Chair, Steve Dresser, City of Lathrop Vice Chair, Christina Fugazi, City of Stockton Commissioner, Bob Johnson, City of Lodi Commissioner, Debby Moorhead, City of Manteca Executive Director, Stacey Mortensen Commissioner, Bob Elliott, San Joaquin County Commissioner, Leo Zuber, City of Ripon Commissioner, Scott Haggerty, Alameda County Commissioner, John Marchand, City of Livermore 949 East Channel Street Stockton, CA 95202 (800) 411-RAIL (7245) www.acerail.com REVISED SAN JOAQUIN REGIONAL RAIL COMMISSION This Agenda shall be made available upon request in alternative formats to persons with a disability, as required by the Americans with Disabilities Act of 1990 (42 U.S.C. § 12132) and the Ralph M. Brown Act (California Government Code § 54954.2). Persons requesting a disability related modification or accommodation in order to participate in the meeting should contact San Joaquin Regional Rail Commission staff, at (209) 944-6220, during regular business hours, at least twenty-four hours prior to the time of the meeting. All proceedings before the Commission are conducted in English. The San Joaquin Regional Rail Commission does not furnish interpreters and, if one is needed, it shall be the responsibility of the person needing one. Any writings or documents provided to a majority of the Commission regarding any item on this agenda will be made available upon request in Spanish for public inspection at the Office of the Executive Director located at 949 East Channel Street, Stockton, California, 95202 during normal business hours or by calling (209) 944-6220. The Agenda is available on the San Joaquin Regional Rail Commission website: www.acerail.com. October 5, 2018 – 8:00 am 1. Call to Order, Pledge of Allegiance, Roll Call Chair Dresser Roll Call: Haggerty, Marchand, Elliott, Johnson, Moorhead, Zuber, Vice Chair Fugazi, Chair Dresser Ex- Officios: Agar, Chesley, DeMartino, Zoslocki 2. Public Comments Persons wishing to address the Commission on any item of interest to the public regarding rail shall state their names and addresses and make their presentation. Please limit presentations to five minutes. The Commission cannot take action on matters not on the agenda unless the action is authorized by Section 54954.2 of the Government Code. Materials related to an item on the Agenda submitted to the Board of Directors after distribution of the agenda packet are available for the public inspection in the Commission Office at 949 E. Channel Street during normal business hours. These documents are also available on the San Joaquin Regional Rail Commission website at www.acerail.com/about-ace/sjrrc-board.html subject to staff’s ability to post the documents prior to the meeting. Robert J. Cabral Station South Hall Meeting Room 949 East Channel Street Stockton, CA 95202 (Conference Call) InterContinental The Clement Monterey 750 Cannery Row Monterey, CA 93940 (Conference Call) 1311 Midvale Avenue Lodi, CA 95240
Transcript
Chair, Steve Dresser, City of Lathrop Vice Chair, Christina Fugazi, City of Stockton Commissioner, Bob Johnson, City of Lodi Commissioner, Debby Moorhead, City of Manteca
Executive Director, Stacey Mortensen
Commissioner, Bob Elliott, San Joaquin County Commissioner, Leo Zuber, City of Ripon Commissioner, Scott Haggerty, Alameda County Commissioner, John Marchand, City of Livermore
949 East Channel Street Stockton, CA 95202 (800) 411-RAIL (7245) www.acerail.com
REVISED SAN JOAQUIN REGIONAL RAIL COMMISSION
This Agenda shall be made available upon request in alternative formats to persons with a disability, as required by the Americans with Disabilities Act of 1990 (42 U.S.C. § 12132) and the Ralph M. Brown Act (California Government Code § 54954.2). Persons requesting a disability related modification or accommodation in order to participate in the meeting should contact San Joaquin Regional Rail Commission staff, at (209) 944-6220, during regular business hours, at least twenty-four hours prior to the time of the meeting.
All proceedings before the Commission are conducted in English. The San Joaquin Regional Rail Commission does not furnish interpreters and, if one is needed, it shall be the responsibility of the person needing one. Any writings or documents provided to a majority of the Commission regarding any item on this agenda will be made available upon request in Spanish for public inspection at the Office of the Executive Director located at 949 East Channel Street, Stockton, California, 95202 during normal business hours or by calling (209) 944-6220. The Agenda is available on the San Joaquin Regional Rail Commission website: www.acerail.com.
October 5, 2018 – 8:00 am
1. Call to Order, Pledge of Allegiance, Roll Call Chair Dresser
2. Public CommentsPersons wishing to address the Commission on any item of interest to the public regarding rail shallstate their names and addresses and make their presentation. Please limit presentations to fiveminutes. The Commission cannot take action on matters not on the agenda unless the action isauthorized by Section 54954.2 of the Government Code. Materials related to an item on the Agendasubmitted to the Board of Directors after distribution of the agenda packet are available for the publicinspection in the Commission Office at 949 E. Channel Street during normal business hours. Thesedocuments are also available on the San Joaquin Regional Rail Commission website atwww.acerail.com/about-ace/sjrrc-board.html subject to staff’s ability to post the documents prior tothe meeting.
Robert J. Cabral Station South Hall Meeting Room 949 East Channel Street
Stockton, CA 95202
(Conference Call) InterContinental The Clement Monterey
4. Approve a Resolution of the Board of Commissioners of the San JoaquinRegional Rail Commission Authorizing the Executive Director to Submit andExecute Any and All Grant Applications, Agreements, Certifications andAssurances and Any Other Documents Necessary to Obtain FY 18/19 StateRail Assistance (SRA) Funding in the Amount of $3,400,000 for the FremontPlatform Extension and $500,000 for the Lyoth Derail(Jordan Peterson/Brian Schmidt)(Regular and Special Voting Members)
ACTION
5. Approve a Resolution of the Board of Commissioners of the San JoaquinRegional Rail Commission Authorizing the Second Amendment to the SanJoaquin Regional Rail Commission Procurement Manual(Manny Caluya)(Regular and Special Voting Members)
ACTION
6. Approve a Resolution of the Board of Commissioners of the San JoaquinRegional Rail Commission Authorizing a Four-Year and Eight-Month Contractwith Two One-Year Options for E-Procurement Solutions System toPlanetBids, Inc. for an Amount Not-to-Exceed $164,550 from November 1,2018 through June 30, 2023, and Authorizing and Directing the ExecutiveDirector to Execute the Agreement(Manny Caluya)(Regular and Special Voting Members)
ACTION
7. Valley Rail Update Project Matrix(Kevin Sheridan)
INFORMATION
8. Service Improvement Plan Regarding Fare Increase Comments(Chris Kay)
INFORMATION
9. Commissioner’s Comments
10. Ex-Officio Comments
11. Executive Director’s Report
12. AdjournmentThe next regular meeting is scheduled for:November 2, 2018 – 8:00 amRobert J. Cabral Station949 East Channel Street, Stockton
3.1 Minutes of August 3, 2018 ACTION 3.2.1 Rail Commission/ACE Monthly Expenditure INFORMATION 3.2.2 SJJPA Monthly Expenditure INFORMATION 3.3 ACE Monthly Fare Revenue INFORMATION 3.4 ACE Ridership INFORMATION 3.5 ACE On-Time Performance INFORMATION 3.6 Update on Positive Train Control INFORMATION
2 of 136
SAN JOAQUIN REGIONAL RAIL COMMISSION Meeting of October 5, 2018
Item 3.1 ACTION
Minutes of August 3, 2018 The regular meeting of the San Joaquin Regional Rail Commission was held at 8:00 am, August 3, 2018 at the Robert J. Cabral Station, 949 East Channel Street Stockton, CA 95202. 1 Call to Order/Pledge of Allegiance/Roll Call
Chair Dresser called the meeting to order at 8:00 am and led the audience in the pledge of Allegiance.
Commissioners Absent: None Ex-Officio Members Present: Mr. Dumas, Mr. Chesley, Mr. Knodt, Mr. Vierra,
2 Public Comments
Vaughn Wolff, Pleasanton, suggested pursuing skyscrapers in the City of Stockton to assist with expansion.
3 Consent Calendar
3.1 Minutes of July 6, 2018
ACTION 3.2.1
Rail Commission/ACE Monthly Expenditure INFORMATION
3.2.2 SJJPA Monthly Expenditure INFORMATION 3.3
ACE Monthly Fare Revenue INFORMATION 3.4
ACE Ridership INFORMATION 3.5 ACE On-Time Performance INFORMATION 3.6 Update on Positive Train Control INFORMATION 3.7 Approve a Resolution of the Board of Commissioners of the
San Joaquin Regional Rail Commission Adopting the FY 2018-2027 Short Range Transit Plan
ACTION
3.8
Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Authorizing the Executive Director to Submit and Execute Any and All Grant Applications, Agreements, Amendments and Any Other Documents Necessary to Claim $198,960 in FY 2018-19 State of Good Repair (SGR) Program Funds for Facility Upgrades an Improvements.
ACTION
3.9 Construction & Installation of the Wayside Power – Contract Change Order #01
INFORMATION
Ms. Mortensen did a presentation on Item 3.4. Ms. Mortensen highlighted the increase in ridership on each of the ACE trains and the travel patterns. Chair Dresser questioned the strategy for ridership as it relates to bike passengers. Ms. Mortensen mentioned the core capacity study that was conducted in March 2018 and how it looked at the needs of bicycles and
3 of 136
seated passengers. Ms. Mortensen stated it would be a policy decision by the Board and would be brought back as needed. Commissioner Fugazi asked if it was possible for the train cars to be customized to accommodate the increase in bicycles. Ms. Mortensen responded that the current cars in use are customized and that all feasible space is being utilized to accommodate bicycles. Mr. Dumas mentioned the similar issues Caltrain faces in regards to bicycle capacity. Commissioner Zuber asked about the new cars being purchased. Ms. Mortensen stated that the modifications for the bicycle cars will be done by Herzog as it is more cost effective, and Mr. Schmidt confirmed. Commissioner Elliott asked how the decision regarding bicycles would impact ridership. Ms. Mortensen responded by saying there would be potential for more ridership without the accommodation of bicycles, but that it could result in an increase in shuttles. Commissioner Elliott mentioned his experience in Japan and how there were never bicycles on the trains due to capacity and how that might be something to look at as the ACE service reaches capacity. Ms. Mortensen mentioned that the Silicon Valley is spread out highlighting the need for a feasible first/last mile option. Mr. Dumas asked if SJRRC has looked at using Zip bikes as a first/last mile solution. Commissioner Haggerty mentioned having similar discussions on the Tri-Valley San Joaquin Rail Authority Board and asked if SJRRC should explore having one train stick to the original ACE service. Ms. Mortensen stated that options would be presented to the Board for their consideration. Commissioner Elliott inquired about the use of funds on Item 3.8 and its intended use for the WP Depot. Mr. Peterson stated that the application was broad enough so funds can be used as needed for station improvements. Commissioner Elliott asked about the status of the WP Depot demolition. Mr. Sheridan gave an update on what sections are preserved and the environmental status. M/S/C (Zuber/Marchand) Approve the Consent Calendar. Passed and Adopted by the San Joaquin Regional Rail Commission on the 3rd day of August 2018 by the following vote to wit:
4 Conduct a Public Hearing on the Proposed ACE Fare Increase, Accept Report Summarizing Comments Received during the Public Comment Period, and Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Adopting a Fare Increase of 6% for all ACE Service Fare Media Rounded up to the Nearest 25¢, Effective January 2, 2019 for the Altamont Corridor Express Service
Chair Dresser officially opened the public hearing. Mr. Schmidt presented on the proposed fare increase to the ACE service.
Commissioner Elliott asked if the increase is limited to the amount needed to provide the service. Mr. Schmidt responded stating yes due to on-time performance.
Commissioner Fugazi asked if responses were made to those who commented on the fare increase. Mr. Schmidt stated Marketing and Outreach Manager Chris Kay responded to each comment received.
Chair Dresser commended the responses from Mr. Kay on the comments received.
Commissioner Marchand inquired about the coordination between Caltrain and ACE. Mr. Schmidt stated that while the schedule coordinates correctly, there are occasional operational issues that impact schedule coordination. Commissioner Marchand asked what the amount was for the farebox recovery. Mr. Schmidt responded by stating the farebox recovery was at 40%. Commissioner Marchand inquired about the annual subsidy received for operations. Mr. Schmidt stated that $23M is expended for operating and around $10M is received from the farebox.
Chair Dresser commented on the complexity of coordinating trains.
Commissioner Haggerty asked about the VTA and ACTC vote on the fare increase. Mr. Schmidt responded by stating VTA and ACTC are required to vote on the fare increase based off of the Cooperative Service Agreement. Commissioner Haggerty requested that he or Commissioner Marchand be consulted if there are any future delays from ACTC.
Commissioner Elliott commended the responses from Mr. Kay on the comments received and wanted to recognize the work being done to address those comments.
Chair Dresser closed the public hearing.
M/S/C (Haggerty/Zuber) Conduct a Public Hearing on the Proposed ACE Fare Increase, Accept Report Summarizing Comments Received during the Public Comment Period, and Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Adopting a Fare Increase of 6% for all ACE Service fare Media Rounded
ACTION
5 of 136
up to the Nearest 25¢, Effective January 2, 2019 for the Altamont Corridor Express Service. Passed and Adopted by the San Joaquin Regional Rail Commission on the 3rd day of August 2018 by the following vote to wit:
5 Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Certifying an Environmental Impact Report, Adopting Findings and a Statement of Overriding Considerations, Adopt the Associated Mitigation Monitoring Plan, Approve Phase 1 for the ACE Extension Lathrop to Ceres And Merced Project and Authorize and Direct the Executive Director to Execute and File a Notice of Determination under the California Environmental Quality Act (CEQA) for the Project
Mr. Sheridan introduced Diane Cowin who did a presentation on the Environmental Impact Report (EIR) for Phase 1 for the ACE Extension Lathrop to Ceres and Merced project.
Commissioner Moorhead inquired about traffic on Austin Road and how to mitigate the traffic. Ms. Mortensen stated that staff will look into it.
Chair Dresser brought up similar traffic concerns on Airport and Lathrop Road and the timing of funding necessary for road improvements to mitigate traffic. Mr. Sheridan responded by stating staff will be looking into what the mitigations are and will work with the cities.
Christine Mendez inquired about the relocation of the Lathrop/Manteca ACE station. Mr. Sheridan stated that the existing Lathrop/Manteca station will remain in place.
M/S/C (Zuber/Fugazi) Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Certifying an Environmental Impact Report, Adopting Findings and a Statement of Overriding Considerations, Adopt the Associated Mitigation Monitoring Plan, Approve Phase 1 for the ACE Extension Lathrop to Ceres and Merced Project and Authorize and Direct the Executive Director to Execute and File a Notice of Determination under the California Environmental Quality Act (CEQA) for the Project. Passed and Adopted by the San Joaquin Regional Rail Commission on the 3rd day of August 2018 by the following vote to wit:
ACTION
6 of 136
AYES: 5
Elliott, Moorhead, Zuber, Fugazi, Chair Dresser
NOES: 0 ABSTAIN: 0 ABSENT: 1 Johnson
6
Commissioner’s Comments
Vice Chair Fugazi reported about her positive experience with riding the San Joaquins train and touring the Siemens Facility.
Chair Dresser also spoke about his positive experience at Siemens.
Commissioner Moorhead thanked Mr. Sheridan for his assistance with the EIR.
Commissioner Haggerty thanked Mr. Leavitt for his work on the EIR.
Chair Dresser commended staff for their work on the EIR.
7 Ex-Officio Comments
Mr. Dumas thanked Mr. Leavitt for the presentation he gave to Caltrans on ACEforward and the EIR. Mr. Dumas also reported that there are planning grants that will be available in September. Mr. Chesley recognized SJRRC staff for the work done on the Short Range Transit Plan. Mayor Vierra thanked the Commission for the action taken on the EIR.
8 Executive Director’s Report
Ms. Mortensen reported:
SJJPA approved SJRRC being the lead agency on the Valley Rail Program.
9
Adjournment –
The meeting was adjourned at 9:35 am. The next regular meeting is scheduled for: October 5, 2018 – 8:00 am Robert J. Cabral Station 949 E. Channel Street, Stockton CA
7 of 136
Item 3.2
SJRRC EXPENSE % ACE EXPENSE %FY 18-19 TO SPENT FY 18-19 TO SPENT
OPERATING EXPENSES ALLOCATION DATE TO DATE ALLOCATION DATE TO DATE
22 San Joaquin Intercity Minor Capital Project 1,000,000 - 0%23
TOTAL CAPITAL PROJECTS 241,328,576 8,912,592 4%
San Joaquin Regional Rail CommissionAltamont Corridor Express
Operating and Capital Expense ReportJuly 2018
8% of Budget Year Elapsed
8 of 136
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
Status of Capital Projects SJ COG Loan Repayment - Annual payment made July 1, 2018 per SJCOG amended loan agreement.
Bond Repayments - Bond repayments are made bi-annually, payments FY 18-19 are due in October 2018 and April 2019.
UPRR Capital Access Fee - Payment for calendar year 2018 paid in two installments. First payment processed in January and second payment in May 2019
UPRR Capitalized Maintenance Projects - Multi-year project is budgeted at $4,000,000 for the year. Invoices are received monthly throughout the year.
ACE Extension Natomas to Stockton - The project is underway, with the initial environmental work anticipated to be completed in November 2018.
ACE Extension Lathrop to Ceres/Merced - The Environmental Impact Report (EIR) was certified in August 2018. Final design is anticipated to begin in January 2019.
Locomotives (4) - Multi-year project to procure up to five Tier 4 locomotives for ACE service. A contract for the procurement was approved in April 2018. Currently ongoing through Fiscal Year 2019/2020.
Platform Extension Projects - Multi-year project to extend the existing Lathrop/Manteca, Tracy, Vasco, Livermore, and Pleasanton platforms. A contract for final design was approved in May 2018 and is currently underway.
Cabral Track Extension - Staff is working on completing an environmental determination to move forward with final design.
Positive Train Control - Multi-year project is currently ongoing. On-board equipment installation is in process, the Hosted Back Officer Server is in place. Awaiting invoices from vendors for work completed.
Rolling Stock - Multi-year project to use a competitive negotiation process to procure five passenger rail cab cars, with an option to purchase up to 29 additional passenger rail cars. A join procurement is currently being pursued and is anticipated to be awarded in November 2018.
East Channel Street Improvements - The project will be constructed by the City of Stockton in conjunction with the development company Ten Space. SJRRC provided funds to Ten Space as an Economic Development Subsidy for their portion of the East Channel Street Improvement Project. Final design and engineering work will be conducted during FY 18-19. A grant for $2,000,000 from the Measure K Smart Growth Incentive Program was approved by SJCOG in early 2018 to fund the eventual construction of the project. Project is ongoing
Robert J. Cabral Parking Lot Expansion - project will construct a new parking lot at the site of the old Western Pacific depot building in Stockton, as well as renovate a portion of the building. Staff is working on completing an environmental determination to move forward with final design.
Capital Spares - Preventative Maintenance is ongoing.
Safety and Security/Video Cameras - The camera security project was awarded in June 2018 and is in construction.
E-Ticketing - Multi-year pilot project is currently ongoing. A contract for the implementation of the Altamont Corridor Express Mobile Ticketing System was approved in May 2018. Project is currently in development and estimated rollout will be in mid-October.
Coordinated Planning Services - Currently on going project.
SJRRC Maintenance Vehicles - The purchase of two maintenance trucks.
SJJPA Corridor Safety and Security Projects - Implementation of physical improvements that will improve the safety and security of the Corridor including improved lighting, fencing, improved signage and landscaping
SJJPA Station and Transportation Projects - SJJPA is currently implementing its Short-Term Capital Improvement Program, which has a five-year horizon. Key stations, including Stockton ACE (Cabral), Modesto, Turlock Denair, Merced, and Fresno Stations
SJJPA Mid-Corridor Layover Facility - Project will allow the San Joaquin's to initiate an early morning train in Fresno to serve Sacramento bound commuters. It is currently in the environmental testing phase and moving into the final design and construction phase. Amtrak has awarded contract to vendor should break ground by July 30th.
San Joaquin Intercity Minor Capital Project - Currently there are a total of 40 individual projects. 38 of these projects are being implemented by Amtrak. The other two are parking lot projects at the Turlock-Denair and Modesto Amtrak Stations, with SJJPA serving as only a funding partner, with the projects being procured and constructed by Stanislaus County.
9 of 136
SJJPA EXPENSE YTDFY 18-19 TO PERCENT
OPERATING EXPENSES ALLOCATION DATE EXPENDED
2,212,176 143,753 6%51,041,707 2,941,702 6%
53,253,883 3,085,455 6%TOTAL OPERATING EXPENSES
San Joaquin Joint Powers AuthorityOperating Expense Report
AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG16/17 DAILY AVG 5167 5235 5515 5195 4268 5192 5152 5186 5160 5741 5336 5235 558417/18 DAILY AVG 5584 5836 5809 5569 4496 5376 5617 5387 5587 6197 5832 5751 5976
SAN JOAQUIN REGIONAL RAIL COMMISSION Meeting of October 5, 2018
STAFF REPORT
Item 3.6 INFORMATION
Update on Positive Train Control Required Services: The Hosted Back Office Service contract awarded at the February 2, 2018 Rail Commission meeting to Herzog Technology, Inc. is in place. Training for the mechanical and operations staff started the week of September 24th and is scheduled to be completed by the second week October for the engineers that are qualified on the territory and continue as engineers become qualified. Mechanical staff training is scheduled to be complete the second week of October. On-Board Equipment Installation: Wabtec, the provider of the on-board PTC equipment, completed the antenna installation on the first locomotive. However, the antennas have been recalled by the manufacturer nationwide as having a systemic failure due to potential water intrusion. New antennas have been ordered, but the existing antennas have not failed yet so testing can continue on schedule and replacement antennas will be installed when they arrive. Installation of on-board equipment including new antennas is on schedule to be completed by the end of October 2018. Coordination with UPRR, Caltrain, and the Federal Railroad Administration (FRA): Staff and Herzog continue monthly conference calls with UPRR, Caltrain, and the FRA on PTC implementation and requirements to implement PTC on the ACE equipment and be compliant with all Federal Regulations. The monthly conference calls will continue until PTC is in full operation and is operating reliably. Testing with the UPRR began on September 28th and will continue until December. Caltrain executed a contract with Wabtec to complete their PTC program. Caltrain anticipates being ready for testing in late 2018. Staff continues conference calls with Caltrain on ACE’s and Caltrain’s project status in order to coordinate any PTC programs and plans required for review and approval to operate on Caltrain territory. The Director of Operations and Herzog General Manager have attended the three Federal Railroad Administration (FRA) PTC seminars that were held on June 25th, July 16th, and August 20th. On September 13th, Executive Director Stacey Mortensen testified to the House Transportation and Infrastructure Subcommittee on Railroads, Pipelines, and Hazardous Materials on ACE’s progress with PTC implementation.
15 of 136
SAN JOAQUIN REGIONAL RAIL COMMISSION Meeting of October 5, 2018
STAFF REPORT
Item 4 ACTION
Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Authorizing the Executive Director to Submit and Execute Any and All Grant Applications, Agreements, Certifications and Assurances and Any Other Documents Necessary to Obtain FY 18/19 State Rail Assistance (SRA) Funding in the Amount of $3,400,000 for the Fremont Platform Extension and $500,000 for the Lyoth Derail Background:
Senate Bill 1 (SB 1) created the State Rail Assistance (SRA) Program by directing a portion of new revenue specifically to intercity rail and commuter rail. SB 1 directs a 0.5% portion of new diesel sales tax revenue for allocation, with half going to the five commuter rail providers and half to intercity rail corridors. The estimated funding distribution for the commuter rail agencies can be seen below. Over the first three years of the Program, ACE is eligible for $10.5M in SRA funding.
Sonoma-Marin Area Rail Transit District (SMART) $2.5M $3.9M $4.1M
Southern California Regional Rail Authority (Metrolink) $2.5M $3.9M $4.1M
SRA was created to provide operating and capital assistance for commuter and intercity rail agencies. The SRA guidelines permit projects that cover a full range of transportation planning and mass transportation purposes, with the direction that rail agencies spend these funds in a cost-effective manner to provide operations and capital improvements for the benefit of the public. With SJRRC pursuing ambitious planning and service improvements as part of the ACE extensions to Ceres/Merced and Sacramento, staff is recommending the FY 18/19 SRA allocation be requested to fund the Fremont Platform Extension ($3,400,000) and Lyoth Derail ($500,000) projects. The projects will help to address the capacity and performance of the existing ACE service.
16 of 136
The Fremont Platform Extension project will construct a 400-foot extension of the platform at the Fremont ACE Station. Once constructed, the Fremont Platform Extension will accommodate ten-car trainsets, which will be able to be pulled by the more powerful Tier IV locomotives currently being built. Each railcar that is added to a train increases capacity by approximately 134 seats. The Lyoth Derail project will install electric-powered derails near the intersection of the Union Pacific Railroad (UP) Oakland Subdivision and the California Northern Railroad (CFNR) line in Lyoth, near the Tracy ACE Station. Derails are devices that are used to prevent fouling of a rail track by unauthorized movements of trains or unattended rolling stock. The electric-powered derails will be located approximately 300 feet from the intersection along the CFNR line, in both directions, and will prevent CFNR rolling stock from fouling the UP Oakland Subdivision. The new derails will allow the 40 MPH speed restriction in place due to the current hand thrown derails to be removed. This will allow the speed of ACE trains to be safely increased to up to 79 MPH and will help to improve ACE on-time performance.
Fiscal Impact:
There is no fiscal impact. SRA funding is provided through Senate Bill 1. Recommendation:
Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Authorizing the Executive Director to Submit and Execute Any and All Grant Applications, Agreements, Certifications and Assurances and Any Other Documents Necessary to Obtain FY 18/19 State Rail Assistance (SRA) Funding in the Amount of $3,400,000 for the Fremont Platform Extension and $500,000 for the Lyoth Derail.
17 of 136
RESOLUTION SJRRC-R-18/19-10
RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SAN JOAQUIN REGIONAL RAIL COMMISSION AUTHORIZING THE EXECUTIVE DIRECTOR TO SUBMIT AND EXECUTE ANY AND ALL GRANT APPLICATIONS, AGREEMENTS,
CERTIFICATIONS AND ASSURANCES AND ANY OTHER DOCUMENTS NECESSARY TO OBTAIN FY 18/19 STATE RAIL ASSISTANCE (SRA) FUNDING IN THE AMOUNT OF
$3,400,000 FOR THE FREMONT PLATFORM EXTENSION AND $500,000 FOR THE LYOTH DERAIL
WHEREAS, SJRRC is an eligible project sponsor and may receive state funding from
State Rail Assistance (SRA) for transit projects; and WHEREAS, the statutes related to state-funded transit projects require a local or
regional implementing agency to abide by various regulations; and WHEREAS, Senate Bill 1 (2017) named the California State Transportation Agency
(CalSTA) as the administrative agency for the SRA; and WHEREAS, CalSTA has developed guidelines for the purpose of administering and
distributing SRA funds to agencies identified as eligible recipients of these funds; and WHEREAS, SJRRC wishes to delegate authorization to execute these documents
and any amendments thereto to the Executive Director; and WHEREAS, SJRRC wishes to utilize $3,400,000 in FY 18/19 SRA funding for the
Fremont Platform Extension and $500,000 in FY 18/19 SRA funding for the Lyoth Derail; NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of the San
Joaquin Regional Rail Commission hereby Authorize the Executive Director to submit and execute any and all grant applications, agreements, certifications and assurances and any other documents necessary to obtain FY 18/19 State Rail Assistance (SRA) funding in the amount of $3,400,000 for the Fremont Platform Extension and $500,000 for the Lyoth Derail.
PASSED AND ADOPTED, by the Board of Commissioners this 5th day of October
2018, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: SAN JOAQUIN REGIONAL
RAIL COMMISSION _____________________________ _____________________________ STACEY MORTENSEN, Secretary STEVE DRESSER, Chair
18 of 136
SAN JOAQUIN REGIONAL RAIL COMMISSION Meeting of October 5, 2018
STAFF REPORT
Item 5 ACTION
Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Authorizing the Second Amendment to the San Joaquin Regional Rail Commission Procurement Manual Background: On September 14, 2012, the Board of Commissioners approved a resolution to adopt the SJRRC Procurement Manual. On April 5, 2013, the Board approved the First Amendment to the Procurement Manual. Throughout the years, there have been changes on guidelines and procedures, therefore the Procurement Manual is now outdated. With the expansion of the ACE service and the SJJPA, staff determined that a major review and update to the Procurement Manual is necessary. The update of the SJRRC Procurement Manual being proposed contains major and minor revisions. These revisions will clarify the procurement processes, specify delegation authority for procedures, and bring the manual up to date based on the funding source guidelines. The proposed revisions are summarized as follows: Major Revisions:
• Thresholds for procurement processes have been updated to encompass requirements from funding sources.
o Micro Purchases are purchases totaling up to $3,000. The limit will be increased from $3,000 to $3,500.
o Small Purchases are purchases totaling between $3,000 - $100,000. The limit will be increased to $3,500 - $150,000.
o Formal Competitive Procurements are purchases over $100,000. The limit will be changed from over $100,000 to $150,000
• Evaluation Criteria sections were updated and Force Majeure language was added as Corrective Actions to a finding during the Caltrans Audit.
• Removed all but the initial reference to the Executive Director’s $75,000 threshold. This allows flexibility in the event that the threshold is changed in the bylaws.
• Appendices were updated or removed if referenced in the Manual.
Minor Revisions:
• New definitions added for terms not previously defined. • Staff titles, roles and responsibilities were updated to reflect the current processes. • To have the flexibility to follow most recent versions of funding source guidelines and
requirements, or changes to the laws mentioned throughout. Both Legal Counsel (Neumiller & Beardslee and Burke, Williams, and Sorensen) reviewed and approved the revisions.
19 of 136
Fiscal Impact: There is no Fiscal Impact. It is anticipated that the streamlining of the procurement process will allow staff to perform the procurement functions in a more efficient and timely manner and will increase overall productivity and responsiveness. Recommendation: Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Authorizing the Second Amendment to the San Joaquin Regional Rail Commission Procurement Manual.
20 of 136
RESOLUTION SJRRC-R-18/19-11
RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SAN JOAQUIN REGIONAL RAIL COMMISSION AUTHORIZING THE SECOND AMENDMENT TO THE
SAN JOAQUIN REGIONAL RAIL COMMISSION PROCUREMENT MANUAL
WHEREAS, the San Joaquin Regional Rail Commission (SJRRC) is a recipient for various sources of local, state, regional and federal funding; and,
WHEREAS, SJRRC administers the above funding in the delivery of rail related services, programs and projects; and
WHEREAS, each of the above funding sources stipulate different procurement requirements in the delivery of the rail related services, programs and projects; and
WHEREAS, on September 14, 2012, the Board of Commissioners approved a resolution to adopt the current Procurement Manual; and
WHEREAS, on April 5, 2013, the Board approved the First Amendment to the
Procurement Manual; and
WHEREAS, SJRRC now desires to update and revise the Procurement Manual to incorporate updated policies, thresholds and funding source requirements; and
WHEREAS, SJRRC’s Procurement Manual may be administratively updated, as
needed, to remain current; NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of the San Joaquin Regional Rail Commission hereby Authorize the Second Amendment to the San Joaquin Regional Rail Commission Procurement Manual.
PASSED AND ADOPTED, by the Board of Commissioners this 5th day of
October 2018, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: SAN JOAQUIN REGIONAL
RAIL COMMISSION _____________________________ _____________________________ STACEY MORTENSEN, Secretary STEVE DRESSER, Chair
21 of 136
PROCUREMENT POLICIES AND
PROCEDURES
Approved and adopted by the Board of Commissioners of the San Joaquin Regional Rail Commission
Steve Dresser, Chair
Dated: October 5, 2018
22 of 136
TABLE OF CONTENTS
Page
CHAPTER 1. GENERAL PROVISIONS ........................................................................ 1
SECTION 1.1 Definitions And Abbreviations ....................................................... 1
SECTION 1.2 Derivation Of Procurement Policy, Rules And Regulations .......... 8
SECTION 5.2 When Formal Bids Are Required. ............................................... 26
SECTION 5.3 Initiation of the Competitive Bidding Process. ............................. 26
23 of 136
SECTION 5.4 Preparation of the Solicitation Doucuments ................................ 27
SECTION 5.5 Contract Documents for Construction Projects ........................... 34
SECTION 5.6 Consideration of Disadvantaged Business Enterprise Participation ................................................................................. 36
SECTION 5.7 Pre-advertising Review of Solicitation Documents. ..................... 37
SECTION 5.8 Advertisment of Bid. .................................................................... 38
SECTION 5.9 Changes and Revisions: Preparation of Addenda ..................... 38
SECTION 6.2 When Competitive Negotiations May Be Used. .......................... 46
SECTION 6.3 Initiation of the Process. ............................................................. 46
SECTION 6.4 Request for Statement of Qualifications. .................................... 47
SECTION 6.5 Request for Proposals. ............................................................... 47
SECTION 6.6 Consideration of Disadvantaged Business Enterprise Participation ................................................................................. 48
SECTION 6.7 Changes to RFP: Preparation of Addenda ................................ 48
SECTION 6.8 Review of Proposals. .................................................................. 48
SECTION 6.17 Competitive Negotiations For Technology Equipment And Rolling Stock ................................................................................ 53
CHAPTER 14. REAL PROPERTY ACQUISITION .................................................... 100
SECTION 14.1 Real Property Acquisition ....................................................... 100
SECTION 14.2 Relocation Assistance for Displaced Persons......................... 101
26 of 136
APPENDICES
APPENDIX A: Resolution adopting Procurement Manual as policy in 2012. APPENDIX B: SJRRC Delegation of Authority Resolution APPENDIX C: Section 7.6: “Conflicts of Interest” of the SJRRC Personnel
Manual APPENDIX D: Procurement Approval Process APPENDIX E: Officer or Employee Certification APPENDIX F: Resolution adopting Revision 01 of the Procurement Manual
in 2018. (Being Drafted)
27 of 136
1 Procurement Manual Revised October 2018
SAN JOAQUIN REGIONAL RAIL COMMISSION PROCUREMENT MANUAL
CHAPTER 1. GENERAL PROVISIONS SECTION 1.1 Definitions And Abbreviations. Whenever the following words are used in this Procurement Manual, their intent and meaning shall be interpreted as follows:
1.1.1 “Architectural and Engineering or A&E” services include architectural,
landscape architectural, engineering, environmental, and land surveying services, and construction project management, as defined in Government Code Section 4525.
1.1.2 “Bid” means the offer of the bidder for the work when submitted on the
prescribed Bid Form, properly signed and guaranteed, including the schedule of bid items. 1.1.3 “Bidder” means any individual, firm, partnership, corporation, governmental
agency, joint venture, not-for-profit organization or combination thereof submitting a bid for the work contemplated, acting directly or through a duly authorized representative.
1.1.4 “Board” means the 8-member governing board of the San Joaquin Regional
Rail Commission with representatives from entities within Alameda and San Joaquin Counties (SJRRC serves Santa Clara County, but Santa Clara has elected not to appoint members to the Board.) for procurements and other matters that Alameda or Santa Clara counties are allowed to participate and vote on as provided for in the SJRRC 1st Amended JPA, Bylaws and Special Voting MOUs; otherwise “Board” means the 6-member governing board of the San Joaquin Regional Rail Commission limited to representatives from entities within San Joaquin County.
1.1.5 “Blanket Purchase Order or BPO” means a Purchase Order which specifies
materials, equipment, supplies, services, or work to be furnished over a period of time and which may be ordered on more than one occasion up to a set cost.
1.1.6 “Bylaws” are the current Bylaws of SJRRC, including all amendments to
date. 1.1.7 “Buyer” or “Buyers” means those SJRRC employees responsible for
needed supplies, materials, and equipment for SJRRC as a whole or for a major division, who act in accordance with all established policies and procedures.
28 of 136
2 Procurement Manual Revised October 2018
1.1.8 “California Uniform Public Construction Cost Accounting Commission or
CUPCCAA” is the Commission created to administer the California Uniform Public Construction Cost Accounting Act.
1.1.9 “Code of Federal Regulations or CFR” means the compilation of
administrative laws governing federal regulatory agency practice and procedures. Revised annually, it contains the whole of the daily Federal Register together with previously issued regulations that are still current. Like the U.S. Code, it is divided into 50 titles, each representing a general subject area (e.g., commerce, military) and containing the applicable rules and regulations for agency activities in that area. The purpose of the CFR is to make available the large body of laws that govern federal practice. It can usually be found in university law libraries, large public libraries, and most federal depository libraries.
1.1.10 “Contract” – means a mutually binding legal relationship obligating the
seller to furnish the supplies, materials, equipment or services (including construction) and the buyer (SJRRC) to pay for them. It includes all types of commitments that obligate the recipient to expenditure and that, except as otherwise authorized, are in writing. In addition to bilateral instruments, contracts include but are not limited to awards and notices of awards; job orders or task letters issued under basic ordering agreements; letter contracts; orders, such as purchase orders, under which the contract becomes effective by written acceptance or performance; and bilateral contract modifications. Contracts do not include grants and cooperative agreements covered by 31 U.S.C. 6301, et seq.
1.1.11 “Competitive Negotiations” means the process based on a formal rating
system whereby other factors in addition to price are used to make the selection, and SJRRC is authorized by this Manual to negotiate.
1.1.12 “Construction” means work for which a bidder is required to be licensed as
a contractor under the California Contractors License Law. However, construction does not apply to: (1) the purchase or installation of any finished product which does not become a fixed part of the real property, buildings or other improvements on the real property, nor (2) to a material man or manufacturer furnishing finished products who does not install or contract for the installation of such items, nor (3) to any construction, alteration, improvement or repair of personal property not affixed to the real property, buildings or other improvements to the real property.
29 of 136
3 Procurement Manual Revised October 2018
1.1.13 “Contractor” means any person or entity who enters into an agreement with SJRRC to furnish materials, equipment or supplies to, or performs any service for SJRRC.
1.1.14 “Contract Documents” means the documents received from
bidders/proposers that may become part of the contract. For construction projects, the term is used throughout solicitation.
1.1.15 “Contracts and Compliance Department” means the SJRRC department
responsible for SJRRC procurement activities with principal responsibility for the processing of requisitions and purchase orders for SJRRC as a whole as well as preparation of IFBs and RFPs and support Project Managers in the administration of contracts that result from the IFB and RFP process.
1.1.16 “Davis-Bacon and Related Acts” applies to contractors and subcontractors
performing on federally funded or assisted contracts in excess of $2,000 for the construction, alteration, or repair (including painting and decorating) of public buildings or public works. Davis-Bacon Act and Related Act contractors and subcontractors must pay their laborers and mechanics employed under the contract no less than the locally prevailing wages and fringe benefits for corresponding work on similar projects in the area. The Davis-Bacon Act directs the Department of Labor to determine such locally prevailing wage rates. The Davis-Bacon Act applies to contractors and subcontractors performing work on federal or District of Columbia contracts. The Davis-Bacon Act prevailing wage provisions apply to the “Related Acts,” under which federal agencies assist construction projects through grants, loans, loan guarantees, and insurance. For prime contracts in excess of $100,000, contractors and subcontractors must also, under the provisions of the Contract Work Hours and Safety Standards Act, as amended, pay laborers and mechanics, including guards and watchmen, at least one and one-half times their regular rate of pay for all hours worked over 40 in a workweek. The overtime provisions of the Fair Labor Standards Act may also apply to DBA-covered contracts.
1.1.17 “Days” refers to calendar days unless otherwise specified. 1.1.18 “Department of Transportation or U.S. DOT” – means the department of
the federal executive branch responsible for the national highways and for railroad and airline safety. May also be referenced as U.S. DOT.
1.1.19 “Disadvantaged Business Enterprises or DBE” as defined in 49 CFR Part
26 of the Federal Code of Regulations, as subsequently amended from time to time.
30 of 136
4 Procurement Manual Revised October 2018
1.1.20 “DBELO” means the Disadvantaged Business Enterprise Liaison Officer, the SJRRC employee principally responsible for effecting compliance with SJRRC’s DBE Program and federal laws pertaining to Disadvantaged Business Enterprise participation.
1.1.21 “DBE Manager” means the SJRRC employee who assists the DBELO in
the DBE Program. 1.1.22 “Executive Director” means the person identified and described in Section
6 of the Joint Powers Agreement establishing the San Joaquin County Regional Rail Commission.
1.1.23 “Executive Management” means the Directors as identified on the SJRRC
Organizational Chart. 1.1.24 “Federal Transit Administration or FTA” means an agency within the U.S.
D.O.T that provides financial and technical assistance to local public transportation systems. The FTA is one of ten modal administration within the U.S. DOT.
1.1.25 “Equal Employment Opportunity or EEO” is the goal of laws which make
some types of discrimination in employment illegal. Equal employment opportunity will become a reality when each U.S. citizen has an equal chance to enjoy the benefits of employment. EEO is not a guarantee of employment for anyone.
1.1.26 “Generally Accepted Accounting Principles or GAAP” is a collection of
commonly-followed accounting rules and standards for financial reporting. GAAP specifications include definitions of concepts and principles, as well as industry-specific rules.
1.1.27 “Invitations for Bids or IFB” means the complete assembly of related
documents furnished to prospective bidders for the purpose of bidding, based on a clear and accurate description of the technical requirements for the materials, equipment, supplies, service, or work to be procured, so that bids may be received and an award made to the lowest responsive and responsible bidder.
1.1.28 “Local Assistance Procedures Manual or LAPM” is the resource and
guidance, as subsequently amended from time to time, that may be used for purchases funded by the State of California.
1.1.29 “Micro-Purchase” means a purchase of supplies or services using
simplified acquisition procedures.
31 of 136
5 Procurement Manual Revised October 2018
1.1.30 “Minor Irregularities” means an irregularity during the solicitation process
that is not material as long as the mistake 1) could not have facilitated corruption or extravagance, 2) does not affect the amount of proposals, 3) does not affect the response of the potential proposals, and 4) the waiving of the defect in the proposal did not give any competitive advantage to the bid or proposal.
1.1.31 “Offeror” means a person or entity who makes a specific bid/proposal to
SJRRC to enter into a contract. May be interchanged with bidder and/or proposer throughout this manual.
1.1.32 “P.C.C.” means the California Public Contract Code. 1.1.33 “Procurement” means the purchase of equipment, supplies and services,
including construction and maintenance. It ranges from the purchase of routine supplies or services to contracts for large projects. May be interchanged with “purchase” throughout this Manual.
1.1.34 “Procurement Approval Process” means the process in which
procurements will be approved and is attached as Appendix H. This process may be periodically updated as needed.
1.1.35 “Procurement Thresholds” means the total value of all requirements for a
purchase, lease, rental or hire of goods and services of a similar type. In judging whether goods, supplies or services are “of the same type”, account should be taken, for instance, of whether they would normally be ordered together and/or from the same suppliers. Threshold amounts determine the procurement method and may be periodically updated.
1.1.36 “Project Manager or PM” means the designated employee responsible for
procurements, contract administration and budget for a specific department. 1.1.37 “Proposal” means the document submitted by a person or entity in
response to a request for quotations including a RFP and RFQ. 1.1.38 “Proposer” – means any individual, firm, partnership, corporation,
governmental agency, joint venture, not-for-profit organization or combination thereof submitting a proposal for the services, work, materials or goods contemplated, acting directly or through a duly authorized representative.
32 of 136
6 Procurement Manual Revised October 2018
1.1.39 “Purchase Order or PO” means the form signed by the Executive Director or his/her designee constituting written authorization to a vendor to furnish SJRRC with materials, equipment, supplies, services, or work of the kinds and in the amounts specified therein.
1.1.40 “Request for Proposal or RFP” means the procurement document issued
to solicit firm and binding offers of services or specified types of equipment. The RFP is used when it is not possible to fully detail the scope or quantity of the services or equipment to be obtained so that a bid could be received, such as in the case of professional services. The RFP contains similar provisions to an IFB, plus a Statement of Work, contract terms and conditions and the evaluation criteria that will be utilized to determine contractor selection. Qualitative criteria, in addition to cost, is considered in the evaluation and award process. For Architectural and Engineering (A&E) see Section 6.16.
1.1.41 “Request for Qualifications or RFQ” means a request issued by SJRRC,
often by advertisement, to solicit statements of qualifications and/or interest from prospective contractors as a preliminary step to the submission of contractors’ proposals or bids. In the case of professional service contracts, the qualifications submitted may be used to screen firms and develop a list to receive RFPs.
1.1.42 “Requisition” means that submittal by a department to formally request the
procurement of materials, equipment, supplies or services. 1.1.43 “Requisitioner” means the authorized SJRRC department requesting
materials or services with a requisition. 1.1.44 “Responsive Bidder/Proposer” means a bidder/proposer who has
submitted a bid/proposal which meets the exact requirements set forth in the IFB or RFP, Instructions to Bidders and Bid Forms, and who has not qualified the bid in any manner or submitted unsolicited alternatives.
1.1.45 “Responsible Bidder/Proposer” means a bidder/proposer or vendor who
has demonstrated the attribute of trust worthiness, as well as quality, fitness, capacity, and experience to satisfactorily perform the contract. (See P.C.C. Section 1103.)
1.1.46 “Services” means and includes non-construction services of any type,
description or variety including, without limitation, landscape maintenance services, janitorial services, repair of office machines and equipment, security guard services, accountants, actuaries, appraisers, attorneys, consultants (in fields such as public
33 of 136
7 Procurement Manual Revised October 2018
administration, economics, finance, insurance, labor relations, planning, technology or other services germane to SJRRC’s operations), and doctors. A&E contracts are considered services and are subject to Section 6.16 of this Manual.
1.1.47 “SJRRC” means the San Joaquin Regional Rail Commission. 1.1.48 “Small Purchases or Simplified Acquisition” means the purchase of goods,
supplies or services. 1.1.49 “Solicitation Documents” means the documents compiled by SJRRC to
process the procurements up until receipt of bids/quotations/proposals. 1.1.50 “Temporary Services” means the services of an individual to perform a
specific job with a variety of functions or responsibilities for SJRRC for a limited period of time. Such individual shall perform the designated job responsibilities. Such temporary services shall not be considered as being subject to the procurement procedures, but shall be entitled to the benefits required by law, including but not limited to workers’ compensation, state disability, but shall not be entitled to the benefits offered by SJRRC to its full time employees such as retirement, vacation, holidays, and health and welfare.
1.1.51 “Uniform Public Construction Cost Accounting Act (CUPCCAA)” means the
Act enacted in 1983 under Public Contract Code section 22000 et seq. as amended,, that allows local agencies to perform Construction work of up to $45,000 ($60,000 as of January 1, 2019) with their own workforces, by negotiated contract or by purchase order, and up to $175,000 ($200,000 as of January 1, 2019) through an informal bidding procedure, if (as SJRRC has done) the agencies elect to follow the cost accounting procedures set forth in the Cost Accounting Policies and Procedures Manual by the California Uniform Construction Cost Accounting Commission (CUPCCAA). Every five years, the CUPCCAA reviews the informal bid limits for inflation and other factors to determine whether adjustments should be made. If an adjustment is made, the State Controller notifies the affected public agencies. The adjustment may become effective before it appears as a formal change in the Public Contract Code pursuant to Public Contract Code section 22020.
1.1.52 “Working Days” means Monday – Friday (excluding SJRRC recognized
holidays) for Construction Contracts unless otherwise authorized by SJRRC.
34 of 136
8 Procurement Manual Revised October 2018
SECTION 1.2 Derivation of Procurement Policy, Rules and Regulations. 1.2.1 SJRRC is a Joint Powers Authority (JPA) and is governed by an eight (8)
member Board of which six (6) are regular members and two (2) are special voting members.
1.2.2 The procedures governing procurements of SJRRC derive from San
Joaquin County, the State of California, the P.C.C., and federal law, whichever is more stringent. In addition, federal regulations and grant requirements mandated by the United States Department of Transportation apply to SJRRC in connection with contracts financed in whole or in part with federal funds. If a procurement policy or procedure is not described in the SJRRC Procurement Manual, defer to the funding source guidelines.
1.2.3 Procedures. The procedures contained herein are designed to:
1.2.3.1 Economy and Efficiency. Promote the greatest economy and
efficiency for SJRRC. Provide safeguards to maintain a procurement system of quality and integrity.
1.2.3.2 Public Confidence. Instill public confidence in the procurement
process of the SJRRC.
1.2.3.3 Fair Treatment. Ensure fair and equitable treatment for all vendors who seek to deal with the SJRRC, including Disadvantaged Business Enterprises (DBEs).
1.2.3.4 Competition. Ensure maximum open and free competition in the
expenditure of public funds.
SECTION 1.3 Organizational Structure. The Executive Director is the chief executive officer of SJRRC, and has the authority to issue written procedures to implement the SJRRC Procurement Policy.
1.3.1 Authority of Executive Director. The Executive Director may award and
execute agreements and leases for equipment, supplies, materials, services or construction when the amount to be paid by SJRRC does not exceed the amount stated in the most recent SJRRC bylaws, and the expenditure is included in SJRRC’s capital or operating budget. A report summarizing contracts awarded within the Executive Director’s authority shall be presented to the Board on a periodic basis or as required in the SJRRC bylaws.
35 of 136
9 Procurement Manual Revised October 2018
1.3.2 Board Approval. The Board shall approve the award of contracts and leases for equipment, supplies, materials, services or construction when the amount to be paid by SJRRC exceeds the amount stated in the most recent SJRRC Bylaws. Upon Board Approval the Chairperson of the Board or Board authorized designee shall sign contracts and leases that require approval by the Board.
1.3.3 Purchasing Agent. Pursuant to Article 4 of the Bylaws of SJRRC as
amended on July 22, 2003, the Executive Director is designated Purchasing Agent for SJRRC with the powers of the Purchasing Agent of the County of San Joaquin to the extent necessary to execute the powers of SJRRC. The Purchasing Agent of SJRRC shall exercise his or her powers in accordance with this Manual. The Purchasing Agent may delegate all or a portion of the purchasing duties as set forth in Section 1.4 of this Manual.
1.3.4 Authorized Signatures. For approval of certain procurement procedures, the
list of authorized employees, titles and what they are designated to approve are maintained on file in the Contracts and Compliance Department.
SECTION 1.4 Principles of Delegation. Within the Executive Director’s procurement authority as designated by the Board and as designated Purchasing Agent for SJRRC, the Executive Director may delegate to SJRRC Executive representatives the responsibility and authority to execute contracts within monetary limits as designated by the Board as it relates to procurement. Any delegation shall be in writing, reviewed and approved by the Executive Director, and included in the procurement file. The following principles shall apply to all employees with procurement authority, including the Contracts and Compliance Department:
1.4.1 Compliance with Law, Regulations and This Manual. The Project Manager
in coordination with the Contracts and Compliance Department shall be accountable for assuring that all requirements of law, SJRRC policies, and SJRRC procedures, including internal clearances and approvals, and the provisions of this Manual as all may be periodically updated, amended or superseded, have been met. The Executive Director may bind SJRRC only to the extent of the authority delegated to in Appendix B.
1.4.2 Conflicts of Interest. The Contracts and Compliance Department shall
exercise the highest standards of professional integrity and ethical conduct, and shall monitor all transactions to assure that no conflicts of interest (see Chapter 2 below) exist. If an employee has any questions or doubts as to a conflict of interest, he or shall consult
36 of 136
10 Procurement Manual Revised October 2018
with the Contracts and Compliance Department who may consult with SJRRC Legal Counsel.
1.4.2.1 Available Funds. The Contracts and Compliance Department in
consultation with the Fiscal Department shall assure prior to procurement that sufficient funds are available for the proposed procurement.
1.4.2.2 Employees to Be Familiar with This Manual. The Contracts and
Compliance Department, along with any other positions directed by the Executive Director, shall be familiar with this Procurement Manual and participate in available training sessions on ethics and proper procurement practices.
1.4.2.3 The Contracts and Compliance Department shall adhere to
fundamental principles of public procurement, as summarized in Section 1.2 above.
SECTION 1.5 Types of Funding Sources. Summarized below are the major types of funding sources used by SJRRC. As of this update to the procurement manual, SJRRC is funded by twenty-three (23) different sources.
1.5.1 Local Tax Measures 1.5.2 Fares 1.5.3 State of California 1.5.4 Federal 1.5.5 Other
SECTION 1.6 Funding Sources Guidance. If a funding source requires the recipient to comply with specific procurement guidelines and procedures, SJRRC shall comply with those guidelines and procedures to the extent that they are different or conflict with this Manual. State and Federal funding sources shall follow the 2 CFR, Subpart E “Cost Principles, General Provisions” as applicable, unless otherwise specified.
SECTION 1.7 Types of Procurement Methods. Summarized below are the major types of procurement methods used by SJRRC. Each of these procurement methods, and the procedures to be followed, is described in further detail in Chapter 4 through Chapter 8 of this Manual. In most cases, an Independent Cost Estimate (ICE) shall be conducted to determine which procurement method shall be used. The ICE will vary in complexity and detail based on the cost and type of goods or services being purchased. The ICE will be developed without information from a prospective bidder/proposer. The ICE will be submitted with the requisition and may be used by the Contracts and Compliance Department to support a price analysis. The Project Managers have the primary responsibility for developing the Independent Cost Estimate.
37 of 136
11 Procurement Manual Revised October 2018
1.7.1 Small Purchase Procedures.
1.7.1.1 Micro Purchases. This method may be used for any purchase of materials, supplies, equipment, services, maintenance or construction work not exceeding $3,500 or as determined by the funding source. Three (3) informal quotations shall be obtained to determine if the purchase is fair and reasonable. If three (3) quotations are unable to be obtained, justification for a single quotation will be provided. To the extent practicable, purchases shall be distributed equitably among qualified suppliers with reasonable prices.
1.7.1.2 Informal Bidding. Informal bidding may be used for purchases
estimated to cost $150,000 or less for materials, supplies and equipment; $175,000 through December 31, 2018, then $200,000 commencing January 1, 2019 (CUPCCAA), $150,000 or less for FTA or U.S. DOT Construction contracts. Generally, at least three (3) written quotations or bids are obtained and award is made to the lowest responsive and responsible bidder. If three (3) quotations are unable to be obtained, a justification will be provided. If the exception for CUPCCAA is used, there shall be compliance with Section 22010, et seq. of the P.C.C.
1.7.1.3 Adoption of CUPCCAA. By Resolution SJRRC-08/09-26, the
Board has elected pursuant to P.C.C. Section 22030 to make SJRRC subject to the Uniform Public Construction Cost Accounting Procedures set forth in that Act for Construction work and to the California Construction Cost Accounting Commission’s policies and procedural manual and the cost accounting review procedures as they may from time to time be amended.
1.7.1.4 Informal Proposals. A simplified proposal procedure (other than
informal bidding) may be used for non-Construction work and services (other than A&E) not exceeding $150,000. This selection may be based on qualitative factors in addition to price.
1.7.2 Formal Competitive Bidding (Invitation for Bids). This method must be used
for purchases estimated to cost over $150,000 for materials, supplies and equipment (except for certain types of rolling stock and technological equipment); over $175,000 through December 31, 2018, then $200,000 commencing January 1, 2019 (CUPCCAA), $3,500 (FTA) for construction; and may be used for services. Formal bid documents are prepared, advertised, and an award is made to the lowest responsive and responsible bidder.
38 of 136
12 Procurement Manual Revised October 2018
1.7.3 Formal Competitive Proposals (RFPs). This method may be used for purchases of over $150,000 for services; certain types of rolling stock and technological equipment as permitted by statute; and other purchases for which this method of procurement is permissible as approved by the Board or the Executive Director. A Request for Proposals is issued, and proposals are evaluated based upon qualitative factors in addition to price.
1.7.4 Non-Competitive Purchases. These are used for the purchase of approved
sole source procurements, emergency procurements, if inadequate competition is determined or other procurements in which a competitive process is infeasible and would not serve the best interests of SJRRC, as determined by the Board or by the Executive Director. Non-competitive purchases shall be made with consultation with SJRRC Legal Counsel, if needed.
1.7.5 Intergovernmental Agreements. Joint procurements, state cooperative
purchasing programs, and piggyback procurements with other public agencies may be used when consistent with applicable state statutory and federal grant requirements.
1.7.6 Value for All Years. Contract dollar value is the total dollars for all years
excluding option years of a contract.
39 of 136
13 Procurement Manual Revised October 2018
CHAPTER 2. STANDARDS OF CONDUCT
SECTION 2.1 Duty to Disclose. SJRRC Commissioners, Officers, employees and agents shall not be involved in any purchasing decision, task, or procedure (including participation in initiation, evaluation, award, or administration of a contract) in which they or persons related to them have a real or apparent conflict of interest, as more particularly defined in Section 2.2 , below. In cases where there may be a conflict of interest, employees have the responsibility to report in writing such conflict to the Executive Director at the earliest possible date. Failure to make such disclosure is subject to action determined by SJRRC as cited in Section 7.6: Conflicts of Interest of the SJRRC Personnel Manual.
SECTION 2.2 Conflict Of Interest.
2.2.1 Board Conflict of Interest Code. In accordance with the Political Reform Act, Government Code Section 87100 et seq., the Board has adopted a Conflict of Interest Code under which identified designated employees that are required to disclose economic interests and are prohibited from participating in decisions which will have a reasonably foreseeable material effect on their financial interests.
2.2.2 Specific Conflicts. For purposes of these Procurement Manual Standards
of Conduct, it is further required that no Commissioner, Officer, employee or agent of SJRRC shall participate in any procurement, task, or decision relative to initiation, evaluation, award, or administration of a contract if a conflict of interest, real or apparent, exists. Such a conflict of interest arises when (1) the Commissioner, Officer, employee or agent, (2) any member of his or her immediate family, (3) his or her business associate, (4) his or her partner or (5) an organization which employs, or which is about to employ, any of the above described individuals has a financial or other interest in a firm that participates in an SJRRC procurement process or that is selected for a contract award. The standards governing the determination as to whether such an interest exists are set forth in Sections 1090, 1091, and 1091.5 of the California Government Code, copies of which are included in Appendix C.
2.2.3 Additional Conflicts. Additional conflict of interest standards may also apply
depending on the method of procurement or funding source. To ensure full compliance, please reference the specific section addressing the procurement, Competitive Negotiations for Technology Equipment and Rolling Stock, or Chapter 10, Special Rules for Federally Funded Contracts.
40 of 136
14 Procurement Manual Revised October 2018
SECTION 2.3 Gratuities and Contingent Fees. In compliance with the SJRRC Personnel Manual, no Commissioner, Officer, employee or agent of SJRRC knowingly shall solicit, accept, or agree to accept gratuities, contingent fees or favors in connection with actual or potential procurement and contracting activities.
SECTION 2.4 Confidential Information. No Commissioner, officer, employee or agent shall use confidential information for his or her actual, anticipated, or apparent personal gain, or for the actual, anticipated, or apparent personal gain of any person related to such employee as such relationship is defined in Section 2.2 above. “Confidential Information” is defined to include any proprietary, privileged, or nonpublic information coming to the person’s attention as a result of an office or employment position with SJRRC, the knowledge of which makes possible financial gain.
SECTION 2.5 Discipline for Violation. The violation of any of the Procurement Policy and Procedures and Standards of Conduct will subject the employee to such disciplinary proceedings or action deemed appropriate by SJRRC.
41 of 136
15 Procurement Manual Revised October 2018
CHAPTER 3. REQUIRED REVIEWS AND DETERMINATIONS
SECTION 3.1 Due Diligence. The Contracts and Compliance Department is responsible for the following reviews and evaluations:
3.1.1 Review. A review of the requirements to avoid purchase of unnecessary or
duplicative items; 3.1.2 Selection Criteria. A review of the selection method and criteria to avoid any
arbitrary actions; 3.1.3 Options. The inclusion and evaluation of options when it is reasonably
foreseeable that SJRRC will exercise any options included in a solicitation; 3.1.4 Public Advertisement. Solicitations may be publically advertised through
several outlets including, but not limited to, agency website, trade publications, market communication networks, and local newspapers at least 10 days before the deadline for receipt of proposals/bids; provided that formal Bids shall be published in an applicable newspaper as otherwise required by law. The minimum length of advertisements under the LAPM is 14 days. To the extent practicable, informal and formal solicitations shall be listed on the SJRRC website. SJRRC must make reasonable efforts to generate the maximum feasible number of proposals from qualified sources. Subject to Chapter 7 of this Manual, if only a single proposal/bid is received, SJRRC must make a finding that it made reasonable efforts to generate the maximum feasible number of proposals from qualified sources before proceeding to negotiate/award with the sole proposer/bidder.
3.1.5 Geographic Preferences. SJRRC does not unlawfully impose any
geographic preferences (geographic preference to San Joaquin, Alameda and Santa Clara counties may be applied to certain architectural and engineering contracts in the manner allowed by law and regulation; see Section 10.1.16.8);
3.1.6 Brand Names. Whenever brand names are used in specifications the “or
equal to” requirements apply along with a statement of the salient characteristics which offeror’s must satisfy, unless an exemption (approved by the Executive Director) is otherwise available;
42 of 136
16 Procurement Manual Revised October 2018
3.1.7 Adequate Competition. Determine if the procurement process provided for adequate competition by receiving two or more responsive bids/proposals along with an analysis of bids/proposals.
3.1.8 Vendor Eligibility: Any vendor doing business with SJRRC will require to
provide the following: 3.1.8.1 Statement of Information from the State of California which allows vendor to do business in California. 3.1.8.2 Current IRS Form W-9 on file with SJRRC 3.1.8.3 A review of the System for Award Management (SAM) is required for all purchases over $25,000.
43 of 136
17 Procurement Manual Revised October 2018
CHAPTER 4. SMALL PURCHASE PROCEDURES
SECTION 4.1 Agency Credit Card. Purchases are limited to travel, emergencies, and purchases that will not allow SJRRC to pay in arrears. Agency Credit Cards are issued to those approved by the Executive Director. Each Agency Credit Card has limited spending limits and may not be used to purchase alcoholic beverages, personal items, or to obtain cash advances. The Director of Fiscal Services and Administration, or designee, manages the Agency Credit Cards and coordinates payments. The Agency Credit Cards are subject to all the requirements of this Manual. Fraudulent use or misuse of the Agency Credit Cards may result in disciplinary action.
SECTION 4.2 Micro-Purchases.
4.2.1 Less than $3,500. Whenever the aggregate amount of micro services inclusive of all taxes, shipping and handling does not exceed $3,500, micro-purchases may be used if the price to be paid is fair and reasonable. Micro-purchases should not be used to avoid the requirements for competition above the $3,500 threshold.
4.2.2 Procedures. The following procedures for micro-purchases are to be
followed:
4.2.2.1 Requisition. The Requisitioner initiates the procurement by submitting a Requisition specifying the products or service to be purchased by the Contracts and Compliance Department. The Requisition contains the following information:
4.2.2.1.1 A specific description of the desired products or services,
using, whenever possible, dimensions, sizes and catalog numbers;
4.2.2.1.2 The quantity of desired products or services;
4.2.2.1.3 The date on which the products or services are required;
4.2.2.1.4 The place of delivery for the product or service; and
4.2.2.1.5 General Ledger code;
4.2.2.1.6 Scope of services and/or special provisions as applicable.
44 of 136
18 Procurement Manual Revised October 2018
4.2.2.1.7 Breakdown of quotations or justification why quotations
were not obtained. 4.2.3 Requisition. The Requisition must be completed in accordance with the
approved Procurement Approval Process (Appendix H). 4.2.4 Price Quotations. Micro-purchases may be made without obtaining
competitive proposals or bids if the price to be paid is fair and reasonable. To be considered fair and reasonable, three (3) informal proposal or bids shall be obtained to determine if the purchase is fair and reasonable. If three (3) quotations are unable to be obtained, justification for a single quotation will be provided. To the extent practicable, purchases shall be distributed equitably among qualified suppliers with reasonable prices. When quotations are solicited by telephone, they should be documented.
4.2.5 Selection of Vendor. The Contracts and Compliance Department shall
select the vendor on the basis of the price quoted, quality, availability of the product, and previous work history. History of service to SJRRC may be considered if it does not create an unfair competitive advantage. After selection, the Contracts and Compliance Department shall notify the Project Manager. The Contracts and Compliance Department, upon request of the vendor, sends the Purchase Order with a copy of the Purchase Order Terms and Conditions.
4.2.6 File Documentation. Micro purchases shall be documented in accordance with the Procurement Approval Process (Appendix H).
SECTION 4.3 Informal Bidding.
4.3.1 Summary. Informal bidding consists of the issuance of an Informal Bid Form
describing the desired product or service and sets forth the terms of the procurement to potential bidders without formal advertising. The informal bid procedure may be used for the following procurements:
4.3.1.1 Goods and Services. Goods and Services. Procurements of
materials, equipment, supplies and services (other than Professional Services or maintenance services) the estimated cost of which are in excess of $3,500 but not in excess of $150,000. (Simplified Negotiations may also be used for non-Construction procurements in this category); and
45 of 136
19 Procurement Manual Revised October 2018
4.3.1.2 Construction Limits. Construction work that does not exceed $175,000 through December 31, 2018, then $200,000 commencing January 1, 2019 (CUPCCAA), and $3,500 (FTA).
4.3.2 Split Contracts. SJRRC shall not arbitrarily split contracts or procurements
so as to avoid the formal competitive bidding procedures. 4.3.3 Informal Bidding Procedures.
4.3.3.1 Initiation of Informal Bidding Process. The requesting department shall initiate the informal bidding process by submitting a Requisition to the Contracts and Compliance Department specifying the materials or services desired and the estimated cost. The requisition shall be approved by the appropriate Director or designee.
4.3.3.2 Preparation of Bid Solicitations. The Contracts and Compliance
Department shall prepare the Bid Solicitation in the following manner:
4.3.3.2.1 The Bid Solicitation shall be distributed to prospective vendors.
4.3.3.2.2 The Bid Solicitation shall specify the basic terms and
conditions of the procurement, including but not limited to:
4.3.3.2.2.1 Description of the products or services required;
4.3.3.2.2.2 The quantities required;
4.3.3.2.2.3 F.O.B. point;
4.3.3.2.2.4 Delivery date;
4.3.3.2.2.5 Delivery address;
4.3.3.2.2.6 Components of bid prices;
4.3.3.2.2.7 Technical specifications (if required by the nature of product or services); and
4.3.3.2.2.8 Date, time, and place by which the informal bids
must be submitted to SJRRC.
46 of 136
20 Procurement Manual Revised October 2018
4.3.3.2.3 The Bid Solicitation may specify brand names or
manufacturers, but in such event must provide for an approved equal process. Bonding and insurance requirements shall also be set forth, as appropriate. Generally, workers’ compensation and comprehensive general liability insurance shall be required for procurements involving work for SJRRC.
4.3.3.2.4 The Bid Solicitation shall be sent to the list of potential
bidders maintained by SJRRC in accordance with CUPCCAA requirements, whose names may be obtained from locator files, trade journals, trade sources and DBE Vendor Lists. The Informal Bid Form shall be sent to an adequate number of potential bidders (a minimum of three) to maximize the possibility of multiple bids.
4.3.3.3 Receipt of Informal Bids. Immediately upon receipt of informal bids
by the Contracts and Compliance Department, bids shall be time and date stamped. No bids shall be accepted after the date and time specified in the Solicitation unless allowed as set forth in Section 4.8 below if applicable.
4.3.3.4 Informal Bid Opening. The Contracts and Compliance Department
shall review the bids. Bids shall be tabulated and bid documents shall be submitted to the department initiating the procurement for evaluation, along with a completed requisition recommending award. The Contracts and Compliance Department shall also be advised of the bid results.
4.3.3.5 Informal Bid Evaluation and Award.
4.3.3.5.1 SJRRC shall award contracts based upon informal bids to
the lowest responsible and responsive bidder. Bids shall be evaluated on the basis of the following criteria:
4.3.3.5.1.1 Lowest monetary bid;
4.3.3.5.1.2 Responsiveness to the specification requirements; and
4.3.3.5.1.3 Responsibility of the bidder.
4.3.3.5.2 After review and approval of the selected bidder by the
department initiating the purchase, the Contracts and Compliance Department shall notify
47 of 136
21 Procurement Manual Revised October 2018
the successful bidder of award of contract with price and all other significant items, including Purchase Order Number.
4.3.3.5.3 The Contracts and Compliance Department shall issue the
Purchase Order or Contract, as appropriate, to the successful bidder.
4.3.3.5.4 If only one bid is received or potential bidders decline to bid, the Contracts and Compliance Department shall contact the potential bidders that declined to bid to determine why they declined to bid. This is to eliminate the possibility of a restrictive specification or restrictive bidding procedures.
SECTION 4.4 Informal Proposals.
4.4.1 Summary. Informal proposals consist generally of the issuance of a letter
soliciting informal proposals describing the scope of services required, time frame, and deliverables, without formal advertising. Selection is made based upon the proposer’s qualifications and experience, timeliness, approach and, for non-architectural or engineering services, cost. (For A&E services, see Section 6.16) SJRRC may negotiate the terms and conditions of the engagement with the highest ranked proposer, or may award the contract without negotiations. This process may be used to retain services when the cost does not exceed $150,000.
4.4.2 Process. The department initiating the purchase initiates the informal
proposal process in accordance with the Procurement Approval Process (Appendix H) as may be amended from time to time. The department will then submit a Statement of Work, an Independent Cost Estimate, Time for Completion, and other pertinent information required.
4.4.2.1 Coordination. The Contracts and Compliance Department shall
coordinate with the initiating department to establish the minimum qualifications and selection criteria in relative order of importance. The Contracts and Compliance Department shall make its best efforts to obtain a minimum of three written proposals, utilizing names obtained from the requisition, locator files, trade journals, trade sources and the DBE Vendor Lists. The department shall consult the DBELO or DBE Manager for names of potential DBE proposers.
4.4.2.2 Written Proposals. Written proposals shall be received within the
time frame specified in the Request for Informal Proposals and shall describe the proposer’s qualifications and experience, approach to the work, and cost proposal (for non-architectural/engineering contracts). No written proposal shall be accepted after the
48 of 136
22 Procurement Manual Revised October 2018
date and time specified in the Request for Informal Proposals unless allowed as set forth in Section 6.20.06 of this Manual.
4.4.3 Evaluation and Award. Proposals shall be evaluated by the designated
evaluation panel appointed by the Executive Director. The proposer that best meets SJRRC’s needs in accordance with the selection criteria identified in the Request for Informal Proposals shall be selected for award or for further negotiations as to the final scope of work and price, if necessary. Awards will be made only to responsible offerors who possess the necessary skills, integrity, and have available resources necessary to perform the contract terms and conditions successfully. Upon successful completion of negotiations, the Contracts and Compliance Department shall notify the Executive Director or designee. The purchase order or contract shall be executed by the Executive Director or designee. Required insurance coverage shall be verified by the Contracts and Compliance Department before SJRRC issues the Notice to Proceed.
SECTION 4.5 Issuance of Purchase Orders.
4.5.1 Use. SJRRC utilizes a purchase order number for all of its procurements
which may correspond with a contract or standalone purchase order, in order to track all expenditures on a uniform basis.
4.5.2 Numbered Orders. The Contracts and Compliance Department issues
purchase order numbers to the Project Manager. The purchase order numbers are available in the accounting software. At the request of the vendor, a signed purchase order will be provided. The Executive Director or designee may sign purchase orders.
4.5.3 Completed Requisition. Upon completion of the Procurement Approval
Process (Appendix H) as periodically updated, the Contracts and Compliance Department will generate and process a purchase order.
4.5.4 Internal Controls. Copies of the purchase order will be processed to ensure
internal controls for materials, equipment, supplies and services received as follows:
4.5.4.1 To Vendor. At the request of the vendor, a copy of the signed purchase order or contract will be provided.
4.5.4.2 Fiscal Department. The Fiscal Department will have access to
purchase orders using the accounting software.
49 of 136
23 Procurement Manual Revised October 2018
4.5.4.3 Verification of Items. The applicable department will verify receipt of items. Invoices will be processed only after confirmation that the items or service has been completed.
4.5.4.4 Person Requesting. The Requisitioner will be given the purchase
order number for his/her records. A copy of the purchase order will be provided upon request.
4.5.4.5 File Copy. A file copy for all purchase orders will be kept at the
Contracts and Compliance Department.
SECTION 4.6 Use of Blanket Purchase Orders. 4.6.1 Use. A blanket purchase order (BPO) is a means of filling repetitive needs
for equipment, materials, supplies and services which are various in nature and cannot be readily identified for bidding purposes. BPOs should be competitive. All responsible competitive sources should be given an equal opportunity to furnish supplies or services under the BPOs.
4.6.2 Criteria. BPOs should be made with firms from which numerous individual
purchases will likely be made in a given period. The BPO shall not be used as a means to make non-competitive purchases. Therefore, where practicable, BPOs should be issued to at least two vendors who can supply the same items.
4.6.3 Department Responsibilities. The following are the responsibilities of the
department requesting a Blanket Purchase Order:
4.6.3.1 Requisition. The department initiating the request for a blanket purchase order begins the process by submitting a Requisition to the Contracts and Compliance Department, and shall identify the type of requirement which will be purchased under the BPO.
4.6.3.2 Contracting Suppliers. Contacting suppliers to make the necessary
arrangements for securing maximum discounts and other necessary details.
4.6.3.3 Directly With Vendor. Once the Contracts and Compliance Department places a BPO, releases against the BPO will be placed directly with the vendor by the user department.
50 of 136
24 Procurement Manual Revised October 2018
4.6.3.4 Instructing Vendor. Instructing the vendor that all shipments or sales under the BPO shall be accompanied by a packing slip containing the supplier’s name, BPO number and release number, date of purchase, item list of items furnished, quantity, date of delivery, shipment, or pickup.
4.6.3.5 Itemized Invoice. Instructing the vendor that an itemized invoice
shall also be submitted for all deliveries stating BPO number, release number, and unit price and extension price of each item.
4.6.3.6 Receiving Documents. Any invoice received in connection with the
BPO shall be forwarded to the Fiscal Department. If provided by vendor, additional documentation including but not limited to packing slips and order acknowledgements, shall be provided with the invoice.
4.6.3.7 Monitoring Amounts Expended. Monitoring of dollar amounts
expended against a BPO to avoid over-run of the purchase order value and the requirements of this Procurement Manual is the responsibility of the department initiating the BPO. The applicable department will notify the Contracts and Compliance Department when the monetary limit is reached.
4.6.4 Contracts and Compliance Department’s Responsibilities. The Contracts and Compliance Department’s responsibilities for the BPO include the following:
4.6.4.1 Required Clauses. Insuring that required clauses are included in
the BPO, including a cancellation clause.
4.6.4.2 Notice of Expiration. As appropriate, monitoring and notifying the department initiating the purchase 60 days in advance of BPO expiration date.
4.6.4.3 Documentation. Maintaining documentation for each BPO within the purchase order binders. This includes the Requisition notes that provide the justification, basis for selection of the BPO vendor and quotations, price lists or other pricing documents.
4.6.4.4 Standard Form. Issuing the BPO in accordance with the
Procurement Approval Process (Appendix H).
4.6.4.5 Authorized Purchasers. Upon request, provide names of individuals authorized to make purchases off the BPO to the vendor.
51 of 136
25 Procurement Manual Revised October 2018
4.6.4.6 Close Out. Closing out the BPO when the purchase under it equals its total dollar limitation, if any, or when its stated time period expires, or as otherwise cancelled. Competitive BPOs must be renewed annually.
SECTION 4.7 File Documentation. Informal Purchases shall be documented in accordance with the Procurement Approval Process (Appendix H). SECTION 4.8 Force Majeure. In the event a bid is received after the deadline for submitting bids due to Acts of God/Nature beyond the reasonable control or anticipation of the Bidder, including, but not limited to, unusual adverse weather, earthquake, fire, flood or other natural disaster, labor strikes, riots, explosions, war, terrorism, or a similar occurrences or conditions. A Bidder may request an extension of the deadline to submit their bid supported by sufficient evidence of a force majeure event to SJRRC. Requests for extensions must be promptly delivered to SJRRC upon Bidder’s discovery of the force majeure event causing the delay in delivery of the proposal. SJRRC shall have the sole and unrestricted discretion to approve or deny the request for any reason. This right of force majeure shall not apply to any Construction contract subject to formal bidding requirements under the P.C.C.
52 of 136
26 Procurement Manual Revised October 2018
CHAPTER 5. FORMAL COMPETITIVE BIDDING INVITATIONS FOR BIDS (IFBs)
SECTION 5.1 Summary Description. The formal competitive bidding process is commenced upon the public advertisement of a Notice Inviting Bids and the issuance of Solicitation Documents, of which the Notice is a part. The Solicitation Documents set forth a clear description of the products or services sought and all other relevant terms and conditions of the procurement. On the date set forth in the Notice, the Bids are opened and read publicly. The contract is awarded to the lowest responsible and responsive bidder within the time specified in the Solicitation Documents.
SECTION 5.2 When Formal Bids Are Required.
5.2.1 Construction Contracts CUPCCAA. Construction contracts in excess of $175,000 prior to January 1, 2019 and $200,000 on and after January 1, 2019 if CUPCCAA governs.
5.2.2 Federally Funded Construction Contracts. Construction Contracts in excess
of $3,500 if some or all of the funding is provided by USDOT or FTA. 5.2.3 No Split Contracts. SJRRC shall not arbitrarily split contracts or
procurements so as to avoid the formal competitive bidding procedures. 5.2.4 Services. In addition, SJRRC may use formal competitive bidding to procure
services. Alternatively, competitive negotiations pursuant to Chapter 6 below may be used when it is in the best interest of SJRRC to use qualifications-based criteria in addition to cost.
SECTION 5.3 Initiation of the Competitive Bidding Process.
5.3.1 Budget. If the proposed procurement is not within the approved budget, the Executive Director must first obtain the Board approval for a budget amendment.
5.3.2 Invitation. The competitive bidding process shall be initiated as follows:
5.3.2.1 Department. The department initiating the proposed procurement shall proceed in accordance with the Procurement Approval Process (Appendix H).
53 of 136
27 Procurement Manual Revised October 2018
5.3.2.2 Contracts and Compliance Department. The Contracts and Compliance Department will issue a solicitation number on the Requisition, review, and clarify the scope of work.
5.3.2.3 Procurement Schedule. The Contracts and Compliance
Department then prepares a Procurement Schedule and submits a copy to the initiating department.
SECTION 5.4 Preparation of the Solicitation Documents. The Contracts and Compliance Department prepares the Solicitation Documents. Technical specifications will be developed jointly by the department initiating the Requisition and the Contracts and Compliance Department. Each set of Solicitation Documents shall contain the following items:
5.4.1 Notice Inviting Bids. The Notice Inviting Bids is a publicly advertised
document which notifies potential bidders of the nature of the particular contract and the date, time, and place for receiving and opening of bids submitted pursuant thereto. The date established for the submission of bids must be at least 10 days from the date of initial publication of the Notice. Normally, SJRRC should provide at least 14 days for typical procurements and 30 days when procuring non-typical items. The Notice Inviting Bids should be substantially in the form approved by the Contracts and Compliance Department. The required contents of the Notice may vary depending on the nature of the contract, as outlined below:
5.4.1.1 All Formally Bid Contracts. For all formally-bid contracts, the
following information shall be provided in the Notice Inviting Bids:
5.4.1.1.1 The nature of the contract and the date, time and place of receipt of bids;
5.4.1.1.2 The applicable Disadvantaged Business Enterprise
requirements and other significant requirements under applicable federal or state laws;
5.4.1.1.3 The required bidder’s security, if applicable;
5.4.1.1.4 The Notice shall be dated as of the date that the Executive Director or designee signs the notice. If a pre-bid conference will be held, it is also advisable to include the date and location.
54 of 136
28 Procurement Manual Revised October 2018
5.4.1.2 Public Works/Construction Contracts. If the contract involves construction or a public work, the following information shall also be provided in the Notice Inviting Bids:
5.4.1.2.1 If a mandatory pre-bid conference, site visit or meeting is
planned, the Notice shall advise of the date, time, and location (Such pre-bid conference, site visit or meeting may not occur within the first 5 days after publication of the Notice). The Notice shall designate the method, time, and place for obtaining copies of the Contract Documents. (P.C.C. Section 6610)
5.4.1.2.2 Whether or not the contract is subject to prevailing wages,
federal or state. (Labor Code Section 1773.2)
5.4.1.2.3 If SJRRC is requiring the Contractor to be licensed under California law, the Notice shall so state and shall include the classification of the contractor’s license requirements, which a contractor shall possess at the time a contract is awarded. (P.C.C. Section 3300)
5.4.1.2.4 Escrow provisions. 5.4.1.2.5 Insurance, payment and performance bond requirements. 5.4.1.2.6 Davis Bacon and Related Acts applies to contractors and
subcontractors performing on federally funded or assisted contracts. 5.4.1.3 Federally-funded Contracts. If the Contract to be let is financed in
whole or in part by the United States Department of Transportation, the Notice shall so state, and shall further state that bidders will be required to comply Davis Bacon and Related Acts and all other terms and conditions prescribed for Third-Party Contracts in the grant contract between SJRRC and the Department of Transportation. The Notice shall include the nondiscrimination assurance and shall also state that all bidders will be required to certify that they have not been suspended or debarred from participation in federally-funded contracts. (See Chapter 10.)
5.4.2 General Conditions and Instructions to Bidders. The General Conditions
and Instructions to Bidders sets forth standard terms and conditions applicable to all SJRRC contracts, except as modified by the Special Provisions or Technical Specifications.
55 of 136
29 Procurement Manual Revised October 2018
5.4.3 Technical Specifications. The Technical Specifications prescribes the legal terms and conditions governing the particular procurement and describes the nature of the detailed elements of the procurement. The Technical Specifications are a part of the Solicitation Documents and shall clearly define the items or services to be procured in order that the bidder may formulate a responsive bid. The Technical Specifications may include a statement as to the qualitative nature of the material, product, or service to be procured and must set forth those minimum essential characteristics and standards to which the material, product or service must conform in order to satisfy SJRRC’s intended use thereof. When it is impractical or uneconomical to specify a clear and adequate description of the technical requirements for a particular product, a brand name may be used in the Technical Specifications, provided that the bidders are afforded the opportunity to propose to SJRRC a substitute for approval as an equal to the brand name specified in the Solicitation Documents. Technical Specifications should not be drafted in a manner which unduly restricts competition.
5.4.4 Other Provisions. The Other Provisions may set forth particular
requirements for the bidding process, such as the minimum qualifications of bidders, instructions on completion of bid form, method for evaluation of bids, approved equals procedures, and requirements for bidder’s security. The Other Provisions also describe specific contract requirements, such as delivery requirements, time for performance, place of performance, inspection, acceptance, warranty, insurance requirements, liquidated damages, and contract bond requirements. Clauses as may be required for federally assisted contracts (e.g., Title VI, cargo preference, Buy America, and other Federal requirements; see Chapter 10, for more federal requirements) also shall be described in the Other Provisions. Discussion of significant provisions to be included are as follows:
5.4.4.1 Indemnification/Insurance. Subject to state law requirements, all of
SJRRC’s competitively bid contracts shall include a broad indemnification and insurance provisions. For contracts subject to formal competitive bidding, SJRRC generally requires insurance for protection in the event of default, excusable failures to perform, accident, injury, or other liability or loss. Insurance requirements vary according to the type and estimated cost of the contract, the source of funding, market conditions and other considerations.
5.4.4.2 Insurance. All contracts for services and Construction shall require
the Contractor to carry, at a minimum, workers’ compensation, employer’s liability, automobile liability, and commercial general liability insurance. All contracts for Architectural and Engineering services or other professional services shall also require the Contractor to carry professional liability insurance. In addition, any contracts for the
56 of 136
30 Procurement Manual Revised October 2018
procurement of supplies, equipment, or materials, where on-site installation, inspection, or delivery activities are incident to the procurement, shall include the foregoing insurance coverages. The specific amounts and types of coverage shall be determined by the Contracts and Compliance Department, the advice of SJRRC’s insurance broker and SJRRC’s Legal Counsel, if needed. SJRRC approval of a Contractor’s insurance policies and coverages and receipt of all required certificates and (if applicable) policies shall be a condition precedent to entering into the Agreement.
5.4.4.3 Bonding. The principal protection of SJRRC interests in the case
of default or other failure to perform shall be by means of bonds. All of the bonds described below must be executed by an admitted surety insurer authorized to transact business in the State of California. Except as specified in Chapter 10, below, for federally-funded procurements, bonding requirements on formal competitively bid procurements are as follows:
5.4.4.3.1 Bidder’s Security. SJRRC may require a bidder’s security
to be submitted with each bid in order to protect SJRRC’s interests in the event that a bidder fails or refuses to honor its bid or to enter into a contract awarded to it. The Executive Director or his or her designee may, in his or her discretion, waive this requirement on a case by case basis, taking into account the nature and magnitude of the procurement, market conditions, and the potential for enhancing DBE participation. For example, in the case of procurements of “off-the-shelf” items or services, i.e., procurements not specifically tailored to SJRRC’s needs which can be readily obtained on the open market at a competitive price, SJRRC may determine to waive the bidder’s security requirement.
5.4.4.3.2 If bidder’s security is required, it should be one of the
following:
5.4.4.3.2.1 A bid bond,
5.4.4.3.2.2 An unconditional certified or cashier’s check, or
5.4.4.3.2.3 An irrevocable letter of credit issued to SJRRC.
5.4.4.4 Bidder’s Security. As a general rule, the bidder’s security is in the amount of 5% of the total bid, but this amount may be increased according to the assessed risk in the event of a bidder’s failure to honor its bid and the resulting damage to SJRRC.
57 of 136
31 Procurement Manual Revised October 2018
5.4.4.5 Performance Bonds. Performance bonds are not required for non-construction contracts. However, the Executive Director, at his or her discretion, and with the advice of Legal Counsel, may require Performance Bonds for contracts when necessary to secure fulfillment of all the Contractor’s obligations under the contract in any amount up to 100% of the contract price. In setting the amount of the performance bond, one consideration shall be the capability of such bond to cover the likely differential in price between the Contractor and the next lowest responsible bidder or a firm that could be retained from the open market should SJRRC determine not to rebid the contract. The life of the performance bond may be required to extend beyond the completion of the main work under the contract in order to cover any warranty period or post-acceptance obligations.
5.4.4.6 Payment Bonds. Payment bonds are required for all Construction
or maintenance contracts in excess of $25,000, and may be required in contracts for the procurement of services or products which involve subcontracting.
5.4.4.7 Fidelity Bonds. In all cases where the Contractor’s employees will
be performing sensitive services on SJRRC facilities or in SJRRC vehicles, SJRRC may require the Contractor to furnish an employee fidelity bond. Such bond will provide coverage in protection of SJRRC in cases of negligence, misconduct or theft by Contractor’s employees. The coverage type and amount shall be established following consultation with SJRRC’s insurance broker and Legal Counsel, if needed.
5.4.4.8 Liquidated Damages Clause. The Special Provisions may include
a clause setting the time in which the whole, or any specified portion of the work, called for under the contract should be completed, and providing that each day completion is delayed beyond the specified time for performance, the Contractor shall pay to SJRRC a specified sum of money, to be deducted from any payments due or to become due to the Contractor.
5.4.4.9 Reasons for Use of Liquidated Damages. Liquidated damages
should be included in contracts when it would be inconvenient, difficult or impracticable to otherwise obtain an adequate remedy for the delay, or to prove the losses or to assess the actual quantity of damages. Liquidated damages are (i) generally included in all substantial (greater than 30-60 days) Construction contracts, (ii) sometimes included in equipment or other goods purchase contracts, and are (iii) typically not included in services contracts.
5.4.4.10 Determining Liquidated Damages. The amount to be established
as liquidated damages and how they are incurred shall be reasonable in light of the
58 of 136
32 Procurement Manual Revised October 2018
anticipated harm that may be caused by a delay in the contract performance and set forth in the Contract Documents. The department initiating the purchase evaluates these factors, and sets a sum as liquidated damages. Liquidated damages are not to be assessed against a Contractor that is terminated for default, nor may liquidated damages be used as a penalty. Liquidated damages amounts for any specific contract must be calculated on a case-by-case basis and must be comprised of a fact-based prediction of the actual damages SJRRC will suffer in the event of delayed performance by the Contractor
5.4.4.11 Use of Options. An option is a contract right in favor of SJRRC in
which SJRRC may, for a specified time, elect to purchase additional supplies, equipment, or services called for by the contract, or it may elect to extend the term of the contract. In some cases, an option can increase substantially the flexibility of SJRRC in its procurements. There are, however, many circumstances when an option is not in SJRRC’s interest. Accordingly, SJRRC should not use options when the procurement is for sufficient quantities needed far enough into the future to permit competitive acquisition, the market prices for the supplies or services are likely to change substantially, or when the Contractor will incur undue risks. SJRRC must follow specific guidelines when using options in federally funded contracts (See Chapter 10).
5.4.4.12 Pre-Bid Conference. If a Pre-Bid Conference is scheduled, the
Notice Inviting Bids should include the date, time, location of the conference, and whether attendance is mandatory.
5.4.4.13 Qualifications of Bidders. In contracts where the nature of the
work is such that the qualifications of the bidders is an essential criterion for evaluating the bidders’ responsibility, the Special Provisions may include a clause setting forth the required qualifications of bidders. Construction contracts and service contracts may contain such clauses. In addition, contracts for the provision of supplies, equipment, and materials, where a specially manufactured product and/or technical guidance and advice are called for may also contain a provision regarding qualifications of bidders.
5.4.4.14 Additional Qualifications. Qualification provisions should clearly
state that SJRRC may reject any bid that does not meet the stated qualifications requirements. The provision should also include requirements that bidders demonstrate they are regularly engaged in the manufacture, construction, or provision of the work or product called for in the contract and that they have the necessary resources, facilities and personnel to perform the contract. Additionally, bidders must attest that they have previously and satisfactorily performed work with characteristics comparable to those specified in the contract. Finally, bidders may be required to furnish adequate references.
59 of 136
33 Procurement Manual Revised October 2018
The “Bidder’s Statement of Qualifications and Business References” may be included in the Solicitation Documents to be completed by bidders.
5.4.5 Bid Documents.
5.4.5.1 Bid Form. The Bid Form calls for the bidder to submit price information regarding the products or services solicited. In developing the Bid Form, separate cost quotations shall be included for all relevant aspects of the procurement, including, where applicable, unit price, extended price, cost of delivery, and sales or use taxes. In all cases, the Bid Form shall be structured so as to insure the ability of SJRRC to make an objective comparison of the bids. Whenever possible, this will be accomplished by structuring the Bid Form so as to request a Grand Total Bid Price.
5.4.5.2 Sample Agreement. A Sample Agreement shall be included in
Solicitation Documents for all formally advertised procurements.
5.4.5.3 Sample Contract Bonds. When required by the Special Provisions, the Solicitation Documents shall include a sample Bidder’s Bond, sample Performance Bond, and sample Payment Bond. The precise terms of the Performance Bond will vary depending upon whether the Performance Bond will remain in effect through a warranty period and, if so, upon the length of such period. The sample Bond Forms shall be provided by SJRRC’s Legal Counsel, if needed.
5.4.5.4 Other Bid Documents. Additional Bid Documents will vary
depending upon the nature of the particular procurement and whether federal funding is involved. Such forms may include, but are not limited to,
5.4.5.4.1 A Non-Collusion Affidavit,
5.4.5.4.2 Buy America Certificate,
5.4.5.4.3 Bidder’s Certification Regarding Debarment and
Suspension,
5.4.5.4.4 Bidder DBE Report and other legally required certification forms.
(See Chapter 10 for additional certifications requirements for Federally Funded Contracts)
60 of 136
34 Procurement Manual Revised October 2018
SECTION 5.5 Contract Documents for Construction Projects. The basic components detailed in the above section shall be followed for construction projects; however, SJRRC may develop a standard format of Contract Documents for construction projects based upon the applicable specifications for the type or class of construction and applicable state or federal requirements, depending on the funding source.
5.5.1 General Conditions. SJRRC shall select the specifications format most
appropriate for the particular contract for construction, repair, improvement, or renovation. All SJRRC construction contract General Conditions shall contain the contract payment provisions as required by California law, which are described in Section 11.11 below.
5.5.2 Special Provisions. The Special Provisions modify identified sections of the
Standard Specifications or SJRRC’s General Conditions. Other terms unique to construction work that may be included in the Special Provisions are described below.
5.5.2.1 EEO goals. Bidders must provide their EEO goals, if applicable.
SJRRC will review for compliance with the SJRRC EEO Program as needed.
5.5.2.2 Davis Bacon and Related Acts applies to contractors and subcontractors performing on federally funded or assisted contracts.
5.5.2.3 Use of Alternates in Public Works Contracts. The term “Alternate”
means the use of additive or deductive items. In these circumstances, a base bid covers most of the project; bidders are then required to separately price potential additive or deductive items (the Alternates). Pursuant to P.C.C. Section 20103.8, when a local agency includes additive or deductive Alternates in the bid, it must specify and use one of the following methods to determine the lowest bid:
5.5.2.3.1 The lowest bid shall be the lowest bid price on the base
contract, with no consideration of the Alternates;
5.5.2.3.2 The lowest bid shall be the lowest total of the base contract and those Alternates specifically identified in the Contract Documents as being used for the purpose of determining the lowest bid;
5.5.2.3.3 The lowest bid shall be the lowest total of the base contract
and those Alternates taken in order from a list specifically identified in the Contract Documents, depending upon available funds;
61 of 136
35 Procurement Manual Revised October 2018
5.5.2.3.4 The lowest bid shall be determined in a manner that prevents information on the identity of any of the bidders from being revealed prior to the ranking of all bidders from highest to lowest.
5.5.2.4 Additions and Deletions. SJRRC is not prohibited from adding to
or deducting from the contract after the lowest responsible bidder has been determined.
5.5.2.5 Prequalification of Bidders. P.C.C... Section 20101 authorizes public agencies to establish a process for pre-qualifying prospective bidders for a period of one year or for a particular project. Bidders may be required to submit a standardized questionnaire and financial statement, verified under oath. (The California Department of Industrial Relations has issued model forms for this purpose which may be used.) Such statements are not public records and shall not be open for public inspection. If used, SJRRC shall adopt and apply a uniform system of rating based on objective criteria. Prospective bidders may dispute their rating prior to the closing time for receipt of bids, following the Bid Protest Procedure set forth in Chapter 9 of this Manual. Upon request, SJRRC shall notify the prospective bidder in writing of the basis for disqualification and the supporting evidence used. The prospective bidder shall have the opportunity to rebut the evidence used and to present evidence to support why the prospective bidder should be found qualified. If the prospective bidder does not utilize the bid protest procedure, the proposed prequalification rating may be adopted without further proceedings.
5.5.2.6 Bidder’s Security. All bids for construction work require bidder’s
security. (P.C.C. Section 20251.5.) Typically, it should be 5% of the total bid. A bidder’s bond executed by an admitted surety insurer in California, cashier’s check, or certified check may be used. The security shall be held for no longer than 60 days from the time of contract award.
5.5.2.7 Performance Bonds. All construction contracts in excess of
$100,000 shall require a 100% performance bond and shall remain in effect through final acceptance with an adjusted balance not less than 10% to remain in effect through the guaranty period, if any.
5.5.2.8 Payment Bonds. In all construction contracts involving an
expenditure in excess of $25,000, a payment bond shall be required. The amount of the bond shall be 100% of the contract price. (Civil Code Sections 9550-9566). The payment bond assures the Contractor’s full discharge of its obligations to subcontractors, suppliers, materialmen, and other labor used on the project.
62 of 136
36 Procurement Manual Revised October 2018
5.5.2.9 Insurance. All construction contracts shall specify, at a minimum, workers’ compensation, employer’s liability, automobile liability and comprehensive general liability insurance. General liability insurance and employer’s liability insurance determined on a case-by-case basis are generally required for construction contracts. Additional coverages and the limits of such coverage shall be developed on a case-by-case basis with the advice of SJRRC insurance broker, and Legal Counsel, if needed.
5.5.2.10 Other Components. Other components to be incorporated in
Contract Documents for Construction projects, which components have not been addressed in connection with procurement contracts discussed above, include:
5.5.2.10.1 Location Map and plans, if required; and
5.5.2.10.2 List of Subcontractors, Bidder DBE Report, Sample DBE
Affidavit, and Non-Collusion Affidavit. Bid Documents shall include Schedule of Prices, Signature Sheet, and Acknowledgement of Insurance Requirements.
5.5.2.11 Special Rules. Chapter 10, Special Rules for Federally Assisted
Contracts, should also be consulted regarding additional requirements for construction projects funded with federal assistance.
SECTION 5.6 Consideration of Disadvantaged Business Enterprise Participation.
5.6.1. Policy Statement: It is the policy of SJRRC to encourage the participation
of Disadvantaged Business Enterprises (DBE) as determined by funding source by utilizing a DBE Program in accordance with Title 49 CFR, Part 26 “Participation by Disadvantaged Business Enterprises in Department of Transportation Financial Assistance Programs”. SJRRC has adopted rules to provide certified DBE”s opportunities to participate in the business activities as service providers, vendors, contractors, subcontractors, advisors, and consultants. The DBELO is responsible for developing, implementing, and monitoring the requirements of the DBE Program.
5.6.2. SJRRC, its contractors and subcontractors, who are the recipients of Federal funds, agree to ensure:
5.6.2.1 Nondiscrimination in the award and administration of DOT assisted contracts;
5.6.2.2 To create a level playing field on which DBEs can compete fairly for
DOT assisted contracts;
63 of 136
37 Procurement Manual Revised October 2018
5.6.2.3 To ensure that the DBE Program is narrowly tailored in accordance
with applicable law;
5.6.2.4 To ensure that only firms that fully meet 49 CFR Part 26 eligibility standards are permitted to participate as DBEs;
5.6.2.5 To help remove barriers to the participation of DBEs in DOT
assisted contracts;
5.6.2.6 To assist the development of firms that can compete successful in the market place outside the DBE Program.
SJRRC shall further ensure that implementation of its DBE Program is afforded the same priority as compliance with all other legal obligations incurred by SJRRC in its financial assistance with the US DOT. SECTION 5.7 Pre-advertising Review of Solicitation Documents.
5.7.1 Distribution of Solicitation Documents. When the final draft of the Solicitation
Documents is completed, copies shall be sent to the following individuals for in-house review:
5.7.1.1 Contracts and Compliance Department
5.7.1.2 Project Manager
5.7.1.3 DBELO or DBE Manager
5.7.1.4 Legal Counsel, as determined by the Executive Management 5.7.1.5 Executive Director or designee
5.7.2 Date for Submission of Comments. The Contracts and Compliance
Department shall prepare a Procurement Schedule pursuant to Section 5.3, above. The schedule shall permit a sufficient time period, depending on the nature and complexity of the project, for review of the Solicitation Documents by the individuals listed above.
64 of 136
38 Procurement Manual Revised October 2018
5.7.3 Required Approvals. The approval of the Solicitation Documents by a Director and the Executive Director or designees are required prior to advertising. Legal Counsel’s approval shall be obtained as determined by the Executive Management. SECTION 5.8 Advertisement of Bid.
5.8.1 Notice to Executive Director of SJRRC. Prior to advertising, the Contracts
and Compliance Department will submit the Notice Inviting Bids to SJRRC’s Executive Director or designee accompanied by a schedule setting forth the recommended publication dates in which the Notice will be published. The Executive Director or designee will approve the schedule and the Contracts and Compliance Department shall be responsible for the actual publication of the Notice.
5.8.2 Publishing Procedures.
5.8.2.1 Contracts for the Procurements of Supplies, Materials, Equipment, Construction and Services. The Notice Inviting Bids shall be published at least 10 days before the date of receiving bids. The Notice shall be published in accordance with Section 3.1.4 above.
5.8.2.2 Direct Notice to Potential Bidders. To facilitate maximum
participation, the Contracts and Compliance Department shall send the Notice Inviting Bids directly to potential bidders identified by bidder’s lists. Alternatively, a letter of interest may be sent to potential bidders informing them of the project and requesting a response if interested.
5.8.2.3 Notice to Potential DBE Bidders. In addition to the advertisements
set forth above, SJRRC should cause the Notice Inviting Bids to be published in appropriate publications, newspapers, and newsletters which have wide dissemination among minority groups and women. The department initiating the purchase should coordinate with the DBELO or DBE Manager to distribute copies of the Notice to DBEs and DBE resource firms. When appropriate, the department initiating the purchase should send Solicitation Documents to DBE Contractor associations, technical assistance agencies, economic development groups and DBEs with capabilities relevant to the procurement. The names of such DBEs may be obtained from the DBE directory and resource lists as developed and maintained by SJRRC’s DBELO or DBE Manager. SECTION 5.9 Changes and Revisions: Preparation of Addenda. Once the Notice Inviting Bids has been published, all changes necessary to correct errors in the Solicitation Documents, to revise requirements contained in such documents, or to extend
65 of 136
39 Procurement Manual Revised October 2018
time requirements for the benefit of SJRRC or the bidders shall be accomplished through the issuance of an Addendum. The Addendum shall contain the following information:
5.9.1 Contract number and title; 5.9.2 Date of issuance of Addendum; 5.9.3 Addendum number; 5.9.4 Specific reference to the provision of the Solicitation Documents that is being
amended, deleted, or supplemented by the Addendum; 5.9.5 Substance of the change or addition; and 5.9.6 Appropriate replacement language of the Bid Documents clearly detailing
the change or addition. 5.9.7 A copy of the amended form shall be attached to the addendum. The
Executive Director or designee shall sign the Addendum. The Contracts and Compliance Department shall issue the Addendum to all firms or persons who have received a copy of the Solicitation Documents. SECTION 5.10 Receipt & Bid Opening.
5.10.1 Contracts and Compliance Department. The Contracts and Compliance Department shall preside at all bid openings and shall adhere to the following procedures when the date and time for opening bids has arrived:
5.10.1.1 Sealed Envelope. The sealed envelope containing the bid shall
be date stamped and marked with the date and time received.
5.10.1.2 Open and Read. The Contracts and Compliance Department, or designee, shall open and read all bids aloud. Bids which are received after the time specified in the Notice Inviting Bids will not be accepted and will be returned unopened to, the respective bidders.
5.10.1.3 Statement Listing Details. A statement listing each bid received
and if opened the total amount of the bid shall be recorded, dated and signed by the person(s) opening the bids.
66 of 136
40 Procurement Manual Revised October 2018
5.10.1.4 No Change. No bidder shall be permitted to change its bid or any other bid after the bids are opened.
5.10.1.5 Apparent Low Bidder. The apparent low bidder shall be
announced.
5.10.1.6 No Copies. No bidder shall be permitted to make copies of any of the bids but bidders are allowed to look at the other bids.
5.10.2 Two SJRRC representatives shall attend each formal bid opening. The
results of the bid shall be documented in a bid abstract on a form approved by the Contracts and Compliance Department. SECTION 5.11 Relief of Bidders.
5.11.1 Pursuant to P.C.C. Section 5101, unless by consent of SJRRC, a bidder
shall not be relieved of its bid nor shall any change be made to a bid because of a claimed mistake in the bid. If a bidder claims a mistake in its bid, SJRRC shall apply the standards below when considering whether or not to exercise its discretion to grant relief to the bidder. Relief shall only be granted when in the best interest of SJRRC.
5.11.2 Must Establish. The bidder must establish that:
5.11.2.1 A mistake was made;
5.11.2.2 The bidder gave SJRRC written notice within 5 days after the opening of the bids of the mistake, specifying in the notice in detail how the mistake occurred;
5.11.2.3 The mistake made the bid materially different than the bidder intended it to be; and
5.11.2.4 The mistake was made in filling out the bid and not due to error in
judgment or to carelessness in inspecting the site of the work, or in reading the bid documents. (P.C.C. Section 5103) SECTION 5.12 Evaluation of Bids. SJRRC shall award all contracts to the lowest responsive responsible bidder whose bid conforms to the requirements of the Solicitation Documents. The Contracts and Compliance Department shall be principally responsible for the evaluation of bids to determine which bidder is the lowest responsible and
67 of 136
41 Procurement Manual Revised October 2018
responsive bidder. The department initiating the purchase shall be responsible for evaluating the technical responsiveness of the bids. If only one bid is received or potential bidders decline to bid, the Contracts and Compliance Department shall contact the potential bidders that declined to bid to determine why they declined to bid. This is to eliminate the possibility of a restrictive specification or restrictive bidding procedures.
5.12.1 Responsiveness. The bids shall be examined by the Contracts and
Compliance Department to determine if they are responsive to the contractual and technical requirements. The DBELO or DBE Manager shall review the bid documents for compliance with any DBE participation requirements, if applicable. If it is determined that the low bidder has not complied with the DBE policy, the bidder has a right to appear before the DBE Review Committee for a hearing prior to the time that a recommendation for contract award is presented to the Executive Director or designee.
5.12.2 Meets Requirements. The Contracts and Compliance Department shall
review the bid documents to ensure that the bidder has made no unauthorized deletions, amendments, or changes to the Solicitation Documents, verify that required bid forms and certificates have been completed, and confirm that all signatures are in place and appear in order.
5.12.3 Responsible Bidder. SJRRC shall then determine if the bidder is
“responsible,” i.e., whether the bidder has demonstrated the attribute of trust worthiness, as well as quality, fitness, capacity, and experience to satisfactorily perform the contract. (See P.C.C. Section 1103.) The determination is made on the basis of bidder’s past experience and history of service to SJRRC, if any; the bidder’s responses to those proposal documents requiring a listing of experience, qualifications, and references, if required; and the expertise, dependability and financial stability of the bidder as revealed to SJRRC from any other legal source. In evaluating this questionnaire and in checking references listed therein, the department initiating the purchase shall determine whether the bidder meets the minimum standards set forth in the Solicitation Documents and shall not assess the bids based on additional information provided beyond the minimum requirements.
5.12.4 Lowest Bid. The bids shall first be examined to determine which bid is the lowest. The following rules shall apply:
5.12.4.1 Formula. The formula for determining the basis for evaluating
bids, as described in the Solicitation Documents, shall be utilized. Except for Construction contracts subject to P.C.C. 20103.8 (see Section 5.5.2.3), normally the comparison shall include any pricing given for options;
68 of 136
42 Procurement Manual Revised October 2018
5.12.4.2 Unit Price. The correct calculation of the specified unit price times
the stated estimated quantity governs whenever both unit price and extended price(s) or total(s) are given;
5.12.4.3 Extensions and Totals. All bids showing item extensions and/or
totals shall be reviewed for accuracy. Any errors shall be noted and shall be called to the attention of the Contracts and Compliance Department and, if necessary, SJRRC’s Legal Counsel;
5.12.4.4 Same FOB Point. The Contracts and Compliance Department
when initiating the purchase must insure that all bids show the same Freight On Board (FOB) point;
5.12.4.5 Terms of Payment. The Contracts and Compliance Department
shall carefully review the terms of payment for the effect of those terms upon the bid price. 5.12.5 Tied Bids. If two bids are identical and are also the lowest responsible
bids, any one of the following methods may be used in determining the bidder to whom the contract shall be awarded:
5.12.5.1 Better Cash Terms. In a case where terms proposed by the tied
bidders differ, the bidder offering better cash terms may be selected.
5.12.5.2 More Favorable Delivery. In a case where tied bidders propose different delivery schedules, the bidder proposing the more favorable delivery terms, i.e., shorter delivery period, may be selected.
5.12.5.3 Specified Item. Where there is any doubt as to the quality or
equality of materials or equipment proposed by tied bidders, the bidder proposing the item specified in the Solicitation Documents, as opposed to a bidder specifying an alternative brand, may be considered the lowest responsible bidder.
5.12.5.4 Tied Bids. If none of the foregoing methods is appropriate to the
particular procurement or results in breaking the tie, tied bidders shall toss a coin to determine the successful bidder.
5.12.6 Cost or Price Analysis. In the event that only one bid is received, a cost or
price analysis shall be performed to verify that the price is fair and reasonable. See Sections 6.9 and 6.10.
69 of 136
43 Procurement Manual Revised October 2018
5.12.7 Recommendation for Contract Award. On the basis of the foregoing
evaluation method, the Contracts and Compliance Department shall make a recommendation to the Executive Director or designee as to which bidder has been deemed the lowest responsible bidder within the time period specified in the Solicitation Documents for reporting the bid results. The report containing the recommendation to the Board or Executive Director or designee should set forth the bases for the recommendation.
5.12.7.1 Contracts valued up to and including the Executive Director’s
Threshold. If the Contract is valued up to and including the Executive Director’s threshold, excluding options, upon conclusion of the bid evaluation by the Contracts and Compliance Department shall send written recommendation for award to the Executive Director or designee for their review and concurrence. If the Executive Director or designee approves the recommendation, the Contracts and Compliance Department shall send a notice to all bidders advising of the recommendation for contract award. To permit timely application under SJRRC’s Bid Protest Procedures, the Contracts and Compliance Department shall wait a minimum of ten (10) days from the date notice is sent to all bidders advising of recommendation for contract award before forwarding the Contract Documents to the successful bidder for execution.
5.12.7.2 Contracts valued over the Executive Director’s Threshold. If the
contract award is to be recommended to the Board, upon conclusion of the bid evaluation by SJRRC representatives, the Contracts and Compliance Department shall send a notice to all bidders advising of the Procurement recommendation for contract award and of the date and time of the Board meeting at which the recommendation will be considered. Such notice shall be sent at least ten (10) days prior to such meeting.
5.12.7.3 Rejection of Bids. Any determination to reject a lowest bid on the
basis that the bidder is not responsible or that the bid is not responsive must be recommended by the Contracts and Compliance Department and approved by Legal Counsel as needed. The Contracts and Compliance Department will be responsible for drafting a report to the Executive Director or designee. The report shall specify the reasons for rejection of the bid. The Contracts and Compliance Department shall notify all bidders of the recommendation.
70 of 136
44 Procurement Manual Revised October 2018
SECTION 5.13 Award of Contract.
5.13.1 Must Be Responsible Bidder. Prior to recommending a contract for award the Contracts and Compliance Department shall ensure the proposed bidder is a “responsible” bidder in accordance with the provisions of 49 U.S.C. Section 5325.
5.13.1.1 Lowest Responsive and Responsible Bidder. The Board or Executive Director shall award the contract to the bidder determined to be the lowest responsive and responsible bidder within the time period specified in the Solicitation Documents.
5.13.1.2 Award and Notice. Upon award, the Contracts and Compliance Department shall notify the successful bidder in writing of the contract award and shall issue the purchase order and forward the Agreement and any and all requisite bond forms to the bidder for execution. The successful bidder must execute the Documents within the time specified in the Solicitation Documents.
5.13.1.3 Executed Documents. Upon return of the executed documents, the Contracts and Compliance Department shall forward copies thereof to SJRRC’s Legal Counsel for review, if needed. Completed Certificates of Insurance shall be sent to SJRRC’s Insurance Broker, if needed, for determination as to whether all applicable insurance requirements have been satisfied. All competitively bid contracts may be approved as to form by SJRRC’s Legal Counsel, if needed as determined by Executive Management. Competitively bid contracts valued up to and including the Executive Director’s threshold shall be signed by the Executive Director. Competitively bid contracts valued over the Executive Director’s threshold shall be awarded by resolution of the Board and signed by the Executive Director.
5.13.1.4 Notice to Proceed. The Contracts and Compliance Department may then issue the Notice to Proceed to the Contractor. SECTION 5.14 Rejection of All Bids. For any contracts for which competitive bids have been received, SJRRC’s Executive Director and/or Board has the discretionary right to reject all bids. The department initiating the purchase may decide to recommend this course of action to the Board in instances where:
5.14.1 Bids Too High. The bids received were too high and the funds available in the budget are insufficient to cover the amount of the contract if it were awarded to the lowest responsible bidder;
71 of 136
45 Procurement Manual Revised October 2018
5.14.2 Not Responsive. None of the bids were deemed responsive to the requirements of the Solicitation Documents;
5.14.3 Not Responsible. None of the bidders were deemed sufficiently responsible to perform the contract in a satisfactory manner; or
5.14.4 Best Interests. The Contracts and Compliance Department otherwise determines, in furtherance of the best interests of SJRRC, that it would be imprudent to proceed with the contract award.
5.14.5 Executive Director. The Executive Director is authorized to reject bids for contracts that do not exceed the Executive Director threshold in accordance with these criteria.
5.14.6 Board Approval. The Board is authorized to reject bids for contracts over
the Executive Director threshold in accordance with these criteria
72 of 136
46 Procurement Manual Revised October 2018
CHAPTER 6. COMPETITIVE NEGOTIATIONS (RFPS)
SECTION 6.1 Services. All services may be procured without formal competitive bidding. Instead, competitive negotiation procedures may be used, whereby a Request for Proposal (“RFP”) is issued, and proposals are evaluated based upon qualitative factors in addition to price. SECTION 6.2 When Competitive Negotiations May Be Used.
6.2.1 Services. The competitive negotiation method bases the selection on qualitative criteria, in addition to price, and permits SJRRC to negotiate the terms of the contract with the selected contractor. SJRRC’s RFP procedure consists of acquisition planning, solicitation of proposals, evaluation of proposals, negotiation with prospective bidders, award of contract, and contract administration. This process may be used to retain specially trained persons or firms to provide services in connection with financial, economic, accounting, engineering, administrative, or other matters involving specialized expertise or unique skills.
6.2.2 Architectural and Engineering Services. There are special rules for
architectural/engineering services; these services can only be procured on the basis of qualifications, not cost, as further discussed in Section 6.16 below.
SECTION 6.3 Initiation of the Process.
6.3.1 Requisition. To initiate the competitive negotiation process, the department initiating the purchase shall proceed in accordance with the Procurement Approval Process (Appendix H). The Contracts and Compliance Department shall prepare a Request for Proposals Procurement Schedule. A Solicitation Number shall be issued. The Solicitation Number shall be placed on the title page of all RFP Documents, whether in draft stage or in final form.
6.3.2 Must Be Within Budget. If the proposed procurement is not within the approved budget, the Executive Director must first obtain the SJRRC’s Board approval for a budget amendment.
6.3.3 Availability of Funds. The initiating department must confirm with the Planning and Programming Department and the Fiscal Department that the funding
73 of 136
47 Procurement Manual Revised October 2018
source is allocated and available prior to solicitation. An award letter or similar documentation may be provided by the funding source for the funding amount, project and instructions for the remit process. SECTION 6.4 Request for Statement of Qualifications.
6.4.1 Request. The Contracts and Compliance Department in coordination with the Project Manager shall prepare and send to potential proposers a Request for a Statement of Qualifications. The names of such persons or firms may be obtained from the telephone directory, DBE directories, and trade journals. The proposers’ list shall be developed with consideration of SJRRC’s DBE program.
6.4.2 Scope. The Request for Statement of Qualifications shall contain a generalized statement of the Scope of Work which will be required of the proposer and shall request that the person or firm submit, if interested, a Statement of Qualifications evidencing specific expertise in the area. The Request shall establish a date on which Statements of Qualifications shall be submitted to SJRRC.
6.4.3 Not Required to Issue RFQ. SJRRC is not required to issue a Request For Statement of Qualifications (RFQ) before issuing a Request for Proposals if it finds it unnecessary to pre-screen proposers (for example, when the services that are sought can be performed by general practitioners in the profession without specialized training). SECTION 6.5 Request for Proposals.
6.5.1 Criteria. The department initiating the purchase with coordination of the Project Manager and the Contracts and Compliance Department shall prepare the scope of work required, the experience and qualifications required, project deliverables, proposal schedule, the time in which the project must be completed, and evaluation criteria specifically tailored to the project. Such criteria shall include, but not be limited to, the proposer’s proven experience and competence, understanding of the scope of work, financial ability and resources to perform the work, willingness to cooperate with SJRRC, and proposed method for assuring timely and acceptable performance and management of the work. The RFP shall identify all significant evaluation criteria, including price or cost where required, and their relative importance. If upon the request of the Project Manager and with concurrence from the Contracts and Compliance Department and Executive Management, the budget is provided in the RFP, cost effectiveness must be an evaluation criteria.
74 of 136
48 Procurement Manual Revised October 2018
6.5.2 Insurance Requirements. The Contracts and Compliance Department may consult with SJRRC’s insurance broker regarding insurance requirements based on the scope of work. The sample Agreement included in the RFP will be updated if the recommended insurance requirements differ than the standard SJRRC insurance requirements.
6.5.3 Agreement. The Contracts and Compliance Department shall coordinate
with the Project Manager on the development of the Request for Proposals and its issuance. A sample agreement containing all material terms and conditions of the engagement shall be attached to the RFP. The draft RFP shall be submitted to Legal Counsel for review and approval, if needed.
6.5.4 Pre-Proposal Conference. Where feasible, a Pre-Proposal Conference shall be held. The Conference shall be chaired by the Contracts and Compliance Department, who will cover basic requirements for the contract, contract type, evaluation criteria, and specific points to be addressed in the Proposals. Pre-Proposal Conferences shall not be mandatory.
6.5.5 Publicized. RFPs should be publicized in accordance with Section 3.1.4 above. SECTION 6.6 Consideration of Disadvantaged Business Enterprise Participation. The measures for the SJRRC DBE Program are described in Section 5.6 above and shall be used for competitive negotiations. SECTION 6.7 Changes to RFP: Preparation of Addenda. The Contracts and Compliance Department shall prepare any addenda to the RFP to document changes and revisions to the RFP, in compliance with Section 5.9 above. Addenda shall be issued by the Contracts and Compliance Department. SECTION 6.8 Review of Proposals.
6.8.1 Responsiveness. The Contracts and Compliance Department shall review
to ensure that the proposer has met the responsiveness and meets the requirements as outlined in Sections 5.12.1 and 5.12.2.
6.8.2 Responsibility. SJRRC will determine responsibility based on but not limited
to proposer integrity, compliance with public policy, record of past performance, and financial and technical resources. The department initiating the purchase shall determine whether the proposer meets the standards set forth in the Solicitation Documents.
75 of 136
49 Procurement Manual Revised October 2018
6.8.3 Evaluation Panel. Proposals shall be submitted to the Contracts and
Compliance Department for distribution to SJRRC evaluation panel. The evaluation panel shall comprise of SJRRC representatives and representatives from partner agencies at the discretion of the Executive Director who are appropriate to evaluate the proposals. Individuals with the appropriate technical expertise shall be included in the review process, as necessary. No member of the evaluation panel shall have a conflict of interest with any firms under consideration.
6.8.4 Conformity to Specifications. The review process shall begin with the verification that the Proposals received are in conformity with the proposal specifications. The review shall adhere strictly to the evaluation criteria set out in the RFP and discussed at the Pre-Proposal Conference;
6.8.5 Interview List. The conclusions of the evaluation panel shall be summarized in writing and those firms or persons judged by the evaluation panel to be the most qualified to perform the work required under the contract may be placed upon an “interview list.” Those on the interview list shall be requested to present a detailed scope of work and to make a formal presentation of their Proposals to the evaluation panel. Proposers shall be rated, in order of importance, by the evaluation factors identified in the RFP.
6.8.6 Review. The evaluation panel shall make a final ranking of the Proposers.
Where appropriate, a presentation will be made to the Board as to the status of the review process. Awards will be made only to responsible offerors who possess the necessary skills, integrity, and have available resources necessary to perform the contract terms and conditions successfully. SECTION 6.9 Price Analysis.
6.9.1 Price Analysis. When competitive price quotations are sought, the Contracts and Compliance Department shall conduct a price analysis to determine whether the compensation terms of the proposals offered by the Proposers under consideration are fair and reasonable for the anticipated work or services. A price analysis may be conducted on the basis of any of the following methods:
6.9.1.1 Competitive Price Quotations. A comparison of competitive price
quotations submitted to SJRRC;
76 of 136
50 Procurement Manual Revised October 2018
6.9.1.2 Comparison. A comparison of prior quotations and contract prices with current quotations for the same or similar services and/or products purchased by SJRRC. Comparison with recent and comparable purchases from other agencies can be used.
6.9.1.3 Yardsticks. The use of rough yardsticks, such as hourly rates for
similar services and market unit costs for specified materials, as a basis of comparison to point up apparent gross inconsistencies;
6.9.1.4 Published Prices. A comparison of prices or published price lists
issued on a competitive basis, and published market prices of commodities or services, together with discount or rebate schedules;
6.9.1.5 Independent Cost Estimate. A comparison of proposed prices with
Independent Cost Estimate developed by the department. 6.9.1.6 Professional Experience. The use of professional experience by a
SJRRC representative or representative from partner agencies, at the discretion of the Executive Director.
6.9.1.7 Regulated Rate. Utilities, City/County/State regulated fees and
permits.
6.9.2 Analysis. In the event that SJRRC receives only one proposal in response to the RFP, the responses reveal a lack of adequate competition, or the RFP required the proposer to outline the elements of the estimated costs for the work, the Contracts and Compliance Department shall conduct a cost or price analysis to determine whether the compensation proposals are fair and reasonable. (See Section 6.10, below regarding cost analysis discussion.) SECTION 6.10 Cost Analysis.
6.10.1.1 A cost analysis is a detailed evaluation of the cost elements that comprise the proposed price to determine whether the Contractor is applying sound management and appropriate resources to the procurement and whether the costs are proper, allowable and allocable.
6.10.1.2 Method of Analysis. A cost analysis involves the following steps: the verification of cost data; the evaluation of specific cost elements including labor hours, quantities, tooling, testing; and the projection of the cost data to determine its effect on prices.
77 of 136
51 Procurement Manual Revised October 2018
SECTION 6.11 Debarment and Suspension.
6.11.1 A review of the System for Award Management (SAM) is required for all purchases over $25,000.
6.11.2 The review includes contractor, subcontractor, principals, and affiliates.
6.11.3 SJRRC may also treat any prospective contractor or subcontractor listed
on a centralized State government debarment and suspension list as nonresponsible and ineligible for contract award.
SECTION 6.12 Negotiations. The Contracts and Compliance Department may accept the proposal from the person or firm ranked first without negotiation, or may negotiate with the first ranked firm or representative in order to establish a precise scope of work, the time and schedule for completion of the work, the cost of services, and the method and manner of payment. In the event negotiations with the first ranked proposer are unsuccessful, the Contracts and Compliance Department may terminate negotiations with that proposer and commence negotiations with the next ranked proposer and so on, until a successful negotiation is achieved. See Chapter 10 for federally funded guidelines which may have different rules for Negotiations. SECTION 6.13 Recommendation for Contract Award. On the basis of the foregoing evaluation method, the Contracts and Compliance Department shall make a recommendation to the Executive Director.
6.13.1 Contracts valued up to and including the Executive Director’s Threshold. If
the Executive Director approves recommendation, the Contracts and Compliance Department shall send a notice to all proposers advising of the evaluation panel’s recommendation for contract award. To permit timely application under SJRRC’s Bid Protest Procedures, the Contracts and Compliance Department shall wait a minimum of ten (10) days from the date notice is sent to all proposers advising of recommendation for contract award before forwarding the Agreement to the successful proposer for execution.
6.13.2 Contracts valued over the Executive Director’s threshold. The Contracts
and Compliance Department shall send a notice to all proposers advising of the recommendation for contract award and of the date and time of the Board meeting at which the recommendation will be considered. Such notice shall be sent at least ten (10) days prior to such meeting.
78 of 136
52 Procurement Manual Revised October 2018
SECTION 6.14 Award of Contract.
6.14.1 Authorization. The Executive Director shall have the authority to award professional service contracts up to and including the Executive Director purchasing authority as set forth in the bylaws. For services contracts in excess of the Executive Director purchasing authority, the Board shall authorize the award of the contract.
6.14.2 Execution. Following award of the contract, the Contracts and Compliance
Department, in conjunction with the department initiating the purchase, shall prepare the Agreement to be executed by SJRRC and the Proposer. The Contracts and Compliance Department shall notify the successful Proposer, advising of award of contract. The Proposer shall be given a reasonable time period, normally not to exceed two weeks, for submission of the required bonds, guarantees, and certification of insurance coverage. All professional services contracts shall be approved as to form by SJRRC’s Legal Counsel, if needed. Contracts valued up to and including the Executive Director’s purchasing authority, excluding options, shall be signed by the Executive Director. Contracts valued at over the Executive Director’s purchasing authority shall be approved and authorized by the Board and then signed by the Executive Director. SECTION 6.15 Notice to Proceed. Insurance certificates shall be reproduced and forwarded to SJRRC’s insurance broker and Legal Counsel for review and approval, if needed as determined by the Executive Management. Upon satisfactory receipt of the Proposer’s evidence of insurance and an executed Agreement, the Contracts and Compliance Department shall issue a Notice to Proceed to the Proposer.
SECTION 6.16 Architectural/Engineering Services.
6.16.1 Architectural and Engineering Services. Architectural/engineering (“A&E”) services are defined as services of an architectural or engineering nature associated with research, development, design, construction, alteration or repair of real property that are required to be performed by a registered or licensed architect or engineer, and such other professional services which uniquely or to a substantial extent require performance by architectural, landscape architectural, engineering, environmental, land surveying, or construction project management firms. Examples of such services include program or project management, construction management, feasibility studies, environmental studies, preliminary engineering, design, survey and mapping.
6.16.2 Local Assistance Procedures Manual (“LAPM”): A&E contracts shall be
initiated and awarded using the guidance of the LAPM, in the absence of specific funding guidelines.
79 of 136
53 Procurement Manual Revised October 2018
6.16.3 Requirements. SJRRC will announce all requirements for
architectural/engineering services and negotiate contracts for these services based on the demonstrated competence and qualifications of prospective proposers to perform the services required at fair and reasonable prices. (See California Government Code 4526, et seq.) Selections for architectural or engineering services shall not use price as a factor in determining the best qualified proposer in conformance with California statutes, federal regulations, and FTA procurement guidelines. These guidelines state, in general, that relative to conducting a procurement for architectural/engineering type services:
6.16.3.1 Qualifications. The proposer’s qualifications will be evaluated;
6.16.3.2 Price Not Considered. Price will be excluded as an evaluation
factor;
6.16.3.3 Price Negotiations. Negotiations on price will be conducted with only the most qualified proposers. If price is negotiated, profit may need to be negotiated.
6.16.3.4 Failure to Agree on Price. Failing to reach agreement on price,
negotiations with the next most qualified proposer will be conducted until a contract award can be made to the most qualified proposer whose price is fair and reasonable.
6.16.4 Redesign. Where practical, Architectural, Engineering and other Consulting contracts involving design of facilities shall contain provisions for redesign, at no cost to SJRRC, where final estimates or bids are 10% more than the initial agreed-upon construction cost. SECTION 6.17 Competitive Negotiations for Technology Equipment and Rolling Stock. Pursuant to P.C.C. Sections 20216 and 20217, SJRRC may purchase the following goods, vehicles and equipment through competitive negotiations in lieu of formal competitive bidding: (1) computers; (2) telecommunications equipment; (3) fare collection equipment; (4) radio and microwave equipment; (5) other related electronic equipment and apparatus used in transit operations; (6) specialized rail transit equipment, including railcars; (7) buses; and (8) passenger ferries. A competitive negotiation permits the consideration of price, technical experience, past performance, management, or other factors in selecting the most cost-effective proposal. The process includes negotiations with proposers during which performance, technical standards, or other criteria may be revised to secure proposals most advantageous to SJRRC. The following rules and procedures must be complied with:
80 of 136
54 Procurement Manual Revised October 2018
6.17.1 Finding by the Board. Prior to using the competitive negotiation process, the Board must adopt a finding by at least a two-thirds vote that other procurement methods are not adequate to meet SJRRC’s needs.
6.17.2 Conflict of Interest. No person who participates in the evaluation of the
proposals may have a financial interest in the outcome of the evaluation nor may have received a gift in excess of the state or federal limits, whichever is less, during the previous 12 months from any proposer. No member of the Board or any other person responsible for awarding the contract shall have any ex parte communications with any proposer, except communications that are in writing, made public and available to all interested parties.
6.17.3 Advertisement-Single Proposer. Advertisement requirements can be
found in Section 3.1.4 above. SJRRC must make reasonable efforts to generate the maximum feasible number of proposals from qualified sources. If only a single proposal is received, SJRRC must make a finding that it made reasonable efforts to generate the maximum feasible number of proposals from qualified sources before proceeding to negotiate with the sole proposer.
6.17.4 Contents of the Request for Proposal. The Request for Proposals shall
identify all significant evaluation factors, including price, and their relative importance. 6.17.5 Price Analysis. Prior to making an award, the Contracts and Compliance
Department shall prepare a price analysis and must make a finding that the final negotiated price is fair and reasonable based on comparable procurement in the marketplace.
6.17.6 Award. Award of the contract must be made to the proposer whose
proposal will be the most advantageous to SJRRC. If award is not made to the lowest priced proposer, the evaluation team shall make a finding setting forth the basis for the award.
6.17.7 Any protest made in connection with a procurement made pursuant to this Section shall comport with the requirements of Public Contract Code Section 20217.
SECTION 6.18 Design-Build Contracts. For applicable projects and when available to SJRRC, “Design-build” contracts shall allow SJRRC to award one contract for both the design and building portions of a construction contract to one contractor. SJRRC will follow “Design-build” criteria as found in the LAPM as may be periodically updated, or as SJRRC Legal Counsel and the Board may otherwise approve.
81 of 136
55 Procurement Manual Revised October 2018
SECTION 6.19 Design-Bid-Build. For applicable projects and when available to SJRRC, construction project under which SJRRC commissions an architect or engineer to prepare drawings and specifications under a separate design services contract, while separately contracting for construction, by engaging the services of a contractor through sealed bidding or competitive negotiations to complete delivery of the project
SECTION 6.20 General Provisions for all Competitive Purchases.
6.20.1 Multiple Awardees SJRRC reserves the right to award competitive purchases to multiple proposers, if needed to fully execute the scope of work.
6.20.2 Disclosure to the Public. Price proposals shall be made available to the
public in compliance with California Public Records Act (Government Code Section 6250, et seq.). Other than proprietary information, the full contents of the proposals and of communications between SJRRC and proposers must be made public no later than the date that recommendation for award is made to the Board. The contract must not be awarded until 15 days after recommendation for award has been made available to the public. Upon making an award of the contract, SJRRC must make an analysis setting forth the basis for selection of the successful proposer available to other proposers and the public. Information which is not actually accessed by SJRRC or which, by the terms of the applicable procurement, is not allowed to be accessed by SJRRC (such as qualifications information in unopened bid envelopes from unsuccessful bidders) need not be disclosed and may be returned to the original provider.
6.20.3 Protest Procedures. The P.C.C. requires that specific protest procedures
be followed in competitive negotiations. SJRRC protest procedures are set forth in Chapter 9 of “Bid and Proposal Protest Procedures”.
6.20.4 Records of the Procurement. The Contracts and Compliance Department
will maintain a complete written description of the process and the policies and procedures used in the competitive negotiation, including a complete record of SJRRC’s actions on the procurement, and all of the standards, criteria, public protest procedures and method of contract award used.
6.20.5 File Documentation. Files shall be documented in narrative form using the
file document checklist as a guide. The file document checklist prescribes the documentation that is required to be included in the procurement file. The procurement file shall include all pertinent determinations made by SJRRC, all contractor
82 of 136
56 Procurement Manual Revised October 2018
correspondence that may have any bearing on SJRRC’s contractual rights or administration, and records of payments and credits.
6.20.6 Force Majeure. In the event a proposal is received after the deadline for
submitting proposals due to Acts of God/Nature beyond the reasonable control or anticipation of the Proposer, including, but not limited to, unusual adverse weather, earthquake, fire, flood or other natural disaster, labor strikes, riots, explosions, war, terrorism, or a similar occurrences or conditions. A Proposer may request an extension of the deadline to submit their proposal supported by sufficient evidence of a force majeure to SJRRC. Requests for extensions must be promptly delivered to SJRRC upon Proposer’s discovery of the force majeure event causing the delay in delivery of the proposal. SJRRC shall have the sole and unrestricted discretion to approve or deny the request for any reason. This right of force majeure shall not apply to any Construction contract subject to formal bidding requirements under the P.C.C.
6.20.7 For any applicable procedure not described in Chapter 6, the procedures
in Chapter 5 five shall be followed.
83 of 136
57 Procurement Manual Revised October 2018
CHAPTER 7. NON-COMPETITIVE PURCHASES
SECTION 7.1 Sole Source Purchases.
7.1.1 Sole Sources. The following are considered Sole Source procurements:
7.1.1.1 A contract amendment or change order that is not within the scope of the original contract is also considered a sole source procurement.
7.1.1.2 Such procurements often arise where the specifications and
requirements for the items or services to be procured are as unusual or distinct as to narrow possible sources down to one. This may be the case, for example, with replacement parts for brand name machinery, equipment, or vehicles where only one source of supply is available. In this example, however, if more than one distributor is available, the product is not exempt from competitive bidding as a sole source.
7.1.1.3 The sole source must be the only known source of supply with the
capability of meeting the bona fide specification requirements.
7.1.1.4 A solicitation or acceptance of a proposal from only one source, or after solicitation of a number of sources, and competition is determined inadequate. SJRRC shall determine if competition was adequate. This should include a review of the specifications for undue restrictiveness include a survey of potential sources that chose not submit a bid or proposal.
7.1.1.5 There are other sources of supply but because of financial,
schedule, performance and other factors a single source of supply is immune from effective competition. Such an immunity is created when the award to a different contractor would create a waste of SJRRC funds resulting from a substantial increase in support costs, a substantial schedule delay not owing to poor planning by SJRRC, an unacceptable technical risk towards completion of a project (or continuation of a warranty), or substantial increases in lifecycle costs.
A sole source decision is not permitted merely upon the grounds that the source demonstrates technical or administrative superiority, or is the most convenient, or shows superior performance potential at lowest cost.
84 of 136
58 Procurement Manual Revised October 2018
7.1.2 Procedure for Sole Source.
7.1.2.1 Initiating Purchase. The department desiring to procure equipment, supplies or services for which there is only one available source of supply shall initiate such purchase by completing a Requisition, which shall be approved by a Director or designee and shall indicate that the procurement is a “sole source” purchase.
7.1.2.2 Verification of Sole Source.
7.1.2.2.1 In all cases, the Contracts and Compliance Department, Project Manager, and a Director or designee shall verify that the particular procurement meets the definition of a sole source set forth above. SJRRC’s Legal Counsel shall be consulted for all procurements in excess of $10,000.
7.1.2.3 In the event that SJRRC only receives one response to a
solicitation, resulting in a noncompetitive purchase, SJRRC has the latitude to determine if readvertisement is needed in lieu of a sole source. Readvertisement may be determined upon a variety of factors including but not limited to the availability of proposers, and changes to the specifications to encourage more submissions.
7.1.2.3.1 When the estimated expenditure for a particular
procurement reaches the statutory amounts that require formal competitive bidding or when there is any doubt as to whether the procurement qualifies under the sole source exception, the Contracts and Compliance Department shall justify as to the applicability of the sole source exception. The statutory amounts that require formal competitive bidding are, for construction contracts, over $3,500 (FTA) and over $175,000 prior to December 31, 2018, $200,000 from and after January 1, 2019 (CUPCCAA); for procurements of equipment, supplies, materials and services over $150,000. No purchase order shall be issued to the vendor until the Contracts and Compliance Department and a Director have confirmed that the procurement qualifies as a sole source purchase, and an encumbered requisition confirms that budgeted funds are available and SJRRC Legal Counsel has been shall be consulted.
7.1.2.4 Price or Cost Analysis. The Contracts and Compliance Department
shall obtain a price for the proposed procurement from the sole source and perform a price analysis (See Section 6.9 above). Unless the reasonableness of the price can be established on the basis of a catalog or market price for a similar commercial product sold in substantial quantities to the general public, or on the basis of prices set by law or regulation the Contracts and Compliance Department shall conduct a cost analysis (See Section 6.10 above).
85 of 136
59 Procurement Manual Revised October 2018
7.1.2.4.1 Factors to Consider. In order to form a judgment as to
whether the price offered is reasonable, the following factors are to be considered: the necessity for certain costs; the reasonableness of amounts estimated for necessary costs; the bases for allocating overhead costs; allowances for contingencies; and the appropriateness of allocations of particular overhead costs to the contract.
7.1.2.4.2 Modifications and Change Orders. Modifications and
Change Orders shall be considered sole source procurements for the purposes of cost or price analysis.
7.1.2.5 Contract Audits. In some cases it may be necessary to conduct
contract audits to validate cost or pricing data submitted by contractor. In such cases a contract audit may be requested. Requests for audits shall be sent to a Director or designee who will appoint SJRRC representatives with the appropriate technical expertise to audit the costs being proposed are consistent with the contractors accounting system. The audit shall verify the adequacy of the contractor’s accounting system. It will also include a determination that the proposed costs are allocable, allowable, and reasonable in accordance with established cost principles. SJRRC will follow this Procurement Manual as well as the Generally Accepted Accounting Principles (GAAP) for guidance on cost principles. In the absence of a specific policy or guidance, Title 2, CFR Part 200, Subpart E (sections 200.420 – 200.47) will be followed as applicable.
7.1.2.6 Technical Evaluations. The Project Manager or designee will perform technical evaluations of the labor and materials proposed will supplement audit results.
7.1.2.7 Audits Needed. Audits will only be conducted when the cost of the
audit is justified by the cost risk of the proposal (usually proposals in excess of $300,000), for construction change orders or when required by SJRRC’s funding partners.
7.1.2.8 Issuance of Purchase Order.
7.1.2.8.1 In all cases, the Purchase Order for the procurement of
equipment, material, supplies or services from a sole source vendor or supplier shall be issued from the Contracts and Compliance Department.
7.1.2.8.2 The Board shall approve sole source procurements in
excess of the Executive Director’s purchasing authority.
86 of 136
60 Procurement Manual Revised October 2018
SECTION 7.2 Emergency Procurements.
7.2.1 Summary.
7.2.1.1 In case of an emergency resulting in an amount below the authorized purchasing amount by the Executive Director in the SJRRC Bylaws for emergency procurements, which is defined as a situation where action must be taken or commenced in less than twenty-four (24) hours, the Executive Director or designee in order to avoid or mitigate damage or threats to property, people or the public health, safety and welfare, and after making a finding based on substantial evidence that the emergency will not permit delay resulting from a competitive bid and the action is necessary to respond to the emergency, may determine to expend or enter into a contract involving the expenditure of any sum needed in the emergency without observance of the provisions requiring contracts, bids, or notice.
7.2.1.2 In case of an emergency resulting in an amount over the authorized
purchasing amount by the Executive Director in the SJRRC Bylaws for emergency procurements, the Board may after making a finding based on substantial evidence that the emergency will not permit delay resulting from a competitive bid and the action is necessary to respond to the emergency, by a resolution passed by four-fifths vote of all of its members declare and determine that public interest and public necessity demand the immediate expenditure of public money to safeguard life, health, or property, and thereupon proceed to expend or enter into a contract involving the expenditure of any sum needed in the emergency without observance of the provisions requiring contracts, bids, or notice.
7.2.2 Procedure.
7.2.2.1 Initiating the Emergency Purchase. Emergency purchases should be made by a SJRRC representative who has expertise related to the emergency giving rise to the need for the procurement. Upon written approval by a Director or designee, the requesting SJRRC representative may contact one or more vendors by telephone, and, as expeditiously as possible, determine the best price and quality of product or services available from the vendor(s). The SJRRC representative that requested the emergency purchase shall relay such information to the Contracts and Compliance Department.
7.2.2.2 Authorizing the Emergency Purchase. Pursuant to P.C.C. Section
22050, SJRRC Board has authorized the Executive Director or designee to procure necessary equipment, services and supplies and to repair or replace SJRRC facilities in
87 of 136
61 Procurement Manual Revised October 2018
the event of a declared emergency. If such action is taken, the Executive Director shall report back to the Board at the next regularly scheduled Board meeting (but in no case shall the Executive Director report back to the Board later than 30 days after such emergency action is taken). Board approval is required for any emergency procurement in excess of $200,000 and shall be obtained as soon as it is practicable to do so. For all emergency procurements, the Board will review the action at every regularly scheduled meeting thereafter until the action is terminated.
7.2.2.3 Confirmation of Emergency Purchase. If the Contracts and
Compliance Department is not available and an emergency purchase is necessary, then after having placed the order, the initiating department shall notify the Contracts and Compliance Department: that an emergency procurement has been effected, and the nature of the procurement; the nature of the emergency; that the head of the requesting department or authorized designee has approved the procurement; and the name and location of the vendor or supplier. Upon verification of the emergency procurement, the Contracts and Compliance Department shall provide a purchase order to the vendor upon request.
SECTION 7.3 Discretion to Waive the Competitive Process. The Board, or the Executive Director for procurements within his or her procurement authority, may waive the requirements for formal competitive bidding or other procedures set forth in this Manual when permissible under applicable law and when a determination is made that the best interests of SJRRC are served thereby, as follows:
7.3.1 Open Market Transactions after Rejection of All Bids. If after rejecting bids received pursuant to formal competitive bidding, the Board approves that the equipment, supplies, or materials may be purchased at a lower price on the open market, SJRRC may proceed to purchase the equipment, supplies or materials in the open market without formal bidding, as authorized by P.C.C. Section 20250.
7.3.2 Waiver of Competitive Negotiations for Necessary Services. In
circumstances where services are needed on an expedited basis that do not permit the time required for the RFP process, the Executive Director may waive such procedures, provided there is adequate documentation of the need for such services. These circumstances shall be evaluated on a case-by-case basis, keeping in mind the fundamental principles of procurement set forth in this Manual.
7.3.3 Sole Source Determination. In circumstances where there exists only a sole
source of supply, SJRRC may proceed with the procurement as described above in Section 7.1.
88 of 136
62 Procurement Manual Revised October 2018
SECTION 7.4 Federally funded Non-Competitive Procurements. See Chapter 10 for guidance.
89 of 136
63 Procurement Manual Revised October 2018
CHAPTER 8. INTERGOVERNMENTAL AGREEMENTS
SECTION 8.1 Agreements.
8.1.1 Agreements with Various Agencies. SJRRC may enter into agreements with federal, state, and local agencies so long as both agencies follow the procurement procedures similar to those outlined in this Manual. This includes the ability of SJRRC to select another agency as the provider of a product or service.
8.1.2 State and Intergovernmental Agreements. To foster greater economy and
efficiency, SJRRC may avail itself of state and local intergovernmental agreements for procurement or use of common goods and services. These programs consolidate the purchasing needs of participating agencies to obtain products at prices generally available only to large volume buyers. Competitive bidding procedures and nonrestrictive specifications are used. These programs should be utilized to the extent prices are lower than what SJRRC could obtain through its normal purchasing procedures. The State Office of Procurement should be consulted to obtain information on current procedures and lists of products.
8.1.3 FTA Funding. If a joint procurement will be funded with an FTA grant, the requirements for FTA-funded projects shall apply and should be included in the specifications. See discussion in Section 10.1, “Procurements Funded by the Federal Transit Administration.”
8.1.4 Rolling Stock and Related Equipment. Under Section 3019 of the FAST Act,
grantees may purchase rolling stock and related equipment from a State cooperative procurement contract. A “cooperative procurement contract” means a contract entered into between a State government or eligible nonprofit entities and (one) 1 or more vendors under which the vendors agree to provide an option to purchase rolling stock and related equipment to multiple participants. The contract term for a cooperative procurement contract may be for an initial term of not more than two years and may include three optional extensions of one year each. A lead procurement agency or lead nonprofit entity in such a procurement may charge participants in the contract no more than 1 percent of the total value of the contract. Under prior law, FTA referred to these types of State contracts as “State purchasing schedules” and, as such, were only available to recipients within that State. Under the FAST Act, a grantee may purchase rolling stock and related equipment from any State’s cooperative procurement contract or schedule. State cooperative purchasing contracts or state schedules are subject to federal requirements,
90 of 136
64 Procurement Manual Revised October 2018
including, but not limited to, full and open competition, no geographic preferences, Buy America, and bus testing, and must include all FTA required clauses and certifications with its purchase orders issued under the State contract. Pursuant to Section 3019 of the FAST Act, recipients may purchase from another State’s schedule. SECTION 8.2 State Of California Cooperative Purchasing Program.
8.2.1 Participation. P.C.C. 10298 allows local agencies to participate in State procurements including agreements for goods, information technology, and services. Local agencies may contract with suppliers awarded these contracts without further competitive bidding. The State continues to invite participation and assist in local procurements. The State is continually renewing and updating existing contracts, and has increased its efforts to offer new master agreements and schedules for local agencies. Participating in State contracts is usually accomplished by the local agency through use of its own purchase order forms and direct contact with the contractor.
8.2.2 Cooperative Purchasing Program. The State of California Cooperative Purchasing Program is administered by the Department of General Services (DGS). This Department is responsible for the competitive bidding process, the pre-qualification of bidders, the maintenance of a state bid list, the use of non-restrictive product specifications and resolving supplier protests.
8.2.3 Direct Order. The State provides a variety of contract purchasing options
where agencies order directly from the supplier.
8.2.3.1 CMAS. California Multiple Award Schedules (CMAS).
8.2.3.3 Master Agreements. Master Agreements and Statewide Contracts.
8.2.3.4 Recycled Products. Recycled Products Program and Contracts.
8.2.3.5 Central Stores. State Central Stores statewide bulk purchasing and
distribution.
8.2.3.6 Computer Stores. State Computer Stores.
91 of 136
65 Procurement Manual Revised October 2018
8.2.3.7 Imaging. Statewide Imaging and Integrated Document Management Program.
SECTION 8.3 California Multiple Award Schedules (CMAS).
8.3.1 Agreements. The CMAS Unit establishes agreements with those
manufacturers/suppliers that offer products and/or services which are currently on an existing multiple award schedule with the Federal General Services Administration (GSA) or other approved multiple award contracts. P.C.C. Sections 10298 and 10299 state that local agencies may contract with suppliers awarded the CMAS contracts without further competitive bidding. CMAS has done the preliminary analysis to determine a technically compliant product, basic contractual terms, and lowest available price. It is left to the local agency to seek quotations and “best and final offers” regarding any special features to the product or additional legal/contractual terms such as delivery times.
8.3.2 Price Evaluation. SJRRC’s Purchasing Department should do a due diligent
evaluation that the price offered on the CMAS is not higher than the price SJRRC can receive if it competitively bid the item or service. Any contract with a CMAS vendor that exceeds $20,000 is subject to the Executive Director’s approval. Board approval is required for any CMAS contract that exceeds the Executive Director’s purchasing authority.
SECTION 8.4 Piggyback Guidelines & Procedures.
8.4.1 Requirements for Piggybacking. Piggybacking allows a third party agency
who was not contemplated in an original procurement to purchase the same supplies or equipment through the original contract. This process may be used provided that the procurement process satisfies the statutory requirements applicable to SJRRC for procurements, and, for FTA-assisted procurements, satisfies the FTA’s guidelines.
8.4.2 Additional Requirements. FTA has determined that Piggybacking is
permissible when the solicitation document and the resultant contract contain an assignability clause that provides for the assignment of all or part of the specified deliverables as originally advertised, competed, evaluated (taking into consideration the base and option quantities) and awarded. The bid and award of the original contract must have followed FTA procedures. In addition, the original solicitation and resultant contract must contain both a minimum and maximum quantity representing the reasonably foreseeable needs of the parties to the solicitation. FTA does not require prior approval to execute a piggyback agreement. (FTA Dear Colleague Letter dated October 1, 1998.)
92 of 136
66 Procurement Manual Revised October 2018
8.4.3 When Used. Piggybacking may be used when: the bid and award of the
original contract were completed substantially in accordance with SJRRC statutory requirements and FTA procedures, when applicable; the option to be exercised is still current and valid; the number of units to be procured by the piggybacking agency does not exceed the option amount in the original contract; and the number of units to be procured by the original and piggybacking agencies does not collectively exceed the original contract amount.
8.4.4 Agreement. After the above conditions have been determined, an
interagency agreement must be executed, which can be in the form of a letter agreement from the original contracting agency. The agreement must set forth the following: specific permission for SJRRC to exercise the agency’s option on an identified contract; the date through which the option that will be exercised is valid; assurance that FTA rules and regulations, if applicable, were followed in bidding and awarding the original contract; and assurance that there are no other agencies authorized to piggyback on the contract for the number of units set aside for SJRRC.
SECTION 8.5 Joint Procurements. Joint procurements by several public agencies is a permissible method of procurement, provided the statutory competitive bidding requirements applicable to SJRRC are followed. One example of this collaborative approach is the Regional Transit Coordinating Council (“RTCC”) Procurement Committee, which was formed in an effort to save transit agencies time, effort, and money by jointly procuring parts, materials and supplies that are commonly stocked among agencies, which maximizes the benefits of large quantity procurements. The types of commodities that are purchased by the RTCC Joint Procurements generally are glass, brake drums, batteries, lamps, filters, lubricants, copy paper, bolts and fasteners, diesel and gasoline, and janitorial supplies.
93 of 136
67 Procurement Manual Revised October 2018
CHAPTER 9. BID AND PROPOSAL PROTEST PROCEDURES SECTION 9.1 Policy. It is the policy of SJRRC to consider fully and adjudicate promptly protests of proposed contract awards filed by prospective bidders/proposers of competitively bid contracts. Protests shall be processed in accordance with the provisions of this Policy. Bidders/Proposers shall be advised of all procedures required to initiate protests in the Contract specifications. To the greatest extent permitted by law the procedures contained in this Policy are the exclusive means for protesting any matter relating to SJRRC’s award or proposed award of a Contract. SJRRC may reject any Contract award protest which does not comply with all required protest procedures. The procedures set forth in this Chapter shall apply to all procurements with a value of $25,000 or more where a bid or proposal was requested.
9.1.1 Applicable to IFBs and RFP’s. These procedures shall apply to contracts that are awarded by formal competitive bidding (“IFBs”) and by competitive negotiations (“RFPs”). All IFB and RFP documents for these types of procurements shall include Protest Procedures, either explicitly or by reference. Small purchase contracts are not subject to protest. Procurements involving competitive negotiations under Public Contract Code Sections 20216 and 20217 (Section 6.17) shall follow the Protest Procedures in this Chapter 9.
9.1.2 Delegation. The Executive Director may delegate the review of protests to
officers or managers for procurements valued at the Executive Director purchasing authority or less.
9.1.3 Nature of Controversies. The term protest is utilized to describe the controversies that arise usually during the contract formation process as an objection to a contract award or to a decision on a specific bid. The protests are challenges to actual or proposed actions of the Contracts and Compliance Department on specific procurements. These objections are brought by offerors, prospective offerors, or other interested parties who contend that they have been improperly treated in the procurement process. All protests must be submitted in writing, within the prescribed deadlines.
SECTION 9.2 General Procedures and Notification Requirements.
9.2.1 Review Limited. SJRRC's review of any protest will be limited to evaluations of a bidder’s responsiveness and responsibility; such review may include but not be
94 of 136
68 Procurement Manual Revised October 2018
limited to violations of state or local laws or regulations, violations of SJRRC's purchasing procedures, or violations of SJRRC's protest procedures.
9.2.2 Protests Due. Protests based on restrictive or severely defective
specifications, or improprieties in any type of solicitations that are apparent or reasonably should have been discovered prior to bid opening or the closing date for proposals, must be received by SJRRC no later than 5 days before the scheduled bid opening. Prior to filing a protest based on such criteria, bidders will be required to utilize any procedures in the specifications for Approved Equals or requests for clarifications prior to submitting a protest. If the bidder/proposer disagrees with SJRRC’s decision on such requests, the bidder/proposer may then avail itself of the protest procedures. Protests based upon the recommendation for contract award must be received by SJRRC before 2:00 p.m. of the tenth (10) day following posting in the Cabral Station lobby of SJRRC’s recommendation for award of a contract. Failure to comply with the time periods for filing protests as set forth herein shall be a basis for rejection of the protest.
9.2.3 Content of Protest. All protests filed with SJRRC shall comply with the
requirements in Section 9.5 of this Manual. 9.2.4 No Formalities. No formal briefs or other technical forms of pleading or
motion are required, but a protest and other submissions should be concise, logically arranged, clear and legible.
9.2.5 Additional Information. Any additional information requested or required by SJRRC from the protestor, or interested parties shall be submitted as expeditiously as possible, but in no case later than five (5) days after the receipt of such request unless specifically accepted by SJRRC. Failure to timely provide any additional information requested by SJRRC shall be a basis for rejection of the protest.
SECTION 9.3 Confidentiality. Materials submitted by a protestor will not be withheld from any interested party outside of SJRRC or from any Government agency which may be involved in the protest, except to the extent that the withholding of information is permitted or required by law or regulation. If the protestor considers that the protest contains proprietary materials which should be withheld, a statement advising of this fact may be affixed to the front page of the protest document and the alleged proprietary information must be clearly and specifically identified wherever it appears in the protest. If a protestor requests that SJRRC withhold from disclosure information identified as confidential, and SJRRC complies with the protestor’s request, the protestor shall assume all responsibility for any challenges resulting from the non-disclosure, indemnify and hold harmless SJRRC from and against all damages (including but not limited to attorneys’
95 of 136
69 Procurement Manual Revised October 2018
fees that may be awarded to the party requesting the protestor information), and pay any and all costs and expenses related to the withholding of the protestor's information. The protestor shall not make a claim, sue, or maintain any legal action against SJRRC or its directors, officers, employees, or agents concerning the withholding from disclosure of protestor's information.
SECTION 9.4 Withholding Of Award. When a protest has been filed before the opening of bids, SJRRC will not open bids prior to the resolution of the protest. Where the protest determination could affect bid responses, an appropriate extension of the bid opening date may be granted. When a protest has been filed after the opening of bids, SJRRC will consider the protest prior to taking action to award the contract. With the exception of protests that have been appealed to the FTA, exceptions to the above may occur if SJRRC determines that:
9.4.1 The items to be procured are urgently required; or 9.4.2 Delivery or performance will be unduly delayed by failure to either make the
award promptly or to continue with the procurement; or 9.4.3 Failure to make prompt award or to continue with the procurement will
otherwise cause undue hardship to SJRRC or other local, state or federal governments.
SECTION 9.5 Protest Review
9.5.1 Policy. It is the policy of SJRRC to consider fully and adjudicate promptly protests of proposed contract awards filed by prospective bidders of competitively bid public works contracts (Contract). Protests shall be processed in accordance with the provisions of this Policy. Bidders/Proposers shall be advised of all procedures required to initiate protests in the Contract specifications. To the greatest extent permitted by law, the procedures contained in this Policy are the exclusive means for protesting any matter relating to SJRRC’s award or proposed award of a contract. SJRRC may reject any Contract award protest which does not comply with all required protest procedures.
9.5.1.1 Written Protest. Any protest must be submitted in writing. 9.5.1.2 Protest Document. The protest shall:
9.5.1.2.1 Identify Contract. Specifically identify the procurement to
which the protest relates.
96 of 136
70 Procurement Manual Revised October 2018
9.5.1.2.2 Basis for Protest. Contain a complete statement of the basis for the protest, including specific reference(s) to the specific portions of the document(s) that form the basis for the protest.
9.5.1.2.3 Desired Ruling. Specify the ruling or relief desired from SJRRC.
9.5.1.2.4 Name and Address. Include the name, address and telephone and email address of the person representing the protesting bidder/proposer.
9.5.1.2.5 Request Conference. If the protesting bidder/proposer desires a conference with the members of SJRRC Protest Review Panel (as described in Section 9.5.4 below) to discuss the merits of the protest, the initial written protest shall expressly request such a conference. Failure to expressly request such a conference in the initial written protest document shall conclusively waive any right of the bidder/proposer to request such a conference.
9.5.1.3 Must be Responsive and Responsible. Only bidders/proposers who SJRRC otherwise determines are responsive and responsible are eligible to protest a bid/proposal; protests from any other bidder/proposer (or anyone else, such as prospective subcontractors) will not be considered. In order to determine whether a protesting bidder/proposer is responsive and responsible, SJRRC may open and evaluate information contained in any of protesting bidder’s/proposal‘s envelopes which are not otherwise opened at the public bid opening, and conduct the same investigation and evaluation as SJRRC is entitled to make regarding to determine the responsiveness and responsibility of the protesting bidder/proposer.
9.5.1.4 Copies. The bidder/proposer filing the protest must concurrently transmit a copy of the initial protest document and any attached documentation to all other parties with a direct financial interest that may be adversely affected by the outcome of the protest. Such parties shall include all other bidders/proposers who appear to have a reasonable prospect of receiving an award depending upon the outcome of the protest.
9.5.1.5 No Technical Forms. No formal briefs or other technical forms of pleading or motion are required, but the initial protest document and other submissions should be concise, logically arranged, clear and legible.
9.5.2 Time Mandatory. The procedure and time limits set forth in this Section are mandatory and are a bidder’s/proposer’s sole and exclusive remedy in the event of a bid protest. A bidder’s/proposer’s failure to comply with these procedures shall constitute a
97 of 136
71 Procurement Manual Revised October 2018
waiver of any right to further pursue the bid protest, including filing a Government Code Claim or legal proceedings. A bidder/proposer may not rely on a protest submitted by another bidder/proposer, but must timely pursue its own protest.
9.5.3 Protest Administration.
9.5.3.1 Protest Panel. Upon receipt of a protest, the Executive Director will appoint other members to, and convene, an ad hoc SJRRC Protest Review Panel to review all relevant materials associated with the protest. The members of the Panel shall include the Executive Director or designee (who shall also serve as the Chair), and at least two other persons with experience with the relevant project or similar projects. The Panel shall determine the validity of the protest and what actions will be taken.
9.5.3.2 Conference. If expressly requested by the protesting bidder/proposer in the written protest, members of SJRRC Protest Review Panel shall hold a conference on the merits of the protest. The Panel shall select the date and time of the conference which shall be take place within ten (10) days of the written protest, and promptly notify the protesting bidder/proposer of the date and time. All conference shall take place at the Cabral Station in Stockton, California unless otherwise indicated by the Panel.
9.5.3.3 Report. The Panel will prepare a reasoned report, including recommendations and actions to be taken, within fifteen (15) days of the conference (or, if bidder/protester did not request a conference, within fifteen (15) days of SJRRC’s receipt of the initial protest. The Panel will notify the protesting bidder/proposer and any interested parties of their findings and actions.
9.5.4 Compliance with Other Required Governmental Protest Procedures. If any other governmental entity is involved in the applicable procurement has its own protest procedure requirements, SJRRC will comply with those other procedures. Any conflict between the SJRRC procedures described in this Policy and such other governmental entity procedures shall be controlled by such other governmental entity’s procedures provided that, upon specific written advice SJRRC’s Counsel, it is legal under applicable law for SJRRC to follow such other procedures. SECTION 9.6 Protest Procedures - FTA Funded Contracts.
9.6.1 Time to File and Basis of Protest. Bidder/Protester shall have 5 days from the determination to reject the protest to appeal the decision to FTA, in accordance with the procedures set forth in FTA Circular 4220.1F, as may be periodically updated. FTA’s
98 of 136
72 Procurement Manual Revised October 2018
review will be limited to protests alleging that SJRRC failed to have protest procedures, SJRRC violated its protest procedures, or SJRRC failed to review the protest when presented with an opportunity to do so, or possibly that federal law has been violated. In accordance with FTA Circular 4220.1F, the SJRRC will notify the FTA through the appropriate reporting mechanism (i.e. Milestone Progress Reports that may be filed periodically and routinely, or specific Project Management Oversight Reviews, if any are held) of protests that (a) have a value exceeding $100,000, (b) involve a controversial matter, irrespective of amount, or (c) involve a highly publicized matter, irrespective of amount. The SJRRC will keep the FTA informed about the status of any protest that requires such notification.
9.6.2 Decision Final. If the bidder/protester does not appeal to FTA within 5 days of SJRRC’s decision, the decision shall become final.
9.6.3 Notice of Appeal. If the protest is appealed to FTA, the Contracts and Compliance Department shall notify all bidders/proposers on the contract of the pending appeal. The notice shall inform each bidder/proposer of its right to communicate directly with FTA.
9.6.4 Exception as To Award. SJRRC shall not award a contract or enter into an agreement until FTA has rendered its decision on the protest.
99 of 136
73 Procurement Manual Revised October 2018
CHAPTER 10. SPECIAL RULES FOR FEDERALLY FUNDED CONTRACTS SECTION 10.1 Procurements Funded By Federal Transit Administration. SJRRC is a recipient of capital grants and operating assistance grants from the Federal Transit Administration ("FTA"). When procuring supplies, equipment or services pursuant to such grants, SJRRC shall conform to the procurement guidelines promulgated by FTA and set forth in FTA Circular 4220.1F or subsequent revisions thereto. The initiating department should consult with the Contracts and Compliance Department for current information on requirements for federally funded contracts. The Contracts and Compliance Department is responsible for maintaining current information on all federally funded contracts and all Federal requirements. The San Joaquin Regional Rail Commission shall take all reasonable steps necessary to identify applicable changes in laws, regulations, and provisions of contracts and grants. Steps taken in this regard shall include, but not be limited to, reviewing subsequent grant and contract renewals, and reviewing annual revisions to the Office of the Management and Budget (OMB) Circular A-133 Compliance Supplement.
10.1.1 Maintenance of Procurement Records. In connection with all FTA funded
contracts entered into by SJRRC, SJRRC shall maintain records sufficient to document the significant history of the procurement. Such records include, but are not limited to:
10.1.1.1 A determination of why the particular procurement method was selected;
10.1.1.2 A determination of why the particular contract type was selected;
10.1.1.3 A determination of why the particular contractor(s) was selected
for award and/or not selected for award;
10.1.1.4 A determination of how the price being paid by SJRRC was determined fair and reasonable.
10.1.2 Types of Contracts. FTA funded contracts shall meet all federal rules and
shall only include the types of approved contracts identified in Section 13.1, Approved Contract Types.
10.1.3 Contract Cost and Price. SJRRC shall perform a cost or price analysis in
connection with every procurement action, including contract modifications. Before
100 of 136
74 Procurement Manual Revised October 2018
receiving bids or proposals, SJRRC must make an independent price estimate. A price analysis may be used to determine the reasonableness of the proposed contract price, except in the following instances, where a cost analysis must be used:
10.1.3.1 When the bidder/proposer is required to submit the elements of
his estimated cost, such as in architectural and engineering services contracts; and
10.1.3.2 When adequate price competition is lacking, and for sole source procurements.
10.1.4 Profit. In all contracts where there is no price competition and in all cases
where a cost analysis is performed, SJRRC is required to negotiate profit as a separate element of the price. In establishing a fair and reasonable profit, SJRRC shall consider the complexity of the work, the Contractor's risk and investment, the amount of subcontracting, the Contractor's references, and industry profit rates for similar work.
10.1.5 Cost Principles. Costs or prices based on estimated costs for contracts under grants will be allowable only to the extent that costs incurred or Independent Cost Estimate included in negotiated prices are consistent with federal cost principles. SJRRC may reference its own cost principles if they comply with the applicable federal cost principles. See Title 2 CFR Part 200.420 – 200.475 for allowable and unallowable expenses.
10.1.6 Cost Plus Not Allowed. The cost plus a percentage of cost and percentage
of construction cost methods of contracting shall not be used.
10.1.7 Options. Options are only allowed in FTA-funded contracts when:
10.1.7.1 The option price is evaluated as part of the bid or proposal evaluation process;
10.1.7.2 For rolling stock procurements, an option to buy additional rolling
stock or replacement parts must be exercised within five years of the date of the original contract.
10.1.8 Advance Payments. Ordinarily, SJRRC may not use FTA assistance to make payments to a third party contractor before the contractor has incurred the costs for which the payments would be attributable. Any exception to this rule, including the use of local share funds for advance payment, will be in accordance with FTA Circular 4220.1F, Chapter IV(5)(b).
101 of 136
75 Procurement Manual Revised October 2018
10.1.9 Progress Payments. Progress payments are payments for contract work
that has not been completed. In compliance with Circular 4220.IF, Chapter IV(5)(c), SJRRC may use FTA assistance to support progress payments provided it obtains adequate security for those payments and has sufficient written documentation to substantiate the work for which payment is requested. For federally funded construction contracts—but only for construction contracts—any progress payments must be made on a percentage of completion method as described in the Common Grant Rule.
10.1.10 Requests for Proposals. FTA requires that all Requests for Proposals issued for FTA-funded contracts be publicized, and that the Request for Proposals identify all evaluation factors and their relative importance. FTA also requires that Proposals be solicited from an adequate number of qualified sources. SJRRC may make a selection based on the original proposals, without negotiation with any proposer.
10.1.11 A&E Contracts. FTA requires that SJRRC use a qualifications-based
process for the procurement of architectural and engineering services, and all architectural and engineering related services, such as construction management, feasibility studies, surveying, design, mapping or related services. Following this method, SJRRC is required to evaluate the competitors' qualifications and select the most qualified competitor subject to negotiation of fair and reasonable compensation. SJRRC is not allowed to consider price as an evaluation factor, and it may negotiate only with the most qualified proposer.
10.1.12 Contractual Provisions. All federally required third party contract clauses and certifications will be included in federally funded contracts. The Contracts and Compliance Department will maintain the most recent required clauses and certifications as may be periodically updated. To that end, the Contracts and Compliance Department, in consultation with the SJRRC’s Legal Counsel, as needed, will comply with FTA Circular 4220.1F as may be periodically updated, and in addition, the checklist maintained by the Contracts and Compliance Department, as it may be amended in the future, to ensure that all applicable third party contracting clauses are appropriately included. A recipient purchasing revenue service rolling stock with FTA funds must ensure that a pre-award audit has been completed in accordance with FTA part 663.21 Subpart B “Pre Award Audits”. In conjunction with the Pre-Award Audit a Post Delivery Audit must be completed before title to the rolling stock is transferred to the recipient in accordance with Subpart C- “Post Delivery Audits.”
102 of 136
76 Procurement Manual Revised October 2018
10.1.13 Rejection of Bids. FTA authorizes SJRRC to reject any and all bids submitted in response to an invitation for bids or request for proposals. The reasons for rejection shall be adequately documented in SJRRC’s files.
10.1.14 Adequate Competition. After soliciting several sources, in the event of receipt of only a single bid or proposal, SJRRC will review its specifications and conduct and document outreach as appropriate to determine if they were unduly restrictive or if changes could be made to encourage submission of more bids or proposals. Prior to award to a single bidder or proposer, SJRRC will make a determination that competition was adequate.
10.1.15 Design-Bid-Build and Design-Build Projects. When federal funds are used in a Design-Bid-Build contract, SJRRC will follow the procedures set forth in Section 6.17. When Federal funds are used in a Design-Build contract, SJRRC will separate and calculate the estimated costs of the various contract activities to be undertaken in order to ensure use of the appropriate procurement methodology depending on whether design or construction costs predominate. Ordinarily, construction costs of a design-build project will be predominant. In such a case, SJRRC is not required to use the qualifications-based procurement methodology called for by the Brooks Act, but should follow the procedures described in Section 6.16.
10.1.16 Prohibitions. The Common Grant Rules prohibit solicitation requirements that contain features that unduly restrict competition. FTA recipients are also prohibited by 49 U.S.C. Section 5325(h) from using FTA assistance to support an exclusionary or discriminatory specification. Some situations considered to be impermissibly restrictive of competition include, but are not limited to, the following:
10.1.16.1 Prohibition Against Tag-Ons. SJRRC may not use Federal
assistance to finance a change order or contract amendment that constitutes a cardinal change. A cardinal change, sometimes informally referred to as a "tag on," is a significant change in contract work that causes a major deviation from the original purpose of the work such that the contractor is required to perform very different work from that described in the original contract. The specific types of impermissible cardinal changes, and the methodology for analyzing whether a change is a cardinal change, are described in more detail in FTA Circular 4220.1F.
The term "tag-on" is also sometimes used to refer to adding quantities on to the contracted quantities (base and option) as originally advertised, competed, and awarded, whether for the use of the buyer or for others and then treating the add-on portion as though it met the requirement of the original competition. Tag-ons under this
103 of 136
77 Procurement Manual Revised October 2018
definition are actually sole source additions that have not been appropriately justified. Tag-ons under this definition are not permitted for any type of procurement.
10.1.16.2 Restrictive Specifications or Processes That Limit Competition or
Interfere with the Competitive Process. In all its procurements, and in particular those funded with Federal assistance, SJRRC shall not impose any unreasonable requirements on bidders/proposers in order for them to qualify to do business with SJRRC. These include, but are not limited to, unnecessary experience or qualifications requirements, and unreasonable or excessive bonding requirements, as further described below.
10.1.16.3 Excessive Qualifications. Imposing unreasonable business
requirements for bidders or offerors.
10.1.16.4 Unnecessary Experience. Imposing unnecessary experience requirements for bidders and offerors.
10.1.16.5 Improper Prequalification. Using prequalification procedures
that conflict with the prequalification standards described in subsection 10.1.16.3 of this Section.
10.1.16.6 Excessive Bonding. To encourage greater contractor participation in FTA assisted projects, FTA does not require recipients to impose bonding requirements on its third party contractors other than construction bonding specified by the Common Grant Rules and Circular 4220.IF. FTA discourages unnecessary bonding because it increases the cost of the contract and restricts competition, particularly by disadvantaged business enterprises. Bond companies exercise their discretion and assure their profits primarily by declining to undertake excessive risks. Consequently many bidders have limited "bonding capacity." Unnecessary performance bonding requirements reduce a prospective bidder's or offeror's capability to bid or offer a proposal on bonded work. Small businesses with short histories may have particular difficulty obtaining bonds as may be specified. Nevertheless, even though bonding can be expensive, FTA recognizes that a recipient might find bid, performance, or payment bonds to be desirable. Because bonding requirements can limit contractor participation, FTA expects the recipient's bonding requirements to be reasonable and not unduly restrictive. FTA, however, will not challenge State or local bonding requirements as unreasonably restrictive of competition, even though they might exceed Federal requirements. Nevertheless, if the recipient's bonding policies result in such "excessive bonding" that it would violate the Common Grant Rules as restrictive of competition, FTA will not provide Federal assistance for those procurements. Thus if the recipient's bonding policies far exceed those described in this subparagraph or are permissible under State
104 of 136
78 Procurement Manual Revised October 2018
or local law, the recipient should obtain FTA's written concurrence to ensure the availability of Federal assistance for the project.
10.1.16.7 Noncompetitive Purchases. SJRRC may use noncompetitive
purchases only when the procurement is inappropriate for small purchase procedures, sealed bids, or competitive proposals, and at least one of the following circumstances are present:
10.1.16.7.1 A contract amendment or change order that is not within the scope of the original contract is also considered a sole source procurement.
10.1.16.7.2 Such procurements often arise where the specifications
and requirements for the items or services to be procured are as unusual or distinct as to narrow possible sources down to one. This may be the case, for example, with replacement parts for brand name machinery, equipment, or vehicles where only one source of supply is available. In this example, however, if more than one distributor is available, the product is not exempt from competitive bidding as a sole source.
10.1.16.7.3 The sole source must be the only known source of
supply with the capability of meeting the bona fide specification requirements.
10.1.16.7.4 The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation;
10.1.16.7.5 A solicitation or acceptance of a proposal from only one
source, or after solicitation of a number of sources, and competition is determined inadequate.
10.1.16.7.6 The Federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request SJRRC.
10.1.16.8 Brand Name Only. Specifying only a "brand name" product
without allowing offers of "an equal" product, or allowing "an equal" product without listing the salient characteristics that the "equal" product must meet to be acceptable for award, is prohibited.
10.1.16.9 In-State or Local Geographic Restrictions. The FTA prohibits
specifying in-State or local geographical preferences, or evaluating bids or proposals in light of in-State or local geographic preferences, even if those preferences are imposed by State or local laws or regulations. Exceptions expressly mandated or encouraged by Federal law include the following:
105 of 136
79 Procurement Manual Revised October 2018
10.1.16.9.1 Architectural Engineering (A&E) Services. Geographic location may be a selection criterion for Architectural and Engineering Services if an appropriate number of qualified firms are eligible to compete for the contract in view of the nature and size of the project. No geographic preference may be extended or included in specifications or an RFP without review by SJRRC’s legal counsel.
10.1.16.9.2 Licensing. A State may enforce its licensing requirements, provided that those State requirements do not conflict with Federal law.
10.1.16.9.3 Major Disaster or Emergency Relief. Federal assistance awarded under the Stafford Act, 42 U.S.C. Section 5150, to support contracts and agreements for debris clearance, distribution of supplies, reconstruction, and other major disaster or emergency assistance activities permits a preference, to the extent feasible and practicable, for organizations, firms, and individuals residing or doing business primarily in the area affected by a major disaster or emergency.
10.1.16.10 Retainer Contracts. FTA prohibits making a noncompetitive award to any person or firm on a retainer contract with the recipient if that award is not for the property or services specified for delivery under the retainer contract.
10.1.16.11 Revenue Contract. A revenue contract is a contract in which the recipient or subrecipient provides access to public transportation assets for the primary purpose of either producing revenues in connection with an activity related to public transportation, or creating business opportunities with the use of FTA assisted property. The recipient has broad latitude in determining the extent and type of competition appropriate for a particular revenue contract. Nevertheless, to ensure fair and equal access to FTA assisted property and to maximize revenue derived from such property, the recipient should conduct its revenue contracting as follows:
10.1.16.11.1 Limited Contract Opportunities. If there are several
potential competitors for a limited opportunity (such as advertising space on the side of a bus), then the recipient should use a competitive process to permit interested parties an equal chance to obtain that limited opportunity.
10.1.16.11.2 Open Contract Opportunities. If, however, one party
seeks access to a public transportation asset (such as a utility that might seek cable access in a subway system), and the recipient is willing and able to provide contracts or licenses to other parties similarly situated (since there is room for a substantial number of such cables without interfering with transit operations), then competition would not be
106 of 136
80 Procurement Manual Revised October 2018
necessary because the opportunity to obtain contracts or licenses is open to all similar parties.
10.1.16.12 Organizational Conflicts of Interest. Recipients may not engage
in practices that result in organizational conflicts of interest as prohibited by the Common Grant Rules:
10.1.16.12.1 Occurrence. An organizational conflict of interest occurs when any of the following circumstances arise:
10.1.16.12.1.1 Lack of Impartiality or Impaired Objectivity. When the contractor is unable, or potentially unable, to provide impartial and objective assistance or advice to the recipient due to other activities, relationships, contracts, or circumstances.
10.1.16.12.1.2 Unequal Access to Information. The contractor has an unfair competitive advantage through obtaining access to nonpublic information during the performance of an earlier contract.
10.1.16.12.1.3 Biased Ground Rules. During the conduct of an earlier procurement, the contractor has established the ground rules for a future procurement by developing specifications, evaluation factors, or similar documents.
10.1.16.12.2 Remedies. FTA expects the recipient to analyze each planned acquisition in order to identify and evaluate potential organizational conflicts of interest as early in the acquisition process as possible, and avoid, neutralize, or mitigate potential conflicts before contract award.
10.1.16.13 Restraint of Trade. Recipients are prohibited from supporting
or acquiescing in noncompetitive pricing practices between firms or between affiliated companies. Questionable practices would include, but are not limited to, submissions of identical bid prices for the same products by the same group of firms, or an unnatural pattern of awards that had the cumulative effect of apportioning work among a fixed group of bidders or offerors.
10.1.16.14 Arbitrary Action. In all its procurements, and in particular those
funded with Federal assistance, SJRRC shall not take any arbitrary action that would interfere with the competitive selection of contractors.
107 of 136
81 Procurement Manual Revised October 2018
SECTION 10.2 Impermissible Actions in Procurements Governed by FTA Requirements.
10.2.1 Improper Contract Expansion. A contract has been improperly expanded when it includes a larger scope, greater quantities, or options beyond the recipient’s reasonably anticipated needs. A contract has also been improperly expanded when excess capacity has been added primarily to permit assignment of those contract rights to another entity. The Common Grant Rules require the recipient to have procurement procedures that preclude the recipient from acquiring property or services it does not need.
10.2.2 Cardinal Changes; Tag-ons. A significant change in contract work (property or services) that causes a major deviation from the original purpose of the work or the intended method of achievement, or causes a revision of contract work so extensive, significant, or cumulative that, in effect, the contractor is required to perform very different work from that described in the original contract, is a cardinal change. Such practices are sometimes informally referred to as “tag-ons.” A change within the scope of the contract (sometimes referred to as an “in-scope” change) is not a “tag-on” or cardinal change.
10.2.2.1 Identifying Cardinal Changes. Although FTA has provided
additional guidance in its Best Practices Procurement Manual, FTA has not developed a finite list of acceptable contract changes. Recognizing a cardinal change to a third party contract can be difficult. A cardinal change cannot be identified easily by assigning a specific percentage, dollar value, number of changes, or other objective measure that would apply to all cases.
10.2.2.2 Changes in Quantity. To categorize virtually any change in
quantity as a prohibited cardinal change (sometimes referred to as an “out-of-scope” change) fails to account for the realities of the marketplace and unnecessarily restricts a recipient from exercising reasonable freedom to make minor adjustments contemplated fairly and reasonably by the parties when they entered into the contract. The U.S. Supreme Court decision in Freund v. United States, 260 U.S. 60 (1922) supports FTA’s policy.
10.2.2.3 Tests. Among other things, customary marketing practices can
influence the determination of which changes will be “cardinal.” Other tests involve the nature and extent of the work to be performed, the amount of effort involved, whether the change was originally contemplated at the time the original contract was entered into, or the cumulative impact on the contract’s quantity, quality, costs, and delivery terms.
108 of 136
82 Procurement Manual Revised October 2018
10.2.2.4 Rolling Stock. In the case of rolling stock, a major change in quantity or a substitution of major end items not contemplated when competition for the original award took place would generally be a cardinal change. Another cardinal change would, at this time, include a change from a high-floor to a low-floor vehicle. Changing an engine might result in a cardinal change depending on the circumstances surrounding the project and whether a compatible replacement could be obtained through competition. FTA, however, considers changes to seating, fabrics, and colors, exterior paint schemes, signage, and floor covering, and other similar changes to be permissible changes.
10.2.2.5 Federal Procurement Standards. The broader standards applied
in Federal contracting practice reflected in Federal court decisions, Federal Boards of Contract Appeals decisions, and Comptroller General Decisions provide guidance in determining whether a change would be treated as a cardinal change. FTA does not imply that these Federal procurement decisions are controlling. FTA intends to consider the collective wisdom within these decisions in determining the nature of third party contract changes along the broad spectrum between permissible changes and impermissible cardinal changes.
109 of 136
83 Procurement Manual Revised October 2018
CHAPTER 11. CONTRACT ADMINISTRATION SECTION 11.1 General. The Project Manager assigned to the contract shall be responsible for monitoring and reviewing the project in order to determine whether contract terms and conditions are being met and, with the consultation of the Contracts and Compliance Department and SJRRC’s Legal Counsel, if needed, shall endeavor to resolve any problems concerning adherence to terms and conditions of the contract. All financial matters shall be coordinated with the Project Manager and the Fiscal Department. Consultation with the Director of Fiscal Services and Administration or designee will be as needed. SECTION 11.2 Notice To Proceed. Prior to issuing a Notice to Proceed, the Contracts and Compliance Department will check the www.sam.gov website to ensure the bidder/proposer does not have an active exclusion record during the pre-award phase. (See Section 3.1.8.3). The Contracts and Compliance Department shall issue the Notice to Proceed for all formally bid contracts and contracts awarded through competitive negotiations. For commodities and services, the Project Manager shall assume primary responsibility for purposes of communicating with all vendors, suppliers, and contractors as to the commencement and progress of the contract. With respect to construction contracts, the Director of Capital Projects, or designee shall serve as SJRRC’s authorized representative. The Project Manager or designee shall serve as the principal contact with bidders/proposers retained for services. SECTION 11.3 Maintenance of Procurement Records. The original executed contract for formally bid contracts and contracts awarded through competitive negotiations shall be maintained in the Contracts and Compliance Department. The Contracts and Compliance Department shall maintain a procurement/contract file for each SJRRC contract for materials, supplies and equipment, services and construction entered into by the SJRRC. The contract file shall contain all records sufficient to document the significant history of the contract, including all formal and informal communication between SJRRC and the vendor, supplier, or contractor. In addition, such file shall include, but not be limited to, the following records:
11.3.1 Document Method Selection. Any and all documents evidencing the rationale for the method of procurement;
11.3.2 Documents relating to Selection. Any and all documents relating to the selection of the vendor, supplier, or contractor, including the excluded parties listing in SAM.gov. shall be printed and included in the procurement file;
11.3.3 Changes. Change orders and contract amendments. SECTION 11.4 Change Orders and Contract Amendments.
11.4.1 Summary. When, in the course of the performance of a contract, the Project Manager deems it necessary that extra work be performed, or that certain authorized work be omitted, or that modifications be made regarding the contract requirements, then a written change order must be issued to the Contractor. The parties may disagree as to the price of any contract modification; these change order procedures assume that any such price dispute has been resolved. Resolution of disputes concerning change orders shall be made in accordance with the procedures outlined in Section 11.5, “Resolution of Contract Claims or Disputes.”
11.4.2 Change Order Requirements. The Project Manager will monitor compliance with the technical requirements of the contract, but shall have no authorization unilaterally to implement changes in the scope of work. When such changes are initiated by SJRRC, the Contracts and Compliance Department shall request a proposal from the contractor covering the areas of cost impact, schedule change, and increase or decrease in scope. All formally bid contracts and contracts awarded through competitive negotiations shall require that the contractor advise SJRRC in writing immediately upon notice of any unanticipated condition or contingency that may cause a change in the scope of work or an adjustment in the specified compensation. The written notice shall explain the circumstances giving rise to the unforeseen condition or contingency and shall set forth the proposed adjustment in compensation resulting therefrom. Such notice shall be given to SJRRC prior to the time that contractor performs work or services giving rise to the proposed adjustment in compensation. The Executive Director may authorize Change Orders under his/her purchasing authority. If the Change Order is above the Executive Director purchasing authority, the Board must authorize.
11.4.3 Procedures as to Change Orders. The Project Manager in coordination with the Contracts and Compliance Department shall prepare a Change Order/Contract Amendment Requisition and provide supplemental information as necessary to adequately describe the contract, the contract modification required, and the reasons therefore. The request shall be reviewed and approved by the Contracts and Compliance Department and a Director or designee.
111 of 136
85 Procurement Manual Revised October 2018
11.4.4 Commodities and Services. For commodities and services, the Project Manager shall verify the estimated cost of the contract modification and shall transcribe the documentation onto an accepted change order form. The change order shall identify the cost of the contract modification in both dollar amount and percentage increase over the original Contract price. Contracts and Compliance Department shall verify that the change order complies with the terms of the Board Resolution authorizing the original Contract. The Director of Capital Projects or designee shall perform these functions for construction contracts. The initiating Project Manager or designee shall perform these functions for professional services agreements.
11.4.5 Action by Executive Director. Except as otherwise provided by resolution
of the Board, the Executive Director is authorized to approve change orders to contracts awarded in accordance with the procedures set forth in this Procurement Manual if the following criteria are met:
11.4.5.1 Funding. The change order can be funded within the contract
contingency;
11.4.5.2 Amount. The change order does not exceed the amount of the Executive Director purchasing authority. In no event shall the Executive Director approve change orders if the total value of change orders exceeds the Project contingency for the particular contract.
11.4.5.3 Other Change Orders. All other change orders shall be approved by the Board.
11.4.6 Issuance. Upon the completion of this review and approval process, the change order shall be issued to the Contractor.
11.4.7 Scope. With respect to FTA-funded projects, a change order that is not within the scope of the original contract must meet FTA’s criteria for noncompetitive procurement.
SECTION 11.5 Resolution of Contract Claims or Disputes.
11.5.1 Presentation. In the event that a dispute arises as to the payment of any additional compensation arising out of any Change Order issued by SJRRC or for any cause, including any alleged act or failure to act by SJRRC, or the happening of any event, thing or occurrence, the Contractor shall submit a written notice of potential claim to the Project Manager or designee. The written notice of potential claim shall set forth
112 of 136
86 Procurement Manual Revised October 2018
the reasons for which the Contractor believes additional compensation will or may be due, the nature of the cost involved, and, insofar as possible, the amount of the potential claim. The notice must be given to SJRRC prior to the time that the Contractor performed any work giving rise to the potential claim for additional compensation, if based on any act or failure to act by SJRRC, or in all other cases, within 15 days after the happening of the event, thing, or occurrence giving rise to the potential claim. The purpose of this requirement is to bring to the attention of SJRRC potential disputes at the earliest possible time in order that such matters may be settled. In the event that a Contractor fails to file written notice of a potential claim as herein required, SJRRC may determine that the Contractor has waived entitlement to any additional compensation for such claim. In SJRRC’s discretion, it may direct the Contractor to perform the work subject to the claim and adjudicate the claim during or after the performance of said work.
11.5.2 Review, Investigation, and Determination. The Contracts and Compliance Department shall review with the Executive Director and Legal Counsel, as needed, the notice of potential claim and shall conduct any investigation that may be required to ascertain the facts and circumstances surrounding the claim. The Contracts and Compliance Department shall assess the merits of the claim and shall consult with the Executive Director and Legal Counsel, as needed, to make a determination regarding the claim. The Contracts and Compliance Department shall prepare and forward to the Contractor a written determination of the claim as soon as reasonably possible following receipt of the notice of potential claim. The determination shall be final and conclusive. SECTION 11.6 Exercise of Options.
11.6.1 Determination to Exercise. In deciding whether to exercise an option, SJRRC shall make its determination on the basis of the following methods of price analysis:
11.6.1.1 A new solicitation fails to produce a better price or a more advantageous offer than that offered by the option;
11.6.1.2 An analysis of prices or an examination of the market indicates that the option price is better than prices available in the market or that the option is the more advantageous offer; or
11.6.1.3 The time between the award of the contract containing the option and the exercise of the option is so short that it indicates the option price is the lowest price obtainable or the more advantageous offer.
113 of 136
87 Procurement Manual Revised October 2018
11.6.2 Additional Findings. The Contracts and Compliance Department shall make the following additional findings regarding the exercise of such options: (a) the Project Manager shall evaluate the performance of the Contractor to determine if said performance has been satisfactory; and (b) with the advice of the Fiscal Department and the Planning and Programming Department, the Project Manager shall determine whether there are sufficient funds in the adopted budget for the project to extend or renew the term pursuant to the option.
11.6.3 Action by Executive Director. Based upon the foregoing analysis, the Contracts and Compliance Department shall forward to the Executive Director a recommendation regarding the exercise of the contract option. The Executive Director shall have the authorization to exercise the option at his/her discretion when the cost of exercising the option does not exceed the option price included in the original purchase price and is within the approved budget. Renewal or extension of the contract term shall be in accordance with those terms and conditions specified in the original Solicitation Documents. SECTION 11.7 Returns.
11.7.1 Failure to Comply. Upon receipt of any procured supplies, equipment, or
materials, the Project Manager or designee shall verify that the items procured comply with the description and technical requirements in the contract or Purchase Order. In all cases where the items procured do not comply, whether because of shortage, excess, defect, or other discrepancy, The Project Manager or designee shall communicate in writing with the vendor or supplier concerning the discrepancy; copies of such correspondence shall be maintained by the Project Manager and forwarded to the Contracts and Compliance Department and the Fiscal Department. The Project Manager shall continue to forward correspondence until the discrepancy is resolved.
11.7.2 Notice of Failure and Settlement. The Project Manager shall give notice of any failure by the vendor or supplier to cure such discrepancy in a timely manner to the Contracts and Compliance Department and Legal Counsel, if needed. No settlement or agreement shall be made with the Contractor or supplier without first obtaining the approval of the Executive Director and Legal Counsel as needed. SECTION 11.8 Warranty Repairs.
11.8.1 Warranty Claim. A written warranty claim shall be filed promptly with the Contractor upon discovery of any breakdown, patent or latent defect, or other failure in
114 of 136
88 Procurement Manual Revised October 2018
any item procured that is under warranty, following consultation with Legal Counsel, if needed, and confirmation that the failure is covered by the warranty.
11.8.2 Failure to Satisfy Warranty. Legal Counsel should be informed of any failure by the Contractor to timely meet its obligations under the warranty. In contracts where the term of the performance bond is extended to cover the warranty period, the Contracts and Compliance Department, with a copy to Legal Counsel, shall notify the surety in writing on such bond of any such failure on the part of the Contractor. SECTION 11.9 Contract Expiration. The Contracts and Compliance Department shall provide notice to the Project Manager whenever a contract is due to expire. If needed, the Contracts and Compliance Department shall develop a new solicitation document and forward it to the Project Manager for review and approval. The Project Manager shall review and recommend changes to the Solicitation Documents and return the corrected copy of the documents to the Contracts and Compliance Department. The Contracts and Compliance Department will make the necessary changes to the new document and forward it to Legal Counsel for review and approval, if needed. Notwithstanding that the contract is a renewal, all applicable procedures as set forth in this Procurement Manual shall be followed. SECTION 11.10 Contract Closure.
11.10.1 Close-Out Form. The Contracts and Compliance Department shall issue
a close-out form or letter for completed contracts when notified by the Project Manager that the final product is received and all contractual obligations have been met.
11.10.2 Performance Comments. At the time of contract closure, the Contracts and Compliance Department, the Project Manager and Legal Counsel, if needed, shall have the opportunity to submit comments to the file on the contractor’s performance. Such comments will be relevant for future contracting purposes. SECTION 11.11 Construction Administration.
11.11.1 Project Manager. Construction Contracts normally are administered by
SJRRC’s Director of Capital Projects or designee. Progress payment vouchers within the contract budget shall be reviewed and approved by the Construction Project Manager and a Director or designee, as to work completed and payments due, whereupon SJRRC shall issue payment to the Contractor.
115 of 136
89 Procurement Manual Revised October 2018
11.11.2 Claims. Procedures for resolving claims or disputes arising out of construction contracts shall be in accordance with the applicable provisions of the particular contract specifications and applicable statutes, including without limitation P.C.C. 9204. The requirements of P.C.C. Section 20104 shall be followed for all public works claims of $375,000 or less.
11.11.3 Stop Notices. Upon receipt of a properly submitted stop notice, one
hundred twenty-five percent (125%) of the claimed amount shall be withheld from payment to the Contractor. In cases of doubt due to any legal technicality, the Director of Capital Projects shall consult with Legal Counsel, as needed, for assurance that all formalities have been completed in accordance with applicable stop notice requirements and other laws.
11.11.4 Notice of Completion. The Executive Director shall execute the notice of
completion and the Contracts and Compliance Department shall cause its recordation, where such notice is necessary, and shall report that action to the Board, together with the report of all sums paid or to be paid on the contract, for all contracts originally awarded by the Board.
11.11.5 Notice of Completion for Construction Projects. The Executive Director
shall execute the Notice of Completion and the Contracts and Compliance Department shall cause its recordation within 15 days after completion of a work of improvement, and shall report that action to the Board, together with the report of all sums paid or to be paid on the contract, for all contracts originally awarded by the Board. The Compliance Department shall cause the Notice of Completion to be mailed to all contractors, subcontractors, material suppliers and equipment lessors that served a Preliminary Notice on SJRRC regarding the work of improvement.
11.11.6 Payment. In addition, SJRRC shall adhere to the following rules and
procedures in construction contract payment:
11.11.6.1 Progress Payments. If progress payments are used, in no event shall SJRRC release progress payments in excess of 95% of the actual work completed, plus a like percentage of the value of unused materials delivered by the contractor on one ground or stored subject to, or under the control of, the local agency. SJRRC shall withhold not less than 5% of the total contract price until final completion and acceptance of the project. However, at any time after 50% of the work has been completed, if SJRRC’s Board determines that satisfactory progress has been made, SJRRC may make remaining progress payments in full for actual work completed. (P.C.C. Section 9203.)
116 of 136
90 Procurement Manual Revised October 2018
11.11.6.2 Prompt Payment. SJRRC shall pay any progress payment within 30 days of receipt of an undisputed and properly submitted invoice from the contractor. Any invoice received by SJRRC and determined not to be a proper invoice shall be returned to the contractor no later than 7 days after receipt thereof, accompanied by a written explanation of why the invoice was not proper. (P.C.C. Section 20104.50.)
11.11.6.3 Escrow for Retention. If SJRRC withholds funds, it shall allow
the contractor to deposit securities equivalent to the monies withheld to SJRRC or to a bank, who shall then pay the withheld funds to the contractor. In the alternative, the contractor may request SJRRC to make payment of the retentions earned directly to an escrow agent, allowing the contractor to direct the investment of the payments into securities and to collect interest on the investments. (P.C.C. Section 22300.)
11.11.6.4 Retention. SJRRC shall release any retention withheld from the
contractor within 60 days of completion of the work. If there is a dispute as to an amount due to the contractor arising out of liens and/or deficiencies in the contractor’s performance, SJRRC may withhold from the final payment an amount not to exceed one hundred 150% of the disputed amount. (P.C.C. Section 7107.) SJRRC may not withhold from the final payment amounts pertaining to disputes over contract price or contractor claims for extra time or money.
117 of 136
91 719760-7
4622081.1
CHAPTER 12. SALE OF SURPLUS EQUIPMENT AND SCRAP ITEMS SECTION 12.1 Summary.
12.1.1 Surplus and Scrap. The Contracts and Compliance Department shall from time to time poll SJRRC’s Department Managers in order to determine whether any supplies, equipment, or materials might be considered surplus or scrap. With respect to items with an original acquisition cost not exceeding the Executive Director threshold, the Contracts and Compliance Department, with the concurrence of the Executive Director, shall make the determination as to the manner of disposition of the scrap or surplus items. The Board will approve the disposition of any item having an original acquisition cost greater than the Executive Director’s threshold.
12.1.2 Method of Disposition. The method of sale or disposition of any surplus or scrap items shall depend upon the nature of the items. Such methods shall include: (1) transfer or sale to other public agencies, (2) trade-in as part of a new procurement, (3) sale by auction, advertisement for bids, or negotiation, or (4) where appropriate, proper recycling or disposal. The Contracts and Compliance Department, under the direction of the Executive Director, shall have responsibility for carrying out the disposition procedures for surplus or scrap items. In all cases, steps shall be taken to indemnify SJRRC against loss or liability that may result from use of the items after disposition, transfer, or sale. All Solicitation Documents prepared in connection with the disposition, transfer or sale of surplus or scrap items shall be submitted to the SJRRC’s Legal Counsel, as needed, for review and approval. SECTION 12.2 Original Acquisition Cost Determination. The Contracts and Compliance Department along with the Fiscal Department will coordinate with the department that is using or holding the items to be sold in an “as is” condition. The using department will prepare adequate documentation describing the items and its method of original procurement. Such documentation shall be submitted to the Contracts and Compliance Department and the Fiscal Department. With the approval of the Executive Director, the Contracts and Compliance Department and the Fiscal Department shall determine the original acquisition cost and current fair market value or net book value. Depending upon the cost, determination will be made as to the manner of disposition.
118 of 136
92 Procurement Manual Revised October 2018
SECTION 12.3 Bid Procedure.
12.3.1 Advertisement. The surplus/scrap items may be disposed of by means of a bid procedure, conducted similarly to the formal competitive bid procedure. Upon appropriate determination and approval as described above, the Contracts and Compliance Department may cause a Notice of Sale to be placed in a newspaper of general circulation in the County of San Joaquin for a period of not less than two weeks. SJRRC’s website may also be used to advertise items for sale.
12.3.2 Notice. The Notice shall adequately describe the items to be sold, including, where appropriate, the original acquisition cost and date. The Notice shall state that the sale for cash shall be made to the highest responsive bidder, and that the items will be sold in an “as-is,” “where-is” and “with all faults” condition. The Notice may also specify the amount of a minimum bid, if any. The Notice may be sent to known interested dealers and other parties, including other transit properties. SECTION 12.4 Auction. The disposition of items may be undertaken by means of an auction. The sale may be conducted by SJRRC, or by a public auction service. Each item shall be sold to the highest bidder. SECTION 12.5 Other Methods of Disposal (Trade-In, Negotiation, Etc.) The Contracts and Compliance Department making the surplus/scrap determination may also provide for disposal of the items by any other reasonable means designed to maximize the property’s disposal value to SJRRC. Such alternate means of disposition may include trading the surplus/scrap property in for new supplies, equipment, and materials. In no case shall a trade-in represent a lower dollar value than could verifiably have been realized by means of another method of sale or disposition. The Contracts and Compliance Department, with the approval of the Executive Director, may also proceed to dispose of the property by negotiating the sale. SECTION 12.6 Revenue Generating Rolling Stock. In the case of any disposition of surplus/scrap revenue generating rolling stock, SJRRC upon the request of any interested party shall make available the maintenance records for the equipment. The operations & maintenance contractor, in coordination with the Director of Operations or designee, shall also be responsible for ensuring that no property that is not owned by SJRRC (e.g., leased property) is sold along with the vehicles. In addition, the disposal of any rolling stock that was purchased with federal funds must follow the special procedures outlined in Section 12.7, below.
119 of 136
93 Procurement Manual Revised October 2018
SECTION 12.7 Sale of FTA-Funded Property.
12.7.1 Summary. SJRRC disposition of property acquired in whole or in part with federal funds shall be in accordance with Circular A-102, as issued by the Office of Management and Budget on August 29, 1997, as may be amended or superseded. Broadly speaking, SJRRC must first obtain FTA approval prior to any disposition of FTA-funded property with a unit market value over $5,000, and with certain exceptions, a percentage of the proceeds from sale, equivalent to the percentage of the federal contribution to the original acquisition cost or current fair market value, must be returned to FTA upon the final disposition of the item(s). Equipment with a unit market value of $5,000 or less, or supplies with a total aggregate value of $5,000 or less, may be retained, sold or otherwise disposed of with no obligation to reimburse FTA, providing useful service life requirements have been met. With prior FTA approval, sale proceeds may be used to reduce the gross project cost of other FTA eligible capital transit projects. FTA Circular 5010.1E, as may be periodically updated, should be referenced for disposition of FTA-funded property.
12.7.2 Procedures.
12.7.2.1 Definitions.
12.7.2.1.1 “Acquisition cost”: Acquisition cost means the cost of the asset including the cost to prepare the asset for its intended use. The acquisition cost for equipment, for example, means the net invoice price of the equipment, including the cost of any modifications, attachments, accessories, or auxiliary apparatus necessary to make it usable for the purpose for which it is acquired. Acquisition costs for software include those development costs capitalized in accordance with GAAP. Other charges such as the cost of inspection, installation, transportation, taxes, duty or protective in-transit insurance should be treated in accordance with the applicant or recipient’s regular accounting practices, as separate line items. The cost of items separately installed and removable from rolling stock, such as fareboxes and radios, is treated as a separate acquisition and not as part
12.7.2.1.2 “Excess Property”: Excess property means property that
the recipient determines is no longer required for its needs or fulfillment of its responsibilities, and has not met its useful life under the recipient’s Grant or Cooperative Agreement.
12.7.2.1.3 “Intangible Property”: Intangible property means property
having no physical existence, such as trademarks, copyrights, patents and patent
120 of 136
94 Procurement Manual Revised October 2018
applications, and property, such as loans, notes and other debt instruments, lease agreements, stock and other instruments of property ownership (whether the property at issue is tangible or intangible).
12.7.2.1.4 “Personal Property”: Personal property means property
other than real property. It may be tangible if it has a physical existence, or intangible, if it does not have a physical existence.
12.7.2.1.5 “Project Property”: Project property means any real
property, equipment, supplies, or improvements included in the costs of an FTA-assisted project, regardless of whether such property was acquired using FTA assistance, was provided as the nonfederal share, donated by a third party, or acquired in some other way.
12.7.2.1.6 “Real Property”: Real property is land and anything permanently affixed to the land, such as buildings, fences, and those things attached to the buildings that, if removed, would deface the structure or integrality of the building, such as plumbing, heating fixtures, etc.
12.7.2.1.7 “Useful Life”: Useful life, for purposes of this Circular,
means the minimum acceptable period a capital asset purchased with FTA funds should be used in service. Capital assets purchased with FTA funds may frequently be used beyond their minimum useful lives, without being considered part of a grantee’s state of good repair backlog. The minimum useful life for rolling stock is calculated based on the date the vehicle is placed in revenue service and continues until it is removed from service. Note: Land does not depreciate and does not have a useful life. However, constructions, buildings, and improvements occupying the land do have useful lives.
12.7.2.2 Disposition of Property.
12.7.2.2.1 Unless otherwise agreed to by FTA in writing SJRRC will
follow the procedures in FTA Circular 5010.1E and Circular A-102, as issued by the Office of Management and Budget on August 29, 1997, as may be amended or superseded for Disposition of FTA funded property.
See Chapter 14 for acquisition and disposition of real estate property. SECTION 12.8 Prohibited Sales.
12.8.1 Sale Prohibited. Sale of items shall not be permitted to any of the following:
121 of 136
95 Procurement Manual Revised October 2018
12.8.1.1 Members of the Board;
12.8.1.2 SJRRC employees and Officers, their families, partners or agents.
122 of 136
96 Procurement Manual Revised October 2018
CHAPTER 13. CONTRACT TYPES SECTION 13.1 Approved Contract Types. SJRRC shall use the following approved contract types when contracting for goods and services (excluding construction) on behalf of SJRRC. SJRRC Legal Counsel shall, as needed, approve all contract types as to form either individually or as a class.
13.1.1 Firm Fixed Price. This contract type puts the maximum risk of performance
on the contractor and reduces the risk of cost performance on SJRRC. The prices contained in the contract are firm and fixed. There are fixed price contracts that contain economic or price re-determination clauses but these clauses shall only be added, as needed, with the approval of SJRRC Legal Counsel and the Executive Director prior to the issuance of a solicitation.
13.1.2 Cost Plus Fixed Fee. This type of contract is used when the total price of
the goods or services being purchased cannot be estimated with any certainty. It provides that a contractor will be compensated their actual costs plus a fixed fee. The contract must have an acceptable cost accounting system and will only be reimbursed those costs that are consistent with Federal Cost Principles or a cost standards promulgated by SJRRC. Variations of this contract type include award fee and cost reimbursement contracts. Any use of this contract type or any variation must be approved by and the Executive Director or designee prior to issuance of a solicitation. SJRRC Legal Counsel shall be consulted as needed.
13.1.3 Time and Materials. This contract type is used only after a written
determination is made that no other contract type is suitable. The contract must specify a ceiling price that the contractor shall not exceed except at its own risk. When considering this contract type, the evaluation will include the analysis of proposed rates and not necessarily the bottom line price. The analysis of bottom line price may be appropriate for services that are relatively homogenous with well-established industry standards of performance. Labor Hour contracts are variations of Time and Materials contracts and shall be processed in accordance with the same guidelines and rules contained in this section.
13.1.4 Unpriced Purchase Orders. Unpriced Purchase Orders may be used on
small purchases less than the threshold for formal purchase procedures. These contracts provide an agreed to amount of compensation for the contractor to teardown, test, and evaluate items of repair. The contractor then negotiates a price with SJRRC or classifies
123 of 136
97 Procurement Manual Revised October 2018
the repair action within pre-established pricing categories that are subject to concurrence of SJRRC. The contractor is then compensated on the agreed upon rates.
13.1.5 Revenue Contract. A revenue contract is a contract in which the recipient
or subrecipient provides access to public transportation assets for the primary purpose of either producing revenues in connection with an activity related to public transportation, or creating business opportunities
13.1.6 Joint Development. In the case of joint development, as explained below, FTA will work with the recipient to determine appropriate procedures, as necessary. Many public transportation agencies form partnerships with the private sector in order to promote real estate development in and around transit facilities, which is often referred to as “joint development.” Although FTA joint development projects are primarily a means to provide private capital to transit projects, joint development projects combine aspects of federally assisted construction and revenue contracting. FTA has published joint development guidance, including third party contracting guidance in a “Notice of Final Agency Guidance on the Eligibility of Joint Development Improvements under Federal Transit Law,” 72 FR 5788, February 7, 2007. Section VI of the Joint Development guidance addresses FTA’s third party contracting requirements.
13.1.6.1 Construction Contracts. This circular applies to FTA assisted
construction aspects of a joint development project.
13.1.6.2 Revenue Contracts. FTA will work with the recipient on a case-by-case basis to craft approaches suitable for revenue contracts as defined in this circular. FTA’s concern is that procedures used satisfy Federal statutory and regulatory requirements for competition while preserving the benefits of joint development to the maximum possible extent.
13.1.6.3 Other Contracts. If a contract between a recipient and a third party
involving a joint development project is not a construction contract or a revenue contract as defined in this circular, then that contract is not covered by FTA’s third party contracting provisions. For example, third party contracts to manage, operate, or maintain intercity bus or intercity rail terminals, or tenancy agreements with third party intercity bus or intercity rail operators are the types of operations contracts not covered by FTA’s third party contracting provisions. Nevertheless, even in situations not covered by the third party contracting provisions, FTA generally favors full and open competition.
13.1.7 Public-Private Partnerships. A Public-Private Partnership (PPP) is a formal contractual arrangement between a public recipient and one or more private partners
124 of 136
98 Procurement Manual Revised October 2018
establishing a mechanism for procuring property and services under which the private sector assumes some of the public sector’s customary role in the planning, financing, design, construction, operation, and maintenance of a transportation facility compared to traditional procurement methods, many of which activities are generally controlled by the public sector partner. As part of FTA’s interest in fostering PPPs, FTA is considering which procurement and other requirements may be modified to simplify project implementation, including procurement requirements that are redundant with private sector safeguards, incentives, and obligations. While a recipient that has not formed a PPP may use some of the contract delivery arrangements or project delivery systems listed below, FTA is considering the implications for PPPs that use the following types of contracting delivery arrangements or project delivery systems, including, but not limited to:
13.1.7.1 Design-Build,
13.1.7.2 Design-Build with a Warranty,
13.1.7.3 Construction Manager at Risk,
13.1.7.4 Design-Build-Operate-Maintain,
13.1.7.5 Design-Build-Finance-Operate,
13.1.7.6 Build-Operate-Transfer,
13.1.7.7 Build-Own-Operate, and
13.1.7.8 Full Delivery or Program Management. For a description of these types of PPPs, see FTA “Notice of establishment of Public-Private Partnership Pilot Program; solicitation of applications,” 72 FR 2583, esp. 2584, 2585-2591, January 19, 2007.
13.1.8 Consultation as to PPP. As a starting point, FTA expects the parties to the PPP to apply the requirements of this circular to FTA assisted projects they undertake. A PPP recipient seeking an exception from specific provisions of this circular should contact the FTA Project Manager. FTA will work with the recipient to craft processes as necessary to satisfy the statutory and regulatory requirements for competition when FTA assistance is used while preserving the benefits of the innovative contracting strategy proposed to the maximum possible extent.
125 of 136
99 Procurement Manual Revised October 2018
13.1.9 Transactions Involving Complex Financial Arrangements. If a public transportation project involves the services of an “arranger” or similar facilitator, and those services will be financed with Federal assistance or the proceeds from the use of property supported with FTA assistance, FTA expects the recipient to use competitive procedures to select the “arranger.” If, however, a public transportation project involves the services of an “arranger” or similar facilitator whose services will not be financed with Federal assistance or the proceeds from the use of property acquired with FTA assistance, FTA encourages, but does not require, competition in the selection of that arranger. FTA also encourages the recipient to impose whatever conflict of interest provisions in its contract with the arranger the recipient may believe desirable. After the arranger is selected and then develops a transaction involving FTA assisted assets, FTA requires competition to the extent permissible in view of the limitations of securities regulations.
13.1.10 Force Account. FTA third party contracting guidance does not apply to a recipient’s use of its own forces to perform project work.
126 of 136
100 Procurement Manual Revised October 2018
CHAPTER 14. REAL PROPERTY ACQUISITION
SECTION 14.1 Real Property Acquisition.
14.1.1 Voluntary Acquisition of Real Property – No Federal Funds. Where SJRRC seeks to purchase real property from a voluntary seller without federal funds and will not acquire the real property through eminent domain or threat of eminent domain if negotiations fail to result in a voluntary sale, then unless otherwise required by the source of the funds or applicable state laws, rules, regulations, or guidelines, SJRRC may acquire the property without complying with the provisions of the California Eminent Domain Law (Cal. Code Civ. Proc. §§ 1230.010 et seq.), as amended (Eminent Domain Law), or the United States Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. §§ 4601 et seq.; 49 CFR §§ 24.1 et seq.), as amended (Uniform Act).
14.1.2 Voluntary Acquisition of Real Property – With Federal Funds. Where
SJRRC seeks to purchase real property from a voluntary seller with federal funds and will not acquire the real property through eminent domain or threat of eminent domain if negotiations fail to result in a voluntary sale, then provided SJRRC complies with 49 CFR § 24.101(b)(1), and unless otherwise required by the source of the funds or applicable state or federal laws, rules, regulations, or guidelines, SJRRC may acquire the property without complying with the provisions of the Eminent Domain Law or Subpart B of the Uniform Act. (49 CFR Part 24, §§ 24.101-24.108.)
14.1.3 Acquisition of Real Property Through Eminent Domain or Threat of
Eminent Domain – No Federal Funds. Where SJRRC seeks to acquire real property without federal funds and will use eminent domain if negotiations fail to result in a voluntary sale, then SJRRC will comply with the Eminent Domain Law, conditions (if any) imposed by the source of the funds, and any other applicable state laws, rules, regulations, and guidelines.
14.1.4 Acquisition of Real Property Through Eminent Domain or Threat of
Eminent Domain – With Federal Funds. Where SJRRC seeks to acquire real property with federal funds and will use eminent domain if negotiations fail to result in a voluntary sale, then SJRRC will comply with the Uniform Act, the Eminent Domain Law, conditions (if any) imposed by the source of the funds, and any other applicable state and federal laws, rules, regulations, and guidelines.
127 of 136
101 Procurement Manual Revised October 2018
SECTION 14.2 Relocation Assistance for Displaced Persons. 14.2.1 Relocation Assistance – No Federal Funds. In connection with the
acquisition of real property without federal funds, SJRRC will comply with the California Relocation Act (Cal. Gov. Code §§ 7260 et seq.; 25 CCR §§ 600 et seq.), as amended, and any other requirement(s) imposed by the source of the funds, and applicable state laws, rules, regulations, and guidelines regarding the provision of relocation assistance to displaced persons and businesses.
14.2.2 Relocation Assistance – With Federal Funds. In connection with the
acquisition of real property with federal funds, SJRRC will comply with the Uniform Act and any other requirement(s) imposed by the source of the funds, and applicable state and federal laws, rules, regulations, and guidelines regarding the provision of relocation assistance to displaced persons and businesses.
128 of 136
102 Procurement Manual Revised October 2018
129 of 136
SAN JOAQUIN REGIONAL RAIL COMMISSION Meeting of October 5, 2018
STAFF REPORT
Item 6 ACTION
Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Authorizing a Four-Year and Eight-Month Contract with Two One-Year Options for E-Procurement Solutions System to PlanetBids, Inc. for an Amount Not-to-Exceed $164,550 from November 1, 2018 through June 30, 2023, and Authorizing and Directing the Executive Director to Execute the Agreement Background: SJRRC is seeking to implement an electronic procurement solution to replace its manual process of its procurement activities. SJRRC’s main objective is to explore a web-based software that will increase efficiencies, accuracy, and productivities of its procurement process from pre-solicitation, pre-award, award, and contract management processes. On July 18, 2018, SJRRC released a Request for Proposals for the solicitation of an E-Procurement Solution System, with proposals due on August 17, 2018. As a result of the solicitation, the Rail Commission received proposals from the following firms:
• Eide Bailly Technology Consulting • Periscope Holdings, Inc. • PlanetBids, Inc.
The proposals were evaluated by a panel consisting of SJRRC’s Contracts and Compliance Assistant and Associate Planner, as well as the Director of Procurement from the San Joaquin Regional Transit District. After the initial evaluation of the written proposals, the following two (2) firms were invited for interviews, which included oral presentations and demonstrations:
• Periscope Holdings, Inc. • PlanetBids, Inc.
The firms were evaluated on their presentations, demonstrations, and staff’s questions and answers. After combining the scores of the initial evaluation with the interviews scores, staff deemed PlanetBids, Inc. as the most responsive and responsible proposer. The contract to be awarded is for an amount not-to-exceed $164,550 total for the initial four-year and eight-month period, of which $29,950 is for System Implementation, Training, Licenses, Hosting, Maintenance, and Support. Fiscal Year Description Contract Amount 18/19 Implementation $29,950 19/20 Licenses, Hosting, Ops & Maintenance $33,650 20/21 Licenses, Hosting, Ops & Maintenance $33,650
130 of 136
21/22 Licenses, Hosting, Ops & Maintenance $33,650 22/23 Licenses, Hosting, Ops & Maintenance $33,650 The two one-year options are at the sole discretion of SJRRC and any cost for the option-years will be negotiated in advance. Fiscal Impact: Costs associated with the first year of the Agreements are identified in the SJRRC/ACE/SJJPA Fiscal Year 2018/2019 in the Professional Services – General line. Future year’s costs will be brought before the Board for consideration as part of the annual Budget approval process. Recommendation: Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Authorizing a Four-Year and Eight-Month Contract with Two One-Year Options for E-Procurement Solutions System to PlanetBids, Inc. for an Amount Not-to-Exceed $164,550 from November 1, 2018 through June 30, 2023, and Authorizing and Directing the Executive Director to Execute the Agreement.
131 of 136
RESOLUTION SJRRC-R-18/19-12
RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SAN JOAQUIN REGIONAL RAIL COMMISSION AUTHORIZING A FOUR-YEAR AND EIGHT-MONTH CONTRACT WITH TWO ONE-YEAR OPTIONS FOR E-PROCUREMENT SOLUTIONS
SYSTEM TO PLANETBIDS, INC. FOR AN AMOUNT NOT-TO-EXCEED $164,550 FROM NOVEMBER 1, 2018 THROUGH JUNE 30, 2023, AND AUTHORIZING AND
DIRECTING THE EXECUTIVE DIRECTOR TO EXECUTE THE AGREEMENT
WHEREAS, the San Joaquin Regional Rail Commission (“SJRRC”) desires a consultant to provide an e-procurement solution system; and
WHEREAS, a Request for Proposals was released on July 18, 2018 with proposals
due August 17, 2018; and WHEREAS, on August 17, 2018, SJRRC received three (3) proposals; and WHEREAS, the three (3) proposals were reviewed for completeness and
responsiveness and evaluated as part of the procurement process; and WHEREAS, two (2) proposers were invited for oral presentations, demonstration
and interviews as part of the evaluation process; and WHEREAS, staff deemed PlanetBids, Inc. as the most responsive, responsible
proposer; and NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of the
San Joaquin Regional Rail Commission hereby Authorize a Four-Year and Eight-Month Contract with Two One-Year Options for E-Procurement Solutions System to PlanetBids, Inc. for an Amount Not-to-Exceed $164,550 from November 1, 2018 through June 30, 2023, and Authorizing and Directing the Executive Director to Execute the Agreements.
PASSED AND ADOPTED, by the Board of Commissioners this 5th day of October
2018, by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: SAN JOAQUIN REGIONAL
RAIL COMMISSION
_____________________________ _____________________________ STACEY MORTENSEN, Secretary STEVE DRESSER, Chair
132 of 136
SAN JOAQUIN REGIONAL RAIL COMMISSION Meeting of October 5, 2018
STAFF REPORT
Item 7 INFORMATION
Valley Rail Update Project Matrix Attached to this staff report is a project matrix developed as a project management communication tool to provide updates on the current delivery status of projects associated with the Valley Rail Program. For these projects, SJRRC is the managing agency and is responsible to ensure the successful delivery of the projects identified. Please see project notes section on the spread sheet for related information.
Fiscal Impact: There is no fiscal impact.
Recommendation: This is an informational item. There is no action requested.
133 of 136
San Joaquin Regional Rail Commission Master Project Matrix As of 9/28/201810:26 AM
Program Name Project Project DescriptionProject Approval
Environmental DevelopmentPlans, Specifications,
and Estimates Right of Way Begin Construction Other Overall Project
Budget Comments / Current Status TIRCP SB 132 State of Good
Repair FTA 5307FHWA FT
Prop 1AHSPTB
2016 Earmark Measure K SJRRC SRA SJJPA SRA FTA 5307 FTA 5337 CMAQ LCTOP Carl Moyer CAHSR
Prop 1BTSSSDRA
Prop 1BPTMISEA SJCOG RTIF
SWAT Liability CALOES TBD
Project Manager
Grants Manager
Valley Rail (Entire Project)
Extension of ACE Service to Ceres/Merced and Natomas (Oakley and Stockton Wye included in SJJPA list)
Ceres ExtensionFEIR In Process
Natomas ExtensionED In Process 1,037,923,378$ 516,959,000$ 400,000,000$ 2,812,953$ 10,579,000$ 6,879,687$ 1,205,399$ 7,100,000$ 3,500,000$ 645,800$ 7,500,000$ 20,000,000$ 60,741,539$
Valley Rail - ACE Only Cab Car Purchase Purchase of Five (5) Bi-Level Cab CarsCompleted 06/21/2018
CEQA - Notice of ExemptionIn Progress
October 2018AnticipatedEarly 2019 22,500,000$
Joint RFP with Sound Transit RFP Scheduled to be released October 2018 19,000,000$ 3,500,000$ -$ Schmidt Peterson
Valley Rail - ACE Only Tier 4 Locomotive Procurement Procurement of (4) Tier 4 LocomotivesCompleted 06/23/2017
CEQA - Notice of Exemption N/A N/A
CompletedBegan Fabrication
June 2018 32,396,568$
Fabrication in process expected, #1 December 2019 though #4 September
Valley Rail - ACE and San Joaquin City College Station Construction of the City College Station
In ProgressTBD
CEQA - Sac. Ext. - EDAnticipated
2020 15,598,866$ CEQA Environmental Document in
progress, expected March 2019 15,598,866$ -$ Sheridan Peterson
Valley Rail - ACE and San Joaquin Elk Grove Station Construction of the Elk Grove Station
In ProgressTBD
CEQA - Sac. Ext. - EDAnticipated
2020 26,407,507$ CEQA Environmental Document in
progress, expected March 2019 26,407,507$ -$ Sheridan Peterson
Valley Rail - ACE and San Joaquin Lodi Station Construction of the Lodi Station
In ProgressTBD
CEQA - Sac. Ext. - EDAnticipated
2020 20,266,616$ CEQA Environmental Document in
progress, expected March 2019 20,266,616$ -$ Sheridan Peterson
Valley Rail - ACE and San Joaquin Midtown Station Construction of the Midtown Station
In ProgressTBD
CEQA - Sac. Ext. - EDAnticipated
2020 15,579,576$ CEQA Environmental Document in
progress, expected March 2019 15,579,576$ -$ Sheridan Peterson
Valley Rail - ACE and San Joaquin Natomas Layover Facility Construction of the Natomas Layover Facility
In ProgressTBD
CEQA - Sac. Ext. - EDAnticipated
2020 17,653,384$ CEQA Environmental Document in
progress, expected March 2019 17,653,384$ -$ Sheridan Peterson
Valley Rail - ACE and San Joaquin Natomas/Airport Station Construction of the Natomas/Airport Station
In ProgressTBD
CEQA - Sac. Ext. - EDAnticipated
2020 18,679,548$ CEQA Environmental Document in
progress, expected March 2019 18,679,548$ -$ Sheridan Peterson
Valley Rail - ACE and San Joaquin Old North SacramentoConstruction of the Old North Sacramento Station
In ProgressTBD
CEQA - Sac. Ext. - EDAnticipated
2020 22,416,809$ CEQA Environmental Document in
progress, expected March 2019 5,651,682$ 16,765,127$ Sheridan Peterson
Valley Rail - ACE and San JoaquinSacramento Subdivision Track Improvements MP 97.08 to 97.38 Construction of curve speed increases
In ProgressTBD
CEQA - Sac. Ext. - EDAnticipated
2020 413,855$ CEQA Environmental Document in
progress, expected March 2019 413,855$ -$ Sheridan Peterson
Valley Rail - ACE and San JoaquinSacramento Subdivision Track Improvements MP 114.73 to 115.04 Construction of curve speed increases
In ProgressTBD
CEQA - Sac. Ext. - EDAnticipated
2020 352,185$ CEQA Environmental Document in
progress, expected March 2019 352,185$ -$ Sheridan Peterson
Valley Rail - ACE and San JoaquinSacramento Subdivision Track Improvements MP 117.18 to 117.55 Construction of curve speed increases
In ProgressTBD
CEQA - Sac. Ext. - EDAnticipated
2020 403,515$ CEQA Environmental Document in
progress, expected March 2019 403,515$ -$ Sheridan Peterson
Valley Rail - ACE and San JoaquinSacramento Sub - Upgrade for Rideability
Upgrade the Sacramento Subdivision to improve the ride quality (Line and Surface)
In ProgressTBD
CEQA - Sac. Ext. - EDAnticipated
2020 18,728,190$ CEQA Environmental Document in
progress, expected March 2019 15,728,190$ 3,000,000$ Sheridan Peterson
Valley Rail - ACE and San Joaquin Stockton Wye
Construction of the NE quadrant track connection between the UPRR Fresno Subdivision and the BNSF Stockton Subdivision
In ProgressTBD
CEQA Document TBDAnticipated
2019 8,716,689$ CEQA Environmental Document
determination in process 1,616,689$ 7,100,000$ -$ Sheridan Peterson
Positive Train Control Installation of Positive Train Control 4,669,067$ Installation in process 71,600$ 2,617,663$ 373,058$ 580,167$ 1,026,579$ -$ Schmidt
East Channel Street ImprovementsConstruction of Improvements to Channel Street West of the Cabral Station 2,042,287$
RFP released for Environmental/Preliminary/Final
Engineering September 2018 2,000,000$ 42,287$ -$ Herman
Robert J. Cabral ExpansionConstruction of Parking Lot on WP Depot Property
Passenger Information Displays Installation of Passenger Displays at Stations 600,000$ 600,000$ ChapaE-Ticketing 354,613$ Implementation in process 106,439$ 248,174$ -$ Rasheed
Loyth Derail
Installation of Power Operated Derail on the Oakland Subdivision to eliminate speed restriction 500,000$
Currently coordinating project with UPRR
Station Improvements Fremont Platform Extension
Extend the Fremont Platform by 400 feet to allow for 10-car train to board and alight passengers. 3,400,000$
Developing Environmental Documentation 3,400,000$
ACE VSS Phase 2ACE Video Surveillance System Phase 2 - Fremont Station Camera Installation Completed
CompletedDesign/Build Project N/A
In Progress,Completion Date
11/27/2018 1,166,640$ Construction in progress 72,194$ 1,094,447$ -$ Pennino
Highlight LegendGreen = CompletedOrange = In ProgressBold = High Priority Page 1 of 1
134 of 136
SAN JOAQUIN REGIONAL RAIL COMMISSION Meeting of October 5, 2018
STAFF REPORT
Item 8 INFORMATION
Service Improvement Plan Regarding Fare Increase Comments Background: In August of 2018, the SJRRC Board approved a 6% fare increase. In collecting public comments for the fare increase, several comments were raised by passengers of proposed improvements they would like to see regarding the fare increase. Comments focused on three main areas: increased capacity, additional parking, and improved WiFi. Plans are underway to address capacity issues. In April of 2018, the SJRRC Board approved the purchase of four new Siemens Charger locomotives, and the first one will be delivered in late 2019, with three additional delivered in the spring of 2020. These new locomotives will allow ACE trains to expand from seven car train sets, to ten car train sets. In mid-2018, the SJRRC Board approved the purchase of additional cars, with planned delivery of 2020. The additional cars with the new locomotives will increase capacity by 40%. In addition to the new equipment, new seats are being installed on our current train cars, and are ongoing until complete. Parking was another issue brought up by riders in their comments on the fare increase, most notably at the Lathrop/Manteca station. To address parking issues, the SJRRC is working with two transit partners, Manteca Transit and the Modesto Max, to encourage riders to use the bus service that serves the Lathrop/Manteca station. SJRRC staff are also working with the City of Lathrop and the surrounding business parks on options for additional temporary parking. With the August approval of Phase 1 of the Extension of Lathrop to Ceres, a North Lathrop station at the current Sharpe Army Depot will add significant additional parking. In Stockton, additional parking has been added in the area surrounding the Western Pacific station. WiFi was another issue that was brought up in passenger comments regarding the fare increase.
135 of 136
In the fall of 2016, WiFi was installed on all train cars as a free amenity to passengers. The WiFi system incorporates AT&T, Verizon, and T-Mobile to maximize coverage throughout the corridor. At the beginning of 2018, Verizon offered new routers for free, which offered higher speed and more bandwidth to accommodate the increased ridership. However, Verizon changed the data plan that we had previously been on to one with a data cap, that slowed speeds once a certain data threshold had been reached. With half of the routers already installed, we are working with Verizon to restore our plans back to the original, uncapped plan before installing the rest of the routers. Our WiFi vendor is working with Verizon to ensure that this issue does not come up with the additional routers to be installed. AT&T also has a new free component to add to the routers, to increase bandwidth and speed, and those components will be installed once received from AT&T. SJRRC staff are working with WiFi vendor HobNob on additional options to increase capacity, as ridership has increased significantly since the WiFi was initially installed, including costs on additional routers or other mobile internet service.
