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OCR for page 33
33 est of certified DBEs by providing adequate project in- Project Performance formation about the plans, specifications, and require- The contractor was compensated for the preconstruc- ments of the contract and list all project drawing and tion services and construction services separately in the documents. The contractor had to solicit the interest of form of a predetermined lump-sum fee. The total com- certified DBEs and allow for 2 consecutive weeks for pensation to the contractor for preconstruction services DBEs to respond to the solicitation. was set at a ceiling of $446,100. The total fee for com- The City of Portland and TriMet had identified spe- pensation for construction services was set at a ceiling cific areas of construction activities that would be po- of $5,390,000 in the form of a fixed fee. As per the terms tential subcontracting opportunities for DBEs. The con- of the contract, the contractor had to provide and pay tractor was required to describe how it would allocate for the task orders, labor, facilities, and services neces- the subcontracting opportunities to a broad range of sary for the execution and completion of the contract qualified DBE firms to maximize the number of con- work. The contractor was reimbursed at predecided tracts in ranges of $10,000 to $50,000 and $250,000 to unit prices for the task orders. The contractor was re- $1 million. sponsible for supervision of project performance and for The contractor was stipulated to document in writ- the selection of means of contract performance. The ing all DBE solicitations, list them in the DBE docu- total cost for the Portland Mall Segment was approxi- mentation form, break out contract work items into mately $220 million, and the segment opened for ser- economically feasible units, and identify opportunities vice in September 2009. When combined with the 1-205 to maximize DBE participation from Portland metro- segment, the total cost for this phase was $575.7 mil- politan areas. The contractor was encouraged to utilize lion. small contract packages to maximize DBE participa- At the time of this digest, no preaward claims were tion. The contractor was required to negotiate in good filed, and no postaward claims have occurred. However, faith with interested DBEs and record these negotia- this project encountered changes primarily due to un- tions as evidence, which had to be made available for anticipated utility relocations and differing subsurface TriMet's review. conditions. The contractor was required to further conduct a thorough investigation of a DBE's capability before re- VIII. THE RIVER LINE (SOUTHERN NEW JERSEY jecting it as unqualified. The contractor was required to make efforts in assisting interested DBEs in obtaining LIGHT RAIL TRANSIT SYSTEM) financial support such as bonding, lines of credit, or insurance, and material support such as necessary Project Overview equipment, supplies, material, or other services as re- Upon its opening in 2004, the New Jersey Transit quired by the contractor. Contractor had to maintain Corporation (NJ Transit) renamed the Southern New records of all subcontracts entered into with DBEs and Jersey Light Rail Transit System (SNJLRTS) the River records of materials purchased from DBE suppliers. Line. This system provides 34 mi of new LRT service from Trenton to Camden along the Delaware River, Dispute Resolution running roughly parallel to Route 130. It connects rid- The contract stipulated that unresolved disputes be- ers to the larger transportation networks of NJ Transit, tween the contractor and TriMet's project manager be Amtrak, Port Authority Transit Corporation, and referred to TriMet's Director for Project Implementa- Southeastern Pennsylvania Transit Authority (SEPTA). tion, Capital Projects and Facilities Division (Project The River Line consists of 20 stations, 3 park-and-ride Director). If the dispute still remained unresolved, it facilities, 17 bridges, and 50 grade crossings along the had to be referred to TriMet's Executive Director of the Delaware River corridor; the system also uses ad- Division for resolution. The Executive Director had to vanced, articulated, clean-burning-diesel, light-rail ve- then issue a written decision to resolve the dispute. hicles. Pending resolution, the contractor had to proceed as With the goal of accelerating the availability of ser- directed by the Project Director. If the dispute remained vice and integrating the design, build, and operations unresolved at this stage, then the contractor and process, NJ Transit pursued a DBOM approach for this TriMet were required to submit the dispute to media- project. NJ Transit awarded the contract to Southern tion to resolve it. In such an event, the parties were New Jersey Rail Group, LLC (Rail Group), a limited required to act in good faith in a nonbinding mediation liability corporation consisting of Bechtel Corporation process. Mediation was a condition precedent to litiga- and Bombardier, from a field of five prequalified bid- tion. The mediator would be selected by mutual agree- ders. Rail Group provided the low bid of $605 million to ment of the parties, but in the absence of such agree- design and build the rail system as well as operate and ment, each party would select a temporary mediator, maintain it 10 years after the project reached revenue- and those mediators would jointly select the permanent ready status. The original fixed price for the design and mediator. All costs of mediation would be borne equally construction services totaled $441 million, while the 10- by the parties. year O&M component totaled $153.5 million.