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Agenda Item # 21

BOARD MEMORANDUM

RECOMMENDATION:

Authorize the General Manager to amend the contract with Santa Clara Valley Highway Associates for Program Management and Construction Management services for the 1996 Measure B Transportation Improvement Program (MBTIP) increasing the contract value by $19,280,244 for a new total contract value not to exceed $74,657,723 and extending the contract term through December 2006.

BACKGROUND:

To implement the 1996 MBTIP and other highway related responsibilities, it is necessary for VTA to augment its staff with program management, engineering, program controls and construction management professionals from a qualified Program Control and Construction Management (PC/CM) consultant firm.

VTA issued a Request for Proposals (RFP) for Program Control and Construction Management Services on March 3, 1999 and solicited over 200 firms to respond to the RFP.  VHA, a joint venture consisting of Hatch Mott MacDonald, Inc. and HNTB Corporation, together with a subconsultant force made up of nineteen additional firms, was interviewed on April 6, 1999 and selected. The RFP selection process stated that the selected consultant would provide services for the entire nine-year duration of the program.  All twenty-one of the firms, which constitute VHA, have experience in the design and construction of major highway projects, and, in most instances, have direct experience with the 1984 Measure A Traffic Authority highway program.  The following firms currently comprise VHA:

• Hatch Mott MacDonald, Inc. Joint Venture Partner
• HNTB Corporation Joint Venture Partner
• Appraisal Research Corporation
• Brian Kangas Foulk
• CCS Planning and Engineering*
• Cooper Pugeda Management, Inc.*
• CT Consulting Service
• Dillon Surveys, Inc.
• EPC Consultants, Inc.*
• Geomatrix Consultants, Inc.
• Ghiradelli Associates, Inc.*
• Josephines Personnel Services*
• OBrien Kreitzberg, Inc.
• Parsons Brinkerhoff Construction Services
• Project Strategies, Inc.*
• Sandis Humber Jones
• Schaaf & Wheeler
• Signet Testing Labs, Inc.*
• The Culver Group
• TRS Consultants, Inc.*
• Universal Field Services, Inc.
• Vali Cooper & Associates

      * DBE/SBE Firm

Under the initial contract, VHA assisted VTA in start-up of the Highway Program, including developing highway project estimates and schedules that were included in the approved Measure B Base Case Implementation Plan dated June 1999.  In July 1999, VHA increased engineering and program controls staffing to institute biweekly project trend meetings for highway projects; developed program procedures and management plans, monthly highway program cost and schedule reports, regular 1996 MBTIP reports and detailed project implementation plans; and assisted in the development of the RFP and negotiation of final design contracts for nine projects.

The initial not to exceed contract approved by the VTA Board of Directors on May 6, 1999 and amended on March 14, 2000 was $3,877,309 and provided a total of 40,000 hours of program management support, or 23 full time support staff, over the initial 10-month start-up period.  A subsequent not to exceed contract approved by the VTA Board of Directors on April 6, 2000 and amended on April 18, 2000 was $55,363,501 and provided approximately 538,000 hours of program and construction management support, or 101 full time support staff at peak construction period.  A completion and closeout Phase III contract amendment was anticipated at the time that the Phase II contract amendment was approved on April 6, 2000.  That amendment is the subject of this memorandum.  

DISCUSSION:

The recommended contract amendment is anticipated to be the final contract amount needed to complete the 1996 MBTIP Highway Program.  The amendment includes those services necessary to complete construction of the remaining MBTIP projects and closeout the program including construction administration, inspection, project cost control and right of way transfer to the State.

The recommended contract amendment will increase the contract by $19,280,244 for a new value not to exceed $74,657,723.  It will continue the time and materials contract terms and represents over 210,000 hours of services provided by the program management, engineering, controls and construction inspection staff.  The 1996 MBTIP has grown from an original Highway Program budget of $460,000,000 in 1999 to a revised program budget of $470,436,000 in 2003.  This latest amendment is needed for extended program management, project controls, construction management and program closeout activities for the larger overall program.  In addition, extending the term of this contract through December 2006 will allow VHA services to continue through the completion of the 1996 MBTIP. 

The recommended contract amendment value of $19,280,244 is $26,799,918 less than the original contract amendment value of $46,080,162 proposed by VHA.  The decrease in the amendment value is attributed to staffing efficiencies and the transitioning from consultant staff to VTA staff in duties of direct management staffing and support services, including project management, contracts management, information technology, inspection, engineering and clerical support.  The total staffing and services proposed is within the 1996 MBTIP FY 2004 Revenue and Expenditure Plan budget which was approved by the VTA Board of Directors and County Board of Supervisors on June 6, 2003.

ALTERNATIVES:

There are no practical alternatives to this recommendation. The majority of the services included in this contract amendment are temporary duties tied to the duration of actual construction projects and closeout tasks for the 1996 MBTIP.  Staff evaluated the VHA program duties from the original contract and has subsequently modified the original proposal to utilize VTA employees for the duties of longer duration.  VTA has now established a core level of direct management staffing as well as supporting services from all departments within the agency, including contracts management, fiscal oversight and financial accounting, general counsel legal review, environmental oversight, information technology services, inspection and clerical support.  The contract amendment reflects a larger portion of Highway Program services now being performed by VTA staff. 

FISCAL IMPACT:

Sufficient funding is available for this contract as part of the 1996 Measure B Transportation Improvement Program.

SBE PARTICIPATION:

The contract was originally awarded with a 24% SBE goal.  Based on the amended scope and value of the contract amendment, a revised goal of 17% has been established for this contract.  A total of 16% has been achieved to date on this contract.  Contractor has committed to 17% participation on the remainder of this contract. 

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