Transit commission unanimously adopts new bid process for buses

The bidding on a new bus contract can get under way after more than a year of delays thanks to a unanimous decision by the Regional Transportation Commission on Thursday.

Yes, unanimous.

The board, which had constantly deadlocked on votes on a $600 million fixed-route contract, agreed to a new bidding process for what was once the most lucrative public transit contract in the county. The process, formally known as a request for proposals, will start July 10.

On Thursday, commissioners again debated how much weight it should place on the cost, or pricing, in the bids when awarding the contract. But the discussion was less contentious than in the past.

Last year, the eight-member board split votes between incumbent Veolia Transportation and challenger First Transit, which had the lower bid by
$50 million over seven years.

Commissioners Larry Brown, Steve Ross, Lois Tarkanian and Chris Giunchigliani thought too much weight was placed on pricing and not enough emphasis was placed on other factors, such as past performance and innovative ideas. They also questioned whether First Transit could perform the services for such a low bid.

Commissioners Roger Tobler, Kraig Hafen, Debra March and Robert Eliason said the only responsible choice was to go with saving $50 million during difficult economic times. The Regional Transportation Commission relies on sales tax revenue and now faces a
$8.3 million budget gap.

In December the board decided to split the contract into two geographical regions and reopened bidding.

On Thursday, Giunchigliani reiterated her position that technical factors such as innovation and performance are more important than the cost of the service. She noted the commission's staff reported that pricing is weighted at 30 percent when other districts across the country award contracts.

But March, Tobler and Hafen were firm that pricing should amount to
70 percent of a bidder's score.

The board, with Tarkanian absent, decided Thursday to break the bidding process into two phases. During the first phase, only the technicalities will be considered; pricing will not be included. Transit operators whose proposals are within 90 percent of the highest score will roll into the second round. That could mean the low bidder would be eliminated .

During the second phase, the pricing will count 70 percent, the management team will count 15 percent, past performance for 10 percent and interviews will consist of 5 percent of the final score.

Commissioners discussed whether one company could win both contracts and decided the top two companies will each receive a contract for part of the valley's bus service.

Though board members had agreed upon the original request for proposal, some commissioners - and representatives of losing bidder Veolia - squawked about the process after the board voted 4-to-3 to accept the low bid from First Transit. That vote was later reversed by a state attorney general's office ruling that the board didn't have a proper quorum because only seven members were present. A District Court judge later reversed that decision.

Hafen made it clear Thursday he was not in the mood for the antics that carried on for months.

"The two-tier process makes this competitive and fair," he said. "There were things that came up (last time) after the whistle blew. With all due respect, when we make the decision to let this process proceed, let us go forward with the process."

Members of the Amalgamated Transit Union 1637, which includes drivers and mechanics, backtracked on their initial support to split the contract. Members expressed concerns about the wages and benefits to be paid by First Transit, though there is no guarantee either Veolia or First Transit will be in the final running.

"We don't want to be splitting the system," union President Jose Mendoza said. "It will create chaos and confusion to put two contractors in to do the work one is doing now."

The union's existing collective bargaining agreement expires June 30, 2013. The board agreed to schedule the startup date for the new bus contracts for July 1, 2013.

Veolia's contract with the Regional Transportation Commission expired in September 2011, but board members agreed to extend it temporarily until it could clear up the controversy over the new contract.

Contact reporter Adrienne Packer at apacker@reviewjournal.com or 702-387-2904.