Title
Paratransit Services (Phoenix Dial-a-Ride) Contract Award (Ordinance S-48370)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with MV Transportation, Inc. for the management and operation of paratransit (Phoenix Dial-a-Ride) service. Further request to authorize the City Controller to disburse all funds related to this item. The total cost of the contract will not exceed $153,454,595.
Report
Summary
The City provides Phoenix Dial-a-Ride service for individuals who, because of a disability, cannot access or navigate local bus or light-rail services. This shared-ride, origin-to-destination service is mandated by the Federal Government as required with the enactment of the Americans with Disabilities Act (ADA) of 1990. Commonly known as "paratransit service," Phoenix Dial-a-Ride acts as a safety net for individuals with disabilities and affords them the same level of transit service as other passengers, operating during the same hours and covering the same areas as bus and light-rail services. While the ADA requires the provision of paratransit service only within a three-quarter mile radius around local bus routes and light rail stations, Phoenix Dial-a-Ride operates within the entirety of the City's incorporated city limits south of Jomax Road.
Phoenix Dial-a-Ride is operated as a turnkey service, with the service provider responsible for all aspects of the operation, which include scheduling reservations, dispatching trips, operating and maintaining vehicles, and providing administrative and support activities, with PTD supplying the fleet. This service is operated out of a centrally-located facility leased by the contractor and staffed with about 200 employees to operate, maintain, and administer this contract on behalf of the City. The current contract expires June 30, 2022.
Procurement Information
City Council approved the issuance of this solicitation at its June 2, 2021 Formal Meeting. PTD issued a Request for Proposals (RFP) in October 2021 to solicit a contract for the operation of Phoenix Dial-a-Ride service. Because PTD receives funding from Federal Transit Administration grants to operate transit services, all procurements and contracts must comply with federal requirements and process guidelines. The process used to develop the work scope for the RFP and select the contractor for recommended award complies with federal guidelines.
An evaluation committee, with the aid of a technical advisory team, evaluated the proposals to select the proposer recommended for contract award. Both the committee and the technical team consisted of qualified staff from the City's Public Transit and Human Services departments and Valley Metro, which coordinates regional transit services with the City.
The following evaluation criteria were used by the panel (1,000 points possible):
- Qualifications, experience, and past performance (250 points);
- Method of approach and transition plan (200 points);
- Proposed organizational structure and personnel (150 points); and
- Cost (400 points).
The result of the evaluation committee’s deliberations is a recommendation to award the contract to MV Transportation, Inc., which received the highest overall technical score based on the evaluation criteria above. The final scoring and cost proposal for the aggregate term of the contract are shown below:
Proposer Total Points Contract Amount
MV Transportation, Inc. 912 points $153,454,595
First Transit 825 points $170,587,800
Additional Information
In addition to the 200 local jobs currently supported by this contract, MV Transportation, Inc. will partner with a third-party contractor to provide additional service capacity as necessary to meet service requirements. The contractor’s service plan also includes employing technology to integrate with the current scheduling system to provide real-time service updates to monitor and track service performance, and customer-focused apps to allow riders to manage their trips and receive service notifications.
Contract Term
The initial five-year base contract term will begin July 1, 2022, and the contract includes one two-year option to extend if the contractor has performed satisfactorily and it is in the City's best interest to exercise the available option.
Financial Impact
The total cost of the contract with MV Transportation, Inc. is estimated at $153,454,595 for the aggregate term, which includes the initial five-year base term and two-year extension option.
Transportation 2050 funds are available for the estimated first contract year amount of $20,244,948 in the Public Transit Department's proposed Fiscal Year 2022-23 operating budget, recognizing that the City is reimbursed annually by Valley Metro with regional Public Transportation Funds to fund Phoenix Dial-a-Ride service entirely.
Concurrence/Previous Council Action
The Transportation, Infrastructure and Planning Subcommittee recommended approval of this item on Feb. 16, 2022, by a vote of 4-0.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.