July 21, 2015

los Angel~s County One Gateway Plaza 213.922.2ooo Tel Metropolitan Transportation Authority Los Angeles, CA 90012-2952 metro. net

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TO:

THROUGH:

FROM:

SUBJECT:

ISSUE

BOARD OF DIRECTORS

PHILLIP A. WASHINGTON ~~ CHIEF EXECUTIVE OFFICER

BRYAN PENNINGTON f;NfJ EXECUTIVE DIRECTOR, ENGINEERING & CONSTRUCTION

BACK-UP CALCULATIONS TO SUPPORT CONTRACT VALUE FOR CONTRACT NO. PS84203274, ENVIRONMENTAL ENGINEERING AND CONSULTING SERVICES

Staff has developed a Board Report recommending authorization of the Board for the Chief Executive Officer to award and execute a five year contract, Contract No. PS84203274, with Kleinfelder, Inc. for Environmental Engineering and Consulting services on Task Orders, inclusive of three base years and two one-year option years with a total not-to-exceed amount of $12,000,000.00. Base year contract value is $7.2 million; Option year one contract value is $2.4 million; and Option year two contract value is $2.4 million. At the Construction Committee meeting on July 16, 2015, Director Jacquelyn Dupont-Walker requested staff to provide information on how the contract value was calculated including but not limited to a breakdown and/or matrix of: all positions proposed, total hours proposed per each position, and hourly rates (overhead + profit).

BACKGROUND

Metro's existing Environmental Engineering Consultant Services contract supports numerous sustainability projects, such as planning for recycled water irrigation lines, deployment of a water recycling system, design of lighting retrofits and energy efficiency measures, engineering of renewable energy systems, other resource reduction initiatives at Metro facilities and alignments, and the implementation of Metro's Environmental Management System (EMS).

Staff divided the current scope of environmental engineering and sustainability-related work into five new individual scopes of work to increase participation of firms that work in the environmental and sustainabi lity industry. This Contract No. PS84203274 is the fourth contract award presented to the Board for approval. It specifically focuses in the field of environmental engineering and consulting services.

This is a qualifications based procurement and therefore price is not a factor in the selection process. However, after selection of the consultant, the final unit labor unit price is negotiated to result in a contract value that is as close to the independent cost estimate as possible.

DISCUSSION

In coordination with all the projects it services, Environmental Compliance and Sustainability (ECSD) staff develops a five year rolling estimate of the level of effort and costs for all of its programs. Specific to any year, staff puts together an initial estimate of forthcoming fiscal year work sometime in the spring of the current fiscal year. ECSD staff compares such work to the previous year's level of effort and makes necessary adjustment to projected expenditures, as necessary. This forms the basis of the forthcoming fiscal year's anticipated level of effort for all environmental and sustainability related contracts. At mid-point of the following fiscal year, staff revisits such projections and makes adjustments to the projected expenditures of the remaining period. Adjustments are made, if necessary and the process begins again.

As Contract No. PS8420327 4 is a new contract, staff had estimated the anticipated level of effort per fiscal year, per labor category for five years as provided in Attachment A. The attachment also includes all positions that staff anticipates to use that are consistent with those proposed by the consultant, total hours proposed per position, and preliminary hourly rates (overhead + profit). Metro only uses a subset of the list of labor categories as appropriate to accomplish the goal of the project being supported. Attachment B provides the rough order of magnitude costs associated per each type of service wherein this contract is projected to be used for. These may include for additional field services that are needed to collect empirical data for certain reports such as subsurface investigations and mitigation, noise and vibration monitoring, real estate due diligence assessment, among others.

Contract No. PS8420327 4 is an indefinite delivery/indefinite quantity contract. The consultant is therefore not guaranteed any work. The services are only required on an as needed basis for specific program assistance. When consulting service requirements arise, staff develops a specific scope of work. Although labor unit rates are pre-negotiated at the beginning of the contract, staff will still develop an independent cost estimate of the specific services and labor requirements, prior to issuing and negotiating specific Contract Work Orders and Task Orders consistent with the pre­approved rates in the Contract. These estimates use data from previous similar work, level of effort, and lessons learned. These are then used to negotiate with the consultant the final level of effort and Task Order cost. The Task Orders are funded from an existing project's budget with consideration of any additional information available at the time of planning and applicable time constraints on performance of the work.

Back-Up Calculations for Contract No. PS84203274 2

NEXT STEPS

Staff will provide additional detailed cost information as needed to support the recommendation to award Contract No. PS8420327 4.

ATTACHMENT

A. Environmental Engineering Services/Support Contract Estimate B. Types of Projects and Anticipated Costs for Environmental Engineering and

Consulting Services

Prepared by: Cris B. Liban, EO, Projects Engineering Environmental Compliance and Sustainability, (213) 922-2471

Back-Up Calculations for Contract No. PS84203274 3

Attachment A. Environmental Engineering Services and Support Contract Estimate

PERIOD OF PERFORMANCE: FY15 to FY19 Base Year 1 (FY15)

FY15 Project Director 1000 $ $ 72.29 $ 72,290.00 QA Manager 1000 $ 65.32 $ 65,320.00 Project Manager 1000 $ 53.45 $ 53,450.00 CAD 400 $ 28.69 $ 11,476.00 Project Coordinator 1000 $ 30.88 $ 30,880.00 Clerical 1000 $ 21 .38 $ 21,380.00 Project Accountant 1000 $ 36.72 $ 36,720.00 Engineer/Scientist 1000 $ 34.43 $ 34,430.00 Senior Engineer 1000 $ 45.90 $ 45,900.00 Technician 1000 $ 22.95 $ 22,950.00 Staff Engineer 1000 $ 28.69 $ 28,690.00 GIS 300 $ 37.87 $ 11,361 .00 CIH 500 $ 55.00 $ 27,500.00

Direct Labor COSTS $ 462,347.00 150% Overhead Fee $ 693,520.50

8.5% Labor Fee $ 98,248.74 TOTAL LABOR COSTS $ 1 ,254,116.24

Subcontractors Analytical Lab 250000 $ 250,000.00 Drilling 150000 $ 150,000.00 Geophysical 30000 $ 30,000.00 Tank Testing 150000 150000 UST Design Support 60000 60000

Sub TOTAL $ 640,000.00 FEE $ 652,800.00

YEAR 1 TOTAL COSTS $ 1,906,916.24

Year 2 (FY16)

FY16 Project Director 1000 $ $ 72.29 $ 72,290.00 QA Manager 500 $ 65.32 $ 32,660.00 Project Manager 1500 $ 53.45 $ 80,175.00 CAD 500 $ 28.69 $ 14,345.00 Project Coordinator 1500 $ 30.88 $ 46,320.00 Clerical 1500 $ 21.38 $ 32,070.00 Project Accountant 1000 $ 36.72 $ 36,720.00 Engineer/Scientist 1500 $ 34.43 $ 51 ,645.00 Senior Engineer 1500 $ 45.90 $ 68,850.00 Technician 2500 $ 22.95 $ 57,375.00 Staff Engineer 2000 $ 28.69 $ 57,380.00 GIS 1000 $ 37.87 $ 37,870.00 CIH 1000 $ 55.00 $ 55,000.00

Direct Labor COSTS $ 642,700.00 150% Overhead Fee $ 964,050.00

8.5% Labor Fee $ 136,573.75 TOTAL LABOR COSTS $ 1,743,323.75

Subcontractors Analytical Lab 250000 $ 250,000.00 Drilling 150000 $ 150,000.00 Geophysical 100000 $ 100,000.00 Tank Testing 150000 150000 UST Design Support 60000 60000

Sub TOTAL $ 710,000.00 FEE $ 724,200.00

YEAR 2 TOTAL COSTS $ 2,467,523.75

Year 3 (FY17)

FY17 Project Director 1000 $ $ 72.29 $ 72,290.00 QA Manager 1500 $ 65.32 $ 97,980.00 Project Manager 1500 $ 53.45 $ 80,175.00 CAD 500 $ 28.69 $ 14,345.00 Project Coordinator 1500 $ 30.88 $ 46,320.00 Clerical 1000 $ 21.38 $ 21,380.00 Project Accountant 1000 $ 36.72 $ 36,720.00 Engineer/Scientist 2500 $ 34.43 $ 86,075.00 Senior Engineer 2500 $ 45.90 $ 114,750.00 Technician 2500 $ 22.95 $ 57,375.00 Staff Engineer 2500 $ 28.69 $ 71,725.00 GIS 1000 $ 37.87 $ 37,870.00 CIH 1500 $ 55.00 $ 82,500.00

Direct Labor COSTS $ 819,505.00 150% Overhead Fee $ 1 ,229,257.50

8.5% Labor Fee $ 174,144.81 TOTAL LABOR COSTS $ 2,222,907.31

Subcontractors Analytical Lab 250000 $ 250,000.00 Dri lling 150000 $ 150,000.00 Geophysical 50000 $ 50,000.00 Tank Testing 150000 150000 UST Design Support 60000 60000

Sub TOTAL $ 610,000.00 FEE $ 622,200.00

YEAR 3 TOTAL COSTS $ 2,845,107.31

Option Year 1: (FY18)

FY18 Project Director 500 $ $ 72.29 $ 36,145.00

QA Manager 1000 $ 65.32 $ 65,320.00

Project Manager 1000 $ 53.45 $ 53,450.00

CAD 500 $ 28.69 $ 14,345.00 Project Coordinator 1000 $ 30.88 $ 30,880.00

Clerical 1000 $ 21.38 $ 21,380.00

Project Accountant 1000 $ 36.72 $ 36,720.00 Engineer/Scientist 2000 $ 34.43 $ 68,860.00

Senior Engineer 2000 $ 45.90 $ 91,800.00

Technician 2500 $ 22.95 $ 57,375.00

Staff Engineer 2500 $ 28.69 $ 71,725.00

GIS 2200 $ 37.87 $ 83,314.00

CIH 1500 $ 55.00 $ 82,500.00

Direct Labor COSTS $ 713,814.00 150% Overhead Fee $ 1,070,721.00

8.5% Labor Fee $ 151,685.48 TOTAL LABOR COSTS $ 1,936,220.48

Subcontractors Analytical Lab 150000 $ 150,000.00

Drilling 100000 $ 100,000.00

Geophysical 35000 $ 35,000.00

Tank Testing 150000 150000

UST Design Support 60000 60000

Sub TOTAL $ 495,000.00 FEE $ 504,900.00

YEAR 4 TOTAL COSTS $ 2,441 '120.48

Option Year 2: (FY19)

FY19 Project Director 500 $ $ 72.29 $ QA Manager 1000 $ 65.32 $ Project Manager 1000 $ 53.45 $ CAD 500 $ 28.69 $ Project Coordinator 1000 $ 30.88 $ Clerical 1000 $ 21 .38 $ Project Accountant 1000 $ 36.72 $ Engineer/Scientist 2000 $ 34.43 $ Senior Engineer 2000 $ 45.90 $ Technician 2500 $ 22.95 $ Staff Engineer 2500 $ 28.69 $ GIS 2200 $ 37.87 $ CIH 1500 $ 55.00 $

Direct Labor COSTS $ 150% Overhead Fee $

8.5% Labor Fee $ TOTAL LABOR COSTS $

Subcontractors Analytica l Lab 150000 $ Drilling 100000 $ Geophysical 35000 $ Tank Testing 150000 UST Design Support 60000

Sub TOTAL $ FEE $

YEAR 5 TOTAL COSTS $

TOTAL 5 YR ESTIMATE OF LEVEL OF EFFORT: $ TOTAL 5 YR ESTIMATE OF LEVEL OF EFFORT (ROUNDED TO NEAREST MILLION$): $

36,145.00 65,320.00 53,450.00 14,345.00 30,880.00 21 ,380.00 36,720.00 68,860.00 91 ,800.00 57,375.00 71,725.00 83,314.00 82,500.00

713,814.00 1,070,721 .00

151 ,685.48 1,936,220.48

150,000.00 100,000.00 35,000.00

150000 60000

495,000.00 504,900.00

2,441,120.48

12,101,788.25 12,000,000.00

Attachment B. Types of Projects and Anticipated Costs for Environmental Engineering and Consulting Services

Projected Ex[:2enditures Total by Category

Environmental Compliance Services for Crenshaw, Regional, Westside

Mitigation Monitoring Su~~ort

Noise and V1bration Monitoring/Consulting $3,100,000

Environmental monitoring (ai r quality, stormwater, haz mat) $1,500,000

Miscellaneous Ca~ital and O~erations Project I

Industrial/Construction Stormwater Compliance (agency wide) $2,270,000

I Industrial Waste Water Compliance (agency wide) $700,000

Phase I, II Geo/Enviro Investigations (Div 2,4,10) $800,000

Haz Mat, Lead and Asbestos Consulting $1,200,000

Division 7 Well Purging $100,000

Westside Extension Well Maintenance/Monitoring (alt alignment) I $30,000

Above Ground and UST Design and Oversight (Div 9, Div 7, Div 2, Div 3) $1,200,0001

Rea l Estate, Joint Development and Highways Support $1,100,000 I

I I

TOTAL $12,000,000