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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Ann Green-Barton, Chief People Officer |
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PRESENTER(S): |
Stacey Palacios, Director of Workforce Technical Training |
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TITLE:
title
Contract: Maintenance Of Way (MOW) Positive Train Control (PTC) Training and Certification (Signal Training Solutions, LLC)
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AGENDA ITEM TYPE:
Procurement Contract/Change Order
RECOMMENDATION:
Approve and authorize the Executive Director to execute contract 25-03936 and associated disbursements with Signal Training Solutions, LLC (STS) for three (3) base years and two (2) 1-year options, in the not-to-exceed amount of $617,100.
BACKGROUND:
During the last Federal Railroad Administration (FRA) audit, it was noted that Maintenance of Way (MOW) employees were not compliant with PTC training and certification requirements. STS conducted initial training in 2018, but annual refresher training has not been maintained. This lack of compliance poses both a regulatory risk and a safety hazard.
Per Federal Code CFR 236.1041 (a1, a4, a5): “Persons whose duties include installing, maintaining, repairing, modifying, inspecting, and testing safety-critical elements of the railroad's Positive Train Control (PTC) systems, including central office, wayside, or onboard subsystems, roadway workers whose duties require them to know and understand how a train control system affects their safety and how to avoid interfering with its proper functioning, and the direct supervisors of persons listed in paragraphs (a)(1) through (a)(4).”
In March 2025, the MOWPTC Training and Certification contract was awarded to STS. This contract ensures compliance training for all MOW signal employees, maintains yearly certification for three years, and equips UTA to sustain compliance after the contract term.
DISCUSSION:
The STS contract ensures UTA’s MOW PTC 243 compliance for the next three (3) years, with an option for two (2) 1-year extensions. This guarantees all MOW signal employees receive initial training in 2025, followed by a staggered recertification process over the next few years. The contract also sets UTA up to manage PTC compliance internally after the contracted term, with a total value not-to-exceed $617,100.00 over five (5) years.
This contract will ensure:
• Regulatory Compliance: Meets FRA 49 CFR 243 training and certification requirements, avoiding penalties and operational risks.
• A Structured Training Plan: Initial blitz training for all personnel in 2025, followed by a 1/3 rotation model for recertification in subsequent years.
• Budget Predictability: Fixed costs allow for financial planning, with options for additional training or early program adoption.
By 2029, UTA will own an FRA-approved On-the-Job Training (OJT) 243 training program, reducing reliance on external vendors and allowing in-house certification moving forward. The contract includes ongoing curriculum updates, ensuring alignment with industry standards and regulatory changes throughout the training period.
The optional fourth and fifth years provide flexibility based on UTA’s needs, allowing for additional training or early program purchase. This contract not only ensures compliance but also builds an internal training capacity, making it a long-term investment in UTA’s workforce and operational sustainability.
CONTRACT SUMMARY:
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Contractor Name: |
Signal Training Solutions, LLC |
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Contract Number: |
25-03936 |
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Base Contract Effective Dates: |
Effective after final signature -12/31/2027 |
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Extended Contract Dates: |
1/1/2028 - 12/31/2029 |
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Existing Contract Value: |
N/A |
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Amendment Amount: |
N/A |
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New/Total Contract Value: |
$617,100 - (Includes all five years) |
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Procurement Method: |
RFQ |
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Budget Authority: |
Approved 2025 Operating Budget |
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ALTERNATIVES:
An RFP will be issued.
FISCAL IMPACT:
The total not-to-exceed total for a 3-year guaranteed with 2-year option contract is $617,100.00.
All costs are allocated under the Training & Development Training Budget, specifically within line item 6450.50929.91 - Training Expense: External Training. The funding covers initial and recurrent training for all MOW signal employees, as well as the purchase of the FRA approved PTC classroom and FRA OJT 243 program for UTA to sustain compliance beyond the contract period.
Multi-Year Budget Breakdown:
• 2025 Contract Amount: $165,165 - Initial training blitz for all UTA MOW signal employees.
• 2026 Contract Amount: $64,372 - Recertification for 1/3 of MOW employees.
• 2027 Contract Amount: $66,946 - Recertification for another 1/3 of MOW employees.
• 2028 Contract Amount: $69,623 - Final 1/3 recertification of MOW employees.
• 2029 Contract Amount: $155,994 - Continued certification and recertification of MOW employees
• 2029 Contract Amount: $95,000 - One-time purchase of the OJT 243 Program to allow UTA to sustain internal training beyond the contract period.
The maximum 5-year expenditure under this contract is not to exceed (NTE) $617,100.00. The required 3-year commitment totals $296,483.00 across 2025, 2026, and 2027. Years 4 and 5 reflect a projected 4% increase to accommodate inflation and added training needs, with a combined total of $255,617, plus the $95,000 program purchase, bringing the total planned spend to $617,100.
This contract is fully funded, with no external grant funding currently allocated. However, potential future grants or funding agreements could offset optional costs in years 4 and 5 if additional funding sources are identified.
ATTACHMENTS:
• Contract: Maintenance Of Way Positive Train Control Training and Certification (Signal Training Solutions, LLC)