AWARD OF NEW PARATRANSIT SERVICES CONTRACT

(1)

AWARD OF NEW PARATRANSIT SERVICES CONTRACT

September 22, 2005

(2)

Purpose

To recommend award of the paratransit services contract to MV

Transportation, Inc. in the amount of $203,542,817 for a contract period of

four base years. Subsequent Board approval will be sought to award each

of the two, two-year options.

To recommend the approval of additional contract authority to cover the

cost of performance incentives for four years ($6 million) and fuel

escalation prior to the cutover of operations ($500,000) for a total award

amount of $210,042,817 for the four base years of the contract

(3)

AWARD OF NEW PARATRANSIT SERVICES CONTRACT

Background

The current paratransit services contract with Logisticare, Inc. was

awarded in October, 1999 and ends on January 14, 2006

The Board authorized initiation of the procurement in October,

2004, and the Request for Proposals for the successor contract was

released in April, 2005

The procurement was conducted as a "Best Value" procurement,

which seeks the best combination of technical capability and price

Four firms submitted proposals; three were deemed to be

(4)

Procurement Process

The Best Value procurement method combines technical evaluation

with examination of cost; as technical proposals become more

technically equivalent, cost becomes more critical to the selection

Technical Criteria:

Central Reservation, Scheduling, and Transmission of Trips - new software

is a superior product, which is critical to realizing service efficiencies

through schedule optimization, ride matching, route management,

aggressive dispatch (notifying customers BEFORE they experience delays)

Operating/Service Plan – compliance with ADA requirements, fleet

management and maintenance plan, service operation model

Management Plan – transition plan, management structure, recruitment,

safety, complaint investigation, alcohol and drug testing

Experience and History of Past Performance

(5)

Procurement Process

Cost Criteria:

Reasonableness of the proposed costs – analysis of cost drivers

and supporting documentation

Realism – comparison of each cost proposal item and labor skill

levels with the offeror’s technical proposal

Completeness – whether all items are properly included

Price proposals were examined only for those proposers who were

determined to be technically acceptable

(6)

WMATA Requirements to Improve Paratransit Service

Advanced commercial off-the-shelf (COTS) software to more effectively

and efficiently manage reservations, trip scheduling and dispatch

Productivity goals (trips per hour, from 1.25 in CY2006 to 1.55 for 2009

forward)

More rigorous incentives and disincentives ($125,000 per month maximum,

or $6 million for the base four years of the contract, if all incentives are

earned)

On-time performance

Missed Trips less than 1.05%

Passenger Injuries fewer than 2.5 per 100,000 trips

Total Complaints fewer than 1 per 1000 trips

(7)

WMATA Requirements to Improve Paratransit Service

Installation of functional, proven Mobile Data Computers and an

Automatic Vehicle Location System to validate trips and on-time

performance

Additional auditing and monitoring requirements

Liquidated damages for failure to implement/ commence operations on

January 15, 2006

Implementation of a web-based application and Interactive Voice

Response application to allow patrons to easily make reservations or

check on vehicle location without utilizing a live agent

(8)

AWARD OF NEW PARATRANSIT SERVICES CONTRACT

Results of Best Value Procurement Process

MV Transportation, Inc. was deemed to have offered the "best value" of all of

the proposers – an excellent, innovative technical proposal coupled with the

lowest proposed cost. Cost proposal was lowest for both the base four years,

as well as, the maximum period of eight years, including options

$203,542,817 for a four year base contract

MV will directly operate 34% of the paratransit service; five subcontractors will

operate 61% as dedicated service and cabs will fulfill the remaining 5% (far

superior to the current 20% taxi allocation)

MV will utilize Trapeze as the COTS software, which will:

perform schedule optimization routines to ensure the most trips are

delivered with the fewest vehicles in the shortest time

permit real-time recalculation of arrival times and timely notification of

patrons if traffic problems or other service issues delay arrivals

(9)

About MV:

•

One of the largest paratransit providers in the nation, operating more

than 130 paratransit service contracts and 3,000 vehicles nationwide

Founded by Feysan Lodde, an African American female

Major client properties include

Fastran (Fairfax County, VA)

San Francisco Muni

SamTrans (San Mateo, CA)

Lynx (Orlando, FL)

MV on-site transition staff includes former employees of Trapeze to

ensure smooth data migration and system implementation

(10)

Service Improvements in the New Contract

Trapeze reservation/scheduling/dispatch software will greatly improve trip

management, minimize missed and excessively late trips, enhance

communication with customers about vehicle location and arrival times,

match trips and minimize vehicles needed to provide service

Mentor Ranger Mobile Data Computers/Automatic Vehicle Location

System will validate trip delivery and on-time performance and assist

dispatchers with real-time vehicle monitoring for in-route adjustments and

patron notification of vehicle arrival time

FleetFocus software will manage maintenance scheduling, lifecycle costing

and performance analysis, to provide more reliable vehicle performance

(11)

Service Improvements in the New Contract (continued)

MV’s cost proposal emphasized high productivity and low overhead,

with the use of proven technologies to maximize trip efficiency

MV will install the DriveCam on-board camera system on all non-taxi

vehicles, which will enhance driver training, operations monitoring and

complaint/incident investigation

Operators will leave door hangers on customers’ doorknobs in case of

patron no-shows to remind customers about our no-show policy and

the need for timely cancellation

(12)

Recommendations

•

That the Board of Directors approve the award of the new paratransit

service contract to MV Transportation, Inc. in the amount of $203,542,817

for a contract of four years

•

That the Board of Directors approve additional contract authority of $6

million to cover the cost of incentives, if earned, and an additional $500,000

for fuel escalation, if necessary and fully documented, between September

22, 2005 and January 9, 2006

(13)

Next Steps

Award the contract September 22, 2005

Conduct first planning meeting September 23, 2005

Initiate transition, training, data conversion, vehicle purchase

immediately

"Go-Live" with reservations January 1, 2006

(14)

Budget Impact

Base Year One (Calendar Year 2006) Total

$47,854,409

Base Year Two (Calendar Year 2007) Total

$48,031,858

Base Year Three (Calendar Year 2008) Total

$54,171,291

Base Year Four (Calendar Year 2009) Total

$59,985,259

Total Base Years

$210,042,817

Option 1, Year One

$69,479,967

Option 1, Year Two

$80,171,522

Total Option 1

$149,651,489

Option 2, Year One

$92,831,275

Option 2, Year Two

$107,677,139

Total Option 2

$200,508,414

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Revenue, Expense & Funding Sources

(Dollars in thousands)

FY99

FY00

FY01

FY02

FY03

FY04

FY05

Revenues

$ 406.0 $ 911.8 $ 1,202.5 $ 1,698.3 $ 1,927.8 $ 2,364.8 $ 2,826

Expenses

$12,496.3 $17,185.4 $19,730.0 $25,417.8 $33,185.1 $36,945.5 $42,262

Gross Subsidy

$12,592.4 $16,684.3 $19,388.2 $24,547.5 $32,539.6 $35,744.3 $39,436

Passenger Trips

477,169

577,015

567,021

738,284

972,425 1,112,358 1,253,900

(16)

(Board Copy)

Washington Metropolitan Area Transit Authority

METRO ELECTRONIC ACTION DOCUMENT

IDENTIFICATION

MEAD ID: 98482 ACTION: Initiate & Award

AWARD VALUE: (Not yet awarded) CONTRACT: (Proposed) C05108

FUND SOURCES:

(View) Operating Funds CONTRACTOR:

LAST MODIFIED: 09/16/2005

DESCRIPTION

SUBJECT: Award Paratransit Services Contract to MV Transportation, Inc.

PURPOSE: Award the paratransit services contract to MV Transportation, Inc. for a contract period of four base years in the amount of $203,542,817, plus $6 million for performance incentives and $500,000 for potential fuel cost escalation (a total of $210,042,817). The proposal includes two two year options in the amount $344,159,903 plus $6 million for performance incentive, execution subject to future Board Approval.

ORIGINATION

INITIATOR DEPARTMENTAL APPROVAL

CHRISTIAN BERES on 08/24/2005 Approved by WILKINS , PAMELA 09/12/2005

PHONE: 202-962-2707 OFFICE: FARE DEPT: Communications

COORDINATION (ROUTING)

OFFICE NAME ACTION/DATE

BEMR (7600) WILKINS, PAMELA Approved 09/12/2005 AGMC (6100) AGOURIDIS, LEONA Re-assigned 09/09/2005

AUDT (7210) STEWART, JAMES Approved 09/12/2005 PRMT (7400) ZINGALE, JAMES Approved 09/13/2005 COUN (1410) O'KEEFFE, CAROL Approved 09/16/2005

FINAL APPROVALS

OFFICE NAME/ACTION

BEMR Approved for SCOS by HAROLD BARTLETT on 09/16/2005 GM GMGR CEO (Not Yet Approved)

BOARD BOARD WMATA (Not Yet Approved)

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BACKGROUND:

On October 22, 2004, the Board of Directors gave approval to initiate a competitive procurement, for a Paratransit System Management and Service contract.

The previous contract with Logisticare, Inc. was awarded on October 19, 1999 and terminates on January 14, 2006 The Request for Proposals for the successor contract was released in April, 2005. The

procurement was conducted as a "Best Value" procurement, which combines technical achievement with price. Four proposers responded; Logisticare declined to propose.

Evaluation committees were established to assess technical competence and cost. MV Transportation, Inc. is deemed to have offered the "best value" of all of the proposers. MV Transportation, Inc. will directly operate 34% of the paratransit service; subcontractors will operate 61% and cabs will fulfill the remaining 5%

The initiation action approved by the Board on October 22, 2004, provided contracting authority in the amount of $473.6M. This cost covers the period beginning in January 2006 and ending in January 2014, including four base years and four option years for a total of eight years.

DISCUSSION:

This action requests Board approval to award a Paratransit System Management and Service contract for a four-year base (January 15, 2006 - January 14, 2010). Two, two-year options (January 15, 2010 - January 14, 2014) are subject to future Board approval. In addition, the action requests further approval for contract authority to cover $12 million for performance incentive payments, if earned ($6M for the base period and $6M for the option years), and $500,000 to cover the cost escalation of fuel between

September 22, 2005, and January 9, 2006, when the cost of fuel will be set by a DOE index (if required). MetroAccess (MACS) is a regional service required by the Americans with Disabilities Act (ADA) of 1990. Since 1994, MACS has provided curb-to-curb transportation service for customers with disabilities unable to use the WMATA fixed-route service to complete their trips. WMATA is legally required to meet the demand of the service. WMATA currently provides MACS service through a single prime contractor who is responsible for all phases of the current MACS operation. The scope of services includes purchase, installation, and maintenance of state-of-art, commercial-off-the-shelf (COTS) automated scheduling software; providing centralized reservations, schedules and dispatch to facilitate reserving, scheduling and providing trips for customers; obtaining and maintaining a fleet of vehicles, equipped with Mobile Data Terminals and Automated Vehicle Locators compatible with the installed scheduling software and

WMATA`s "Ride Guide" and capable of providing dial-in "Where`s My Ride?" updates; and sub-contracting with private providers and taxicab companies for service in Maryland, the District of Columbia, and

northern Virginia. This will enable to validate trips and on-time performance.

Changes from the existing contract include payment per revenue hour (first pick-up to last drop-off with no more than a one, one-hour gap on any route/schedule) instead of per trip, and increased performance standards with incentives and disincentives to encourage greater operating efficiency and on-time

performance. This contract also incorporates certain recommendations from the Regional Paratransit Task Force; specifically,strengthening the eligibility certification process and charging a supplemental fare for

Washington Metropolitan Area Transit Authority

METRO ELECTRONIC ACTION DOCUMENT

NARRATIVE

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conversion, and vehicle purchase. The current plan is to "Go-Live" on reservations January 1, 2006, with Service Cut-Over January 15, 2006.

Fuel costs are currently extremely volatile and have risen substantially since issuance of the Requests for Proposals. This action includes a request for approval of additional contract authority to cover fuel cost escalation.

ALTERNATIVE:

There are no alternatives to providing complementary paratransit service. Federal regulations require that WMATA accommodate the demand for paratransit service.

PRIOR APPROVALS:

On October 22, 2004, the Board of Directors gave approval to initiate a competitive procurement, for a Paratransit System Management and Service contract.

IMPACT ON FUNDING:

Multi-Year Contract (with option years) Budget: Operating Budget, Fiscal 2006-2014 Office: Office of MetroAccess Paratransit Account: Paratransit Transportation Service

FY06 Operating Budget

Budget Book Pg. 71

Fiscal Year: FY06

Services, Paratransit: $49,534,900.00 Unspent Obligation: $21,860,650.00 Spent YTD: $3,084,400.00 This Action: $24,177,204.50 Remaining Funds: $412,645.50

Remaining Base Contract Cost: (FY07 thru FY10) $180,615,612.50 Contract Option Cost (FY10 thru FY14) $344,159,903.00 Remaining Base Contract Cost (Includes Incentives) $185,865,612.50 Outyears Contract Option Cost (Includes Incentives) $350,159,903.00 Total Project Cost/Award: (FY06 thru FY14) $547,702,720.00 Total Project Cost/Award: (Includes fuel Esc. & Incentives) $560,202,720.00

Remarks:

1. There are sufficient funds available in the Department of MetroAccess Paratransit budget to support this action.

2. This is a request for a four-year base period. The two, two-year option periods will be

exercised only upon subsequent Board approval. Since the base period will overlap four

fiscal years, the base period will be funded from fiscal years 2006, 2007, 2008,

(19)

SCHEDULE:

Notice to proceed for the contract must be issued no later than September 23, 2005, to

preclude any lapse in paratransit service

AFFIRMATIVE ACTIONS REQUIREMENTS:

The contractor will be required to comply with Executive Order 11246, Rev. No 4.

DBE REQUIREMENTS:

Pursuant to WMATA Board Resolution 2005-30, DBE goals are not set on operationally

funded contracts

.

RECOMMENDATION:

That the Board of Directors approve the award of the new paratransit service contract to MV

Transportation, Inc. in the amount of $210,042,817, for a contract of four years This amount includes $6,000,000 to cover payment of performance incentives, if earned, and $500,000 to cover fuel cost escalation between the date of award and January 9, 2006, the date that fuel prices will be set for this contract.