AGENDA ITEM 10-C ACTION ITEM TO: CHAIRMAN COVINGTON AND THE VRE OPERATIONS BOARD FROM: DALE ZEHNER DATE: APRIL 20, 2012 RE: AUTHORIZATION TO AWARD A CONTRACT CLEANING OF VRE PASSENGER CARS FOR INTERIOR RECOMMENDATION: The VRE Operations Board is being asked to authorize the Chief Executive Officer to execute a contract with Service Master Preferred Services of Woodbridge, Virginia for interior cleaning of VRE passenger cars in the amount of $533,988, plus a 5% contingency of $26,699, for a total amount not to exceed $560,687. BACKGROUND: In order for VRE to maintain its high standard of cleanliness for passenger cars, VRE must obtain services to provide heavy interior cleaning. This cleaning is in addition to the current daily cleaning of all passenger cars and includes deep cleaning of carpets and windows and more extensive tasks such as bathroom disinfection. Heavy interior cleaning is scheduled twice per year, typically in the spring and fall. In August of 2011, the VRE Operations Board approved a request to issue an RFP for interior cleaning of VRE passenger cars. On January 24, 2012, the RFP was issued and proposals were due on February 27, 2012. One response was received. The VRE evaluation committee met in March 2012 and determined the sole proposal was technically compliant and unanimously selected Service Master Preferred Services. The contract with Service Master Preferred Services will be for a base year with two one year options, with the CEO exercising the option years at his discretion. FISCAL IMPACT: Funding is provided for in the FY 2012 - 2015 operating budget. The project manager’s estimate was $582,000 for the total contract value. The estimated budget in detail is provided below: Rail Car Type Unit Price Gallery IV Cab Gallery IV Trailer with toilet Gallery IV Trailer without toilet Legacy Car with toilet Legacy Car without toilet Grand Total $978.00 $978.00 Exterior Cleaning Number of Cars Est. Number of Cleanings 21 2 20 2 Total $41,076 $39,120 $978.00 30 2 $58,680 $978.00 8 2 $15,648 $978.00 12 2 $23,472 $177,996 Total Contract Cost Contract Year 1 2 3 Contract Total Estimated Annual Cost $177,996 $177,996 $177,996 $533,988 TO: FROM: DATE: RE: CHAIRMAN COVINGTON AND THE VRE OPERATIONS BOARD DALE ZEHNER APRIL 20, 2012 AUTHORIZATION TO AWARD A CONTRACT FOR INTERIOR CLEANING OF VRE PASSENGER CARS RESOLUTION 10C-04-2012 OF THE VIRGINIA RAILWAY EXPRESS OPERATIONS BOARD WHEREAS, VRE has a need for heavy interior cleaning of passenger cars; and, WHEREAS,VRE’s previous contract to provide such services expired in October 2011; and, WHEREAS, VRE issued an RFP and received one technically compliant proposal; and, WHEREAS, the VRE selection committee unanimously selected Service Master Preferred Services. NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board authorizes the Chief Executive Officer to execute a contract with Service Master Preferred Services of Woodbridge, Virginia for interior cleaning of VRE passenger cars in the amount of $533,988, plus a 5% contingency of $26,699, for a total amount not to exceed $560,687.