Title
Contract for Alternative Transportation Programs (Ordinance S-44933)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with MV Public Transportation, Inc. (MV) to supply alternative transportation services for the Public Transit Department. The contract may contain other terms and conditions deemed necessary or appropriate by the City Manager or his designee. Further request authorization for the City Controller to disburse funds related to this item in an amount not to exceed $14,393,184.
Report
Summary
In addition to fixed route (bus and light rail) and paratransit services (Dial-a-Ride), the City provides alternative transportation services to senior citizens and residents with disabilities through multiple subsidy programs, some of which have been in place since 1983. The alternative transportation programs allow flexibility for Phoenix seniors and individuals who have obtained paratransit certification for the Americans with Disabilities Act (ADA), which allows them to plan trips based on their needs. The alternative transportation programs provide a valuable service to 8,500 registered users per year, with 180,000 passenger boardings served during the last fiscal year. The various alternative transportation programs include, and were listed in the Public Transit Department’s request for proposals, as follows:
Group I
- ADA Cab: Provides an alternative to reservation-based ADA Dial-a-Ride service, allowing ADA paratransit certified individuals to schedule flexible transportation at their convenience to locations of their choice.
- Senior Cab: Provides individuals age 65 and older flexible transportation at their convenience to locations of their choice.
- Employment and Employment Training: Supports travel to and from jobs or employment training programs for residents with disabilities.
- Repetitive Medical Trips: Supports travel to and from repetitive medical appointments, such as dialysis treatment.
Group II (General Fund Senior Center Transportation)
- Senior Center Shuttle: Provides registered members of the Human Services Department’s senior centers flexible transportation between their personal residence and their nearest senior center.
- Senior Center Group Trips: Provides transportation for senior center-planned group trips. The trips are not serviceable by taxis and are instead provided by coordinating multiple buses.
Procurement Information
The Public Transit Department issued a request for proposals in November 2017 and received responsive proposals from MV and Total Transit Enterprises (TTE).
Evaluation criteria categories included:
- Understanding the work scope (25 percent).
- Management structure and personnel (20 percent).
- Qualifications and past performance (15 percent).
- Total price for known costs, such as program administration and group trips (40 percent). Actual transportation costs are tracked separately by the provider and passed on to the City, whereby the costs are reimbursed to the service provider based on documentation (trip vouchers, electronic payment receipts, etc.) of actual trips provided.
The total five-year costs evaluated as part of the proposals were for known service costs and did not include reimbursable taxi trip costs because these costs vary based on usage. In accordance with the request for proposals, staff reviewed and scored the proposals.
On March 21, 2018, staff recommended and the City Council authorized the City Manager to execute a contract with TTE to provide alternative transportation services. TTE began providing services on July 1, 2018. Subsequently, the City found TTE in default of its contract, specifically with the Group II services. MV agreed to hold open the proposal it submitted in the request for proposals process. MV was the second highest scored proposal, with a price 2.7 percent higher than TTE's offer. Based on evidence of marketplace competition, the pricing was determined to be fair and reasonable. The Public Transit Department sought and received emergency authorization, consistent with the City's procurement provisions, to enter into a contract with MV upon termination of TTE’s contract. MV’s ultimate award of a contract is, therefore, consistent with and is the result of a competitive procurement.
Contract Term
The term of the contract is approximately three years. The contract will contain two one-year options to extend the term, which may be exercised by the City if it is in the City’s best interest to do so and MV has performed satisfactorily during the base period. The term of the contract began on Aug. 6, 2018 and will end on June 30, 2023 if both options are exercised.
Financial Impact
The aggregate cost of the contract will not exceed $14,393,184. The cost for fiscal year 2018-19 is estimated to be $2,670,380. T2050 sales tax revenues, federal funds, and general funds are available in the Public Transit Department's operating budget for the 2018-19 contract amount.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.