Title
Extension of Scheidt & Bachmann Maintenance Service Agreement (Ordinance S-45234)
Description
Request to authorize the City Manager, or his designee, to enter into a contract change order to Agreement 123686 with Scheidt & Bachmann USA, Inc. to exercise the final extension option to the transit fare collection Maintenance Service Agreement (MSA). Further request authorization for the City Controller to disburse funds in an amount not to exceed $11 million over the four-year period.
Report
Summary
On June 15, 2005, City Council authorized award of a competitively sourced contract to Scheidt & Bachmann USA, Inc. (S&B) for a fare collections system (FCS). The subsequent MSA with S&B commenced on Jan. 29, 2007, as an eight-year base term contract, with two four-year extension options. The cost for the base contract period was $18,353,823. The compensation for the extension options was set up to be negotiated by both parties. The first four-year option period had a cost of $9,523,334 and will expire on Jan. 28, 2019.
The proposed cost for the final four-year option period is $10,576,098, including applicable taxes, as negotiated by City staff and S&B. Staff recommends a change order not to exceed $11 million to accommodate expected fleet expansion for planned bus service improvements over the next four years as a direct result of the voter approved Transportation 2050 (T2050) Plan.
A solicitation for a new regional FCS will be issued in the near future. This final four-year option for the S&B MSA will provide necessary maintenance of the existing FCS until the acquisition and implementation of a new regional FCS is complete. The MSA may be terminated if the new FCS is implemented prior to the end of the four-year option period.
This item has been reviewed and approved by the Information Technology Services Department.
Contract Term
The extension will be for a four-year period, beginning Jan. 29, 2019, through Jan. 28, 2023 or sooner if terminated due to implementation of the new FCS.
Financial Impact
The total cost related to this item will not exceed $11 million over four years. Funds are available for the first year cost of $2,509,824 in the Public Transit Department operating budget T2050 fund. The City will recover regional transit partners’ portion of the annual MSA costs as incurred.
Concurrence/Previous Council Action
This item was recommended for approval at the Aviation and Transportation Subcommittee meeting on Nov. 27, 2018, by a vote of 3-0.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.