@ Metro Metropolitan TransportationAuthority One Gateway Plaza 213.g22.2000 Tel Los Angeles, CA 90012-2952 metro.net OPERATIONS COMMITTEE OCTOBER 21,2010 SUBJECT: METRO FREEWAY SERVICE PATROL ACTION: AUTHORIZE THE AWARD AND MODIFICATION OF CONTRACTS, AND OPERATIONAL RESTRUCTURING RECOMMENDATION Authorize the Chief Executive Officer to: A. Execute nine (9) Metro Freeway Service Patrol (FSP) contracts in an amount not to exceed $1 1,278,330. B. Negotiate and execute contract modifications for a total amount not-to- exceed $3,423,000 (Attachment B). C. Restructure current FSP operations to create a regional structure. Amount $ 1,881,245 $ 1,284,488 $ 972,369 $ 960,741 $ 1,155,694 $ 972,369 $ 1,398,815 $ 1,204,606 $ 1,448,004 $1 1,278,331 Contractor L.A. Car Carrier Freeway Towing, Inc. Bob & Dave's Towing, Inc. Kenny's Auto Service Frank Scotto Towing Bob & Dave's Towing, Inc. T.G. Tow, lnc. Lara's Tow Service, Inc. Encino Towing, LLC Total Beat 4 8 12 14 16 20 24 40 41 Contract Period 04/01/11 - 02/28/1 4 03/01/11 - 01/31/14 04/01/11 - 03/31/13 02/01 / I 1 - 12/31/12 02/01/11 - 12/31/12 03/01/11 - 02/28/1 3 03/01/11 - 12/31/13 04/01/11 - 03/31 /I 3 02101 /I 1 - 12/31/13 Contract FSPI 1-4 FSPI 1-8 FSPI 1-1 2 FSPI 1-14 FSPI 1-16 FSPI 1-20 FSPll-24 FSPI 1-40 FSPI 1-41
Transcript
@ Metro
Metropolitan Transportation Authority One Gateway Plaza 213.g22.2000 Tel Los Angeles, CA 90012-2952 metro.net
OPERATIONS COMMITTEE OCTOBER 21,201 0
SUBJECT: METRO FREEWAY SERVICE PATROL
ACTION: AUTHORIZE THE AWARD AND MODIFICATION OF CONTRACTS, AND OPERATIONAL RESTRUCTURING
RECOMMENDATION
Authorize the Chief Executive Officer to:
A. Execute nine (9) Metro Freeway Service Patrol (FSP) contracts in an amount not to exceed $1 1,278,330.
B. Negotiate and execute contract modifications for a total amount not-to- exceed $3,423,000 (Attachment B).
C. Restructure current FSP operations to create a regional structure.
Amount
$ 1,881,245
$ 1,284,488
$ 972,369
$ 960,741
$ 1,155,694
$ 972,369
$ 1,398,815
$ 1,204,606
$ 1,448,004
$1 1,278,331
Contractor
L.A. Car Carrier
Freeway Towing, Inc.
Bob & Dave's Towing, Inc.
Kenny's Auto Service
Frank Scotto Towing
Bob & Dave's Towing, Inc.
T.G. Tow, lnc.
Lara's Tow Service, Inc.
Encino Towing, LLC
Total
Beat
4
8
12
14
16
20
24
40
41
Contract Period
04/01/11 - 02/28/1 4
03/01/11 - 01/31/14 04/01/11 - 03/31/13
02/01 / I 1 - 12/31/12
02/01/11 - 12/31/12
03/01/11 - 02/28/1 3
03/01/11 - 12/31/13
04/01/11 - 03/31 / I 3
0210 1 / I 1 - 12/31/13
Contract
FSPI 1-4
FSPI 1-8
FSPI 1-1 2
FSPI 1-14
FSPI 1-16
FSPI 1-20
FSPll-24
FSPI 1-40
FSPI 1-41
New Contract Award
The nine (9) contracts recommended for Board approval will allow the FSP Program to continue assisting stranded freeway motorists in Los Angeles County. All nine (9) contracts are for existing FSP beats with expiring contracts. The recommendation includes three new contractors to the FSP Program - L.A. Car Carrier; Freeway Towing, Inc.; and Encino Towing, LLC. One of the recommended contractors, T.G. Tow, Inc. is a certified MBE firm resulting in 100% participation for that contract ($1,398,815) and overall 10% participation for the procurement.
The award of these contracts will ensure that FSP continues to provide service on six different freeway segments covering approximately 108 freeway miles. The latest benefit-to-cost data estimates that these nine contracts will provide an average benefit of $10.91 to every $1 expended.
Contract Modifications
The contract modification authority will enable MTA to negotiate modifications with current contractors to extend the contract period, cover service through redeployment for vacatedlexpired contracts andlor restore contract value which was used in support of freeway construction and other operational redeployments.
Over the last two procurement cycles, staff has worked on updating the contract periods to better distribute the termination dates for all thirty-nine (39) contracts. Historically, FSP has grouped the expiration of contracts to ensure a more efficient and effective procurement process, while keeping the disruption to FSP operations to a minimum. However, over the course of a number of years and procurement cycles, the expiration dates of the contracts have drifted resulting in a disproportionate distribution. Staff has taken steps to correct the distribution through new contract and contract modification action. This recommendation will enable staff to take the appropriate contract modification action on a total of sixteen (16) contracts to extend the contract period in support of future procurement actions. If any of the contractors decline the offer to extend their contract or it is determined that it is in the best interest of MTA to not offer an extension, then the funds identified in support of the extension will be used to modify other existing FSP contracts to ensure that service continues to be provided until new contracts have been secured.
In addition to the aforementioned contract modifications, certain contracts have either exhausted or are close to using all their contract value due to redeployment support work. The redeployment support enables FSP to provide traffic mitigation support for freeway construction (Metro 1-405 project and other Caltrans construction projects) and deal with other freeway operational issues that arise during the contract period (special events, support another contractor to provide service). To ensure there are sufficient funds to complete the term of the contracts, to meet future unanticipated operational issues and to continue supporting freeway construction work, these contracts require a modification of the contract
authority. While FSP construction support is fully reimbursed, the expended contract authority cannot be recovered without the Board's approval for additional contract modification authority, thereby, hindering the ability of FSP to react to future freeway construction or operational issues.
Operational Restructurinq
The Metro FSP program currently operates 39 light duty tow service contracts covering over 450 center line miles on all major freeways throughout Los Angeles County. In addition, Metro FSP also operates 2 heavy duty (big rig) service patrol contracts on the 1-71 0 and SR-91. The light duty service is operated by 24 independent contractors, operating over 150 vehicles and managed by approximately 2 MTA staff, 8 CHP officers and 7 CHP dispatchers. This current FSP operating structure has generally been in place since the program's inception in the early 1990's. Previous modifications to the FSP program include system expansion in the mid- 1990s and again in 2005; Big Rig Service Patrol implementation in 2005; and the implementation of the "super-beat" concept in 2007, whereby two adjoining beats were merged to form a single larger beat. All of these changes have proven to be beneficial and are currently part of the overall FSP program.
In an effort to review the current FSP operations and identify additional opportunities to improve, an evaluation was conducted. The evaluation identified eight (8) recommendations:
Beat Consolidation/Regionalization; Point System for Bid Selection; Increased Management Staffing; Archiving Penalty Information; Revision of the Violation and Penalty Structure; Consider a Single Fleet; Consider Adopting Official Police Garage (OPG) Standards; Consider Adopting Towing Recovery Association of America (TRAA) Standards;
The majority of these recommendations can and will be considered as part of the normal operational improvements and are somewhat dependent upon the implementation of the regionalization of FSP operations. For example, if FSP proceeds, upon Board approval, with the regionalization of the program, then the recommendations regarding the procurement process, violation and penalty structure, single fleet, OPG standards and TRAA standards will take a different implementation path compared to proceeding with these recommendations under the current FSP operational structure.
Due to a variety of factors including the following: 1) the number of contracts; 2) the number of vehicles; 3) the number of contractors; 4) the freeway miles covered and operating hours; and 5) other related operational and management items, the overall administration of the FSP program as currently structured is not as efficient and effective as possible. Proceeding with the recommendation to restructure the FSP light duty tow service structure into six (6) regions and providing a contractor responsible for each region will help improve the efficiency and
effectiveness of the FSP program. More specifically, it is anticipated by the implementation of a regional operation will produce the following benefits:
lmproved management of FSP operations.
With a decrease in the number of contractors, FSP management staff (MTA and CHP) will be in a better position to provide overall management and oversight for the FSP program. lmproved communications between MTA, CHP and the contractor will be realized; improvements to the quality of the service provided can be identified and realized; improvements to the management of the truck operators by the contractor can be realized; possible standardization of the FSP fleet within a region can be established; reduction in the use of redeployment actions which cause additional administrative work for MTA, CHP and the contractors can be realized, as well as other operational improvements.
Require Small Business participation goals.
The larger regional contracts will enable MTA to firmly establish small business participation goals that the current structure does not support. Current FSP beat contracts are not large enough for contractors to effectively subcontract portions to other businesses. In addition, the current process does not provide any incentive for a tow truck firm to be registered or qualified as a small business. By consolidating a number of existing contract beats into regions, there will be sufficient opportunities to subcontract to small business firms and MTA will be in a better position to create a process that will provide a benefit for small businesses to register.
Potentially lower program costs by reducing the number of vehicles.
Currently each contract is required to maintain a fully equipped and certified backup truck in order to ensure that the service will be provided with minimal service disruptions. Contractors build the cost of the backup truck (approximately $85,000) into the hourly rate that they bid to win a contract. If primary vehicles are in good working order, backup trucks are seldom used for FSP service but the cost of the vehicle remains a program cost. By consolidating several beatslcontracts into a region, there may be an opportunity to reduce the overall number of required back-up trucks thereby reducing operational costs.
lmproved ability to manage and adjust to traffic situations.
Currently each beat is assigned a certain number of vehicles and those vehicles are tied to the beat by the contract. With the implementation of a region, MTA, CHP and Caltrans will be in a better position to reallocate the FSP vehicles within the region to respond to short and long-term situations (SigAlerts or long-term traffic pattern changes). In the current structure to reallocate a vehicle from one beat to another requires a contractual redeployment action. This process does not lend itself to
responding to shortlquick needs nor long-term situations as the process will impact one, two or more contracts andlor contractors.
The proposed new FSP operational structure will create six (6) regions (Attachment D) each consisting of six to seven beats. If approved, staff will take immediate steps to begin the restructuring process with the goal of starting the regions within the next two procurement cycles and implementing a maximum of two regions per year.
FINANCIAL IMPACT
The funding of $1 1,278,331 for the nine contract recommendations and $3,423,000 for modifications to existing contracts is included in the FYI 1 budget in cost center 3352 - Freeway Service Patrol under project number 300070 - Freeway Service Patrol, account 50320 - Contract Services. Since these are multi-year contracts, the cost center manager and Executive Director, Highway Programs will be accountable for budgeting the cost in future years. In FY10, $19,741,700 was expended on the Metro Freeway Service Patrol contracts.
Impact to Enterprise Fund Bus and Rail Operating Budget
There is no impact to the Bus and Rail Enterprise Fund. The Metro FSP program is funded through a combination of Proposition C 25% Sales Tax, State and SAFE funds.
The Board may decide not to authorize the execution of these contracts. This alternative is not recommended because without these contracts we would be unable to continue providing this valuable and highly productive congestion fighting tool on approximately 108 centerline freeway miles.
The Board may decide not to authorize the negotiation and execution of contract modifications. This alternative is not recommended as it will adversely impact sixteen (16) existing contracts and the services provided by those contracts.
The Board may decide not to authorize the operational restructuring. This alternative is not recommended as it will delay the ability to introduce operational efficiencies which will improve the overall effectiveness of the FSP program.
ATTACHMENTS) A. A-I . A-2. A-3 B. C. D. E.
Procurement Summary Procurement History List of Subcontractors Small Business Outreach Report Contract Modifications Summary Regional Beat Structure Current FSP Beat Map Proposed FSP Regional Beat Map
Prepared by: John Takahashi, Motorist Services Program Administrator Ken Coleman, Motorist Services Program Manager Ted Sparkuhl, Sr. Contract Administrator
Executive birector, Highway Program
hur T. Leahy 0 " '
BOARD REPORT ATTACHMENT A PROCUREMENT SUMMARY
METRO FREEWAY SERVICE PATROL
1. 2. 3.
4. 5.
6.
7.
8.
9.
10.
1 1.
Contract Number: FSPI 1-4, 8, 12, 14, 16, 20, 24, 40 and 41 Recommended Vendor: Various CostIPrice Analysis Information: A. Bid/Proposed Price:
$1 1,278,331 Recommended Price: $1 1,278,331
B. Details of Significant Variances are in Attachment A-1 .D Contract Type: Fixed Unit-Rate' Procurement Dates: A. Issued: 06/02/10 B. Advertised: 06/05/10 C. Pre-bid Conference: 0611 511 0 D. Bids Due: 06/30/10 E. Pre-Qualification Completed: 08/26/1 0 F. Conflict of Interest Form Submitted to Ethics: 09/16/10 Small Business Participation: A. BidIProposal Goal: 0.0%
No VALP recommended Date Small Business Evaluation Completed:
912211 0 6. Small Business Commitment: 0% commitment for 8 contracts; 100% commitment
for 1 contract at $1.3M Details are in Attachment A-2 Invitation for BidIRequest for Proposal Data: Bids Picked up:
58 Bids Received:
24 Evaluation Information: A. Bidders Names:
List of bidders is in Attachment A-1.
Bid Amount:
$1 1,278,331
Best and Final Offer Amount: N/A
B. Evaluation Methodology: Describe Methodology Details are in Attachment A-1 .C Protest Information: A. Protest Period End Date: B. Protest Receipt Date: C. Disposition of Protest Date: Contract Administrator: W. T. (Ted) Sparkuhl Project Manager: John Takahashi
All contractors have been in the towing business for at least three years. Each contractor must meet certain vehicle and facility qualifications in order to be considered for contract award. All contractors recommended for award have met the facility and vehicle inspection requirements.
Contractors are limited to an award of no more than two contracts (beats) each.
6. Procurement Back~round
Seven (7) bidders were disqualified resulting from their failure to meet responsive and responsibility criteria of the solicitation requirements. The disqualified bidders are J&M Towing for failing to submit pre-qualification documents; Hovanwil, Inc., dba Jon's Towing for incurring suspensions from a current Metro FSP contracts; Navarro's Towing for having been suspended from their last FSP contract; Sonic Towing, Inc. for failing to properly execute the FSPI 1 bid letter; Sunset Tow, Inc. for failing to respond to Metro inquiries for additional information; Top Towing for failing vehicle inspection requirements; and Walton Auto Wrecking & Towing for failing to submit a complete bid letter. L. A. Car Carrier and Pepe' Towing were disqualified but later reinstated upon challenge.
Navaro's Towing and Sonic Towing challenged their disqualification from FSPI 1. Their challenges were denied after the Director of Contracts upheld staff's determination that the Protestor's bids were non-responsive to the IF6 requirements.
The recommended bid price of $1 1,278,331 for contracts of varying lengths between twenty- four (24) and thirty-five (35) months is based on hourly unit rates stated in different bids received from twenty-four (24) bidders. These unit rates were determined to be fair and reasonable based on price analysis selection of the lowest responsible and responsive bidders.
The Diversity and Economic Opportunity Department (DEOD) did not recommend an MNVBE Voluntary Anticipated Level of Participation (VALP) for this procurement. However, one of the nine successful bidders is a certified MBE firm with 100% MBE participation.
DEOD recently conducted an outreach effort to increase small business participation on Metro's FSP Program (see Attachment A-3)
C. Evaluation of Bids
All bidders recommended for award are in full compliance with the technical and bid specifications.
D. CostlPrice Analysis Explanation of Variances
The recommended unit rates are higher on just over half of the beats - 56% - than the current historical unit rates because of escalation and increases in the cost of labor, insurance and the uncertainty of fuel prices over the terms of the contracts. There were four (4) beats where bid rates were lower than the historical rates which are the result of competition. The unit rates were determined to be fair and reasonable based upon selection of the lowest, responsive, responsible bidders.
LIST OF BIDDERS
MBENVBE No No No No No No Yes No No
Contractor L.A. Car Carrier Freeway Towing, Inc. Bob & Dave's Towing, Inc. Kenny's Auto Service Frank Scotto Towing Bob & Dave's Towing, Inc. T.G. Tow, lnc. Lara's Tow Service, Inc. Encino Towing, LLC
Company Al's Towing (Pavon Enterprises, Inc.) All City Tow Service Bob & Dave's Towing, Inc. Classic Club Service Disco Auto Sales, Inc., dba Hollywood Car Carrier Service Encino Towing, LLC Freeway Towing, Inc. Girard and Peterson, Inc. J&M Towing, LLC Jon's Towing (Hovanwil, Inc.) Kenny's Auto Keystone Towing L.A. Car Carrier Lara's Tow Service, Inc. Mighty Transport, Inc., dba Frank Scotto Towing Navaro's Towing Pepe's Towing Reliable Delivery Service Royal Coaches Sonic Towing Sunset Towing T.G. Towing, Inc. TopTowing Walton Auto Wrecking and Towing
BOARD REPORT ATTACHMENT A-2 LIST OF CONTRACTORS
METRO FREEWAY SERVICE PATROL
Contractors L.A. Car Carrier Freeway Towing, Inc. Bob & Dave's Towing, Inc. Kenny's Auto Service Frank Scotto Towing Bob & Dave's Towing, Inc. T.G. Tow, lnc. Lara's Tow Service, Inc. Encino Towing, LLC
BOARD REPORT ATTACHMENT A-3 SMALL BUSINESS OUTREACH
METRO FREEWAY SERVICE PATROL
A survey was distributed to participating companies who currently provide tow truck services for Metro. The purpose of the survey was to determine if any of the tow truck companies would be interested or eligible to become certified small businesses through Metro. The Diversity & Economic Opportunity Department (DEOD) developed and conducted a special outreach workshop for tow truck companies in efforts to encourage owners to become certified small businesses.
On Tuesday, August 17, 2010, DEOD hosted a two-hour special workshop to inform tow truck owners about small business certification, and to advise them on how to become certified with Metro. Out of the twenty-one companies that were invited, eleven companies attended the workshop. During the workshop, all eleven tow truck companies were given certification applications to complete and return to Metro. The workshop also provided information on Metro policies, potential program changes and how to find upcoming Metro solicitations.
On September 2, 2010, additional follow-up was made to the eleven tow truck companies that attended the workshop in order to urge them to submit certification applications. In addition, ten tow truck companies who currently have Metro contracts, but did not attend the workshop, were contacted and provided small business program and certification information. Several workshop participants mentioned that they would not qualify for certification since they exceeded the personal net worth limit of the SBE program. Upon the receipt of submitted certification applications, DEOD will perform the standard desk audits to determine a company's certification eligibility. To date, no certification applications have been received by Metro staff from tow truck owners.
At the beginning of October, DEOD will follow up with tow truck companies in efforts to encourage them to submit certification applications. DEOD will also outreach to tow truck owners in the region who are not currently doing business with Metro in efforts to certify tow truck companies.
FSP CONTRACT AMENDMENT SUMMARY ATTACHMENT B
Current Contract No. of Current Proposed New
Expiration Months Contract Modification Contract Beat Contractor Contract No. Date to Extend Amount Amount Amount Amendment Justification
5 TipTop Tow FSPlO-5 1113012011 0 $879,512 $300,000 $1,179,512 Metro 1-405 Widening Project Support 18 BOWS iowing FSPO7-18 113112012 0 $2,327,507 $51,000 $2,378,507 FSP & Caltrans ~edeployment Support 23 Bob's Towing FSP07-23 1013112011 0 $1,860,228 $207,000 $2,067,228 FSP & Caltrans Redeployment Support 30 Citywide Towing FSPI 0-30 1113012012 0 $1,515,358 $60,000 $1,575,358 Caltrans Redeployment Support 51 ABATowing FSPO7P-51 1013112011 0 $3,335,044 $90,000 $3,425,044 FSP & Caltrans Redeployment Support
Procurement Schedule Alignment & 4 Sonic Towing FSPO7-4 1113012010 4 $2,027,361 $150,000 $2,177,361 Redeployment Support
