One Gateway PlazaLos Angeles, CA 90012-2952

213.922.2000 Telmetro.net

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SYSTEM SAFETY AND OPERATIONS COMMITTEEJANUARY 16, 2014

SUBJECT: GATEWAY BUILDING ELEVATOR AND ESCALATOR SERVICES

ACTION: APPROVE CONTRACT AWARD

RECOMMENDATION

Award a seven-year, firm fixed unit rate contract under RFP No. PS14643013 withMitsubishi Electric & Electronics USA, Inc., Elevator and Escalator Division, the highestrated proposer for the Gateway Headquarters building elevators and escalatorsservices for an amount not-to-exceed $3,852,225.

ISSUE

The services of an elevator/escalator contractor are required to provide preventivemaintenance and repairs to the Gateway building's nineteen elevators and fourescalators. The current elevator/escalator maintenance contract is scheduled to expireon March 1J 2014.

DISCUSSION

The recommendation will allow Metro to ensure proper maintenance of elevators andescalators. This is essential for the safety of all staff and visitors to the building and isrequired by City of Los Angeles building safety codes and the California Code ofRegulations.

DETERMINATION OF SAFETY IMPACT

To insure the safety of all employees and visitors to the building, elevator/escalatormaintenance services is required.

FINANCIAL IMPACT

The funding of $171,860 for this service is included for the first four months of thiscontract in the FY14 budget in cost center number 6430, Building Services underproject 100090, Gateway Building Costs.

Since this is a multi-year contract, the cost center manager and Executive Director,Employee and Labor Relations will be accountable for budgeting the cost in futureyears.

Impact to Budget

The source of funds for these services are allocated through General Overhead fundingwhich is based on MTA's federally approved indirect-cost-allocation plan whichdistributes costs agency-wide including eligible bus and rail operating projects. Noother funds were considered because these funds are programmed for this use.

ALTERNATIVES CONSIDERED

An alternative to contracting for elevator/escalator maintenance services would be toperform this service with Metro employees. This alternative is not feasible becausestate and city law requires that only trained and certified mechanics can provide thisservice. Currently, staff is not trained and certified for this work.

NEXT STEPS

If approved, contract will be issued to Mitsubishi Electric & Electronics USA, Inc.,Elevator and Escalator Division to perform the Gateway building elevator/escalatormaintenance and repair services.

ATTACHMENT

A. Procurement Summary

Prepared by: Phyllis Meng, Deputy Executive Officer, General Services(213) 922-2375

Gateway Building Elevator and Escalator Services Page 2

~~~efiChief Administrative Services Officer

Don OttExecutive Director, Employee and LaborRelations

ArthurT.LeahyChief Executive Officer

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ATTACHMENT A

PROCUREMENT SUMMARY

GATEWAY BUILDING ELEVATORJESCALATOR SERVICE

1. Contract Number: PS146430132. Recommended Vendor: Mitsubishi Electric Elevator and Escalator Division3. Type of Procurement (check one): D IFB [gI RFP D RFP-A&E

D Non-Competitive D Modification D Task Order4. Procurement Dates:

A. Issued: August 12, 2013B. Advertised/Publicized: August 13, 2013C. Pre-proposal/Pre-Bid Conference: n/aD. Proposals/Bids Due: September 12, 2013E. Pre-Qualification Completed: December 20, 2013F. Conflict of Interest Form Submitted to Ethics: December 30,2013G. Protest Period End Date: January 28,2014

5. Solicitations Picked Bids/Proposals Received: 2up/Downloaded: 11

6. Contract Administrator: Telephone Number:Kenneth Takahashi 213-922-1047

7. Project Manager: Telephone Number:John Flores 213-922-2770

A. Procurement Background

This Board action is to approve Contract PS14643013 to provide Gateway Buildingelevator and escalator services.

The RFP was issued in accordance with Metro's Acquisition Policy and the contracttype is a Firm Fixed Unit Price. No amendments were issued during the solicitationphase of this RFP.

B. Evaluation of Proposals/Bids

A total of two proposers responded to this solicitation. A Selection Committeeconsisting of staff from General Services, Strategic Transit Asset Management, andProcurement was convened and conducted a comprehensive technical evaluation ofthe proposals received.

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The proposals were evaluated based upon the following evaluation criteria andweights:

• Degree of Firm and Personnel Skill and Experience• Understanding of Work and Appropriateness of Approach• Cost Proposal

20 percent30 percent40 percent

The evaluation criteria are appropriate and consistent with criteria developed forother, similar service type contracts. Several factors were considered whendeveloping these weights, giving the greatest importance to the cost.

The two firms considered for award are listed below in alphabetical order:

1. Amtech Elevator Services2. Mitsubishi Electric Elevator and Escalator Division

During the week of October 21, 2013, the evaluation committee met and discussedtheir initial evaluations of the two proposers. The evaluation committee determinedthat each firm would be invited for an interview. Interviews were scheduled witheach firm for November 1, 2013. The firms' project managers and key teammembers had an opportunity to present each team's qualifications and respond tothe evaluation committee's questions. In general each team's presentationaddressed the requirements of the RFP, experience with all aspects of the requiredtasks, and stressed each firm's commitment to the success of the project. Staffingplans, work plans, and perceived project issues were also highlighted. Each teamwas asked questions relative to the firm's proposed alternatives and previousexperience on Metro facilities.

Best and Final Offers for price only were requested from both proposers and werereceived and evaluated.

Qualifications Summary of Firms Within the Competitive Range:

Amtech Elevator Services

Amtech Elevator Services is a wholly owned subsidiary of the Otis ElevatorCompany. They offer maintenance, repair, and modernization services for all typesof elevator and escalator systems.

Mitsubishi Electric Elevator and Escalator Division

Mitsubishi Electric began their business manufacturing, installing, and maintainingelevators and escalators as well as producing electric power generation equipment.The company has emerged as one of the largest diversified electrical equipmentmanufacturers.

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The evaluation committee has recommended Mitsubishi Electric Elevator andEscalator Division for the award. The scoring recap is listed in the following table:

WeightedAverage Factor Average

1 FIRM Score Weight Score Rank

2 Amtech Elevator ServicesDegree of Firm and Personnel Skill

3 and Experience 72.33 20.00% 14.47Understanding of Work andAppropriateness of Approach forImplementation and Satisfaction of

4 the Statement of Work 68.33 30.00% 20.50

5 Cost Proposal 100.00 40.00% 40.00

6 Total 90.00% 74.97 2

7 Mitsubishi ElectricDegree of Firm and Personnel Skill

8 and Experience 87.33 20.00% 17.47Understanding of Work andAppropriateness of Approach forImplementation and Satisfaction of

9 the Statement of Work 83.33 30.00% 25.00

10 Cost Proposal 85.28 40.00% 34.11

11 Total 90.00% 76.58 1

C. Cost/Price Analysis

The recommended price has been determined to be fair and reasonable basedupon price analysis, fact finding, and negotiations.

Proposer Name Proposal Amount BAFO/Negotiated

1. Amtech Elevator Services $3,283,042 $3,285,041

2. Mitsubishi Electric $3,901,016 $3,852,224Elevator and EscalatorDivision

D. Background on Recommended Contractor

Mitsubishi Electric Elevator and Escalator Division was established in 1931 and hasexpanded to over sixty-five countries worldwide. Mitsubishi Electric Elevator andEscalator Division has branch offices in San Francisco and Los Angeles.Mitsubishi's National Headquarters is located in the City of Cypress in OrangeCounty, California. Mitsubishi is the current Metro contractor for Gateway elevatorand escalator services and has been providing satisfactory service.

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E. Small Business Participation

The Diversity and Economic Opportunity Department (DEOD) established a 5%Race Conscious Disadvantaged Business Enterprise (DBE) goal for this solicitation.Mitsubishi Electric Elevator and Escalator listed a DBE subcontractor for the 5%DBE commitment. Mitsubishi Electric Elevator and Escalator met the DBE goal.

SMALL SMALLBUSINESS DBE5% BUSINESS DBE5%

GOAL COMMITMENT

DBE Subcontractor % Committed1. Excelsior Elevator Corporation 5.00%

Total Commitment 5.00%

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