SP REQ DASOBO 00036276 ODOT Toll Revenue Studies Svcs.pdf

SP_REQ-DASOBO-00036276, ODOT Toll & Revenue Studies Services Page 1

REQUEST FOR SPECIAL PROCUREMENT No. REQ-DASOBO-00036276

PART A. Requesting Agency must complete Items 1 through 13.

1. Requesting Agency Name: Oregon Department of Transportation

2. Date of Request: 03/24/2023 3. Agency Number: 73000

4. Agency Contact Name: Erin Lucas 5. Phone: 503-569-8456

6. Type of Request: _X_ Class Special Procurement ___ Contract-specific Special Procurement

7. Time Period Requested: From: 04/01/2023 To: 09/30/2033

8. Total Estimated Cost: $6,000,000

9. Title: Supplies and/or Services to be Acquired:

The Oregon Department of Transportation (“ODOT” or “Agency”) is seeking Offers from qualified professional firms to provide services related to a traffic and revenue (“T&R”) studies for ODOT’s Toll Program.

10. Request, Background, Current Need, and Proposed Contracting Procedure:

a. Request:

ODOT requests the approval of this Special Procurement (“SP”) #REQ-DASOBO-00036276 to allow the General Toll Consultants currently under contract to compete to provide toll rate optimization studies, traffic modeling, preference surveys, and level two and investment grade (level three) T&R studies (collectively “T&R Studies”), as further detailed in Exhibit A, Scope of Services, of the Sample Price Agreement attached hereto as ‘SP_Attachment-3’.

b. Background:

ODOT is establishing the ODOT Toll System (the “OTS”), managed by the ODOT Toll System Administration (the “OTSA”) to build a toll program to manage congestion and generate revenue, which, in turn, will support major transportation improvements in the state.

OTSA’s first toll projects are expected to be implemented on Interstate 5 (“I-5”) and Interstate 205 (“I-205”) in the Portland metro region. The OTS is expected to Go-Live with the first toll project on I-205 in 2024. Other toll projects currently being considered are expected to come online afterwards.

To aid in this effort, on October 15, 2020, ODOT issued a Request for Proposals (“RFP”) for General Toll Consultant services. On February 12, 2021, and February 17, 2021, ODOT awarded two price agreements (“PA” or “PAs”) under the RFP: one to CDM Smith, Inc. and

SP_REQ-DASOBO-00036276, ODOT Toll & Revenue Studies Services Page 2 one to Stantec Consulting Services, Inc, respectively. CDM Smith, Inc. and Stantec Consulting Services, Inc. are highly experienced and qualified General Toll Consultants (the “GTC” or “GTCs”) and, pursuant to the PAs and Work Order Contracts issued under the PAs, are providing input, recommendations, and support to the OTSA as it manages the toll program. The RFP and the PAs prohibit the GTCs from submitting bids, proposals, and /or offers for products and services related to the OTS, other than those specifically provide for in the PAs.

To date, the GTCs have provided input, recommendations, and support to the OTSA in the following areas:

• conducting the procurement of contracts for the roadside system (“Roadside System”) and the back-office system (“Back-Office System”);

• designing and developing the OTS to Go-Live; and

• hypercare services during the final acceptance phase of the OTS and through the initial years of toll system operations.

The GTCs also are assisting the OTSA in expanding the OTS from a greenfield project to a mature toll operation, building a core OTSA staff over time and retaining other consulting firms or resources needed to fully administer a large, State-wide, state-of-the-practice toll program.

The OTSA now requires the services of a highly experienced and qualified toll T&R consultant for developing traffic and revenue projections in support of OTSA’s system financing and annual budgeting. The successful Offeror will support OTSA with T&R Studies services, including: toll rate optimization studies, traffic modeling, preference surveys, and level two and investment grade (level three) T&R studies. These T&R Studies services are not included in the service offerings under the two GTC PAs.

ODOT released Request for Qualifications (“RFQ”) No. S-73000-00004318 (ODOT No. 19041) on September 08, 2022, to assess the qualification of firms to perform Level 3, investment grade T&R analyses for ODOT’s Toll Program projects. Three firms responded prior to the due date and time on October 10, 2022, which included the GTCs and Steer Group, Inc. As provided in responses to the RFQ, qualifications of the Offerors are as follows:

CDM Smith

• Current or past public agency tolling clients in 46 states

• 30 express lane projects currently operating in the US

• Over $125 billion worth of T&R studies supported in toll financing

• More than 1,200 tolling projects completed

• 62.1% of all US investment grade studies for toll-financed projects by par value over the last 10 years

• More than 100 investment-grade T&R studies in 16 states over the last 10 years, including for 10 new tolling facilities.

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Stantec Consulting Services, Inc.

• Current or past public agency tolling clients in 38 states plus Canada and Mexico

• Have served over 100 tolling clients, including private sector

• Over $65 billion worth of T&R studies supported in toll financing overall

• Over $41 billion worth of T&R studies supported in toll financing since 2010

• Completed 116 investment-grade T&R studies in 12 states over the last 10 years, including for three new tolling facilities.

Steer Group, Inc.

• Current or past public agency tolling clients in 13 states

• 17 investment grade T&R studies supported in toll financing in last five years

• Supported one TIFIA toll road facility loan application in the last five years, resulting in

$1.2 billion in funding

• Completed investment-grade T&R studies in 13 states over the last 10 years, including for three new tolling facilities.

c. Current Need:

ODOT is requesting approval of this SP to allow the GTCs and the Steer Group (provided it complies with all the requirements herein and enters into a Price Agreement in the form set out in SP_Attachment-3) to compete in the mini-solicitation process resulting in the award of Work Order Contract(s) (“WOCs”) for the T&R Studies.

d. Proposed Contracting Procedure:

If this Request is approved:

1) ODOT will issue a public notice (“Notice”) on the State of Oregon’s eProcurement

System, OregonBuys, as required by Oregon Administrative Rule (OAR) 125-247- 0287, for a period of seven (7) calendar days, regarding approval of the SP.

2) The Notice will include provisions that any affected party may:

a. submit a request to be included in the selection process (if found to be qualified) for a PA; or

b. submit a protest to the approval of the SP.

3) Concurrent to issuing the Notice, ODOT will provide courtesy email notifications to the GTCs and Steer Group, Inc. regarding approval of the SP and the Notice advertised on OregonBuys.

4) DAS will respond to and resolve protests, if any.

5) If no protests are received or sustained, ODOT will proceed with:

a. amending both GTC PAs to provide that notwithstanding the prohibition on submitting bids, proposals or offers or entering into contracts related to the OTS, the GTCs may compete for and submit bids, proposals, and offers and enter into contracts related to T&R Studies; and

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b. conducting a request for quote process as detailed below in bullet #7.

6) A list of minimum qualifications is attached hereto as ‘SP_Attachment-2’.

a. If any other firm believes it has the capability to provide the T&R Studies services as detailed in SP_Attachment-3, Exhibit A, Scope of Services, that firm must respond to this Notice of special procurement within seven days of posting of the Notice on OregonBuys and advise DAS PS and ODOT that it would like to be considered for award of a PA.

b. Any such other firm must submit its qualifications to ODOT for review and approval and will be required to enter into a PA in the form set out in SP_Attachment-3.

c. If ODOT determines that other firms, including Steer Group, Inc. are qualified to provide the T&R Studies services, ODOT will enter into PA(s) in the form set out in SP_Attachment-3 for the T&R Studies services.

7) Once steps 1 – 6 are completed, and pursuant to the process set forth in the PAs, ODOT will issue mini-solicitation(s) to all PA holders for any work required under the PAs.

8) ODOT will enter into Work Order Contract(s) (“WOC” or “WOCs”) with PA holders for T&R Studies as set forth in the PAs.

11. Justification for use of Special Procurement: Describe the circumstances that justify the use of a Special Procurement. Attach relevant documentation.

Through the attached Request for Qualifications summary and evaluation results (“SP_Attachment-1”), ODOT has determined that the two GTCs are highly qualified providers of these services in the market and represent a high likelihood of accurate revenue forecasts, which is critical to the performance of the OTS and its generation of revenue for ODOT. Due to the unnecessarily restrictive terms of the GTC PAs, and lessons learned in building the foundation of the transformative program, ODOT does not believe that the GTCs should be precluded from competition for these T&R Studies services.

12. Findings to Satisfy the Required Standards: This proposed special procurement:

X (a) will be unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts because:

Allowing the two GTCs to compete for these T&R Studies services increases competition, rather than limits it. The process detailed in this SP and the inclusion of all firms that responded to the Request for Qualifications (and any others who believe they may be qualified) allows for fair and transparent competition among all firms who provide the services requested and meet ODOT’s minimum qualifications for competition (SP_Attachment-2).

and

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_____ (b)(i) will result in substantial cost savings to the contracting agency or to the public because:

or

X (b)(ii) will otherwise substantially promote the public interest in a manner that could not practicably be realized by complying with the requirements of ORS 279B.055, 279B.060, 279B.065, or 279B.070, or any rules adopted thereunder because:

Entering into an established PA with any newly qualified firm for these T&R Studies services and then conducting a mini-solicitation process and issuing Work Order Contract(s) under the PAs in place saves significant time and money.

Because the traffic and revenue projections generated from WOCs awarded under the PAs in place will be used in the rulemaking and rate setting processes and ultimate financing related to these services; and because of the significance of realized revenue to ODOT, it is in the public’s interest to allow all highly qualified firms to compete for these T&R Studies services.

13. Signature: The actual signature of the Agency Head or designee (e.g., Designated Procurement Officer) is not required on the Request if it is submitted through OregonBuys.

Agency may elect to attach a signed Request.

Signature: e.g. Electronically in OregonBuys _________________ Type Name: Date:

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PART B. The Department of Administrative Services completes Part B.

STATUTORY AND RULE AUTHORITY:

ORS 279B.085(2) states the Director of the Department of Administrative Services may approve a special procurement if the Director finds that a written request submitted under ORS 279B.085(4) demonstrates that the use of a special procurement as described in the request, or an alternative procedure prescribed by the Director will:

(a) Be unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts; and (b)(A) Result in substantial cost savings to the contracting agency or to the public; or

(B) Otherwise substantially promote the public interest in a manner that could not practicably be realized by complying with requirements that are applicable under ORS 279B.055, 279B.060, 279B.065 or 279B.070 or under any rules adopted thereunder.

OAR 125-246-0170 delegates the authority of the Director of the Department of Administrative Services to approve special procurements to the State Chief Procurement Officer. OAR 125- 247-0285 through 125-247-0288 implement ORS 279B.085.

OAR 125-247-0700(2) Protests and Judicial Review of Special Procurements designates the State Chief Procurement Officer as the Contract Review Authority.

FINDINGS: The findings are accepted, adopted, and incorporated by reference herein.

CONDITIONS OF APPROVAL:

1. Notice Period. The Authorized Agency shall post the Public Notice on OregonBuys. The Special Procurement may not be used until after the completion of the seven (7) day notice period required pursuant to OAR 125-247-0287(4), and either:

a. No Written protests are received by the Contract Review Authority, State Chief Procurement Officer, from an Affected Person in response to the notice, or

b. If any protest is received during the notice period, then not until:

i. the State Chief Procurement Officer or delegate issues a written disposition of the protest in accordance with ORS 279B.400 and OAR 125-247-0700 and OAR 137- 047-0700, and

ii. confirms in writing the first possible date of use of the Special Procurement.

2. ORS 279A.165 Requirements. Agency shall comply with the requirements of ORS

279A.165 and OAR 125-247-0287(12) regarding a report about this Special Procurement.

Agency shall use a form and follow the instructions provided by the State Chief Procurement Officer or delegate.

APPROVED:

Kelly Mix, State Chief Procurement Officer Date Department of Administrative Services

SP_REQ-DASOBO-00036276, Attachment -1 (SP_Attachment-1)

TOLL PROGRAM - INVESTMENT GRADE TRAFFIC & REVENUE STUDY ANALYSIS

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Offeror Response to RFQ Criteria:

CDM Sm ith

Sta ntec

Ste er G roup

Firm Qualifications Years of Firm Experience Conducting Investment Grade T&R Studies 65 40 44 Total US States Served 46 38 13 Number of Investment Grade T&R Studies Conducted in the Last 5 years 55 55 17 Number of Investment Grade T&R Studies Conducted in Last 10 Years 100+ 116 22 Number of Investment Grade T&R Studies Conducted for First Time Tolling Agencies/Jurisdictions in Last 10 Years 16 3 6 Number of Investment Grade T&R Studies Conducted to Support TIFIA Loans in Last 5 Years 7 5 1 The Value of Bonds issued resulting from T&R Analyses in Support of Other Toll Backed Revenue Obligations in Last 5 Years $26B+ $39B+ IND Accuracy of revenue forecasts, as provided in T&R study and analysis summary documentation 4.61% -0.61% 0.32%

Team Qualifications Total Combined Years of Experience of Project Team Conducting Investment Grade T&R Studies 144 151 80 Total Number of Team Members with Experience Conducting Investment Grade T&R Studies for First Time Tolling Agencies 6 IND 3 Involvement in and accuracy of revenue forecasts, as provided in T&R study and analysis summary documentation

- Studies 93 DNP DNP

- Value 4.18E+10 DNP DNP

KEY:

IND = Indeterminate in RFQ response DNP = Did not provide within RFQ Response