BOARD MEETING DATE: April 1, 2005
AGENDA NO. 9

Approve New Contract Awards and Corrections to Awards as Part of FYs 2003-04 and 2004-05 AB 2766 Discretionary Fund Work Programs; Grant MSRC Authority to Adjust Project Costs Up to Five Percent; and Authorize Board Chairman to Execute Agreements

SYNOPSIS:

The MSRC’s FY 2004-05 AB 2766 Discretionary Fund Work Program included an RFP to select an MSRC website developer and $1 million for a CNG School Bus Buydown Program. On March 24, 2005, the MSRC awarded a contract to Haaland Internet Productions for website development and augmented a contract award to A-Z Bus Sales under the CNG School Bus Buydown Program as part of the FY 2004-05 Work Program. Concurrently, the MSRC approved two sole-source contracts to American Honda and Fuelmaker to implement a CNG Home Refueling Unit Incentive Program as part of the FYs 2003-04 and 2004-05 Work Programs. Subsequent to the AQMD Board approving FY 2004-05 contract awards in January and February 2005, staff discovered clerical errors pertaining to eight awards. This action is to request the AQMD Board’s approval of the new/corrected awards as part of the FYs 2003-04 and 2004-05 Work Programs. The MSRC also requests authority to adjust contracts up to five percent and authority for the Board Chairman to execute agreements. (Review: Mobile Source Air Pollution Reduction Review Committee, March 24, 2005)

COMMITTEE:

Mobile Source Air Pollution Reduction Review Committee,
March 24, 2005, Unanimously Approved

RECOMMENDED ACTIONS:

1. Approve contract award totaling $76,085 to Haaland Internet Productions (also known as HiP Design) for website development, hosting and maintenance funded with $75,000 from the FY 2004-05 AB 2766 Discretionary Fund Work Program and $1,085 from turnback funds, as described in this letter;
    
2. Approve two sole-source awards for implementation of the CNG Home Refueling Unit Incentive Program, $200,000 as part of the FY 2003-04 AB 2766 Discretionary Fund Work Program, with $200,000 from turnback funds, as described in this letter and as follows:
    

   2.1	A contract with FuelMaker Corporation in an amount not to exceed $100,000; and
   2.2	A contract with American Honda Company in an amount not to exceed $300,000;

3. Approve augmentation of award in an amount not to exceed $360,000 to A-Z Bus Sales, Inc. under the CNG School Bus Buydown Program as part of the FY 2004-05 Work Program ($100,000 from the original monies set aside in the Work Program for this buydown plus an additional $260,000 from turnback funds), as described in this letter:
    
4. Approve corrected awards to issue seven contracts to County of Los Angeles, Department of Public Works instead of the County of Los Angeles, Department of Power & Water, as listed in Agenda Item #10 on the January 7, 2005 AQMD Board agenda (Recommended Actions 5.4 through 5.10) as part of the FY 2004-05 Work Program, as described in this letter and as follows:
    

   4.1	A contract with County of Los Angeles, Dept. of Public Works, in an amount not to exceed $140,000 for up to seven heavy-duty LPG street sweepers;
   4.2	A contract with County of Los Angeles, Dept. of Public Works in an amount not to exceed $198,333 for up to seven propane refueling stations;
   4.3	A contract with County of Los Angeles, Dept. of Public Works in an amount not to exceed $20,000 for one heavy-duty CNG bus;
   4.4	A contract with County of Los Angeles, Dept. of Public Works in an amount not to exceed $60,000 for up to three heavy-duty LPG shuttle vans;
   4.5	A contract with County of Los Angeles, Dept. of Public Works in an amount not to exceed $349,000 for a traffic signal coordination and synchronization project in conjunction with City of Los Angeles;
   4.6	A contract with County of Los Angeles, Dept. of Public Works in an amount not to exceed $313,000 for a traffic signal coordination and synchronization project in conjunction with City of Santa Clarita;
   4.7	A contract with County of Los Angeles, Dept. of Public Works in an amount not to exceed $204,221 for a traffic signal coordination and synchronization project on Florence Avenue;

5. Approve corrected award to issue a contract to Varner Construction in an amount not to exceed $743,988 for up to one rock truck and nine scrapers instead of up to ten rock trucks, as listed in Agenda Item #9 on the February 4, 2005 AQMD Board agenda (Recommended Action 3.2), as described in this letter;
    
6. Authorize MSRC the authority to adjust contract awards up to five percent, as necessary; and
    
7. Authorize the Chairman of the Board to execute new, modified and corrected contracts as part of FYs 2003-04 and 2004-05 AB 2766 Discretionary Fund Work Programs, as described above and within this letter.

Gwenn Norton-Perry
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.

The MSRC’s FY 2004-05 AB 2766 Discretionary Fund Work Program included a set aside of $75,000 for the release of an RFP to select an MSRC website developer and a set aside of $1 million for implementation of a CNG School Bus Buydown Program. The previous Work Program for FY 2003-04 included a commitment of $200,000 for a CNG Home Refueling Appliances Buydown Program, the specifics of which would be brought forward to the MSRC and AQMD Board, once the program parameters were better defined and the technology ready for commercialization. At its March 25, 2005 meeting, the MRSC considered recommendations pertaining to these three projects. Further background is provided below.

1. Contract Award for MSRC Website Development, Hosting & Maintenance
Five years ago the MSRC launched a website at http://www.msrc-cleanair.org to disseminate information about its mission and funding programs as well as act as an outreach tool. The current contract for hosting and maintenance expires December 31, 2005. The MSRC believes the website needs a fresh, new look and additional functionality. Consequently, the MSRC released an RFP on January 7, 2005, to solicit proposals for website development, hosting and maintenance. The MSRC set aside $75,000 for the effort but did not include a dollar amount in the RFP, relying on the competitive bid process to determine the appropriate contract award. When the RFP closed on February 15, 2005, twenty-one proposals had been received, four of which were determined non-responsive to the RFP. The six highest ranking proposals were selected for interviews by a subcommittee of the MSRC’s Technical Advisory Committee (MSRC-TAC). On March 24, 2005, the MSRC considered the award recommendations of its MSRC-TAC; details are provided in the Proposals section.

2. Contract Augmentation/Modification for CNG School Bus Buydown Program
The MSRC allocated $1 million for a CNG School Bus Incentives Program as part of the FY 2004-05 Work Program. To implement the program, the MSRC awarded three sole-source contracts to A-Z Bus Sales, California Bus Sales, and BusWest. These vendors had previously qualified under a Request for Quotes process to implement a similar MSRC program in previous years. Initially each vendor was awarded $240,000, while the remaining $280,000 was retained to augment the vendor contracts based on sales performance, subject to review and approval by the MSRC. The AQMD Board approved these sole-source awards on October 1, 2004. Subsequent to this action, California Bus Sales expended all their funds then requested an additional $180,000 in order to offer the $60,000 incentive for full-size Type D buses requested by a school district. The MSRC approved this modification, leaving only $100,000 uncommitted in the Program. At its March 24, 2005 meeting, the MSRC considered a request from A-Z Bus Sales for an additional $360,000 for new purchase orders; details are provided in the Proposals section.

3. Sole-Source Contracts to Implement CNG Home Refueling Unit Incentive Program
The FY 2003-04 Work Program included a commitment of $200,000 for a CNG Home Refueling Appliances Buydown Program. This program was based on the home refueling unit under development by FuelMaker Corporation, in cooperation with American Honda, and cost-shared by the AQMD, and the availability of CNG vehicles to the average consumer. FuelMaker anticipates producing 500 units in the spring for consumer sale. The original intent was to offer a $500 incentive per unit to encourage consumers to purchase CNG vehicles. At its March 24, 2005 meeting, the MSRC considered the incentive and allocation for this Program and a proposal by the AQMD to match its incentive. Details are provided in the Proposals section.

4. Corrected Awards
On January 7 and February 4, 2005, the AQMD Board approved multiple awards as part of the MSRC’s FY 2004-05 Work Program. Subsequent to the approval, staff discovered clerical errors in both Board letters. In Agenda #10 of the January 7 agenda, the name of the award recipient was listed incorrectly for seven awards under the Local Government Match Program. The award recipient for Recommended Actions 5.4 through 5.10 was listed as the County of Los Angeles, Department of Power & Water; the contracts should have been awarded to the County of Los Angeles, Public Works. In Agenda #9 of the February 4 agenda, a contract was awarded to Varner Construction, specifically Recommended Action 3.2, but it incorrectly specified the types of vehicles to be purchased under the contract award. Details are provided in the Proposals section.

Outreach

In accordance with the AQMD's consulting and contracting policies, a public notice advertising the solicitations and inviting bids was published on two different days in 27 newspapers and publications, including several targeting minorities. Additionally, potential bidders may have been notified utilizing the Los Angeles County MTA Directory of Certified Firms, the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; and AQMD’s own electronic listing of certified minority vendors. Notice of the RFP/RFQ was mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations, and placed on the Internet at AQMD’s Web site (http://www.aqmd.gov). Information was also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724. The RFP for website development was also sent to several companies in a targeted mailing.

Bidders' Conference

A Bidders’ Conference for the website RFP was conducted on January 21, 2005, at AQMD Headquarters. Thirty-one firms attended and a written summary of the question-and-answer session was provided to all prospective bidders.

Evaluation Process

The MSRC-TAC’s Administrative Subcommittee reviewed the website proposals, using the criteria within the solicitation, and conducted interviews with the top six finalists. The MSRC-TAC received the Administrative Subcommittee’s recommendations at its March 10, 2005 meeting, and unanimously recommended the MSRC issue the award to Haaland Internet Productions. At its March 24, 2005 meeting, the MSRC considered the recommendation from its MSRC-TAC.

Sole-Source Justification

The MSRC allocated $200,000 as part of the FY 2003-04 Work Program to implement a CNG Home Refueling Unit Incentive Program. This program was based on the home refueling unit under development by FuelMaker Corporation, funding for which was cost-shared by the AQMD, and the availability of CNG vehicles to the average consumer. The original intent was to offer a $500 incentive per unit to encourage consumers to purchase CNG vehicles. At its March 24, 2005 meeting, the AQMD staff proposed (contingent upon AQMD Board approval) to match the MSRC’s incentive if the MSRC incentive was increased to $1,000, resulting in a combined incentive per unit of $2,000 for a total of 400 units. While the MSRC and AQMD strive to retain technical services and award contracts through a competitive bid basis, the AQMD’s Procurement Policy recognizes that at times circumstances exist which make a competitive bid process invalid. Therefore, the request for the two sole-source awards is made under provision B.2.c.2.: The project involves the use of proprietary technology; and B.2.c.3.: The contractor has ownership of key assets required for project performance. FuelMaker Corporation is the designer and manufacturer of the home refueling unit or appliance and American Honda is the only automaker currently producing CNG vehicles for consumer lease or sale. It is the intent of the MSRC to execute a sole-source contract on a reimbursement basis in the amount of $300,000 with American Honda Company to lease up to 300 units and to execute a sole-source contract on a reimbursement basis in the amount of $100,000 with FuelMaker Corporation to sell up to 100 units.

Proposals

On March 24, 2005, in a 7-0 vote, the MSRC unanimously approved the following contract awards.

1. Contract Award for MSRC Website Development, Hosting & Maintenance
As mentioned in the Background section, the MSRC set aside $75,000 for website development, hosting and maintenance and released an RFP to solicit for these services. Twenty-one proposals were received by the closing date on February 15, 2005. The top six ranked proposals were interviewed then scored and ranked as follows:
 

The MSRC unanimously awarded a contract to Haaland Internet Productions (also known as HiP Design) in the amount of $61,685 for website development, hosting and maintenance services for a two-year period beginning July 1, 2005 and ending June 30, 2007. The award included two additional two-year options for continued hosting and maintenance at $3,600 per year or a total of $14,400. The funding for the initial contract and both two-year options will be allocated as part of the FY 2004-05 Work Program; therefore, once the AQMD Board approves the allocation of $76,085 ($75,000 from set aside and $1,085 from turnback funds) as part of the FY 2004-05 Work Program, the ability to exercise the options will be at the MSRC’s sole discretion. Additional funding commitments beyond those authorized in this Board letter to the MSRC will be considered by the AQMD Board separately as applicable or necessary.

2. Contract Augmentation/Modification for CNG School Bus Buydown Program
As mentioned in the Background section, A-Z Bus Sales requested an additional $360,000 under the CNG School Bus Buydown Program as part of the FY 2004-05 Work Program. A-Z Bus Sales expended their initial allocation of $240,000 then received orders from the Colton Joint Unified School District for six more buses, contingent upon receiving the MSRC’s $60,000 buydown. The MSRC had the authority to augment the three vendor contracts based on sales performance. Only $100,000 remains in this Program. On March 24, 2005, the MSRC unanimously awarded an additional $360,000 to A-Z Bus Sales to ensure Colton Joint could receive the $60,000 buydown for each bus. The $360,000 comprises the remaining $100,000 in the Program plus an additional $260,000 from turnback funds, all of which is part of the FY 2004-05 Work Program.

3. Sole-Source Contracts to Implement CNG Home Refueling Unit Incentive Program
As stated in the Background section, the FY 2003-04 Work Program included a $200,000 commitment to implement a CNG Home Refueling Appliances Buydown Program based on FuelMaker’s unit. Although the original intent was to offer a $500 incentive per unit to encourage consumers to purchase CNG vehicles, the AQMD staff proposed (contingent upon AQMD Board approval) to match the MSRC’s incentive if the MSRC incentive was increased to $1,000 for an incentive per unit of $2,000 for a total of 400 units. The MSRC accepted the offer and awarded a $300,000 sole-source contract to American Honda for the lease of the home refueling units and $100,000 to FuelMaker for the sale of the units. The units will be available to both new CNG vehicle buyers and existing CNG owners. The $1,000 MSRC incentive is contingent upon the AQMD’s matching incentive, up to 400 units. The MSRC had initially allocated $200,000 from the FY 2003-04 Work Program for implementation of the Program. To offer the incentive per unit at $1,000 instead of $500 for the 400 units, an additional $200,000 was allocated from turnback funds.

In some cases the full amount requested in an application or 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.

4. Corrected Awards as Part of FY 2004-05 Work Program
As stated in the Background section, seven contracts under the Local Government Match Program were listed as awarded to the County of Los Angeles, Department of Power & Water. The correct award recipient was the County of Los Angeles, Department of Public Works. The correct contract awards are as follows:

1. A contract with County of Los Angeles, Dept. of Public Works, in an amount not to exceed $140,000 for up to seven heavy-duty LPG street sweepers;
2. A contract with County of Los Angeles, Dept. of Public Works in an amount not to exceed $198,333 for up to seven propane refueling stations;
3. A contract with County of Los Angeles, Dept. of Public Works in an amount not to exceed $20,000 for one heavy-duty CNG bus;
4. A contract with County of Los Angeles, Dept. of Public Works in an amount not to exceed $60,000 for up to three heavy-duty LPG shuttle vans;
5. A contract with County of Los Angeles, Dept. of Public Works in an amount not to exceed $349,000 for a traffic signal coordination and synchronization project in conjunction with City of Los Angeles;
6. A contract with County of Los Angeles, Dept. of Public Works in an amount not to exceed $313,000 for a traffic signal coordination and synchronization project in conjunction with City of Santa Clarita; and
7. A contract with County of Los Angeles, Dept. of Public Works in an amount not to exceed $204,221 for a traffic signal coordination and synchronization project on Florence Avenue.

Additionally, the action taken on February 4, 2005, Agenda Item #9, awarded a contract in the amount of $743,988 to Varner Construction for up to ten rock trucks. The award should have specified the vehicle types as up to one rock truck and nine scrapers. The recipient and award amount were correct.

The MSRC respectfully requests the AQMD Board’s approval of the above contract awards or corrected awards as part of the FYs 2003-04 and 2004-05 AB 2766 Discretionary Fund Work Programs. The MSRC requests authority to adjust the funds allocated to each project specified in this Board letter by up to five percent of the project's recommended funding. The Board has granted this authority to the MSRC for all past work programs. Finally, the MSRC requests the Board authorize the AQMD Chairman of the Board to execute new, modified and corrected contracts as part of FYs 2003-04 and 2004-05 AB 2766 Discretionary Fund Work Programs, as described above and within this letter.

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.

Attachment

None

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