TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager/Chief Executive Officer
SUBJECT: Contract Extension for East Bay Paratransit Broker/Service Provider
ACTION ITEM
AGENDA PLANNING REQUEST: ☐
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager to enter into a one-year contract extension with Transdev for the East Bay Paratransit Consortium (EBPC) Broker/Service Provider services.
Staff Contact:
Ramakrishna Pochiraju, Executive Director of Planning & Engineering
Body
STRATEGIC IMPORTANCE:
Goal - Convenient and Reliable Service
Initiative - Service Quality
The provision of ADA paratransit service via the EBPC is mandated by the Federal government. The continuity of EBP service to individuals who cannot, due to a physical or cognitive disability, utilize the fixed-route bus and/or BART is tantamount and consistent with the District’s goal to provide convenient and reliable service.
BUDGETARY/FISCAL IMPACT:
The contract extension with Transdev will total $47,637,274 for the period July 1, 2023 through June 30, 2024. The costs will be funded under the agreed upon operational split of sixty-nine (69%) percent toward AC Transit or $32,869,719 and thirty-one (31%) toward BART or $14,767,555.
The contracted amount is lower than the proposed FY 2023-24 EBPC District budget because the cost of fuel is handled separately.
BACKGROUND/RATIONALE:
In 2018, at the request of both the AC Transit and BART (the Consortium) general managers , staff was instructed to conduct a Service Model Analysis of the East Bay Paratransit (EBP) system. Since EBP’s inception, the service model has been a Broker/Service Provider model. This model has a Broker that performs eligibility determinations, reservations, scheduling, dispatching and customer service. The Broker in turn contracts with Service Providers (SPs) for the operations and maintenance of the EBP fleet. The Broker oversees and monitors the performance of the SPs.
The alternative to the Broker model is a Turnkey Model. Under a Turnkey Model, one firm performs all the functions of the Broker as well as the functions of the SPs. This model requires a separate entity to oversee and monitor the performance of the firm. The EBP Paratransit Coordinators Office (PCO) Request for Proposal, also under development, would be required to perform these additional oversight and monitoring activities.
The RFP was originally structured to allow for prospective bidders to bid on one or both service model options. As the pandemic continued with vaccine mandates, a troubled economy and labor shortages, it was determined that the turnkey option was not in the best interest of the Consortium.
As a result of this change in direction, staff had to revisit not only the Broker/Service Provider RFP but also the PCO RFP. As such, staff was unable to solicit for the Broker/Service Provider prior to the expiration of the current contract. Therefore, consistent with the paratransit presentation to the board in January this year, staff is requesting authorization to extend the existing contract with Transdev for one additional year, which will allow the District to complete the procurement process for a Broker/Service Provider on behalf of the Consortium.
ADVANTAGES/DISADVANTAGES:
The contract extension will ensure the continuity of a vital service to the most vulnerable communities the District serves. The contract extension will allow sufficient time to release the RFP, allow prospective bidders to conduct a competitive procurement, award a contract and allow for a transition period, if necessary.
Given the circumstances, there is no disadvantage to the one year contract extension.
ALTERNATIVES ANALYSIS:
No alternative analysis was conducted regarding the one year contract extension.
PRIOR RELEVANT BOARD ACTION/POLICIES:
SR 21-471 - Authorization to release the RFP for East Bay Consortium Broker and Provider Services.
Board Policy 465 - Procurement Policy
ATTACHMENTS:
None
Prepared by:
Mallory Nestor-Brush, Accessible Services Manager
In Collaboration with:
Michael Daly, Senior Contracts Specialist
Michael Silk, Asst Director of Procurements and Materials
Approved/Reviewed by:
Ramakrishna Pochiraju, Executive Director of Planning & Engineering
Robert del Rosario, Director of Service Development and Planning
Fred Walls, Director of Procurement and Materials
Jill A. Sprague, General Counsel/Chief Legal Officer
Chris Andrichak, Chief Financial Officer