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35 Table 12. Southern NJ Light Rail Key Contract Provisions Assessed Criteria Scope, Price, and Schedule Criterion Subcriteria A basic, but very significant, aspect of this contract Technical Safety in design and operation was the language used relative to scope of services, Approach Quality revenue service price, and schedule. The contract stated: Integration of components, sys- The parties intend this Contract to be a fixed price con- tems, civil and building works, and tract with respect to the design/build services to be pro- operations vide by [Rail Group], obligating [Rail Group] to perform Quality of product and features all Work necessary to obtain completion by the deadlines Proposal for achieving public ac- specified herein, subject only to certain specified limited ceptance exceptions. Life-cycle reduction techniques [New Jersey Transit] and [Rail Group] intend for this Quality of Ability and commitment to project Contract to significantly limit the opportunity for price Team and Ap- safety, quality, schedule, manage- increases or extensions of the Guaranteed Completion proach ment, and exceeding system assur- Date, and to provide for [Rail Group] to bear some risks ance requirements which are typically the responsibility of the owner of a Experience project (including certain events typically considered force Benefit to Financial and/or quality of life majeure events and design responsibilities). [Rail Group] the State benefit has agreed in this Contract to assume such responsibili- Ability and commitment to expan- ties and risks and has reflected the assumption of such responsibilities and risks in its bid price. sion and development provisions [New Jersey Transit] has provided [Rail Group] certain The evaluation committee assigned scores to each Mandatory Documents relating to the Work. [Rail Group] technical proposal with a maximum achievable score of is required in all events to comply with the requirements 300. The RFP did not stipulate any weight for the final set forth in the Mandatory Documents. [New Jersey Transit] and [Rail Group] both intend for [Rail Group] to proposal criteria nor any method or procedure for as- assume full responsibility and liability with respect to fi- signing scores. nal design, construction and operations and maintenance If the proposer's proposal was considered to be "en- of the Project. tire and complete and in full and total compliance," the evaluation committee opened the price proposal. The These excerpts from the contract became quite sig- prices were evaluated using the following formula: nificant as the project progressed and design and con- struction issues were encountered. [ 1 (Bid Price Low Price) ] x 700 = price score Suspension and Termination (Low Price) The owner may decide to suspend, at any time and Bid Price = Proposer's price for any reason, the DB work for the project. The owner Low Price = Lowest price for any submitted price also assigns the length of the suspension according to proposal its convenience, but must compensate the contractor for any expenses resulting from such a suspension. The committee combined the price scores with the technical scores to generate a composite score. The Liquidated Damages highest possible composite score was 1000. The bidder The contractor guarantees a completion date. In the with the highest composite score was declared the ap- event that the contractor does not achieve revenue- parent low bidder, and its price proposal underwent a ready status by the guaranteed completion date, it must detailed examination. Each proposer assumed proposal compensate the owner $25,000 a day up to a maximum preparation costs, regardless of whether or not their of $10 million. Such payment by the contractor does not proposal was accepted. excuse the contractor from liability or any other breach NJ Transit, at its sole discretion, held the right to re- of contract requirements. ject any and all proposals or bids, to waive any minor informalities or irregularities in any of the proposals, Operations and Maintenance and to award the contract to the proposer that it During the operating period, the contractor must deemed most advantageous. It did not have to award perform according to owner-established policies for sta- the contract to the lowest bidder nor did it have to make tion stops, hours of service, levels of service, public and an award at all. media information, and interfacing with the public. Furthermore, the owner has the responsibility for hir- ing and training all fare enforcement officers, as well as responsibility for maintaining and replacing all fare collection equipment.