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HomeMy WebLinkAbout22-164 - Mercury Associates, Inc - Fleet Management Consulting ServicesCity of Tukwila 6200 Southcenter Boulevard, Tukwila WA 96188 Contract Number: 22-164 Council Approval N/A PROFESSIONAL SERVICES AGREEMENT (Includes consultants, architects, engineers, accountants, and other professional services) THIS AGREEMENT is entered into between the City of Tukwila, Washington, hereinafter referred to as The City", and Mercury Associates Inc., hereinafter referred to as "the Consultant", in consideration of the mutual benefits, terms, and conditions hereinafter specified. 1. Project Designation. The Consultant is retained by the City to perform Fleet Management Consultant services. 2. Scope of Services. The Consultant agrees to perform the services, identified on Exhibit "A" attached hereto, including the provision of all labor, materials, equipment and supplies. 3. Duration of Agreement; Time for Performance. This Agreement shall be in full force and effect for a period commencing upon execution and ending 12/31/23, unless sooner terminated under the provisions hereinafter specified. Work under this Agreement shall commence upon written notice by the City to the Consultant to proceed. The Consultant shall perform all services and provide all work product required pursuant to this Agreement no later than 12/31/23 unless an extension of such time is granted in writing by the City. 4. Payment. The Consultant shall be paid by the City for completed work and for services rendered under this Agreement as follows: A. Payment for the work provided by the Consultant shall be made as provided on Exhibit "B" attached hereto, provided that the total amount of payment to the Consultant shall not exceed $39,640.00 without express written modification of the Agreement signed by the City. B. The Consultant may submit vouchers to the City once per month during the progress of the work for partial payment for that portion of the project completed to date. Such vouchers will be checked by the City and, upon approval thereof, payment shall be made to the Consultant in the amount approved. C. Final payment of any balance due the Consultant of the total contract price earned will be made promptly upon its ascertainment and verification by the City after the completion of the work under this Agreement and its acceptance by the City. D. Payment as provided in this section shall be full compensation for work performed, services rendered, and for all materials, supplies, equipment and incidentals necessary to complete the work. E. The Consultant's records and accounts pertaining to this Agreement are to be kept available for inspection by representatives of the City and the state of Washington for a period of three (3) years after final payments. Copies shall be made available upon request. 5. Ownership and Use of Documents. All documents, drawings, specifications and other materials produced by the Consultant in connection with the services rendered under this Agreement shall be the property of the City whether the project for which they are made is executed or not. The Consultant shall be permitted to retain copies, including reproducible copies, of drawings and specifications for information, reference and use in connection with the Consultant's endeavors. The Consultant shall not be responsible for any use of the said documents, drawings, specifications or other materials by the City on any project other than the project specified in this Agreement. 6. Compliance with Laws. The Consultant shall, in performing the services contemplated by this Agreement, faithfully observe and comply with all federal, state, and local laws, ordinances and regulations, applicable to the services rendered under this Agreement. 7. Indemnification. The Consultant shall defend, indemnify and hold the City, its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or resulting from the acts, errors or omissions of the Consultant in performance of this Agreement, except for injuries and damages caused by the sole negligence of the City. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Consultant and the City, its officers, officials, employees, and volunteers, the Consultant's liability hereunder shall be only to the extent of the Consultant's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the Consultants waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Agreement. 8. Insurance. The Consultant shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees. Consultant's maintenance of insurance as required by the agreement shall not be construed to limit the liability of the Consultant to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. A. Minimum Amounts and Scope of Insurance. Consultant shall obtain insurance of the types and with the limits described below: 1. Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. Automobile Liability insurance shall cover all owned, non -owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. 2. Commercial General Liability insurance with limits no less than $2,000,000 each occurrence, $2,000,000 general aggregate. Commercial General Liability insurance shall be at least as broad as ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, stop -gap independent contractors and personal injury and advertising injury. The City shall be named as an additional insured under the Consultant's Commercial General Liability insurance policy with respect to the work performed for the City using an additional insured endorsement at least as broad as ISO endorsement form CG 20 26. 3. Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. CA revised May 2020 Page 2 4. Professional Liability with limits no less than $2,000,000 per claim and $2,000,000 policy aggregate limit. Professional Liability insurance shall be appropriate to the Consultants profession. B. Public Entity Full Availability of Contractor Limits. If the Contractor maintains higher insurance limits than the minimums shown above, the Public Entity shall be insured for the full available limits of Commercial General and Excess or Umbrella liability maintained by the Contractor, irrespective of whether such limits maintained by the Contractor are greater than those required by this Contract or whether any certificate of insurance furnished to the Public Entity evidences limits of liability lower than those maintained by the Contractor. C. Other Insurance Provision. The Consultants Automobile Liability and Commercial General Liability insurance policies are to contain, or be endorsed to contain that they shall be primary insurance with respect to the City. Any Insurance, self-insurance, or insurance pool coverage maintained by the City shall be excess of the Consultant's insurance and shall not be contributed or combined with it. D. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII. E. Verification of Coverage. Consultant shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Contractor before commencement of the work. Upon request by the City, the Consultant shall furnish certified copies of all required insurance policies, including endorsements, required in this Agreement and evidence of all subcontractors' coverage. F. Notice of Cancellation. The Consultant shall provide the City with written notice of any policy cancellation, within two business days of their receipt of such notice. G. Failure to Maintain Insurance. Failure on the part of the Consultant to maintain the insurance as required shall constitute a material breach of contract, upon which the City may, after giving five business days notice to the Consultant to correct the breach, immediately terminate the contract or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the City on demand, or at the sole discretion of the City, offset against funds due the Consultant from the City. 9. Independent Contractor. The Consultant and the City agree that the Consultant is an independent contractor with respect to the services provided pursuant to this Agreement. Nothing in this Agreement shall be considered to create the relationship of employer and employee between the parties hereto. Neither the Consultant nor any employee of the Consultant shall be entitled to any benefits accorded City employees by virtue of the services provided under this Agreement. The City shall not be responsible for withholding or otherwise deducting federal income tax or social security or for contributing to the state industrial insurance program, otherwise assuming the duties of an employer with respect to the Consultant, or any employee of the Consultant. 10. Covenant Against Contingent Fees. The Consultant warrants that he has not employed or retained any company or person, other than a bonafide employee working solely for the Consultant, to solicit or secure this contract, and that he has not paid or agreed to pay any company or person, other than a bonafide employee working solely for the Consultant, any fee, commission, percentage, brokerage fee, gifts, or any other consideration contingent upon or resulting from the award or making of this contract. For breach or violation of this warrant, the City shall have the right to annul this contract without liability, or in its discretion to deduct from the contract price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift, or contingent fee. CA revised May 2020 Page 3 11. Discrimination Prohibited. Contractor, with regard to the work performed by it under this Agreement, will not discriminate on the grounds of race, religion, creed, color, national origin, age, veteran status, sex, sexual orientation, gender identity, marital status, political affiliation, the presence of any disability, or any other protected class status under state or federal law, in the selection and retention of employees or procurement of materials or supplies. 12. Assignment. The Consultant shall not sublet or assign any of the services covered by this Agreement without the express written consent of the City. 13. Non -Waiver. Waiver by the City of any provision of this Agreement or any time limitation provided for in this Agreement shall not constitute a waiver of any other provision. 14. Termination. A. The City reserves the right to terminate this Agreement at any time by giving ten (10) days written notice to the Consultant. B. In the event of the death of a member, partner or officer of the Consultant, or any of its supervisory personnel assigned to the project, the surviving members of the Consultant hereby agree to complete the work under the terms of this Agreement, if requested to do so by the City. This section shall not be a bar to renegotiations of this Agreement between surviving members of the Consultant and the City, if the City so chooses. 15. Applicable Law; Venue; Attorney's Fees. This Agreement shall be subject to, and the Consultant shall at all times comply with, all applicable federal, state and local laws, regulations, and rules, including the provisions of the City of Tukwila Municipal Code and ordinances of the City of Tukwila. In the event any suit, arbitration, or other proceeding is instituted to enforce any term of this Agreement, the parties specifically understand and agree that venue shall be properly laid in King County, Washington. The prevailing party in any such action shall be entitled to its attorney's fees and costs of suit. Venue for any action arising from or related to this Agreement shall be exclusively in King County Superior Court. 16. Severability and Survival. If any term, condition or provision of this Agreement is declared void or unenforceable or limited in its application or effect, such event shall not affect any other provisions hereof and all other provisions shall remain fully enforceable. The provisions of this Agreement, which by their sense and context are reasonably intended to survive the completion, expiration or cancellation of this Agreement, shall survive termination of this Agreement. 17. Notices. Notices to the City of Tukwila shall be sent to the following address: City Clerk City of Tukwila 6200 Southcenter Boulevard Tukwila, WA 98188 Notices to Consultant shall be sent to the following address: Mercury Associates, Inc. 7361 Calhoun Place, Suite 640 Rockville, MD 20855 18. Entire Agreement; Modification. This Agreement, together with attachments or addenda, represents the entire and integrated Agreement between the City and the Consultant and supersedes all prior negotiations, representations, or agreements written or oral. No amendment or modification of this Agreement shall be of any force or effect unless it is in writing and signed by the parties. CA revised May 2020 Page 4 DATED this 27th day of December , 2022 CITY OF TUKWILA HP eSlgnecl vie SeamlessDocs.com Key: bc1cb32a-e4e-470e-9281S5odSO805D32 Allan Ekberg, Mayor 12-27-2022 ATTEST/AUTHENTICATED : aSlana l v,a 5eamlessDnes.cem ekte:d aglaity Key: SY,I atlbaa59e154t a855a911 a99v5tl49 Christy O'Flaherty, City Clerk APPROVED AS TO FORM: eSlgned vla SeamlessDocs.com Kay: 313201a8ebceE4cbe-9,7495_2e0955 Office of the City Attorney CA revised May 2020 CONSULTANT: By: Doug Martin Printed Name: Title: President Page 5 EXHIBIT A MERCURY Proposal to Provide Fleet Management Consulting Services December 2022 Mercury Associates, Inc. 7361 Calhoun Place, Suite 640 • Rockville, MD 20855 • (301) 519-0535 Proposal to Provide Fleet Management Consulting Services Submitted by: Mercury Associates, Inc. 7361 Calhoun Place, Suite 640 Rockville, MD 20855 301-519-0535 Proposal Contact Person: Tony Yankovich, Managing Director tyankovich@mercury-assoc.com 913-568-5837 MERCURY MERCURY December 17, 2022 Mr. Cody -Lee A. Gray Public Works Operations Manager Fleet, Facilities & Street Divisions 11210 Tukwila International Blvd Tukwila, WA 98168-4723 Dear Mr. Gray: Mercury Associates, Inc. is pleased to submit this proposal to provide fleet management consulting services to the City of Tukwila. Mercury offers a combination of firsthand experience and fleet management business process evaluation and analytical capabilities that is unmatched by any consulting firm serving the fleet industry. Since incorporation in 2002, Mercury has worked with more than 650 fleet organizations across the world. We offer a myriad of services such as cost feasibility studies, fleet replacement analysis, fleet electrification studies, chargeback rate development, fleet rightsizing studies, facility programming and planning, operational assessments, privatization feasibility, etc. We appreciate being given the opportunityto offer our services and look forward to hearing from you. If you have any questions regarding this proposal, please contact me at 913-568-5837 or tyankovich@mercury-assoc.com. Very truly yours, -16/7Y-22" Tony Yankovich Managing Director Mercury Associates, Inc. 7361 Calhoun Place, Suite 640 • Rockville, MD 20855 • (301) 519-0535 MERCURY Proposal to Provide Fleet Management Consulting Services Table of Contents Mercury's Firm Experience 2 Mercury's Fleet Management Consulting Services 3 Mercury's Clients 3 Project Team 4 Project Understanding and Approach 6 Work Plan 9 Task 1: Initiate and Manage Project 9 Task 2: Collect and Review Information 9 Task 3: Conduct Fleet Assessment 11 Task 4: Develop Project Deliverable 12 Project Investment 13 MERCURY Proposal to Provide Fleet Management Consulting Services Mercury's Firm Experience Founded in 2002, Mercury Associates, Inc. is the largest independentfleet management and fleet technology consulting firm in North America. One hundred percent of our consulting engagements are specific to the fleet industry. We are committed to providing independent, unbiased guidance to our clients drawing on a combination of technical, analytical, and advisory capabilities and firsthand fleet industry experience that is unmatched in the management consulting field. Mercury's mission, simply put, is to assist organizations in improving the management and operation of their vehicle and equipment fleets. Our consulting services touch on virtually every facet of fleet management and operation, ranging from broad-based assessments of fleet management organizational structures, staffing levels, facilities and equipment, and business practices, to tightly focused analyses of a single issue or question such as: • "Can we reduce the size of our fleet?" • "How many technicians do we need?" • "Should we insource or outsource our fleet maintenance program?" • "Do we have enough money in our reserve fund?" • "How can we make better use of our fleet management information system?" • "How can we transition to a zero -emission fleet?" • "Is our fleet maintenance facility the right size?" Mercury is widely considered the premier provider of fleet advisory services and is a leader in assessing fleet trends and emerging solutions. Many of the industry trade organizations utilize benchmarks, standards, and other guiding principles developed by Mercury as part of their certification programs, annual conferences, and other educational outreach programs. We also provide educational content and conduct numerous educational sessions for the leading fleet management industry associations such as Government Fleet, NAFA, National Truck and Equipment Association, National Conference of State Fleet Administrators, Association of Equipment Management Professionals, NPMA Federal Fleet Manager Certification Program, APWA, Institute of Public Works Engineering Australia -Asia, and dozens of others. Mercury has 20 full and part-time employees located in our Rockville, Maryland office and in home offices throughout the United States, including Washougal, WA, and Canada. Many of our professional staff members were fleet managers prior to becoming fleet management consultants. This wealth of hands-on experience, coupled with a single-minded focus on fleet management, helps explain why Mercury has been retained by more than 300 clients in the last six years alone. All our staff spend 100 percent of their time helping clients improve their fleet operations. MERCURY ASSOCIATES, INC. PAGE 12 7361 Calhoun Place, Suite 640 1 Rockville, MD 20855 www.mercury-assoc.com 1 (301) 519-0535 MERCURY Proposal to Provide Fleet Management Consulting Services Mercury's Fleet Management Consulting Services • Transportation/Fleet Management Program Evaluation • Organizational Restructuring and Business Process Reengineering • Fleet Cost Determination and Cost Reduction Strategy Development • Fleet Utilization Optimization and Rightsizing Plan Development • Fleet Sustainability/Green Fleet Strategy and Plan Development • Fleet Management Services Outsourcing and In -Sourcing Feasibility Studies • Development of Specifications/Solicitations for Vehicles and Related Services • Maintenance Facility Condition Assessment, Consolidation Planning, and Space Programming/Design Assistance • Determination of Optimal Vehicle Replacement Cycles • Evaluation of Lease versus Buy and other Capital Financing Methods • Cost Charge -Back System Review and Rate Model Development • Fleet Replacement Reserve Fund Optimization and Rate Development • Management Training and Certification Program Development • Executive Recruiting • Expert Witness Services • Fleet Technology Solution Configuration, Deployment, and Use Audits • Technology Solution Requirements Definition, Acquisition, and Implementation Assistance • Suitability Assessments of ERP and EAM Systems for Fleet Management Programs Mercury's Clients Our fleet consulting work with approximately 40-50 unique clients each year, with fleets as few 50 vehicles to more than 200,000 vehicles, gives us a deep understanding of the challenges of managing and operating fleets. We serve a broad spectrum of clients including federal, state, provincial, and local governments; investor-owned and public utilities; colleges and universities; school districts; public transit and commuter bus systems; healthcare systems; non-profit organizations; and multinational corporations and small commercial enterprises across a broad spectrum of industries. Many of these are repeat clients that either reengage Mercury for implementation services immediately following the original engagement or, in some cases, bring us back many years later to evaluate the fleet program to determine the level of improvement accomplished since completion of the previous study. Some of our implementation services include providing services such as information system specification, selection, implementation, MERCURY ASSOCIATES, INC. PAGE 13 7361 Calhoun Place, Suite 640 1 Rockville, MD 20855 www.mercury-assoc.com 1 (301) 519-0535 MERCURY Proposal to Provide Fleet Management Consulting Services and hosting; development of RFPs for the purchase of vehicles, vehicle leasing and management services, fuel, fleet maintenance and repair services, and repair parts management services; cost charge -back rate development; maintenance facility space programming and master planning; fleet management policy and procedure development; management training; and executive recruiting. Our professionals have worked with one or more agencies in 34 state governments in the U.S. and five provinces and territories in Canada; 33 of the 50 largest cities in the U.S., including the 10 largest; and more than 40 colleges and universities. We also have advised more than 40 government and investor-owned electric, gas, and water utilities on how to improve their fleet management practices. For the US Federal Government, we have provided services to the Army, Navy, Air Force, Marine Corps, and Coast Guard; 13 of 15 executive branch departments (Defense, Energy, Homeland Security, Interior, Transportation, State, etc.); the General Services Administration (GSA), the US Postal Service, NASA, and the Smithsonian Institution. In the private sector, we have provided fleet management consulting services to a mix of large and small companies in a broad spectrum of industries. Mercury's prominent corporate clients include 3M, Air Products, Aramark, Bell Canada, BNSF Railway, Brinks, BP, Carolinas HealthCare System, Citgo, Cox Enterprises, Danella, Ecolab, GlaxoSmithKline, Honeywell, Hunt Brothers Pizza, Intel, Joerns-Recover Care, Johnson & Johnson, Keolis, Kia American Motors, Laidlaw, Lockheed Martin, Northrop Grumman, Pfizer, Praxair, Progressive Roofing, Quanta Services, Republic Services, Rockwell -Collins, Schindler Elevator, Shell, Sherwin Williams, Siemens, Sumitomo Rubber, Toyota, Walt Disney World, and Willbros. Our university clients include Stanford University, Penn State University, Oregon State University, University of Minnesota, University of Alabama, Colorado State University, Duke University, Fordham University, University of Iowa, California Polytechnical University, University of Southern California, and dozens of others. Project Tea m Our consultants are the strength of our firm and are among the foremost experts in the fleet management field. They tackle challenges that require a degree of technical sophistication and analytical rigor that simply cannot be found anywhere else. They are recognized industry experts in virtually every area of fleet management including shop operations, outsourcing feasibility, organizational structure and staffing levels, replacement planning, charge -back rate development, facility space planning, fleet sustainability, finance, leasing, maintenance, information technology, chargeback rate development, fuel including alternative fuels, managed maintenance contracts, and safety, among others. MERCURY ASSOCIATES, INC. PAGE 14 7361 Calhoun Place, Suite 640 1 Rockville, MD 20855 www.mercury-assoc.com 1 (301) 519-0535 MERCURY Proposal to Provide Fleet Management Consulting Services Our proposed project team for this engagement is provided below and represents nearly 200 years of experience in the fleet industry. Others from our firm may be used if their area of expertise would provide value to the study. Tony Yankovich is the Managing Director for Mercury Associates. Mr. Yankovich has over 30 years of experience as a management analyst and consultant in the fleet management and public works areas. Mr. Yankovich specializes in serving state and local governments, universities and private companies in the provision of fleet management consulting services, management operations reviews, facilities space needs assessments, and development of facilities master plans. With over 350 fleet consulting engagements under his belt, he is one of the most experienced fleet management consultants in the nation. Mr. Yankovich has also authored a number of fleet related publications and has presented at many fleet conferences. The last five years (excluding 2020) he has taught day long classes on "Fleet Management 101" offered at the annual NTEA conference. Before beginning his consulting career, he worked for the City of Kansas City, KS and Unified Government of Wyandotte City and Kansas City, KS where he held several management positions in the Public Works, Operations Services, and City Clerk departments. He was the fleet asset manager for the City's fleet of 1,200 units. Mr. Yankovich's areas of expertise include program evaluation; productivity and competitiveness assessments; fleet replacement planning and financing; maintenance facilities reviews, facilities space needs assessments and master planning, and customer service. He holds a bachelor's degree in Sociology from the University of Kansas. Scott Rood, CAFM is a Manager with Mercury. He spent 22 years in the US Air Force, starting as a mechanic and retiring as the fleet maintenance manager for Holman AFB where he managed a work force of civilian and military personnel, including 90 maintenance technicians, and a $35 million annual operating budget. He subsequently held fleet management positions with the State of Washington State Motor Pool overseeing the maintenance of light-duty vehicles statewide; with Clark County, WA Utilities; and with Clark County, WA Public Works. His areas of expertise include all facets of fleet maintenance and repair and equipment acquisition and disposal. He has extensive experience managing a wide variety of vehicles and equipment, including cars and light trucks, medium and heavy-duty trucks, specialized trucks and road construction equipment such as dump trucks, dump trailers, paint stripe trucks, sewer jet trucks, backhoes, loaders, excavators, and street sweepers. Scott has served as the President of the Public Fleet Manager's Association, and as Chairman of the Fleet Committee and member of the Board of Directors of the Washington State Chapter of the American Public Works Association. He holds several ASE maintenance technician certifications and an MBA from Saint Martin's University (Lacey, WA). He also is a Certified Automotive Fleet Manager. MERCURY ASSOCIATES, INC. PAGE 15 7361 Calhoun Place, Suite 640 1 Rockville, MD 20855 www.mercury-assoc.com 1 (301) 519-0535 MERCURY Proposal to Provide Fleet Management Consulting Services Griffin Scott is a Senior Consultant with Mercury Associates. Mr. Scott utilizes his expertise in data science and geospatial analytics to assist transportation and fleet organizations with several analyses. He has served a wide array of clients in the areas of transportation operations improvement, optimal facility/fueling station location analyses, vehicle routing and scheduling optimization, geocoding and georeferencing, fleet utilization and rightsizing analyses, and fleet replacement planning. Prior to joining Mercury, Griffin was a project manager at School Bus Consultants. He holds a bachelor's degree in Data Science with a concentration in Geoinformatics from the College of Charleston. Sarah Hollis is a Senior Consultant with Mercury with more than 16 years of experience in fleet management consulting. She has primary responsibility for the development and maintenance of several of Mercury's analysis and decision support tools, including our fleet replacement planning and cost modelling program, CARCAP (Capital Asset Replacement Cost Analysis ProgramTM); our optimal vehicle replacement cycle analysis tool, ORCA; and the company's eVAM solution suite for conducting fleet rightsizing studies. Sarah has worked on more than 100 fleet utilization and rightsizing, replacement, and benchmarking projects during her career, including several large projects for the State of California Department of General Services encompassing as many as 48,000 vehicles and pieces of equipment. She has managed surveys of as many as 36,000 vehicle operators for a single fleet rightsizing study. Sarah holds a bachelor's degree in Computer Science from the University of Houston. Kristi Amaker is a Senior Consultant with Mercury Associates who focuses on transportation and fleet program cost and performance, utilization, and replacement data analysis. She has served a wide array of clients in the areas of transportation operations improvement, bell time change analysis (for student transportation programs), vehicle routing optimization, fleet utilization analysis and rightsizing, fleet replacement planning and alternative capital financing analysis, and rate development for capital and operating costs. Prior to joining Mercury, Kristi was a data analyst for School Bus Consultants. She holds a master's degree in Data Analytics from Slippery Rock University (PA), and a Base Programmer Certification from the SAS Institute. Project Understanding and Approach Project Understanding The City of Tukwila is seeking to conduct a review of the fleet maintenance program. This review (Diagnostic Fleet Assessment) will evaluate performance and business processes in a number of key areas of fleet management as well as fleet maintenance and repair. According to the 2021-2022 Biennial Budget, Fleet, an operating unit of Public Works, is staffed with a Fleet Superintendent, a Fleet Foreman, and three Fleet Technicians. Additional support is provided by the General Maintenance Manager and an Administrative Support Specialist. These MERCURY ASSOCIATES, INC. PAGE 16 7361 Calhoun Place, Suite 640 1 Rockville, MD 20855 www.mercury-assoc.com 1 (301) 519-0535 MERCURY Proposal to Provide Fleet Management Consulting Services employees manage and maintain over 350 assets at a newly constructed fleet facility. Data is captured and managed with a work order management information system (Lucity). The in-house shop has generated approximately 1,200 work orders annual for the past several years. Project Methodology Our approach to conducting this assessment will be inclusive, interactive, and results oriented. Our goal as management consultants is for our clients to improve their fleet management practices by taking action based upon our recommendations. This requires that our recommendations be practical (e.g., cost -justified, and "implementable") and appropriate to the challenges and opportunities facing a specific client at a specific point in time. We have no interest in making recommendations that are technically or academically sound but ill-suited to the real-world conditions our clients face today. Data Collection We will utilize information collection and analysis methods that fall into two broad categories: 1) quantitative performance measurement and benchmarking; and 2) business process mapping and gap analysis. Mercury understands the importance of, and the best techniques for, collecting and processing information efficiently and with minimal disruption to our clients' day-to-day work activities. Cost and Performance Measurement Data availability permitting, we employ cost determination and other quantitative performance measurement techniques in all fleet management practices reviews we conduct, interpreting the resulting performance statistics using suitable internal and industry benchmarks (if available and relevant). Interviews We understand the importance of hearing firsthand from the individuals managing the shop, turning wrenches, and supporting the fleet operation to better understand how they perform their work, the challenges, and obstacles that they face daily, and their input on how operations could be more efficient. We also understand that there are other stakeholders not directly within the operation that are either contributors to the fleet operation or responsible for fleet decisions. We recognize the importance of meeting with these individuals as well to obtain their perspective and insight on the fleet operation. Site Visits We understand the importance of being on site throughout the project process. Walking through the shop, meeting with employees, looking at the condition of the vehicles and equipment, etc. are all critical elements to understanding the overall operation. A senior member of our Project Team will make a site visit to meet with project stakeholders, see the shop, and view the fleet. Vehicle Statistical Referencing System The performance of any fleet management program is affected bythe number of personnel employed to deliver services and the way they are organized and deployed to accomplish their mission. Organizational structures should reflect reasonable spans of control and match the workload. MERCURY ASSOCIATES, INC. PAGE 17 7361 Calhoun Place, Suite 640 1 Rockville, MD 20855 www.mercury-assoc.com 1 (301) 519-0535 MERCURY Proposal to Provide Fleet Management Consulting Services In this task we will calculate the workload (VEUs and demand hours) required to manage and maintain the fleet using our Vehicle Statistical Referencing System (VSRS) and then using reasonable and appropriate performance standards we will recommend the required workforce. The workforce is represented by technicians, managers, superintendents, supervisors, parts clerks, administrators, support positions, etc. In evaluating key aspects of a fleet management organization's performance, Mercury uses Vehicle Equivalency Unit (VEU) values derived from our VSRS. This benchmarking technique allows us to compute and compare certain metrics for different fleets by expressing the size of a fleet comprised of many different types of assets in terms of the equivalent number of passenger vehicles. The database includes the entire spectrum of vehicle and equipment types found in a utility or government fleet. Each class is given a VEU value that reflects the amount of maintenance and repair labor hours it is estimated to require in one year, in proportion to the amount of such effort typically required by a passenger vehicle (rated at 1.0 VEUs). A tandem axle dump truck, for example, may be assigned a rating of 4.5 VEUs. A chain saw has a rating of 0.25 VEUs. A backhoe may be 4.5 VEUs. A fleet of one hundred pickup trucks of a given type, which are rated at 1.5 VEUs each, constitutes a fleet of 150 VEUs. The number of mechanics required to maintain this fleet is more than that for a fleet of 100 sedans, but far less than for a fleet of 100 bucket trucks. The following graphic illustrates how this technique works: Sample Vehicle Equivalent Unit Values Vehicle Classification Sample Sedan, mid-size, administrative use Pickup truck, LD Backhoe, MD Street Sweeper, HD Aerial Ladder Truck VEU Value 1.0 1.5 4.5 8.5 10.5 MERCURY ASSOCIATES, INC. PAGE 18 7361 Calhoun Place, Suite 640 1 Rockville, MD 20855 www.mercury-assoc.com 1 (301) 519-0535 MERCURY Proposal to Provide Fleet Management Consulting Services Many attempt to duplicate our staffing analysis approach but no other firm has the resources of Mercury to constantly update our VEU values, compare standard VEU values to an organization's actual performance, and to conduct the in-depth analysis required to successfully develop a comprehensive staffing plan. We also consider a number of other factors such as age and condition of the fleet, fleet maintenance facility limitations, skill level of technicians, training programs, business and workflow processes, fleet availability requirements, bargaining unit implications, tooling and shop equipment, use of fleet technologies, etc. Work Plan We are proposing to conduct a diagnostic level assessment of the fleet operation, meaning that our review will be at a high-level intended to identify areas where performance does not appear to meet industry standards or activities that are not consistent with other high performing fleet operations. At this diagnostic level, a rigorous cost analysis, in-depth review of performance, or detailed implementation plan for improvements is not included. Task 1: Initiate and Manage Project We will start the project with a virtual kick-off meeting. The primary objectives of the kickoff meeting will be to introduce the key members of both project teams to one another and to confirm both parties' understanding of key project parameters including but not necessarily limited to goals and objectives, scope, approach, timeline, critical success factors, and deliverables. Task 2: Collect and Review Information We will develop and submit a formal request for information (RFI) once the project has been initiated. The RFI will be in the form of a checklist which identifiesthe documentary material that we would like to obtain to conduct the analysis and a detailed inventory and roster template developed in Microsoft Excel. Examples of the documentary materials we may request include: • Organizational charts and position descriptions • Policy and procedure statements, SOPs, directives, etc. pertaining to all facets of fleet management, maintenance, and repair • Commonly used inspection, reporting, and recordkeeping forms and management reports (including key performance indicators) • Sample purchase specifications, contracts, requisitions, purchase orders, and invoicesfor vehicles, parts and sublet repair services • Any previously prepared consulting, audit, or other reports that may be of relevance to this study MERCURY ASSOCIATES, INC. PAGE 19 7361 Calhoun Place, Suite 640 1 Rockville, MD 20855 www.mercury-assoc.com 1 (301) 519-0535 MERCURY Proposal to Provide Fleet Management Consulting Services We will request that you return a completed and, if appropriate, annotated copy of the checklist with available documentary materials. This way, we will have a clear record of what types of information were — or were not — available for our use in conducting the analysis. The information request will also include a fleet inventory and roster request in the form of a Microsoft Excel spreadsheet that identifies data elements that we will need for each asset in the fleet such as identifier information and up to five years of utilization and maintenance and repair data if available. Examples of specific data elements that may be requested include the following: • Unit ID number • Model year • Make • Model • VIN • Class code and class description • User organization (department, division, business unit, facility, etc.) name • Asset domicile (normal parking location) location • Asset garage assignment (shop at which asset normally is serviced) • Acquisition date • In-service date • Original purchase price • Original upfitting cost (if any) • Recent odometer/hour meter reading and meter reading date • Utilization (miles driven or engine hours accumulated) for the last two years • Maintenance and repair cost by asset The completion of this task requires the data to be provided in the above-mentioned data collection template (Excel). Alternately, we can access the data remotely and pull all necessary reports to complete the template ourselves if we are provided appropriate remote access and system authorities to the fleet management system of record. We may also set up a BOX.com or other file sharing application portal to facilitate transmission of available documentary materials and quantitative data to our project team in electronic form. We will review all documentary material and data provided for completeness and follow up, if necessary, on any missing or erroneous items to ascertain if they will be forthcoming or are not available. Our effort and cost for this task assumes that our spreadsheet templates (i.e., Excel workbooks) will be used to convey the requested fleet inventory and roster information or access to the appropriate systems be provided to members of our project team. It also assumes that the information will be substantially complete and accurate and will not require additional data MERCURY ASSOCIATES, INC. PAGE 110 7361 Calhoun Place, Suite 640 1 Rockville, MD 20855 www.mercury-assoc.com 1 (301) 519-0535 MERCURY Proposal to Provide Fleet Management Consulting Services normalization, scrubbing, clean-up, etc. This task includes review of the data and documentary materials for completeness and reasonableness, development of the fleet profile, and calculation of key fleet statistics. Task 3: Conduct Fleet Assessment In this task, we will evaluate fleet management business practices by reviewing current conditions, resources, and business practices in several functional areas. The results of this evaluation will serve as the foundation for developing specific recommendations for reengineering or upgrading current organizational structures, staffing levels, infrastructure, and/or business processes to reduce the costs and/or improve the quality and effectiveness of both fleet management activities and the vehicles and equipment themselves that comprise the fleet. The fleet management business practices we will evaluate in this task, subject to modification during contract negotiation, if necessary, include but are not limited to the following: Fleet Profile 1. Total fleet asset count along with workload calculation (VEUs) 2. Total demand hour (direct labor requirement) for fleet workload 3. Average age of the fleet and average age of the fleet by classification Fleet Governance 4. Existence of appropriate fleet management policies and procedures Fleet Utilization Management 5. Asset utilization measurement and exception management (e.g., use of standard utilization guidelines such as miles driven, hours operated, trips taken, etc. to determine asset use) Fleet Maintenance and Repair (In-house) 6. Pre/post trip inspection and defect reporting 7. Preventive maintenance program design 8. Work planning and scheduling 9. Shop hours 10. Technician supervision 11. Technician productivity 12. Field maintenance and repair 13. Roadside assistance and asset recovery service delivery MERCURY ASSOCIATES, INC. PAGE 111 7361 Calhoun Place, Suite 640 1 Rockville, MD 20855 www.rnercury-assoc.com 1 (301) 519-0535 MERCURY Proposal to Provide Fleet Management Consulting Services Fleet Resource Management 14. Organizational structure 15. Technician staffing levels 16. Fleet support staffing levels 17. Training and professional development Parts Management (In-house) 18. Inventory management 19. Inventory control Fleet Replacement Planning 20. Fleet replacement plan management 21. Fleet replacement plan development (20 -year baseline plan) Fleet Maintenance Facility 22. Fleet facility capacity 23. Availability of shop equipment and specialty tools Fleet Technology 24. Fleet performance reporting Customer Service Management 25. Ongoing customer service management Our evaluation of conditions and/or practices in each of the above areas will focus on identifying opportunities to improve management and operating effectiveness and/or reduce costs, as appropriate. Task 4: Develop Project Deliverable Our Project Team's findings, conclusions, and recommendations will be submitted in a formal project deliverable. Our deliverable for this project will include a Microsoft PowerPoint(PPT) style document with, as appropriate, bullet points, brief narrative discussions, notes, quantitative analysis results in tabular and graphical form, and photographs as/if necessary to illustrate our findings. This will be developed in draft initially for review and comment by the client's project team. All written comments and requests for changes, edits, clarifications, etc. will be considered. We will also provide supporting information in a Microsoft Excel workbook that will include detailed fleet profile information and other data as/if necessary to support our findings and recommendations. MERCURY ASSOCIATES, INC. PAGE 112 7361 Calhoun Place, Suite 640 1 Rockville, MD 20855 www.rnercury-assoc.com 1 (301) 519-0535 MERCURY Proposal to Provide Fleet Management Consulting Services Included in the project deliverable is a working group session to present study findings and recommended action items to the client's project team. A formal presentation to an Executive Leadership group, elected officials, etc. is not included at this time since it is not known if it will be required. If the client is interested in a more formal executive level presentation, we will provide a quote for these additional services. Project Investment Our Not -to -Exceed cost for completing the Diagnostic Fleet Assessment as detailed in this proposal is $39,640. This includes all professional fees and travel expenses for a single on-site visit by a senior member of our Project Team. We will invoice based on meeting the following milestones. Our standard payment terms are Net 30 days and payment can be made by check, EFT, or credit card. Activity Billing Amount $3,120 Submittal of request for information (RFI) Completion of the project kickoff meeting $3,180 Completion of on-site visit $11,648 Delivery of draft study deliverable $20,637 Delivery of final report document $1,055 Total $39,640 MERCURY ASSOCIATES, INC. PAGE 113 7361 Calhoun Place, Suite 640 1 Rockville, MD 20855 www.mercury-assoc.com 1 (301) 519-0535