AGENDA ITEM 10-B
ACTION ITEM
TO:
CHAIRMAN COVINGTON AND THE VRE OPERATIONS BOARD
FROM:
DALE ZEHNER
DATE:
APRIL 20, 2012
RE:
AUTHORIZATION TO APPROVE THE THIRD YEAR OF THE
OPERATING AND MAINTENANCE SERVICES CONTRACT
RECOMMENDATION:
The VRE Operations Board is being asked to recommend that the Commissions
authorize the Chief Executive Officer to modify the contract with Keolis Rail
Services Virginia, LLC for operating and maintenance services by approving up to
$18,008,591, for a total contract value not to exceed $56,507,466, for the third
year of operations, through June 30, 2013, and to make other administrative
contract changes described below.
BACKGROUND:
On October 16, 2009, the VRE Operations Board approved a contract with Keolis
Rail Services Virginia for VRE operating and maintenance services and
mobilization in the amount of $18,459,348 through June 30, 2011. A contract
amendment was approved on December 17, 2010 to add $2,085,000 to the
contract value to reflect service enhancements, higher than anticipated insurance
costs, items added during negotiations, contingency funds, and to remove the
requirement that Keolis indemnify VRE for all liability claims arising from the
contract service with a value of up to $5,000,000.
On May 20, 2011, the second contract year was authorized in the amount of
$17,954,527.
Authorization is now being sought in the amount of $18,008,591, for the third year
of service. This amount is within the approved budget for FY 2013 and reflects a
3.5% increase to fixed cost services, based on the increase to the CPI for a 12
month period, as required by the contract. In addition, maintenance of the new
VRE warehouse at the Crossroads yard has been added to the facilities budget.
A comparison of FY 2012 and FY 2013 contract elements is provided in the
attached chart. The maintenance of equipment budget submitted by Keolis was
higher than the amount in the VRE budget by approximately $158,000. However,
as indicated in the chart, VRE is recommending approval of a lower number for
equipment maintenance based on the continued implementation of process
efficiencies.
In March, the Operations Board authorized the issuance of a solicitation for an
independent third party analysis of VRE rail equipment and maintenance
management. The analysis is pursuing a potential cost savings through
consolidation of functions and lean management principles. The results, and
implementation of any findings, could result in a positive change to the
recommended contract value. The study will be completed this summer and the
findings and recommendations will be discussed with the Board at the August or
September meeting.
The contract is also being modified to reflect administrative changes proposed by
VRE staff, including the aforementioned scope change to include maintenance of
the new warehouse at Crossroads Yard, an update to contract procedures to
specify staff level representatives by position, the replacement of staff names with
position titles, and an amendment to the invoice requirements for maintenance of
equipment to support more comprehensive analysis of these costs.
All
modifications will be reviewed and approved by VRE procurement staff and VRE
counsel before execution.
FISCAL IMPACT:
Funding for the third year of the commuter rail operating and maintenance
services contract is included in the FY 2013 operating budget. Details are
provided in the attached chart.
2
TO:
FROM:
DATE:
RE:
CHAIRMAN COVINGTON AND THE VRE OPERATIONS BOARD
DALE ZEHNER
APRIL 20, 2012
AUTHORIZATION TO APPROVE THE THIRD YEAR OF THE
OPERATING AND MAINTENANCE SERVICES CONTRACT
RESOLUTION
10B-04-2012
OF THE
VIRGINIA RAILWAY EXPRESS
OPERATIONS BOARD
WHEREAS, on October 16, 2009, the VRE Operations Board approved a contract
with Keolis Rail Services Virginia for VRE operating and maintenance services
and mobilization in the amount of $18,459,348 through June 30, 2011; and,
WHEREAS, a contract amendment was approved on December 17, 2010 to add
$2,085,000 to the contract value to reflect service enhancements, higher than
anticipated insurance costs, items added during negotiations, contingency funds,
and to remove the requirement that Keolis indemnify VRE for all liability claims
arising from the contract service with a value of up to $5,000,000; and,
WHEREAS, on May 20, 2011, the Operations Board approved the second
contract year, through June 30, 2012, in the amount of $17,954,527 for a total
contract value not to exceed $38,498,875; and,
WHEREAS, authorization is now being sought to approve the third contract year
as well as administrative contract amendments proposed by VRE staff.
NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board
recommends that the Commissions authorize the Chief Executive Officer to
modify the contract with Keolis Rail Services Virginia, LLC for operating and
maintenance services by approving up to $18,008,591, for a total contract value
not to exceed $56,507,466, for the third year of operations through June 30,
2013; and,
BE IT FURTHER RESOLVED THAT, the VRE Operations Board recommends
that the Commissions authorize the Chief Executive Officer to make
administrative contract changes as approved by VRE Counsel.
3
Keolis Budget FY 2013
DESCRIPTION
BUDGET
FY 2012
YEAR END EST
FY 2012
BUDGET
FY 2013
Variance
from FY 2012
Management Services
4,590,213
4,590,213
4,750,871
160,657
CPI increase of 3.5%
Train Operations
Test or Special Trains
7,907,383
7,907,383
12,280
8,184,141
276,758
CPI increase of 3.5%
Maintenance of Equipment (1)
Task Order Repairs
Sub - total
3,421,221
176,554
3,597,775
3,397,636
130,000
3,527,636
3,408,620
202,774
3,611,394
(12,601) Rate increase offset by revised scope of work
26,220 Includes cost of warehouse move
13,619
Maintenance of Facilities
Addition of new warehouse (2)
Sub - total
315,805
315,805
315,805
315,805
326,858
40,000
366,858
11,053
40,000
51,053
CPI increase of 3.5%
Estimated amount for new facility
Warehouse Management
343,311
343,311
355,327
12,016
CPI increase of 3.5%
Incentive payments
Contingency
400,000
400,000
718,305
-
740,000
-
17,554,486
17,414,933
18,008,591
TOTAL
340,000 Based on current level
(400,000)
454,104
2.6% increase
NOTE:
(1) VRE's estimated budget for FY 2013 for maintenance of equipment reflects the continued implementation of process efficiencies.
(2) Estimated amount for warehouse maintenance, pending further information from Keolis.
R:\Executive\Board Kits\2012 Board Kits\April 2012\Agenda Item 10B - attach
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.
AGENDA ITEM 10-D
ACTION ITEM
TO:
CHAIRMAN COVINGTON AND THE VRE OPERATIONS BOARD
FROM:
DALE ZEHNER
DATE:
APRIL 20, 2012
RE:
AUTHORIZATION TO AMEND ENGINEERING SERVICES TASK
ORDER FOR THE WAREHOUSE CONSTRUCTION PROJECT
_____________________________________________________________________
RECOMMENDATION:
The VRE Operations Board is being asked to authorize the Chief Executive Officer to
amend a task order, under GEC V with STV, for engineering services related to the
Crossroads warehouse project. The amendment will be in the amount of $99,124, plus
a 10% contingency of $9,912, for a total task order amount not to exceed $629,248.
BACKGROUND:
Due to overcrowding of storage, maintenance, and inspection facilities at Washington
Union Terminal, VRE relocated inspection and maintenance activities to its outlying
yards several years ago. As part of this relocation, construction of the Crossroads
maintenance facility and train wash was completed in 2009. The next step is
construction of a warehouse on VRE property in order to eliminate the need for leasing
warehouse space in Manassas. This shift will yield a substantial savings over time as
well as provide for a more centralized warehouse space. While originally envisioned for
the Broad Run yard, challenging site conditions resulted in a location change to the
Crossroads yard.
In April 2011, the Operations Board authorized award of a construction contract to build
a warehouse at the Crossroads yard. Construction began in late May of 2011 and was
originally scheduled for completion in December 2011. Over the winter, VRE staff
determined that the schedule would not be met due to a lack of coordination by the
construction contractor and inadequate quality control. VRE staff began working to
develop a modified timeline for completion and a project completion date is expected
for June of 2012. The warehouse is currently 75% complete and liquidated damages
are being assessed against the contractor.
Due to this change in schedule, additional engineering services are needed. The
original task order was approved by the Operations Board in the amount of $520,212 in
November of 2009.
The scope included design, development of plans and
specifications for solicitation, and technical support as needed. This proposed
amendment, detailed below, will support efforts to trouble shoot construction related
issues in order to expedite completion of the work.
FISCAL IMPACT:
Funding for this task order is included in VRE’s Capital Improvement Program as part of
the Crossroads Maintenance Facility project. Funding is available from FY 2007, FY
2008, and FY 2009 federal grants. The local match is provided using state and local
funds.
This task order work will be completed, along with construction, in June of 2012. The
cost is $99,124, plus a 10% contingency of $9,912, for a total amendment amount of
$109,036. Specific work elements include:




Engineering services to troubleshoot construction issues
Quality assurance efforts to address workmanship issues
Materials testing
Completion of special inspections as required by the County
TO:
FROM:
DATE:
RE:
CHAIRMAN COVINGTON AND THE VRE OPERATIONS BOARD
DALE ZEHNER
APRIL 20, 2012
AUTHORIZATION TO AMEND ENGINEERING SERVICES TASK
ORDER FOR THE WAREHOUSE CONSTRUCTION PROJECT
RESOLUTION
10D-04-2012
OF THE
VIRGINIA RAILWAY EXPRESS
OPERATIONS BOARD
WHEREAS, in June of 2004, the Operations Board approved a plan to shift VRE fleet
maintenance to the outlying yards; and,
WHEREAS, in April 2011, the Operations Board authorized award of a construction
contract to build a warehouse at the Crossroads yard; and
WHEREAS, extensive construction engineering and material testing has been required
to ensure acceptable workmanship and expedite construction; and,
WHEREAS, a task order amendment is needed to extend the existing design support
services work.
NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board authorizes
the Chief Executive Officer to amend a task order, under GEC V with STV, for
engineering services related to the Crossroads warehouse project. The amendment
will be in the amount of $99,124, plus a 10% contingency of $9,912, for a total task
order amount not to exceed $629,248.
AGENDA ITEM 10-F
ACTION ITEM
TO:
CHAIRMAN COVINGTON AND THE VRE OPERATIONS BOARD
FROM:
DALE ZEHNER
DATE:
APRIL 20, 2012
RE:
AUTHORIZATION TO ISSUE SOLICITATION FOR LED LIGHTING
PROJECTS AT FRANCONIA/SPRINGFIELD AND BACKLICK ROAD
_____________________________________________________________________
RECOMMENDATION:
The VRE Operations Board is being asked to authorize the Chief Executive Officer to
issue a solicitation for installation of light emitting diode (LED) lighting at the Franconia/
Springfield and Backlick Road VRE stations.
BACKGROUND:
As VRE stations approach twenty years of age, the original platform lighting is in need
of replacement. The lights have become dim over time and maintenance costs
associated with the original lighting components has gradually increased. By replacing
the lighting system to LED, utility and maintenance costs will be reduced substantially.
In 2010, VRE received Department of Homeland Security funding to improve lighting at
stations. Since that time, several stations have had LED lighting installed using the
RFQ (Request for Quote) process. Stations completed to-date include Brooke, Leeland,
Broad Run, Crystal City and Rippon. The size of and project estimate for the Franconia/
Springfield station trigger a formal public solicitation. The Backlick station is also being
included in this solicitation in an effort to receive the best pricing possible.
Once bids are received, VRE staff will return to the Operations Board for authorization
to execute a contract with the lowest responsible and responsive bidder.
FISCAL IMPACT:
Funding is provided using a Department of Homeland Security grant. Specific project
cost information will be provided with the recommendation for award so as to not
prejudice the solicitation process.
TO:
FROM:
DATE:
RE:
CHAIRMAN COVINGTON AND THE VRE OPERATIONS BOARD
DALE ZEHNER
APRIL 20, 2012
AUTHORIZATION TO ISSUE SOLICITATION FOR LED LIGHTING
PROJECTS AT FRANCONIA/SPRINGFIELD AND BACKLICK ROAD
RESOLUTION
10F-04-2012
OF THE
VIRGINIA RAILWAY EXPRESS
OPERATIONS BOARD
WHEREAS, VRE stations are approaching twenty years of age and the original platform
lighting is in need of replacement; and,
WHEREAS, a Department of Homeland Security grant provided funding for lighting
improvements at several VRE stations; and
WHEREAS, Franconia/Springfield and Backlick
recommended for an upgrade to LED lighting.
Road
are
the
next
stations
NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board authorizes
the Chief Executive Officer to issue a solicitation for installation of LED lighting at the
Franconia/Springfield and Backlick Road VRE stations.