VIRGINIA RAILWAY EXPRESS
REQUEST FOR PROPOSALS (RFP)
RFP No. 016-015
DIESEL FUEL PRICE RISK MANAGEMENT
CONSULTING SERVICES
RFP Issued: February 12, 2016
Contact: Gerri Hill, Manager of Purchasing and Contract Administration
Virginia Railway Express, 1500 King Street, Suite 202, Alexandria, VA 22314
Main Office: (703) 684-1001 Direct/Fax: (703) 838-5427 Email: ghill@vre.org
Page 1 of 66
_____________________________________________________________________
TABLE OF CONTENTS
____________________________________________________________
PART I
PART II
RFP INFORMATION
4
A
B
C
5
8
9
SCHEDULE
D
E
PART III
PART IV
PART V
Purpose/Background
Procurement Schedule
Notices for Offerors
11
Scope of Services
Special Terms and Conditions
12
14
GENERAL INFORMATION, INSTRUCTIONS
AND CONDITIONS FOR OFFERORS
18
F
G
H
19
21
24
General Information About the RFP
General Instructions for Offerors
General Conditions for Offerors
UTILIZATION OF DISADVANTAGED BUSINESS
ENTERPRISES AND SMALL BUSINESS CONCERNS
27
I
J
28
30
Disadvantaged Business Enterprises Policy
Small Business Concerns Policy
PROPOSAL REQUIREMENTS
33
K
L
M
34
41
42
Proposal Content
Cost Information
Submission of Proposal
2
RFP No. 016-015
Diesel Fuel Price Risk Management Consulting Services
Virginia Railway Express
___________________________________________________________________
TABLE OF CONTENTS (continued)
______________________________________________________________________
PART VI
PART VII
EVALUATION OF PROPOSALS, CONTRACT AWARD
AND CONTRACT EXECUTION
46
N
O
P
47
49
51
Evaluation of Proposals
Contract Award
Contract Execution
CONTRACT DELIVERABLES
52
Q
R
S
53
54
57
Certificate of Insurance
Invoices
Project Reports/Documents
PART VIII DOCUMENTS, EXHIBITS AND OTHER
ATTACHMENTS
T
U
Exhibits
List of Attachments
3
RFP No. 016-015
Diesel Fuel Price Risk Management Consulting Services
Virginia Railway Express
58
59
66
PART I
RFP INFORMATION
SECTION
TITLE
A
Purpose/Background
B
Procurement Schedule
C
Notices for Offerors
4
RFP No. 016-015
Diesel Fuel Price Risk Management Consulting Services
Virginia Railway Express
SECTION A
PURPOSE/BACKGROUND
A.1
PURPOSE
The purpose of this Request for Proposals (RFP) is to establish two (2) Contracts
with one (1) qualified and experienced firm for diesel fuel price risk management
consulting services for the Virginia Railway Express (VRE) and the Potomac and
Rappahannock Transportation Commission (PRTC). The firm shall advise VRE
and PRTC staff on managing their respective organization’s cost of diesel fuel.
VRE and PRTC have a significant exposure to the diesel fuel market, and each
organization desires to manage the risk this exposure presents.
A.2
VRE BACKGROUND
A.
VRE is a commuter rail service linking the District of Columbia and Northern
Virginia. The Northern Virginia Transportation Commission (NVTC) and PRTC are
transportation districts established under Virginia law and jointly own this service.
An Operations Board consisting of members from each of the jurisdictions within
the VRE service area governs the development and operation of VRE and serves
as an advisory board to the NVTC and PRTC governing boards.
B.
VRE began operations in 1992 and carries an average of approximately 19,000
weekday trips on two (2) lines. In January 2014, VRE’s Operations Board
adopted System Plan 2040 which calls for expansion of service, requiring the
addition of railcars, expansion of station and yard facilities, as well as expanding
operations to meet the goal of doubling ridership by 2040. VRE’s multi-prong
program addresses short term growth needs, as well as longer term capacity
improvements and investments in maintaining and servicing VRE’s equipment
and facilities.
C.
The primary mission of VRE is to provide commuter-oriented passenger rail
service between outlying suburbs and the Washington-Arlington-Alexandria
urban core. Some tourists and “day-trippers” also ride the trains. The service is
heavily oriented towards that core area in the morning peak and in the opposite
direction in the evening peak.
5
RFP No. 016-015
Diesel Fuel Price Risk Management Consulting Services
Virginia Railway Express
A.3
A.4
PRTC BACKGROUND
A.
PRTC is a suburban Washington, D.C. public transportation agency offering a
variety of publicly supported services to meet community transit needs. The
agency predominantly provides commuter express bus service, OmniRide, to the
Washington, D.C. metropolitan area from suburban communities located twentyfive (25) to forty (40) miles away. PRTC commuter buses attract “choice” riders
because the high occupancy vehicle (HOV) roadways they traverse provide a safe,
dependable and faster commute than driving alone.
B.
PRTC also provides connector services to end-line Metrorail stations (Metro
Direct), a cross-county route, and OmniLink, a local bus service. OmniLink is the
demand responsive bus service that operates in Eastern Prince William County
and in the cities of Manassas and Manassas Park, Virginia. OmniLink was
designed to meet the transportation needs of the entire community, including
individuals who may have difficulty getting to established bus stops. Unlike a
traditional public bus service that operates only along a designated route, with
advance notice, OmniLink buses can be rerouted to serve locations up to ¾ mile
off the route when there is time available in the schedule. OmniLink service
balances the amount of time available for all off-route trips with ensuring that bus
service is reliable for all customers.
VRE PROJECT BACKGROUND
A.
VRE does not maintain diesel fuel storage tanks at its layover yards on the
Fredericksburg and Manassas lines. Currently, VRE relies on two (2) different
fuel suppliers (one (1) for each line) to deliver fuel to its trains on a daily basis.
B.
During fiscal year 2015, approximately 1,560,000 gallons of diesel fuel were
consumed by VRE trains. Consumption is reasonably consistent from month to
month, with the main fluctuation related to the number of business days in each
month (more business days in a month equals higher monthly usage). Usage may
also increase or decrease with service increases or decreases. During fiscal year
2016, one (1) additional round trip train was added to the VRE service.
C.
VRE regularly enters into fixed price contracts with its fuel suppliers. Each of
VRE’s two (2) suppliers enters into a hedging arrangement for up to one (1)
contract (42,000 gallons) per month on behalf of VRE. After reviewing other
available hedging strategies, VRE has chosen at this time to use only supplier
provided fixed price contracts.
6
RFP No. 016-015
Diesel Fuel Price Risk Management Consulting Services
Virginia Railway Express
A.5
PRTC PROJECT BACKGROUND
A.
PRTC buses are fueled daily during the week at the bus facility located at 14700
Potomac Mills Road, Woodbridge, VA 22192. At this facility, there are two (2)
underground tanks for diesel fuel, which hold 15,000 gallons each. The diesel fuel
supplier delivers fuel directly from its truck into PRTC’s storage tanks.
B.
PRTC had 1,113,000 gallons of ultra-low sulfur diesel fuel delivered during fiscal
year 2015. Consumption is reasonably consistent from month to month, with the
main fluctuation related to the number of business days in each month (more
business days in a month equals higher monthly usage). Usage may also increase
or decrease with service increases or decreases. There are proposed service cuts
in fiscal year 2017 that would reduce consumption by approximately 109,000
gallons.
C.
PRTC regularly enters into fixed price contracts with its fuel supplier. The fuel
supplier purchases as many as two (2) contracts (42,000 gallons each) per month
on PRTC’s behalf. After reviewing other available hedging strategies, PRTC has
chosen at this time to use only supplier provided fixed price contracts.
7
RFP No. 016-015
Diesel Fuel Price Risk Management Consulting Services
Virginia Railway Express
SECTION B
PROCUREMENT SCHEDULE
RFP Issued
February 12, 2016
Submission of Written Questions
(See Page 9)
February 24, 2016 at 11:00 A.M. EST
Proposals Due (Closing Date and Time)
(See Page 45)
March 14, 2016 at 2:00 P.M. EST
Interviews (Optional)
(See Page 49)
March 25, 2016 at 10:00 A.M. to 3:00 P.M. EST
_________________________________________________________________________ __ _
Virginia Railway Express (VRE) reserves the right to make changes to the abovementioned schedule. All such changes shall be made by an addendum to the
solicitation. Offerors must frequently monitor VRE’s website at www.vre.org for
information concerning this solicitation, including any addenda or notices.
_________________________________________________________________________ __ _
8
RFP No. 016-015
Diesel Fuel Price Risk Management Consulting Services
Virginia Railway Express
SECTION C
NOTICES FOR OFFERORS
C.1
VRE INCLEMENT WEATHER POLICY
In the event of inclement weather conditions, such as heavy snowfall, icy streets
and sidewalks, flooding, earthquakes, tornadoes, and other natural
disasters, which result in the cancellation of VRE service operation, the Proposal
due date will be extended to the next business day VRE service operates.
Notifications of service operation interruptions and the resumption of service are
generally posted on VRE’s website. An official addendum to the solicitation will
be posted on VRE’s website at the earliest opportunity once VRE service resumes
operation.
C.2
AVAILABILITY OF SOLICITATION DOCUMENTS
The electronic versions of the solicitation documents are intended to provide
convenience to prospective Offerors. Be advised that it is the responsibility of
prospective Offerors to monitor VRE’s website for any addenda, notices or
postings. Failure to submit signed addenda may be grounds to declare a Proposal
non-responsive.
C.3
SUBMISSION OF WRITTEN QUESTIONS
A.
Deadline: All questions and requests for clarifications regarding the meaning or
interpretation of this RFP and other solicitation documents, or any ambiguities,
discrepancies, inconsistencies, or conflicts in or between any of the technical,
pricing, or contractual provisions, must be submitted no later than the date and
time specified in SECTION B – PROCUREMENT SCHEDULE of this RFP.
Questions and clarifications requested after such time will not be answered unless
VRE elects, in its sole discretion, to do so.
B.
Format for Questions: Questions must be submitted in Microsoft Word format
and include the related Section number and title.
9
RFP No. 016-015
Diesel Fuel Price Risk Management Consulting Services
Virginia Railway Express
C.
VRE Point of Contacts: Questions must be submitted in writing via electronic
mail to the following persons:
Gerri Hill
Manager of Purchasing and Contract Administration
ghill@vre.org
Kristin Nutter
Senior Contract Specialist
knutter@vre.org.
No questions or requests for additional information, clarification or any other
communication should be directed to any other individual.
D.
No oral communication will be accepted. VRE will not be bound by any oral
communications, or written interpretations or clarifications that are not set forth in
an Addendum.
E.
Questions and responses will be posted on VRE’s website at www.vre.org.
F.
Any interpretation of a question made by VRE will be responded to and
distributed in the form of an addendum to the RFP and will be available to all
interested Offerors through VRE’s website.
10
RFP No. 016-015
Diesel Fuel Price Risk Management Consulting Services
Virginia Railway Express