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Agenda Item # 18

BOARD MEMORANDUM

RECOMMENDATION:

Authorize the General Manager to execute a contract with Orthopaedic Hospital for the operation of the Paratransit Eligibility Certification Program.  The term of the contract is for three years beginning July 1, 2003, with two one-year options, at a cost of $566,922 for the first year, $580,845 for the second year and $595,116 for the third year.  Option years four and five are $615,595 and $636,791, respectively. The total amount of the contract is $2,995,300 for the five-year period. 

BACKGROUND:

During the past thirteen months, VTA, Outreach and a consultant team have been developing various options for improving paratransit operations and controlling costs.  Due to VTAs current financial situation, the implementation of cost-containment methodologies is essential.  To that end, VTA, with the assistance and advice of a team with expertise in paratransit service operation, has developed a four-phased Paratransit Service Business Practices Improvement Plan.  The plan includes strategies to improve productivity, increase revenue and decrease costs while continuing to provide a high quality transportation service to this very important community. 

Phase I of the Paratransit Service Business Practices Improvement Plan has been implemented, and Phase II of the plan will be fully implemented by July 1, 2003.  Phase III of the plan is in the proposal stage, and Phase IV is currently being developed.

On November 7, 2002, the VTA Board of Directors approved Phase II of the plan which included substantial changes to the paratransit eligibility certification program.  Under the new program, applicants for paratransit service will be required to complete a self-assessment form, an application and a physicians verification of disability.  Once all forms are completed, the applicant will participate in an in-person interview conducted by an independent eligibility review team which manages all application, certification and enrollment processes.  The eligibility review team may not be affiliated with the current paratransit broker or paratransit vendors.

DISCUSSION:

The Paratransit Eligibility Certification Program Request For Proposal was advertised on January 19, 2003.  Two proposals were submitted on February 25, 2003, with the following results:

• NovaCare Outpatient Rehabilitation of California, Inc.:                 $1,477,216
• Orthopaedic Hospital:                                                                    $1,712,883

Independent Cost Estimate (3-year minimum cost):              $1,788,677

The proposed fixed costs are based on processing 7,560 applications annually.  A lower rate will be negotiated in the event that the number of applications drops significantly.  A contingency of $10,000 annually has been added for miscellaneous expenses, such as for the production of replacement I.D. cards for customers who lose their cards prior to the renewal date.

An evaluation team consisting of the Deputy Director of Service & Operations Planning, Accessible Services Manager and Contracts Administrator II conducted an evaluation of the proposals. 

Proposals were evaluated based on the following criteria as outlined in the RFP:

·         Qualification of the Firm

·         Staffing and Project Organization

·         Demonstrated Understanding of Project Requirements

·         Local Firm Preference

·        Cost and Price

On March 11, 2003, the evaluation team conducted interviews with the two proposers.  These interviews provided VTA with additional details about the specific work plan, approach and experience of the two firms.  Orthopaedic Hospital was not the lowest cost, but they have extensive experience conducting paratransit eligibility evaluations and provided the best overall proposal to perform the services as prescribed in the RFP.  Based on final scoring, staff recommends the award of the contract for the Paratransit Eligibility Certification Program to Orthopaedic Hospital.

Orthopaedic Hospital is a non-profit organization with 9 years of experience, serving several transit districts and paratransit service organizations throughout California.  To date, Orthopaedic Hospital has evaluated over 175,000 ADA paratransit applications.

Orthopaedic Hospital has conducted paratransit eligibility evaluations for Access Services Incorporated (Los Angeles County), the San Diego Metropolitan Development Transit Board, Riverside Transit Agency, Orange County Transportation Authority, Leisure World Transit Service (Laguna Woods) and Santa Cruz Metropolitan Transit District.  Orthopaedic Hospital has also provided certification training programs to, for example, Sacramento Regional Transit District, Monterey Salinas Transit, Ventura County Transportation Commission, ATC VanCom, Hopelink, Paratransit Inc. and the California Department of Transportation.

ALTERNATIVES:

Staff evaluated performing these functions in-house but concluded that it would be more cost-effective to provide these services through private contract.  Additionally, VTA lacks the staff, such as healthcare professionals, with the experience necessary to perform paratransit eligibility evaluations.

FISCAL IMPACT:

Sufficient funds for this contract are included in VTAs FY 2004 Recommended Budget.  Future expenditures will be proposed in the annual budget process.

SBE PARTICIPATION:

Based on the limited scope of work and limited subcontracting opportunities, no specific SBE goal has been established for this contract.  However, the contractor is encouraged to make a reasonable effort to utilize SBEs in its procurement of services and products associated with the performance of this contract.

For Attachments Contact the Board Secretary's Office

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