & Furniture $33,026 .02%

BMR Janitorial & Pressure Washing

Dallas ,TX Black Male Vehicle Detailing,

Washing & Fueling Services

$2,065,396 1.11%

Pursuit of Excellence Dallas, TX Hispanic Female

Human Resources, Executive Search &

Administrative Consulting Services

$48,791,311 26.23%

Wai-Wize, LP Dallas, TX Black Male Supply and Install Radio Equipment

$1,503,719 .81%

TOTAL MBE PARTICIPATION: $52,393,452 28.17%* WBE PARTICIPATION:

VENDOR LOCATION ETHNICITY SERVICE AMOUNT %

ACE Body & Co Balch Springs, TX White Female Bus, Truck Auto Repair Specialty Welding

$212,798 .11%

Alphagraphics Dallas, TX White Female Printing Services

$45,879 .03%

Davis Apparel Shop Dallas, TX Black Female Supply Company Uniforms

$274,498 .15%

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SVI, Inc. Henderson, NV Hispanic Female

MV-1 Buses & Star Trans Buses

$8,097,000 4.35%

TOTAL WBE PARTICIPATION: $8,630,175 4.64%*

TOTAL M/WBE PARTICIPATION: $61,023,627 32.81%*

NOTE: The goals are based on the contract not to exceed amount of $185,981,120. If there are any changes to this amount, the original goals shall still apply.

*The percentage and dollar amounts may remain level, increase or decrease depending on the circumstances.

Summary of EEO Information

MV Transportation, Inc., is located in Fairfield, CA and employs 12,737 individuals. The following is an analysis of their EEO-1 report:

ASIAN BLACK HISPANIC NATIVE AM.

WHITE TOTAL PERCENTAGE

MALES 680 3,131 2,091 42 2,268 8,212 64.47% FEMALES 123 2,369 1,049 44 940 4,525 35.53%

TOTAL 803 5,500 3,140 86 3,208 12,737 100% PERCENTAGE 6.30% 43.18% 24.65% .68% 25.19% 100%

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DRAFT

RESOLUTION

of the

DALLAS AREA RAPID TRANSIT BOARD

(Executive Committee)

Exercise Contract Option and Contract Statement of Work Modifications for Paratransitand Innovative Services

WHEREAS, DART seeks to maintain its contract with MV Transportation, Inc. for DART'sParatransit and Innovative Services modes of transportation; and

WHEREAS, on January 30, 2012, a two-year contract pilot period with a five-year option wasawarded to MV Transportation, Inc.; and

WHEREAS, approval of this contract option will result in continued Paratransit and InnovativeServices for DART; and

WHEREAS, funding for this contract option is within current Budget and FY 2014 Twenty-YearFinancial Plan allocations.

NOW, THEREFORE, BE IT RESOLVED by the Dallas Area Rapid Transit Board of Directorsthat the President/Executive Director or his designee, subject to legal sufficiency review andapproval, is authorized to exercise the five-year option and modify the contract for Paratransit andInnovative Services with MV Transportation, Inc. [Contract No. C-1019730-01] to:

Section 1: Modify the contract to include an equitable adjustment for trip reductions,exclusions, and on call route additions. Modify the contract to include anadjustment to the taxi/vehicle mix, technology improvements, adjustpassenger load time, reduce ride time, add one additional KPI, and adjustapplication of liquidated damages for a total unchanged amount not to exceed$185,981,120.

Section 2: Exercise the five-year option, as modified.

Contract Mod 1

Exercise Contract Option and Contract Statement of Work Modifications for Paratransit and Innovative Services

Prepared by:

Approved by: Carol Wise Executive Vice President Chief Operating Officer

Doug Douglas Vice President Mobility Management Services

Approved as to form: <~ (? 0

Approved by:

Contract Mod 2