HomeMy Public PortalAbout11 November 18, 2005 SR-91 Advisory74745
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N. Kopenhaver
• STATE ROUTE 91 ADVISORY COMMITTEE
AGENDA
Date:
Time:
Where:
Friday, November 18, 2005
10:00 a.m.
NOV 14 2005 .�
RIVERSIDE COUNTY
TRANSPORTATION COMMISSION
Orange County Transportation Authority - Headquarters
600 South Main Street, First Floor, Room 164
Orange, California 92863
ADVISORY COMMITTEE
Bill Campbell
Chairman
Jeff Miller
Vice Chairman
Art Brown
Committee Member
Bob Buster
Committee Member
Carolyn Cavecche
Committee Member
Michael Duvall
Committee Member
Frank Hall
Committee Member
Bob Magee
Alternate
Committee Member
Ameal Moore
Committee Member
Curt Pringle
Committee Member
John Tavaglione
Committee Member
Michael Perovich
Caltrans District 8
Cindy Quon
Caltrans District 12
Alan Wapner
SANBAG
For further information, please call Wendy Knowles, OCTA Clerk of the Board, at (714) 560-5676.
HH.35.02
AGENDA
State Route 91 Advisory Committee Meeting
Orange County Transportation Authority - Headquarters
600 South Main Street, First Floor - Room 154
Orange, California 92863-1584
Friday, November 18, 2005
Note: Start Time
10:00 a.m.
Any person with a disability who requires a modification or accommodation in order to
participate in this meeting should contact the OCTA Clerk of the Board, telephone
(714) 560-5676, no less than two (2) business days prior to this meeting to enable'OCTA to
make reasonable arrangements to assure accessibility to this meeting.
Call to Order
Chairman Campbell
Agenda Descriptions
The agenda descriptions are intended to give notice to members of the public of a general
summary of items of business to be transacted or discussed. The posting of the recommended
actions does not indicate what action will be taken. The Committee may take any action which it
deems to be appropriate on the agenda item and is not limited in any wayby the notice of the
recommended action.
Public Comments on Agenda Items
Members of the public wishing to address the Committee regarding any item appearing on the
agenda may do so by completing a Speaker's Card and submitting it to the Clerk of the Board.
Speakers will be recognized by the Chairman at the time the agenda item is to be considered. A
speaker's comments shall be limited to three (3) minutes.
Special Matters
There are no Special Calendar Matters.
Consent Calendar (Item 1)
1. Approval of Minutes
Of the July 15, 2005, State Route 91 Advisory Committee meeting.
Page 1 of 2
AGENDA
State Route 91 Advisory Committee Meeting
Regular Calendar
2. Agreement for Operation and Management of the 91 Express Lanes
Daryl Watkins, General Manager, 91 Express Lanes
Overview
On October 24, 2005, the Orange County Transportation Board of Directors
authorized the Chief Executive Officer to execute an agreement between the
Orange County Transportation Authority and Cofiroute USA, LLC, in an amount
not to exceed $30,800,854, to operate and manage the 91 Express Lanes for a
five-year term.
Recommendation
Receive and file as an information item.
Other Matters
3. Possible Managed Lane Changes Considered in Major Investment Study
Daryl Watkins, General Manager, 91 Express Lanes
4. 91 Express Lanes Toll Policy as it Relates to Hybrid Vehicles
Daryl Watkins, General Manager, 91 Express Lanes
5. General Manager's Report
6. Committee Members' Reports
7. Public Comments
8. Adjournment
The next regularly scheduled meeting of the State Route 91 Advisory Committee
will be held at 9:00 a.m. on Friday, March 3, 2006, at the Eagle Glenn Golf
Meeting Facilities, Pinnacle Room, 1800 Eagle Glen Parkway, Corona, California
92883-0620.
Page 2 of 2
Item 1.
OCTA
MINUTES
State Route 97 Advisory Committee Meeting
Committee Members Present
Bill Campbell, Chair
Jeff Miller, Vice Chair
Art Brown
Bob Buster
Carolyn Cavecche
Michael Duvall
Frank Hall
Bob Magee
Ameal Moore
Curt Pringle
Cindy Quon
Committee Members Absent
Carolyn Cavecche
Patty Romo
John Tavaglione
Staff Present
Arthur T. Leahy, OCTA Chief Executive Officer
Cathy Bechtel, RCTC, Division Head, Planning
Steve DeBaun, RCTC, Legal Counsel
Paul Taylor, OCTA Executive Director
Laurena Weinert, OCTA Assistant Clerk of the Board
Mary Burton, OCTA Deputy Clerk of the Board
OCTA and RCTC staff and members of the General Public
The July 15, 2005, regular meeting of the State Route 91 Advisory Committee was
called to order at 11:25 a.m. at the Orange County Transportation Authority
Headquarters, First Floor - Room 154; Committee Chairman Campbell presided.
Call to Order
Pledge of Allegiance
Committee Member Duvall led the assembly in the Pledge of Allegiance at the
beginning of the July 15, 2005, 9:00 a.m. Riverside County — Orange County Major
Investment Study Policy Committee meeting which was held at the same location.
Special Matters
There were no Special Calendar Matters.
Consent Calendar (Items 1 and 2)
1. Approval of Minutes
A motion was made by Committee Vice Chair Miller, seconded by Committee
Member Magee, and declared passed unanimously by the Committee Members
present, to approve minutes of the State Route 91 Advisory Committee meeting
of March 4, 2005.
Committee Members Hall and Magee abstained on this item.
July 15, 2005 Page 1 of 3
OCTA
MINUTES
State Route 91 Advisory Committee Meeting
2. 91 Express Lanes Monthly Status Reports
A motion was made by Committee Vice Chair Miller, seconded by Committee
Member Magee, and declared passed unanimously by the Committee Members
present, to receive and file the 91 Express Lanes Monthly Status Reports for the
months of January through May 2005.
Regular Calendar
3. Mid -County Parkway Project
Cathy Bechtel, RCTC Division Head, Planning, gave a PowerPoint presentation
of the corridor strategy, process for moving forward, schedule, funding, and this
is a nationally recognized project for environmental streamlining.
No action was taken on this item.
4. 2005 State Route 91 Implementation Plan
Kurt Brotcke, OCTA Department Manager of Planning and Analysis, gave opening
comments, and he provided a PowerPoint presentation of the project area, recent
accomplishments, short-term, mid-term and long-term plans, as well as next step
recommendations.
A motion was made by Committee Member Duvall, seconded by Committee
Member Buster, and declared passed unanimously by the Committee Members
present, to approve submitting the 2005 State Route 91 Implementation Plan to
the Orange County Transportation Authority's Regional Planning and Highways
Committee meeting on July 18, 2005.
Other Matters
5. General Manager's Report
Paul Taylor, OCTA Executive Director of Planning, Development and Commuter
Services, introduced Daryl Watkins, General Manager of 91 Express Lanes. Mr.
Watkins gave a brief introduction due to time constraints.
July 15, 2005 Page 2 of 3
OCTA
MINUTES
State Route 91 Advisory Committee Meeting
6. Committee Members' Reports
Committee Chairman Campbell stated that the American Public Transportation
Association (APTA) has identified OCTA as the number one transportation
system in North America, and OCTA will be recognized at APTA's annual
meeting in Dallas this September.
Committee Vice Chair Miller inquired about congestion related refunds. Paul
Taylor, OCTA Executive Director, responded that when a toll customer
complains about extraordinary congestion on a trip, their account is credited with
a refund once it has been confirmed that the congestion was caused by an
incident/accident.
7. Public Comments
There were no public comments.
8. Adjournment
The July 15, 2005, meeting of the State Route 91 Advisory Committee adjourned
at 11:50 a.m.
The next regularly scheduled meeting of the State Route 91 Advisory Committee
will be held at 9:00 a.m. on September 9, 2005, at Eagle Glen Golf Club
Meeting Facilities, Pinnacle Room, at 1800 Eagle Glen Parkway, Corona,
California 92883-0620.
ATTEST
Laurena Weinert
Assistant Clerk of the Board
Bill Campbell
Committee Chairman
July 15, 2005 Page 3 of 3
2.
Item 2.
011 M
OCTA
November 18, 2005
To: State Route 91 Advisory Committee
From: Daryl Watkins, General Manager, 91 Express Lanes
Subject: Agreement for Operation and Management of the 91 Express
Lanes
Overview
On October 24, 2005, the Orange County Transportation Authority Board of
Directors authorized the Chief Executive Officer to execute an agreement
between the Orange County Transportation Authority and Cofiroute USA, LLC, in
an amount not to exceed $30,800,854, to operate and manage the 91 Express
Lanes for a five-year term.
Recommendation
Receive and file as an information item.
Attachment
A. Agreement for Operation and Management of the 91 Express Lanes
Orange County Transportation Authority
550 South Main Street / P.O. Box 14184 / Orange / California 92863-1584 / (714) 560-OCTA (6282)
" m
O C T A
A T T A C H M E N T A
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w h i c h O C T A e l e c t e d n o t t o e x e r c i s e .
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O r a n g e C o u n t y T r a n s p o r t a t i o n A u t h o r i t y
5 5 0 S o u t h M a i n S t r e e t / P . O . B o x 1 4 1 8 4 / O r a n g e / C a l i f o r n i a 9 2 6 6 3 - 1 5 8 4 / ( T 1 4 ) 5 6 0 - O C T A ( 6 2 6 2 )
Agreement for Operation and Management of the 91 Express Page 2
Lanes
achieve savings and efficiencies through a competitive procurement process.
Two firms submitted proposals by the procurement deadline. of June 9, 2005:
Firm and Location
Cofiroute USA, LLC
Irvine, California
VESystems
Irvine, California
Staff has completed the competitive procurement process (Attachment A) and
is returning to the Board with a recommendation to award the contract for
operation and management of the 91 Express Lanes. Chief Executive Officer
Arthur T. Leahy recused himself from the procurement and selection process.
Discussion
The evaluation committee recommends award to the firm demonstrating the best
overall capability and performance assurance using the four areas evaluated
during the procurement process:
• Qualifications, Related Experience and References of Offeror
• Proposed Staffing and Project Organization
. Approach to Operations
▪ Cost and Price Proposal
Based on the proposals, interviews, site visits, and Best and Final Offers (BAFO),
the evaluation committee recommends the following fimn for selection and
contract award:
Firm and Location
Cofiroute USA, LLC
Irvine, California
Following is a discussion of the key items that differentiated the offerors in each
of the areas evaluated by the committee.
•
•
Agreement for Operation and Management of the 91 Express Page 3
Lanes
1. Qualifications, Related Experience and References of Offeror
Qualifications, Related Experience and References of Offeror
Percentage of overall score: 15 percent
Cofiroute: 93 out of a possible 100 VESystems: 76 of 100
Qualifications, Related Experience and References of Offeror accounted for
15 percent of the offerors' overall score. Both firms and subcontractors have
impressive toll industry credentials. However, the evaluation committee judged
Cofiroute to have the more favorable presentation of their firm's credentials,
capabilities, and understanding of comprehensive toll road operation and
management. This was particularly borne out in the presentations, interviews,
and site visits (Attachment B).
Cofiroute Global Mobility (CGM), Cofiroute's corporate parent, is a multi -billion
dollar international corporation and has the depth of staff necessary to provide
replacement staff if needed. CGM was part of the original consortium that
financed, built, and operated the 91 Express Lanes and has comprehensive'
knowledge of every facet of past operations. In contrast, VESystems would have
to increase its staff level considerably to be able to perform the 91 Express Lanes
work.
2. Proposed Staffing and Project Organization
Proposed Staffing and Project Organization
Percentage of overall score: 20 percent
Cofiroute: 82 of 100 VESystems: 70 of 100
The evaluation committee graded Proposed Staffing and Project Organization for
Cofiroute higher than for VESystems. The Cofiroute management personnel
demonstrated a thorough understanding of their individual areas of expertise. Key
personnel of VESystems and their subcontractor TransCore's management
teams, other than the project manager, did not participate extensively in the
presentation, questions, or site visits. The VESystems team recommended a
Agreement for Operation and Management of the 91 Express Page 4
Lanes
project staffing level that was 5.85 full-time equivalent employees less than the
staffing proposed by Cofiroute. The committee felt that the Cofiroute staffing level
was consistent with the level necessary to continue the high level of service the
91 Express Lanes currently provides our customers. VESystems did not
demonstrate or explain how they would maintain equivalent service with fewer
employees. Consequently, the evaluation committee more favorably rated the
Cofiroute approach to Proposed Staffing and Project Organization
(Attachment C).
VESystems proposed an alternate project manager, violations processing
manager, and customer service supervisor in their BAFO. These substitute
managers represent VESystems' primary area of expertise. They were evaluated
based only on their resumes, as they did not participate in the interviews and site
visits conducted by the evaluation committee. Furthermore, the BAFO contained
no discussion of the impact of this substitution on the remainder of the
VESystems' proposal.
3. Approach to Operations
Approach to Operations
Percentage of overall score: 40 percent
Cofiroute: 87 of 100 VESystems: 75 of 100
Both proposals were responsive to OCTA's request and documented a wide
range of capabilities_ VESystems was strong in their abilities and record for
providing excellent customer account services and violations enforcement for the
Transportation Corridor Agencies (TCA). However, VESystems' experience in
operational components critical to the day-to-day operations of the toll facility was
not demonstrated to the satisfaction of the evaluation committee. A comparison
of the details and responsibilities between the proposals is provided in
Attachment D. The evaluation committee's review of the proposals, oral
interviews, and on -site visits determined that Cofiroute's personnel demonstrated
a more thorough understanding of OCTA's requirements for toll road operations
on the 91 Express Lanes.
•
Agreement for Operation and Management of the 91 Express Page 5
Lanes
4. Cost and Price Proposal
Cost and Price Proposal
Percentage of overall score: 25 percent
Cofiroute: 73 of 100 VESystems: 85 of 100
In evaluating the price proposals, the committee was looking for price'
competitiveness, reasonableness of the costs of proposed services, ,
understanding of the requirements of the 91 Express Lanes, attention to detail,
and the presence or absence of factors that might serve to increase the cost of
the services over time.
The evaluation committee conducted in-depth financial analyses of the two
proposals against the existing contract in an attempt to achieve accurate and'
defensible comparisons. A summary of the price proposals for each firm is
presented in Attachment E. VESystems' proposed costs for year one are
$5,068,126 compared to $5,743,786 for Cofiroute. VESystems proposed costs
for years 1-5 are $26.6 million compared to $30.8 million for Cofiroute. The
evaluation committee graded the VESystems price proposal to be more
competitive, based on its total cost being lower by $675,660 in year one and
$4.2 million over the base contract period.
The evaluation committee did express concerns that the VESystems price
proposal missed cost elements captured in the Cofiroute price proposal.
Consequently, the committee judged that VESystems' cost advantage would be
less than represented above.
The Cofroute proposal accurately described the expenses that OCTA expects, .
the contractor to carry. The cost estimates clearly and accurately carried from
each worksheet to the summary pages. In essence, Cofiroute's proposal
demonstrated an attention to detail, which satisfied the evaluation committee that
the cost proposal was sound.
The evaluation committee was not able to gain a similar level of comfort with the
VESystems proposal. The lack of attention to detail in the pricing portion of the
proposal was of concern to the evaluation committee. Certain expenses were
missing altogether; some were misunderstood by the proposer; and others did
not flow from worksheets to summary charts. The evaluation committee noted
several discrepancies that may result in an increase in the base cost of
Agreement for Operation and Management of the 91 Express Page 6
Lanes
VESystems' services, as they pass those costs on to OCTA, or may result in
VESystems' operating at an unrealistically low profit margin or at a loss.
Specific areas of concern in VESystems' pricing are:
• not including specific expenses related to office equipment and maintenance,
utilities, and phone service in their pricing.
• omitting costs for the Southern California Association of Governments
(SCAG) mandated Average Vehicle Occupancy reports. The Project manager
stated that he did not understand the cost, so he left it out of the proposal.
• proposing unreasonably low workers' compensation expenses ($17,000) at
only 0.6 percent of payroll.
• proposing $1 million crime insurance for the contractor instead of the
$5 million required by the RFP.
Furthermore, the evaluation committee calculated the average cost per unit of
labor for each proposal.
Annual Cost Per Labor Unit (Base Labor Cost / Full -Time Employee)
Cost FTE $/FTE
Cofiroute $ 2,818,273 / 58.75 = $ 47,971
VESystems $ 2,658,206 / 52.90 = $ 50,250
Additional cost for 5.85 FTE at $50,250 = $293,960
If the VESystems' staffing needed to be increased to achieve a higher level of
performance, at their proposed average, the increase in cost would be $293,960.
Finally, the evaluation committee also looked at the costs of transitioning
operation and management services from Cofiroute to VESystems and noted:
• VESystems proposed transition costs of $137,354 to offset costs incurred to
start work.
• the current operation and management contract with Cofiroute allows for
severance payments to Cofiroute employees. The amount of severance
depends on a range of variables outlined in the current operation contract.
Preliminary estimates range from $500,000 to $700,000.
• other transition costs, but the fiscal impacts of these costs are unknown.
These transition costs would include the costs associated with vendor and
•
Agreement for Operation and Management of the 91 Express Page 7
Lanes
staff time to bring VESystems current on existing systems, policies,
procedures, and practices.
. also unknown is the potential indirect impact to other 91 Express Lanes
stakeholders — customers, bond holders, commuting public.
Summary of Evaluation
OCTA should be willing to accept transition risk to a new vendor to achieve
significant operating efficiencies and savings. Considering that only two bids were
submitted, with one bid from the incumbent, the question becomes: did the
challenger present a convincing proposal demonstrating that they could operate
and manage the road better and cheaper?
The challenger did not present a proposal that unequivocally said yes to that
question. The evaluation committee judged the Cofiroute proposal to be stronger
in Qualifications, Related Experience and References of Offer, Proposed Staffing
and Project Organization; and Approach to Operations. The evaluation
committee judged the VESystems' Cost and Price Proposal to be more
competitive with the notable caveat that the proposal was missing cost elements.
Most importantly, the evaluation committee believed that the Cofiroute proposal
carries less risk and contains fewer unknown elements.
In the event of a significant disturbance in the lanes, the experience of the
operator can have major operational, customer service, and revenue implications.
The operator is responsible for running and assisting with traffic breaks, removing
debris from the lanes, responding to customer queries, notifying customers of
issues, managing and responding to crises from the traffic management center,
assisting disabled vehicles, and managing the systems for continued revenue
collection. The operator cannot fail in these functions without creating the
potential for a breakdown in customer service and revenue collection.
Cofiroute's experience and involvement in past operation led the financial
community to highlight it as a favorable influence in their rating determination
during the acquisition by OCTA. During the current evaluation process, the
Cofiroute team successfully demonstrated their dedication and ongoing
commitment to the 91 Express Lanes. Furthermore, their proposal offers a nearly
risk -free transition to a new operating contract that will save nearly $1.15 million
per year (over the status quo pricing) while simultaneously increasing the scope
of services.
By contrast, the only major contract for VESystems at this time is for certain
functions at the Transportation Corridor Agencies. VESystems' staff lacks direct
experience performing some of the critical operations that the contractor will be
Agreement for Operation and Management of the 91 Express Page 8
Lane.s
expected to perform. This presents greater financial risk for OCTA in the event of
a VESystems' operational failure. Some evaluation committee members were
very concemed that the VESystemslfransCore personnel did not clearly
demonstrate that they could make a smooth transition to operation and
management without significant potential for service disruption.
Functional Options
The Board also directed staff to determine if the operating and management
contractor could feasibly and cost effectively take over certain functions
currently performed by OCTA. The evaluation committee sought input from
Accounting, Marketing, Information Systems, and Toll Road and Motorist
Services departments to evaluate the effectiveness and fit of each proposed
option with OCTA objectives.
Based upon the RFP process, staff recommendations and justifications for the
options are presented in Attachment F. Staff proposes the following
determination regarding these options:
• Do not exercise the accounting or technology options.
• Exercise a limited scope of the marketing option. Staff recommends the
operating contractor be limited to providing routine marketing services and
that other marketing and communications be competitively procured
separately.
Fiscal Impact
The Board approved the project in the OCTA Fiscal Year 2005-06 Budget,
Planning, .Development and Commuter Services Division, Account
No.0036-7350-B0100-A5H. The account is funded through the SR91
Enterprise Fund.
Summary
Staff recommends award of Agreement C-5-0300 to Cofiroute USA, LLC, in an
amount not to exceed $30,800,854, to operate and manage the 91 Express
Lanes for a five-year term. The recommended agreement would include two,
24-month option terms to be exercised at the conclusion of the initial five-year
term at the sole discretion of the Board of Directors.
Agreement for Operation and Management of the 91 Express Page 9
Lanes
Attachments
A.
B.
C.
D.
E.
F.
Procurement Process for Request for Proposals 05-300
Qualifications, Related Experience and References of Offeror
Proposed Staffing and Project Organization
Approach to Operations
Cost Analysis for Request for Proposals 05-300
Options Analysis for Request for Proposals 05-300
Prepared by:
Daryl Watkins
Manager, Toll Road and Motorist
Services
(714)560-5406
Approved by:
Paul C. Talgtbr, P.E.
Executive Director, Planning,
Development and Commuter Services
(714) 560-5431
STAFF REPORT
ATTACHMENT A
Procurement Process for Request for Proposals 05-300
In September 2004, staff released a Request for Information (RFI) to members of the
toll trade industry. The goal was to gain additional perspectives from toll industry
experts on the scope of services and operating approaches that might be successful in
the 91 Express Lanes environment.
Staff prepared an RFP that included several refinements to the existing operating and
management approach, including information gleaned from the 11 responses to the
RR. The RFP requested vendors provide optional proposals for accounting, marketing,
and software services. The proposed term of service for the agreement is
January 3, 2006, through January 2, 2011, with two, 24-month option terms, potentially
extending the agreement through January 2, 2015. The Board approved issuance of the
RFP on February 14, 2005. OCTA advertised the procurement on February 24, 2005, and
March 8, 2005, in a newspaper of general circulation and on CAMMNet, the OCTA online
procurement website. Ten firms attended a pre -proposal meeting on March 9, 2005. Two
firms submitted offers by the procurement deadline of June 9, 2005:
1. Cofiroute USA, LLC, Irvine, California 92618
2. VESystems, Irvine, Califomia 92618
The procurement process was managed as a competitive, negotiated procurement in
accordance with intemal procedures for professional and technical services. The process
included the following key steps:
• Notice to the worldwide community of toll road operators of the procurement;
• A comprehensive RFP document;
• A pre -proposal conference where OCTA personnel were available to elaborate and
respond to the vendors' questions about the procurement;
• Responses to written questions submitted by potential vendors regarding the
procurement; all responses were distributed to the attendees of the pre -proposal
conference;
• Review of the submitted proposals by an evaluation committee consisting of OCTA
personnel involved in the 91 Express Lanes program, a representative from
California Department of Transportation (Caltrans), and representatives from San
Diego Association of Governments (SANDAG), and Riverside County
Transportation Commission who are familiar with toll road operations. The
committee evaluated the offers based on qualification of the firm (15 percent),
staffing and project organization (20 percent), approach to operations (40 percent),
and cost (25 percent);
Page 1
" P r e s e n t a t i o n s b y a n d i n t e r v i e w s w i t h t h e t w o p r o p o s e r s ;
" R e q u e s t s f o r B e s t a n d F i n a l O f f e r s ( B A F O s ) , w h i c h w e r e r e s p o n d e d t o b y e a c h
o f f e r o r t o f u r t h e r d e f i n e a n d r e f i n e t h e i r p r o p o s a l s ;
" S i t e v i s i t s t o t o l l r o a d o p e r a t i o n s c u r r e n t l y u n d e r t h e m a n a g e m e n t o f e a c h
p r o p o s i n g t e a m ;
" N e g o t i a t i o n m e e t i n g s w i t h b o t h p r o p o s e r s t o c l a r i f y c e r t a i n r e s p o n s e s t o t h e B A F O
r e q u e s t s a n d t o e x p l o r e f u r t h e r r e f i n e m e n t s t h a t m i g h t b e p u r s u e d i n f i n a l c o n t r a c t
n e g o t i a t i o n s . F o r e x a m p l e , b o t h f i r m s a g r e e d t o a n i n n o v a t i v e p e r f o r m a n c e
m a n a g e m e n t a p p r o a c h d e v e l o p e d b y O C T A ;
" R e f e r e n c e c h e c k i n g o f b o t h p r o p o s e r s ; a n d
" F i n a n c i a l a n d o p e r a t i o n a l a n a l y s i s o f b o t h p r o p o s a l s b y O C T A s t a f f t o a s s e s s t h e
r e l a t i v e b e n e f i t s o f b o t h p r o p o s a l s .
" C h i e f E x e c u t i v e O f f i c e r A r t h u r T . L e a h y r e c u s e d h i m s e l f f r o m t h e p r o c u r e m e n t a n d
s e l e c t i o n p r o c e s s
P a g e 2
"
Qualifications, Related Experience and References of Offeror
Comparison of proposal content*
STAFF REPORT
ATTACHMENT B
Cofiroute USA, LLC
Management Experience
VESystems, LLC
Cofiroute — Global presence in the tolling
industry performing every aspect of toll
road management.
• Operations
• Program management
• Engineering
Additional experience:
• Maintenance services
• System design, development, and
maintenance
• Financial management
• Research and development
• Ownership
VESystems — National presence in tolling
industry performing certain aspects of toll
road management.
• Operations
• Program management
• Engineering (software)
TransCore (subcontractor)
Additional experience:
. Maintenance services
• Toll system design; integration and
installation
Operational Support
Cofiroute Global Mobility — multi -billion
dollar company was part of original private
consortium that financed, built, and
operated the 91 Express Lanes (prior to
OCTA's acqusition).
TransCore — Global provider of operational
support is offered in this proposal to
provide personnel and management for in
lane maintenance and the Customer
Service Patrol
Range of operational experience specific to 91 Express Lanes
• Incumbent operating and management
contractor with direct, relevant
experience with unique aspects of the
91 Express Lanes
. Current business base consists of
contract with the TCA and software
development contracts.
Observations made by evaluation committee
• Current staffing levels sufficient
• Proposal demonstrated full range of
experience and capabilities within
tolling industry and responded
specifically to RFP requirements
• Presentation and site visit were
consistent with written proposal
• Obtaining the 91 Express Lanes
operation and management contract
would nearly double the staffing and
financial requirements of the company
• Proposal demonstrated a range of
experience and capabilities; however,
RFP requirements regarding traffic
operations management and customer
assistance patrol were not adequately
addressed in either the presentation or
site visit
. Presentation and site visit were not
consistent with written proposal
*Organization and headings are provided for the reader's understanding. Staff has attempted to organize
data sequentially for comparison purposes. Content is drawn from offerors' proposals.
" E m p h a s i z e d e x p e r i e n c e w o r k i n g w i t h
9 1 E x p r e s s L a n e s c u s t o m e r s :
C u s t o m e r s e r v i c e s t a f f h a s a n
a v e a g e o f 3 . 5 y e a r s o f s e r v i c e o n
9 1 E x p r e s s L a n e s
V i o l a t i o n s p r o c e s s i n g s t a f f h a s a n
a v e r a g e o f 5 . 5 y e a r s o f s e r v i c e o n
9 1 E x p r e s s L a n e s
S T A F F R E P O R T
A T T A C H M E N T C
P r o p o s e d S t a f f i n g a n d P r o j e c t O r g a n i z a t i o n
D e m o n s t r a t e d b y O f f e r e r t o E v a l u a t i o n C o m m i t t e e *
C o f i r o u t e U S A , L L C
V E S y s t e m s , L L C
S u p p o r t s 9 1 E x p r e s s L a n e s O p e r a t i o n a n d M a n a g e m e n t
i n P r o p o s a l
�% E m p h a s i z e d e f f e c t i v e m a i n t e n a n c e
p r o g r a m f o r c a s h c o l l e c t i o n m a c h i n e s ;
h o w e v e r , t h i s i s n o t u s e f u l t o O C T A
s i n c e 9 1 E x p r e s s L a n e s i s a n a l l
e l e c t r o n i c t o l l i n g f a c i l i t y
C u s t o m e r s e r v i c e c e n t e r f u n c t i o n
s u p p l i e d b y T C A , a n d b y S A N D A G
& C a l t r a n s f o r o p e r a t i o n a t 1 - 1 5
I n t e r v i e w
" P r o j e c t M a n a g e r d e m o n s t r a t e d s t r o n g
l e a d e r s h i p a n d a p p r o p r i a t e d e l e g a t i o n
s k i l l s
o D e m o n s t r a t e d u n d e r s t a n d i n g o f
e a c h f u n c t i o n a l a r e a
o A l l o w e d i n d i v i d u a l m a n a g e r s t o
d i s c u s s o w n a r e a s a n d o f f e r e d
d e t a i l e d a n s w e r s d e m o n s t r a t i n g
a r e a s o f e x p e r t i s e a t i n t e r v i e w
" P r o j e c t M a n a g e r o f f e r e d i n p r o p o s a l ,
b u t l a t e r s u b s t i t u t e d , a n s w e r e d m o s t
q u e s t i o n s
" K e y m a n a g e r s w e r e s u b s t i t u t e d d u r i n g
B A F O r e s p o n s e :
o P r o j e c t M a n a g e r
o V i o l a t i o n s P r o c e s s i n g M a n a g e r
o C u s t o m e r S e r v i c e S u p e r v i s o r
�% C a p a b i l i t i e s o f s u b s t i t u t e d p e r s o n n e l
r e m a i n u n d o c u m e n t e d
" T r a n s C o r e p e r s o n n e l d i d n o t c o n t r i b u t e
s i g n i f i c a n t l y i n d i s c u s s i o n s a n d
p r e s e n t a t i o n s a t o r a l i n t e r v i e w
S i t e V i s i t
. T o u r s o f t h e C o f i r o u t e - m a n a g e d
f a c i l i t i e s ( 9 1 E x p r e s s L a n e s o f f i c e s i n
A n a h e i m , C o r o n a a n d T o l l Z o n e )
. E m p h a s i z e d c o m p r e h e n s i v e
u n d e r s t a n d i n g o f r a n g e o f s e r v i c e s
n e c e s s a r y t o o p e r a t e a n d m a n a g e t h e
l a n e s
" T o u r s o f t h e V E S y s t e m s p r o p e r t i e s
( T C A o f f i c e i n I r v i n e , c o r p o r a t e o f f i c e i n
I r v i n e ) , a n d T r a n s C o r e o p e r a t i o n a t
1 - 1 5 .
" S h o w e d r e l i a n c e o n T C A , S A N D A G ,
a n d C a l t r a n s f o r o p e r a t i o n s e r v i c e s
" S u b s t i t u t e d V i o l a t i o n s P r o c e s s i n g
M a n a g e r & C u s t o m e r S e r v i c e
S u p e r v i s o r d i d n o t c o n t r i b u t e d u r i n g
s i t e v i s i t
" S u b s t i t u t e d P r o j e c t M a n a g e r n o t
p r e s e n t d u r i n g s i t e v i s i t
* E v a l u a t i o n C o m m i t t e e ' s j u d g m e n t s m a d e o n v e n d o r - s u p p l i e d p e r s o n n e l a n d i n f o r m a t i o n o f f e r e d i n
p r o p o s a l a n d o b s e r v e d d u r i n g i n t e r v i e w s a n d s i t e v i s i t s .
Approach to Operations
Demonstrated by Offerer to Evaluation Committee"
STAFF REPORT
ATTACHMENT D
Cofiroute USA, LLC
VESystems, LLC
Supports 91 Express Lanes Operation and Management
in Proposal
•
Emphasized continuity of existing high
level of customer service, violations
processing, interoperability, and traffic
. Emphasized "[Nordstrom -level
customer service" at an affordable
price
operations management
•
Proposed TransCore as subcontractor
.
Proposed continuity of experienced key
personnel knowledgeable in the full
range of 91 Express Lanes operational
and governance requirements
to handle lane level equipment
maintenance and customer assistance
patrol
Interview
•
Project Manager demonstrated detailed
understanding of governance
requirements
•
VESystems President (proposed
Project Manager) introduced team,
made presentation, and responded to
•
Each key manager introduced himself
most questions.
or herself and responded to functional
questions
.
Responses to road operations
questions lacked detail, were
•
Responses to road operations
questions were thorough, specific, and
superficial, and occasionally did not
answer the specific question asked.
relevant
.
VESystems co-founder discussed
•
Answers generally included examples
of operations issues to back up their
proposed approach
technology options and demonstrated
deep understanding of tolling
technology issues
Site Visit
•
Cofiroute President and Project
Manager introduced themselves and
accompanied evaluation team
•
VESystems President (previously
proposed as Project Manager)
discussed customer service and
•
Functional managers discussed each
violations processing functional areas
funtional area in detail and presented
performance criteria and current results
to highlight staff performance
•
TransCore personnel demonstrated the
physical model system TransCore uses
to lab test their in -lane equipment
.
Traffic Operations Center manager
described roadway operations,
described importance of experienced
.
TransCore maintenance personnel
demonstrated maintenance on cash
machines (not used on Express Lanes)
patrol personnel and "right -side" safety
procedures
•
TransCore manager demonstrated
software and explained 1-15 customer
•
Traffic Operations personnel
demonstrated initial and secondary
reviews of license plate images
service procedures
"Evaluation Committee's judgments made on vendor -supplied personnel and information offered in
proposal and observed during interviews and site visits.
91 Express Lanes' OCTA Cofiroute Ca'trans
Administration x x
Human Resources Management x
Training z x
Quality Control x x
Disaster Recovery / Business Resumption x x
Toll Operations x
Violations Processing x
Imeroperability x
Customer Service x x
Accounting x x
Security and Investigations x x
Customer Assistance Patrol x
Incident Management x x
Safety Program x
Customer Account Management x
Traffic Operations Center x
Lane Equipment Maintenance x
Variable Message Sign Management x
Coordination with CHP and Caltrans x
2411261/133/73 ** TCA VESvstems Transcore Caltrans
Administration x x x x
Human Resources Management x x x x
Training x x x x
Quality Control x x x x
Disaster Recovery / Business Resumption x x x x
Toll Operations x x x
Violations Processing x x x
Interoperabitity x x
Customer Service x x
Accounting x x x
Security and Investigations x x x
Customer Assistance Patrol
Incident Management x x x
Safety Program x x x
Customer Account Management x
Traffic Operations Center x
Lane Maintenance x
Variable Message Sign Management x x
Coordination with CHP and Caltrans x x x
I� ."
Administration
Human Resources Management
Training
Quality Control z
Disaster Recovery / Business Resumption
Toll Operations
Violations Processing
Inleroperabilily x x
Customer Service x
Accounting x x
Security and Investigations
Customer Assistance Patrol x
Incident Management x
Safety Program
Customer Account Management z
Traffic Operations Center
Lane Maintenance
Variable Message Sign Management x
Coordination with CHP and Caltrans x x
Tranacore Caltrans CHP
SANDAG
x
x
x
x
x
x
x
x
x
x
x
x
`- Completed by OCTA
" - Completed by TCA
"" - Completed by SANDAG
The charts represent the range of services requested in proposal C-05-0300. Representatives from each toll
road were asked to place an "x" in each column to describe what organization was responsible for each activity.
2of2
i
Base Period
Cofiroute
Cost Analysis for Request for Proposals 05-300
BAFO
Marketing Option
Total
VESystems Base BAFO
Marketing Option
Transition Cost
Total
Option Period One
Cofiroute BAFO
Marketing Option
Total
Year 1
$ 5,443,786
$ 300,000
$ 5,743,786
$
Year 2-5
$ 23,748,328
$ 1,308,740
$ 25,057,068
4,598,008 $ 20,058,656
332,764 $ 1,451,670
137,354
5,068,126 $ 21,510,326
Year 6 Year 7
$ 6,527,456
$ 356,306
$ 6,883,762
$ 6,821,033
$ 368,777
$ 7,189,810
STAFF REPORT
ATTACHMENT E
Total
$ 29,192,114
$ 1,608,740
$ 30,800,854
$ 24,656,664
$ 1,784,434
$ 26,578,452
Total
$ 13, 348,489
$ 725,083
$ 14,073,572
VESystems BAFO
Marketing Option
Total
$ 5,460,990
$ 395,219
$ 5,856,209
$ 5,652,127
$ 409,051
$ 6,061,178
$ 11,113,117
$ 804,270
$ 11,917,387
Option Period Two
Cofiroute BAFO
Marketing Option
Total
Year 8
$ 7,128,224
$ 381,684
$ 7,509,908
Year 9
$ 7,449,684
$ 395,043
$ 7,844,727
Total
$ 14,577,908
$ 776,727
$ 15,354,635
VESystems BAFO
Marketing Option
Total
$ 5,849,951
$ 423,368
$ 6,273,319
$ 6,054,698
$ 438,187
$ 6,492,885
$ 11,904,649
$ 861,555
$ 12,766,204
BAFO - Best and Final Offer
Mktg. - Marketing
STAFF REPORT
ATTACHMENT F
Options Analysis for Request for Proposals 05-300
The Board directed staff to determine if the operating and management contractor could
feasibly and cost effectively take over central functions currently performed by OCTA. The
evaluation committee sought input from OCTA Accounting, Marketing, Information
Systems, and Toll Road and Motorist Services to evaluate the effectiveness and fit of each
proposed option with OCTA objectives.
1. Marketing Option
• Exercise a limited -scope marketing option. Both firms proposed a broad scope of
marketing services to be conducted by the offerors and subcontracted through
professional marketing firms. Staff recommends that we negotiate a scope of
routine marketing services that will limit the amount of subcontracted services.
• Using this approach, OCTA will competitively bid future 91 Express Lanes
marketing and communications programs as annual needs, budgets and work plan
elements evolve.
• Staff recommends focusing the operating contractor's marketing services on routine
program elements such as customer communications, newsletters and statements,
toll updates, website maintenance, customer roundtables, annual customer
satisfaction surveys, and outreach support for Riverside County and Corona
Chamber of Commerce and other meetings, and 91 Express Lane tours.
• Exercising this approach will provide OCTA with basic support for ongoing
91 Express Lanes marketing programs while offering flexibility to adapt, grow, or
limit marketing activities as needed.
2. Accounting Option
• Staff recommends that the Board not exercise the accounting option. Both firms
proposed a level of accounting in their base proposals similar to the level of
accounting that has evolved over the past few years.
• The Accounting Department demonstrated that it would be infeasible for the
contractor to perform many oversight functions that OCTA currently performs due to
the unique reporting and governance requirements of fund accounting.
3. Technology Option
Staff recommends that the Board not exercise the technology option. Each firm
proposed infrastructure support as part of their base proposal.
Each firm proposed replacing the account management software. The current
software (Toll Pro) was implemented and enhanced over the past three years.
Current operational needs do not warrant immediate replacement.
A technology change coupled with the operator transition would unnecessarily
complicate the transition process and increase risk in key areas of revenue
collection, customer service, and violations processing.
"
"
1 1
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