AGENDA ITEM 9-E
ACTION ITEM
TO:
FROM:
DATE:
RE:
CHAIRMAN COVINGTON AND THE VRE OPERATIONS BOARD
DALE ZEHNER
FEBRUARY 17, 2012
AUTHORIZATION TO ISSUE A TASK ORDER FOR
ENGINEERING OVERSIGHT OF NEW VRE PASSENGER
RAILCARS
________________________________________________________________
RECOMMENDATION:
The VRE Operations Board is being asked to authorize the Chief Executive
Officer to issue a task order to STV, Incorporated for engineering oversight for
the purchase of eight new passenger railcars. The task order will be in the
amount of $1,250,000, plus a $224,000 contingency, for a total amount not to
exceed $1,474,000.
BACKGROUND:
In May 2011, VRE entered into a Mechanical Engineering Consulting contract
(MEC V) with STV, Inc. Through this contract, STV provides mechanical
engineering consulting services to VRE for various projects, including oversight
functions for new rolling stock procurements.
In February 2012, the Commissions authorized the Chief Executive Officer to
award a contract to Sumitomo Corporation of America for the purchase of eight
new passenger railcars. Funding for the contract includes a mix of federal, state
and local funds which requires VRE to provide varied, yet specific, oversight
functions including:
1)
2)
3)
4)
5)
6)
Buy America Pre-Award and Post-Award audits
Technical Specification Compliance
First Article Inspections
System Safety Documentation (FMECA, FMEA, Safety Certifications, etc.)
Design Reviews
Material Test Reports (smoke, flame, toxicity, etc.)
7) On-site review of sub-system assembly
8) On-site review of final car assembly
9) VRE acceptance testing
10) Project Meetings
11) Warranty Administration
As with previous railcar purchases, VRE needs consultant support for this work.
This task order includes design reviews, first article inspections, in-plant
inspections, on-site inspections, warranty administration, and acceptance of
each car prior to them being put into service. The manufacturing and
subsequent oversight work of the base order of eight passenger railcars will take
place both in Toyokawa, Japan and Rochelle, IL. The cost of this task order is
based on a 48 month contract period, which includes the manufacturing process
and warranty period.
FISCAL IMPACT:
Funding for this task order is included in the total project cost for the purchase of
eight new passenger railcars. The task order value is the equivalent of
approximately 5% of the total project cost. The project manager’s estimate for
this task order was $1.4 million based on oversight work for VRE’s previous
railcar orders with Sumitomo, which ranged from 5.5% - 12%. This task order is
significantly lower than previous contracts because it is the fourth production run
of these railcars, permitting resolution of most engineering issues.
Project Cost
Description
Base Order
Contingency - Sumitomo
Oversight (STV)
Contingency
Total
Cost
$21,240,000
$1,900,000
$1,250,000
$224,000
$24,614,000
Funding Sources
Source
Federal (State Flexible Funds, FY12
Formula Funds, X368)
State (Bond Funds – FY2012)
VRE (FY12 budget and capital reserve)
State (Bond Funds – FY2013)*
Total
Amount
$13,173,200
$7,769,760
$3,452,040
$219,000
$24,614,000
*VRE operating reserve funds will be used to execute contracts, pending approval of the State FY
2013 six-year plan.
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TO:
FROM:
DATE:
RE:
CHAIRMAN COVINGTON AND THE VRE OPERATIONS BOARD
DALE ZEHNER
FEBRUARY 17, 2012
AUTHORIZATION TO ISSUE A TASK ORDER FOR
ENGINEERING OVERSIGHT OF NEW VRE PASSENGER
RAILCARS
RESOLUTION
9E-02-2012
OF THE
VIRGINIA RAILWAY EXPRESS
OPERATIONS BOARD
WHEREAS, VRE has a contract with STV for Mechanical and Engineering
Consulting Services (MEC V); and,
WHEREAS, VRE has awarded a contract to Sumitomo Corporation of America
for the purchase of eight new passenger railcars; and,
WHEREAS, funding for the contract includes a mix of federal, state and local
funds which requires VRE to provide varied, yet specific, oversight functions;
and,
WHEREAS, STV will provide these oversight functions as required to ensure
total contract compliance.
NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board
authorizes the Chief Executive Officer to issue a task order to STV, Incorporated
for engineering oversight for the purchase of eight new passenger railcars; and,
BE IT FURTHER RESOLVED THAT, the task order will be in the amount of
$1,250,000, plus a $224,000 contingency, for a total amount not to exceed
$1,474,000.
.
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