AGENDA ITEM 10-B ACTION ITEM TO: CHAIRMAN BULOVA AND THE VRE OPERATIONS BOARD FROM: DALE ZEHNER DATE: AUGUST 19, 2011 RE: AUTHORIZATION TO ISSUE A TASK ORDER FOR ON-SITE SUPPORT AT VRE MAINTENANCE FACILITIES ________________________________________________________________ RECOMMENDATION: The VRE Operations Board is being asked to authorize the Chief Executive Officer to issue a task order to STV, Inc., under the MEC V contract, to provide on-site mechanical process and audit support in an amount not to exceed $297,000, plus a 10% contingency of $29,700, for a total amount not to exceed $326,700. BACKGROUND: Over the past year, VRE’s equipment program has become extremely advanced and now includes state-of-the-art railcars and locomotives and advanced technology for equipment diagnostics and troubleshooting. At the same time, there has also been an increase in VRE’s mechanical activities. VRE is deploying several initiatives to reduce repair cycle times, improve rolling stock reliability, reduce fuel consumption, and lower overall life cycle maintenance costs. Through this task order STV would provide on-site support for audits and analysis to ensure VRE meets or exceeds established initiatives. This task order will monitor mechanical operations, rolling stock availability, and fleet performance on a daily basis. It will also include audits of equipment, both before and after routine maintenance and unscheduled repairs are performed by VRE contractors. All of this work will be completed while ensuring that VRE policies, procedures, and agreements are followed and documented. Finally, STV will audit VRE policies and Standard Operating Procedures to ensure compliance and then recommend modifications where needed. This work will be performed over a period of one year. FISCAL IMPACT: This is the first task order issued for this effort. included in the FY 2012 operating budget. 2 Funding for this project is TO: FROM: DATE: RE: CHAIRMAN BULOVA AND THE VRE OPERATIONS BOARD DALE ZEHNER AUGUST 19, 2011 AUTHORIZATION TO ISSUE A TASK ORDER FOR ON-SITE SUPPORT AT VRE MAINTENANCE FACILITIES RESOLUTION 10B-08-2011 OF THE VIRGINIA RAILWAY EXPRESS OPERATIONS BOARD WHEREAS, VRE has a contract with STV, Inc. for Mechanical and Engineering Consulting Services; and, WHEREAS, VRE is transitioning to state-of-the-art railcars and locomotives and advanced technology for equipment diagnostics and troubleshooting; and, WHEREAS, VRE is deploying several initiatives to reduce repair cycle times, improve rolling stock reliability, reduce fuel consumption, and lower overall life cycle maintenance costs; and, WHEREAS, STV will provide on-site support for audits and analysis to ensure VRE meets or exceeds established initiatives. NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board authorizes the Chief Executive Officer to issue a task order to STV, Inc., under the MEC V contract, to provide on-site mechanical process and audit support in an amount not to exceed $297,000, plus a 10% contingency of $29,700, for a total amount not to exceed $326,700. 3