BOARD MEETING DATE: February 7, 2003
AGENDA NO. 9

Approve Contract Awards and Release of Outreach Coordinator RFP as Part of MSRC's FY 2002-03 AB 2766 Discretionary Fund Work Program; Grant MSRC Authority to Adjust Project Costs Up to 5%; and Authorize Board Chairman to Execute Agreements

SYNOPSIS: 

The MSRC requests the following: 1) Approval to fund ten applications totaling $933,300 received in response to the Local Government Match Program Announcement & Application; 2) Approval to fund ten applications totaling $670,413.69 received in response to the Coachella Valley PM10 Reduction Program PA; 3) Approval to release a $45,000 Request for Proposals for Programmatic Outreach Services; 4) Authorization to enter into negotiations for a sole source contract, not to exceed $35,000, with HiP Design for Website hosting and maintenance services; and 5) Authorization to enter contracts with three qualified school bus vendors, in an amount not to exceed $2,000,000 total, to provide incentives for compressed natural gas school buses. MSRC also requests authority to adjust contracts up to five percent and authority for the Board Chairman to execute agreements.

COMMITTEE: 

Mobile Source Air Pollution Reduction Review Committee,
January 23, 2003, Unanimously Approved

RECOMMENDED ACTION:

1. Approve the award of ten applications totaling $933,300 under the Local Government Match Program as part of the FY 2002-03 AB 2766 Discretionary Fund Work Program as described in this letter and the attachments;
   
   
2. Approve the award of ten applications totaling $670,413.69 under the Coachella Valley PM10 Reduction Program as part of the FY 2002-03 AB 2766 Discretionary Fund Work Program as described in this letter and the attachments;
   
   
3. Approve the release of one Request for Proposals, #P2003-20, in the amount of $45,000 for Programmatic Outreach Services as part of the FY 2002-03 AB 2766 Discretionary Fund Work Program as described in this letter and the attachments;
   
   
4. Authorize the negotiation of a sole-source contract with HiP Design in an amount not to exceed $35,000 for MSRC Website hosting and maintenance services;
   
   
5. Authorize $2,000,000 to provide incentives for CNG school buses; award contracts in the amount of $300,000 each to three qualified school bus vendors, namely A-Z Bus Sales, California Bus Sales and Southern California Thomas Bus Sales; retain the remaining $1.1 million to augment the qualified vendor contracts based on sales performance, subject to review and approval of MSRC;
   
   
6. Authorize MSRC the authority to adjust contracts up to 5%, as necessary; and
   
   
7. Authorize the Chairman of the Board to execute twenty-four contracts as listed in Attachments 1 and 2, and item 5 above.

William G. Kleindienst
Chair, MSRC

Background

In September 1990 Assembly Bill 2766 was signed into law (Health & Safety Code Sections 44220-44247) authorizing the imposition of an annual $4 motor vehicle registration fee to fund the implementation of programs exclusively to reduce air pollution from motor vehicles. AB 2766 provides that 30 percent of the annual $4 vehicle registration fee subvened to the AQMD be placed into an account to be allocated pursuant to a work program developed and adopted by the MSRC and approved by the AQMD Governing Board. Available monies for the FY 2002-03 Work Program are currently estimated to be at least $15 million, including revenue and interest.

1. Local Government Match Program
On October 4, 2002, the Board approved the FY 2002-03 AB 2766 Discretionary Fund Work Program in Concept totaling $14.95 million. This included a Local Government Match Program Announcement & Application. The Match Program offers to co-fund qualifying alternative fuel vehicle and infrastructure projects. The total amount of MSRC Discretionary Funds allocated to this category is $2.45 million. The solicitation mechanism is a Program Announcement and Application, with a proposal receipt period beginning on December 1, 2002 and ending on April 8, 2003. Since funding is available on a first-come, first-serve basis, ten projects are currently submitted for approval. The total funding recommended for these requests is $933,300.

Outreach

In accordance with the AQMD's consulting and contracting policies, a public notice advertising the Local Government Match Program was published on two different days in 25 newspapers and publications, including several targeting minorities.

The Local Government Match Program Announcement (PA) was placed on the MSRC's Web site at "http://www.msrc-cleanair.org" as well as the AQMD's Web site at "http://www.aqmd.gov" under the "Business and Job Opportunities" icon, and information was included about the PA on the AQMD's 24-hour telephone message line for bidders at (909) 396-2724. Several PAs were downloaded from the MSRC's web site.

In addition to the AQMD's standard practices, a brochure announcing all of the MSRC's funding opportunities was mailed to over 1,600 interested parties on the MSRC's mailing list, as well as to the Black and Latino Legislative Caucuses, City Managers, Chambers of Commerce, the AQMD's Ethnic Communities Advisory Group, and business associations.

The complete Program Announcement and Application was mailed directly to all city mayors and city managers within the South Coast Air Basin as well as to the Subvention Fund technical contacts identified by the AQMD's Transportation Division.

Bidders' Conference

A Bidders' Conference was conducted on October 22, 2002, at AQMD headquarters. A general question-and-answer session was conducted.

Proposals Received and Evaluation Process

Ten complete applications have been received to date from various cities throughout the Basin. The MSRC's Technical Advisory Committee (MSRC-TAC) formed an evaluation subcommittee to review the applications to determine eligibility, using the criteria within the Program Announcement. Funds are available on first-come, first serve basis. At its January 23, 2003 meeting, the MSRC considered recommendations from its MSRC-TAC.

Proposals

The MSRC unanimously approved funding all the ten applications for a total Match Program package totaling $933,300. At this time the MSRC requests Board approval to fund the projects identified in Attachment 1 as part of the FY 2002-03 Work Program.

In some cases the full amount requested in a proposal is not recommended for funding or the proposed scope of work has been modified. This is consistent with the MSRC's administrative policies, which allow the MSRC to approve a portion of a proposer’s scope of work and/or funding request. In those cases where the proposed funding level or scope of work has been modified by the MSRC, and the proposer cannot perform the project as approved, the MSRC may rescind the funding commitment and retain the funds in the Discretionary Fund for future work programs.

2. Coachella Valley PM₁₀ Reduction Program
On October 4, 2002, the Board approved the FY 2002-03 AB 2766 Discretionary Fund Work Program in Concept totaling $14.95 million. This included the Coachella Valley PM10 Reduction Program. The Coachella Valley Program offers to co-fund qualifying particulate matter reduction projects, focusing on the early implementation of Most Stringent Measures (MSMs) as defined by the South Coast AQMD in the new Coachella Valley State Implementation Plan. The goal of the MSRC Program is to assist CVAG jurisdictions in effectively and expeditiously implementing MSMs prior to the imposition of mandatory PM10 Reduction Rules by the AQMD. The MSRC Program offers a match against CMAQ, AB 2766 Subvention Funds, or other local funds. The MSRC Program provides qualifying CMAQ projects an 11.47% match against federal CMAQ (TEA-21) funds, a 75% Match against AB 2766 Subvention Funds, and a 50% match when other sources of funds are applied. The total amount of MSRC Discretionary Funds allocated to this category is $1 million. The solicitation mechanism is a Program Announcement and Application, with a proposal receipt period beginning on November 5, 2002 and ending on April 8, 2003. Since funding is available on a first-come, first-serve basis, ten projects specified in Attachment 2 and 2A hereto are currently submitted for approval. The total funding recommended for these requests is $670,413.69.

Outreach

In accordance with the AQMD's consulting and contracting policies, a public notice advertising the Coachella Valley PM10 Reduction Program was published on two different days in 25 newspapers and publications, including several targeting minorities.

The Coachella Valley PM10 Reduction Program Announcement (PA) was placed on the MSRC's Web site at "http://www.msrc-cleanair.org" as well as the AQMD's Web site at "http://www.aqmd.gov" under the "Business and Job Opportunities" icon, and information was included about the PA on the AQMD's 24-hour telephone message line for bidders at (909) 396-2724. Several PAs were downloaded from the MSRC's web site.

In addition to the AQMD's standard practices, a brochure announcing all of the MSRC's funding opportunities was mailed to over 1,600 interested parties on the MSRC's mailing list, as well as to the Black and Latino Legislative Caucuses, City Managers, Chambers of Commerce, the AQMD's Ethnic Communities Advisory Group, and business associations.

The complete Program Announcement and Application was mailed directly to all city mayors and city managers within the Coachella Valley.

Bidders' Conference

A Bidders' Conference was conducted on October 21, 2002, at AQMD headquarters. A general question-and-answer session was conducted.

Proposals Received and Evaluation Process

Ten applications have been received to date from various cities throughout the Coachella Valley. The MSRC-TAC formed an evaluation subcommittee to review the applications to determine eligibility, using the criteria within the Program Announcement. Funds are available on first-come, first serve basis. At its January 23, 2003 meeting, the MSRC considered recommendations from its MSRC-TAC.

Proposals

The MSRC unanimously approved (with one abstention) funding all ten applications received to date for a total Coachella Valley Program package totaling $670,413.69. At this time the MSRC requests Board approval to fund the projects identified in Attachment 2 as part of the FY 2002-03 Work Program. Attachment 2 also provides additional information on the Program and the individual applications recommended for awards.

In some cases the full amount requested in a proposal is not recommended for funding or the proposed scope of work has been modified. This is consistent with the MSRC's administrative policies, which allow the MSRC to approve a portion of a proposer’s scope of work and/or funding request. In those cases where the proposed funding level or scope of work has been modified by the MSRC, and the proposer cannot perform the project as approved, the MSRC may rescind the funding commitment and retain the funds in the Discretionary Fund for future work programs.

3. RFP for Programmatic Outreach Services
As an element of their FY 2002-03 Work Program, the MSRC allocated $60,000 to continue Programmatic Outreach activities, including ongoing hosting and maintenance of the MSRC Website. The anticipated residual balance on the current outreach/Website maintenance contract is projected at approximately $20,000, yielding a total of approximately $80,000 available for FY 2002-03.

In keeping with the MSRC practice of re-competing technical and programmatic services contracts after the base contract and options have been exercised, the MSRC directed the MSRC-TAC to assess outreach and Website hosting/maintenance services requirements and develop a strategy for procuring follow-on services. The MSRC-TAC Administrative Subcommittee met and discussed the requirements for programmatic outreach and ongoing Website hosting and maintenance, and recommends that the two functions be procured separately. The Administrative Subcommittee recommends that programmatic outreach services be procured through an RFP process. The recommended FY 2002-03 funding allocation for programmatic outreach services is $45,000.

A Programmatic Outreach Services request for proposals is attached. The solicitation has the following key attributes:

• A twelve-month base contact period of performance, plus three one-year extension options that can be exercised at the discretion of the MSRC. Funding for the option years will come from a subsequent MSRC Work Program;
   
• The ensuing contract will be structured as a Time and Materials contract for tasks identified in the Statement of Work, plus a provision to allow the issuance of Task Orders for specific special projects identified by the MSRC.

The schedule of events included in the draft solicitation reflects AQMD Governing Board approval and release of the RFP on February 7, 2003. AQMD procurement policy specifies a minimum proposal preparation period of one month from the date of RFP release. The due date for proposals responding to this solicitation is March 7, 2003.

Outreach

In accordance with the AQMD's consulting and contracting policies, a public notice advertising the Programmatic Outreach Services RFP will be published on two different days in 25 newspapers and publications, including several targeting minorities. The RFP will be placed on the MSRC's Web site at "http://www.msrc-cleanair.org" as well as the AQMD's Web site at "http://www.aqmd.gov" under the "Business and Job Opportunities" icon, and information will be included about the RFP on the AQMD's 24-hour telephone message line for bidders at (909) 396-2724.

Proposal Evaluation and Panel Composition

Proposals received will be evaluated by members of the Administrative Subcommittee of the MSRC-TAC, a diverse group of individuals appointed by participating members as prescribed in the Health & Safety Code.

4. Sole-Source Contract Negotiation for MSRC Website Hosting and Maintenance
As an element of their FY 2002-03 Work Program, the MSRC allocated funding for the ongoing hosting and maintenance of the MSRC Website. The MSRC directed the MSRC-TAC to assess programmatic outreach and Website hosting/maintenance requirements and develop a strategy for procuring these services. The MSRC-TAC Administrative Subcommittee was convened to assess outreach and Website requirements and recommends that the two functions be separated and procured separately. The MSRC recommends that Website hosting and maintenance services be procured through a sole-source contact with Hip Design (Haaland Internet Productions).

SOLE-SOURCE JUSTIFICATION: The MSRC discussed in depth the technical requirements for hosting and maintaining the existing MSRC Website. The Website was developed in 1999 by Hip Design (Haaland Internet Productions) under subcontract to Keith Communications, the MSRC Programmatic Outreach contractor.

During the Committee deliberations, it was noted that although the AQMD, on behalf of the MSRC, owns the server, creative content, and source code for the MSRC Website, any firm other than the original designer would face an extensive learning curve familiarizing themselves with the unique aspects of the existing software design. This learning curve could potentially translate into significant downtime for the MSRC Website as it was being re-hosted. Software modifications or repairs that currently take hours would potentially require days or weeks of effort by a new vendor unfamiliar with the software architecture.

Also, if a competitive procurement was pursued, the existing source code would have to be made available to potential bidders during the proposal preparation period. While dissemination of the existing Website software to any potential bidder is doable, the task falls outside the capabilities of the existing MSRC Administrative and Technical staff. In addition, it would be infeasible for the existing staff to address technical questions regarding the existing software during the proposal preparation period. Due to their unfamiliarity with the existing Website architecture and software design, potential bidders would most likely add significant contingency costs to their proposals in order to cover their increased risks in taking on responsibility for a product developed by another vendor.

While the MSRC and AQMD strive to retain technical services on a competitive basis when feasible, the AQMD Procurement Policy recognizes that, at times, the unique experience of one vendor makes the pursuit of a competitive procurement futile. Such is the case of procuring follow-on Website hosting and maintenance of the MSRC Website. Specifically, the Administrative Subcommittee recommends that the MSRC invoke Section VIII of the South Coast AQMD Procurement Policy and Procedure, Subsection B, paragraph 2.c.1; "The unique experience and capabilities of the proposed contractor or contractor team". Hip Design possesses unique knowledge and experience that cannot realistically be duplicated by another firm within the timeframe required by the MSRC.

PERIOD OF PERFORMANCE: The period of performance under the sole-source contract will not exceed two (2) years. The recommended FY 2002-04 funding allocation for Website hosting and maintenance is $35,000. This amount will be sufficient to provide Website hosting and nominal maintenance as well as a reasonable level of MSRC-directed Website upgrades and refinements.

5. Award of Contracts to Three Qualified School Bus Vendors
Coincident with Governing Board Approval on November 1, 2002, the MSRC released a Request for Qualifications (RFQ) solicitation seeking qualified vendors to participate in a follow-on CNG School Bus Incentive Program. Responding CNG school bus vendors that earn "qualified" status by the MSRC are eligible to offer buy-down incentives on select CNG bus products. Under the MSRC Incentive Program, three (3) types of CNG school buses are eligible to receive buy-down incentives, as follows:

• Heavy-duty Full Size Type D Buses - $60,000 Buy-Down Incentive
   
• Heavy-duty Mid-Size Type D buses - $50,000
   
• Heavy-duty (14,050 GVWR) Type A buses - $25,000

Qualification Packages Received and Evaluation Process

A total of three (3) qualifications packages were received. The MSRC-TAC formed an evaluation subcommittee to review the applications to determine eligibility, using the criteria within the RFQ. At its January 23, 2003 meeting, the MSRC considered recommendations from its MSRC-TAC.

The MSRC recommends that A-Z Bus Sales, California Bus Sales, and Southern California Thomas Bus Sales be awarded qualified status for participation in the MSRC CNG School Bus Incentive Program. Further, it is recommended that the initial contract amount for each vendor not exceed $300,000. This equates to five (5) full-size Type D buses at an incentive level of $60,000 per bus, or some combination of Type A, mid-size, and full-size buses at their respective incentive levels. The balance of available program funds ($1.1 million) will be held in reserve and used to augment qualified vendor contracts based on sales performance, subject to review and approval of the MSRC.

6. Authorize MSRC the authority to adjust contracts up to 5%, as necessary
The MSRC requests authority to adjust the funds allocated to each project specified in this Board letter by up to 5% of the project's recommended funding. The Board has granted this authority to the MSRC for all past work programs.

7. Authorize AQMD Board Chairman to Execute Agreements
The MSRC requests that the Board authorize the AQMD Board Chairman the authority to execute all agreements described in this letter and the attachments as part of the FY 2002-03 Work Program.

Resource Impacts

The AQMD acts as fiscal administrator for the AB 2766 Discretionary Fund Program (Health & Safety Code Section 44243). Money received for this program is recorded in a special revenue fund (Fund 23) and the contracts will be drawn from this fund. These contracts will have no fiscal impact on the AQMD’s operational budget.

Attachments (5,699 KB)

Attachment 1 - Local Government Match Program Award List
Attachment 2 - Coachella Valley PM10 Reduction Program Information and
                      Award List
Attachment 3 - Programmatic Outreach Services RFP

/ / /