@ Metro OPERATIONS COMMITTEE MAY 19,201 1 SPACE PLANNINGIINSTALLATION SERVICES, AND WORKSTATIONS AWARD FIVE YEAR CONTRACT
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1 @ Metro Metropolitan Transportation Authority One Gateway Plaza zi3.9zz.zooo Tel Los Angeles, CA gooiz-2952 metro.net OPERATIONS COMMITTEE MAY 19,201 1 SUBJECT: ACTION: SPACE PLANNINGIINSTALLATION SERVICES, AND WORKSTATIONS AWARD FIVE YEAR CONTRACT Authorize the Chief Executive Officer to award a five-year indefinite delivery, indefinite quantity Contract No. PSI to McAllister Office Pavilion, for space planninglinstallation services and workstations in an amount not-to-exceed $5,000,000. MTA's current contract for space planning, workstations, and systems furniture installation will reach Board approved purchase authority, and a new contract is now required. Contract awards for over $500,000 following an RFP process require Board approval. DISCUSSION The proposed contract is a master agreement for MTA space planning, workstations acquisition and installation for existing facilities, and for new facilities when advantageous. This continues MTA's practice of combining space planning and workstation acquisition into a single contract to streamline our business process and reduce prices. The contract type is indefinite delivery, indefinite quantity, which secures favorable pricing for the next five years to meet future space planning and workstation requirements. The contract provides the authority to purchase up to $5,000,000 of services and equipment during the next five years, but MTA is not obligated to purchase this amount. This business process allows MTA to respond quickly and at the best possible pricing when needs emerge. For example, under the current expiring contract, the improved business process will facilitate completing the CrenshawlLAX Transit Corridor lntegrated Project Office within the accelerated project schedule. This contract will be used to provide services and workstations for all existing operating divisions, warehouse facilities and, whenever advantageous, to Measure R lntegrated Project Offices and other new operating facilities. Prior to the current, expiring contract,
2 Metro made multiple, separate procurements for each project requiring furniture and space planning services. This practice was more costly and more cumbersome. Before buying new furniture, the project manager will determine if existing surplus furniture can be reused for the project for which furniture is requested. Standardization of systems furniture provides the ability to move surplus furniture components from one facility to another, and reusing surplus components whenever possible will save money and contribute to MTA1s environmental goals. FINANCIAL IMPACT The funding of $670,000 for this contract is included in the Proposed FYI 2 Budget in the following cost centers: Cost Center Facilities Engineering - Operations Building Services Total Project Division 3 Master Plan Gateway Building Costs Operations Maintenance Rail Operations Management & Admin Bauchet Street Green Line Material Building and Offices Account Acquisitions Contract Services Office Supplies & Expendable Equipment Office Supplies & Expendable Equipment Acquisition of Equipment Acquisition of Equipment Amount $300, ,000 90,000 15,000 35,000 30,000 $670,000 This is a multi-year contract. The General Services Project Manager will be responsible for approving use of the contract including determination of existing equipment and workstation deployment. After receiving approval from the Project Manager, each department wishing to use this contract in future years will be responsible for including funds in their annual budget in future year budgets. Actual FYI 1 expenditures on space planning services and workstations through March 31,201 1 were $339,353. The forecast of expenditures in FYI 1 under the current expiring contract is $1,140,000. This includes expenditures to date, plus work in progress for the SCRRA Relocation and for the CrenshawILAX Transit Corridor Integrated Project Office. Impact to Bus and Rail Operating and Capital Budget General Services has budgeted $200,000 for workstations within the Gateway Building during FYI 2. Gateway Building Costs are part of General Overhead expenditures, and spread among all local, state, and federal funding sources used to fund all of Metro's projects. Approximately 70% of overhead is paid through the Enterprise Fund. Departments that use this contract for other facilities pay the costs from their budgets, which are funded according to the projects they support. Approximately $470,000 of currently identified FYI 2 projects will be charged directly to the Enterprise Fund. No Space Planningllnstallation Services and Workstations Page 2 of 7
3 other sources of funds were considered for this activity because funds are selected to reflect the location where services and furniture are used. ALTERNATIVES CONSIDERED One alternative is to issue multiple separate procurements from multiple vendors and systems furniture manufacturers for each project requiring workstations and space planning services. This alternative has been used by MTA in the past and is not recommended, as it is more costly and does not standardize the workstations and equipment. NEXT STEPS Upon approval, staff will execute this contract. ATTACHMENT 1. Procurement Summary Prepared by: Phyllis Meng, Deputy Executive Officer, General Services Space Planningllnstallation Services and Workstations Page 3 of 7
4 Chief Administrative Services Officer Executive Officer Space Planningllnstallation Services and Workstations Page 4 of 7
5 PROCUREMENT SUMMARY HERMAN MILLEWFEIGER, SPACE PLANNINGIINSTALLATION SERVICES, AND FURNITURE - 1. Contract Number: PSI Recommended Vendor: McAllister Office Pavilion 3. Type of Procurement (check one) : C] IFB RFP C] RFP - A&E C] Non-Competitive C] Modification Task Order Procurement Dates: A. Issued: B. AdvertisedIPublicized: C. Pre-proposal1Pre-Bid Conference: NIA D. ProposalsIBids Due: E. Pre-Qualification Completed: Yes F. Conflict of Interest Form Submitted to Ethics: G. Protest Period End Date: H. Small Business Goal Letter: Solicitations Picked up1downloaded: 6 BidsIProposals Received: Contract Administrator: Jean Davis Project Manager: Paul Gomez Telephone Number: (21 3) Telephone Number: (21 3) A. Procurement Background The solicitation was issued to obtain indefinite delivery, indefinite quantity (IDIQ) pricing for Herman Miller office furniture1geiger Space Planning & Installation Services under RFP No. PSI Under this contract, MTA will establish a fiveyear master agreement for space planning, furniture acquisition, and installation services for existing and new facilities at favorable prices for a 5-year period. The RFP was advertised on February 10,201 1, and was issued on February 15, In addition to advertising, the RFP was sent to all listed dealers of HermanIMillerlGeiger furniture. Two questions regarding the solicitation were received and, on March 3,201 1, responded to in Amendment No. 1 to the RFP. Two proposals were received. A survey was done to find out why other dealers did not submit a proposal. The primary reasons given were that the dealers were not located in the Los Angeles County area and they only work with small businesses. Space Planningllnstallation Services and Workstations Page 5 of 7
6 B. Background on Recommended Contractor McAllister Office Pavilion (McAllister), a full service contract furniture dealership, has been in business approximately 48 years. McAllister has completed numerous space planning and furniture orders totaling more than $1.2 million to date for Metro departments, and is currently engaged in the ongoing project to restack the Gateway Building and prepare two floors for the SCRRA lease. McAllister has had major projects with County of Los Angeles (more than 2000 workstations installed), Los Angeles County Employee Retirement Associate (over 600 workstations installed), with numerous other LA County agencies and with OCTA for the past 7 years. Client references and past performance with Metro have been satisfactory. C. Evaluation of Prbposals Proposals were received from McAllister Office Pavilion and the Sheridan Group on March 8, Both proposers were determined to be responsive and responsible contractors. Proposals were evaluated according to the following criteria: Space Planning Services - 40%, Discounts on FurnitureIProduct - 40%, Installation Services - 10% and Space Planning & Installation Labor Rates - 10%. McAllister's proposal received the highest overall score. D. CostJPrice Analysis Explanation of Variances The recommended price has been determined to be fair and reasonable based upon adequate price competition. The RFP asked for discounts off list price of the seven most used furniture products. The discounts offered by both proposers were very favorable. In four of the seven furniture categories, McAllister offered a better discount. Further, the labor rates for space planning and installation proposed by McAllister were significantly less than Sheridan's proposed rates. Space Planningllnstallation Services and Workstations Page 6 of 7
7 Based on adequate price competition received from two proposals received, pricing offered by McAllister was determined to be fair and reasonable. E. Small Business Participation The Diversity and Economic Opportunity Department (DEOD) recommended a Disadvantaged Business Enterprise Anticipated Level of Participation (DALP) of five percent (5.0%) for this procurement. McAllister listed three non-dbe certified firms with no DALP commitment. McAllister is working with the firm(s) that may be eligible to complete the DBE certification process. The DALP is not a condition of award or responsiveness. The Contractor is encouraged to outreach to DBE firms to further maximize small business participation during the performance of the Contract. Space Planningllnstallation Services and Workstations Page 7 of 7
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