PENINSULA CORRIDOR ELECTRIFICATION PROJECT (PCEP) FFGA DELAY COSTS AND CONTRACT INCENTIVES Board of Directors April 5, 2018 Agenda Item # 8
CONTRACT HISTORY Timeline Date Electrification Contract EMU Procurement Contract September 2013 Board authorized Design Build (DB) delivery approach February 2017 RFP issued August 2015 Proposals received RFP issued March 2016 Single proposal received July 2016 Board authorized award Board authorized award of contract to Balfour Beatty contract to Stadler Infrastructure, Inc. 2
CONTRACT HISTORY Timeline Date DB Electrification and EMU Procurement Contracts August 18, 2016 Contracts executed September 6, 2016 Limited Notice to Proceed December 2016 FFGA sent to Congress for 30-day review period February 17, 2017 FTA deferred execution of FFGA February 27, 2017 LNTP extended to June 30, 2017 / Caltrain news release stating $20M project contingency funds may be required to cover delay March 2, 2017 Executive Director verbally informed Board of potential $20M in contingency costs April 6, 2017 Executive Director updated Board on potential contingency costs May 4, 2017 PowerPoint presented to Board reiterating potential $20M May 23, 2017 FFGA signed by FTA June 1, 2017 Remaining Notice to Proceed issued to Stadler June 19, 2017 Remaining Notice to Proceed issued to Balfour 3
FFGA DELAY COSTS Estimated vs. Actual Change Order Expenses Estimated Rough Order of Magnitude Expenses – As of March 2, 2017 In Millions $ DB Contract – Electrification $12 Stadler Contract - EMU $ 4 Staff Costs $ 4 Total $20 Actual Change Order Expenses In Millions $ DB Contract with 104-Day Extension $ 9.7 CCO: BBI-053-CCO-002 Stadler Engineering and Management Costs $ 0.5 CCO: STA-056-CCO-008 JPB and Consultant Costs $ 5.5 Total $15.7 4
ELECT. CONTRACT INCENTIVES • Contract incentive status reported to Board November 2014 • DB contract incentives are budgeted in the $1.98B overall program budget • Maximum incentive payout totals $7.15M and will have no impact to contingency • Performance-based incentives are earned annually for: – Safety: Total Recordable Incident Rate – Community Outreach: Public responsiveness, prompt issue resolution, corrective action – Quality: Non-conformance items – Disadvantaged Business Enterprise (DBE): Goal of 5.2% of the Contract 5
ELECT. CONTRACT INCENTIVES Incentives Payment Potential Category Summary Criteria Payout Percentage Not to Exceed 0: 100% 0-2: 75% Safety Total Recordable $2,500,000 2-2.5: 50% 2.5-3: 25% 3: 0% Incident Rate Complaints Failure to issue Community Public $2,500,000 received: 50% resolution Outreach responsiveness, w/i 48hrs: 50% prompt issue 0: 50% 0: 50% 1-2: 40% 1: 40% resolution, 3: 30% 2: 20% corrective action 4: 20% >2: 0% 5: 10% >5: 0% Closed NCR: 50% Audit item closures: 50% Quality Non-conformance $1,250,000 items and audit 100%: 50% 100%: 50% 80-100%: 40% 75%: 25% reports 60-80%: 30% <75%: 0% 40-60%: 20% 20-40%: 10% 0-20%: 0% Linear apportionment Contracting with Goal of 5.2% of the $900,000 DBE Companies Contract Total (Not to Exceed) $7,150,000 Incentive payout requirements are defined in Contract Volume 2, A*, Sections 5.0 – 8.0. 6
QUESTIONS
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