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Agenda Item # 19

BOARD MEMORANDUM

RECOMMENDATION:

Authorize the General Manager to execute a contract with Kingston Constructors, the lowest responsive bidder, in an amount of $3,149,450 for the fabrication, delivery, installation and testing of signal systems equipment for the Tamien to Lick Double Track Project.   

BACKGROUND:

In September 2001, VTA entered into an agreement with Union Pacific Railroad (UPRR) and the Peninsula Corridor Joint Powers Board (JPB), by which VTA would arrange for and ensure completion of a second main track and related improvements on JPBs right-of-way between Tamien and Lick.  In September 2002, the Board authorized the General Manager to execute a contract for the construction of civil structures, grade and trackwork for the second main track between Tamien and Lick.  Construction is scheduled to be completed in December 2003.

The Signal Systems contract complements the grading and track construction and provides the operating systems for train traffic.  This contract consists of the fabrication, delivery, installation and testing of signal equipment and shelters, signal equipment cases, power switch and lock movements, switch circuit controllers, electronic coded track circuits, signal bridges and cantilever structures.  Contract completion is scheduled for September 2004. 

DISCUSSION:

The Tamien to Lick Signal System contract was advertised on August 15, 2003 and complied with VTAs contractor pre-qualification requirements.  Five bids were received on October 30, 2003:

             Balfour Beatty Rail Systems, Inc.                     $2,569,324

             Kingston Constructors                                     $3,149,450

             GE Transportation                                           $3,584,539

             Mass Electric Construction Co.                         $3,726,715

             Amelco Electric S.F., Inc.                                 $5,978,600

                          Engineers Estimate                            $2,185,595

                          Project Budget                                   $2,354,000

Although Balfour Beatty Rail Systems submitted the lowest bid, they were deemed non-responsive because the electrical subcontractor they used to achieve the Small Business Enterprise (SBE) goal of 9% was not pre-qualified and was not listed on Bid Form #3 at the time of bid.

Kingston Constructors, the second low bid, does comply with the SBE goal of the contract and has been established as the lowest responsible bidder.  This company has a good performance record with VTA on active and completed systems procurement and installation contracts.  Although the bid is 44% higher than the Engineers Estimate, VTA staff recommend award.  After analyzing the bids it appears that the Engineers Estimate failed to fully address the following:

• The estimate unit prices for equipment were based on a 2001 Caltrain contract.  Current equipment bids exceeded normal escalation from 2001. 
• The type of equipment to be supplied is unique and specialized, and can only be produced by a few vendors nationwide. 
• The installation of the equipment includes a specialized labor force, which is more expensive to mobilize to the Bay area.

ALTERNATIVES:

There are no practical alternatives to the recommended action.  

FISCAL IMPACT:

Sufficient funding is available to perform this work under the original $22 million allocation from the California State Traffic Congestion Relief Program (TCRP).  A 16% savings in the construction contract for the grade, track and structures on the Tamien to Lick Double Track project offsets the increase in budget for this Signal Systems contract.

SMALL BUSINESS ENTERPRISE (SBE) PARTICIPATION:

Based on the identifiable subcontracting opportunities, a SBE goal of 9% is established for this contract. 

Contractor complied with the goal and has committed to 14.6% SBE participation on this contract.

Contact Board Secretary's Office for Attachments.

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