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23 of the five major sections of the AirTrain project, the Group Criterion 4: Operations and Maintenance.-- proposers had to provide a summary cash-flow curve for The Selection Committee considered the O&M packages the entire project with a correlating project schedule. using the subcriterion Technical Adequacy. The RFP The third subcriterion, Phase III Contractor Opera- required a general operations plan including operation tions and Maintenance (COM) Lump-Sum Price, re- plans and plan statistics for years 2001 through 2015, a quired separate lump-sum prices for the first year and rule book, and a plan for fare receipts, collection, count- for each year between 2 and 5 years, because the transit ing, and security. Additionally, proposers had to pro- system would not be fully operational until the second vide a maintenance plan and an organization and staff- year. The proposers had to provide the following specif- ing plan to include an operations procedures manual. ics: fixed price for the 1st year of COM services; fixed The proposal requirements did not stipulate criteria for price for the first year COM fee; unit price adjustments the O&M contract to extend beyond the first 5-year pe- for changes made in the first year of COM services; riod into the optional additional 1-year periods. Addi- fixed price for COM services for the second year; fixed tionally, the request for proposal did not stipulate any price for the COM fee for the second year; unit price subcriteria by which the O&M proposals would be eval- adjustments for changes in COM services in the second uated. year; Phase III COM Prices, Fixed COM fees, Unit Price Adjustments for changes in COM Services, Pay- Key Contract Provisions ment/Performance Bonds, and Insurance Prices for Years 3 through 5; and a Capital Asset Replacement Design Review Program. During the contract period, the proposal documents Additionally, the Port Authority asked for fixed pric- stipulated deliverables required of the contractor. The es for bonds and insurance to include: Phase I and II Port Authority required design submittals and approv- payment and performance bonds; Phase III first year als at 30 percent, 65 percent, 85 percent, and 100 per- payment and performance bond; Phase III second year cent of design completion. If the contractor chose to pro- payment and performance bonds; Phase III payment ceed with any portion of the project without prior Port and performance bonds for the annual costs of years 3 Authority approval, the contractor would be working on through 5; Phase III insurance for the first year; Phase an "at-risk" basis. III insurance for the second year; and Phase III insur- ance for the annual costs of years 3 through 5. Operating Provisions The fourth subcriterion, Fixed Prices for Options, in- In the event that the system did not reach a mini- cluded pricing for optional vehicles to provide 25 per- mum service availability of 99 percent for any calendar cent additional capacity and COM prices for any year in month after the system demonstration, the contractor the period of Years 6 through 15. had to assemble a report based on design and O&M Group Criterion 3: Technical.--The first technical procedure review. If the system performed at service subcriterion, System and Vehicle Performance Charac- availability of 99.7 percent or above, the contractor re- teristics, required proposals for vehicle performance, ceived a bonus, whereas in months of service availabil- system performance, and system capacity. The second ity less than 99.3 percent, the contractor's payment technical subcriterion, System and Subsystem Design would be reduced. The contract also stipulated down- and Other Features, required a system description de- time limits with percentage deduction per percentage of tailing the technologies for vehicles, ATC, communica- downtime event. The contract required the contractor to tions, power, and SCADA. be assessed $25,000 in liquidated damages for each day The technical provisions stipulated that the proposed the AirTrain service was delayed from Jamaica Station light rail system apply developed technologies as much and $50,000 a day for delays for the Howard Beach Sta- as possible, and provided the following criteria: tion, with total liquidated damages not to exceed $40 million. In the event of a delay in service, the Port Au- The equipment or technology must have been pre- thority reserved the right to cancel the remainder of the viously used in a similar public transit project for at project. Additionally, before the receipt of final payment least 2 years and have well-documented reliability and at the conclusion of the COM period, the contractor had maintainability characteristics. to certify settlement of all claims or disputes dealing The previous project referenced in the first crite- with subcontractors, material suppliers, or other per- rion must have environmental and operating conditions sonnel at the expense of the contractor. comparable to AirTrain JFK. For the O&M period, in the event that the AirTrain The reliability and maintainability characteristics service availability fell below 98 percent for 6 consecu- must be presented in relation to the overall system tive months, the Port Authority could terminate the availability requirements; if the proposer offers an al- contract. If the Port Authority decided to terminate the ternate design, that design must be shown to better contract for service availability or any other contract accommodate the service availability requirement. violation, the contractor had to provide a training pro- The proposer must provide documentation of the gram for all personnel tasked with taking over the op- system's satisfactory interface and interaction with erations of the facility. other equipment.