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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Andres Coleman, Chief Operating Officer |
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PRESENTER(S): |
Andres Coleman, Chief Operating Officer |
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Ryan Taylor, GM Special Services |
TITLE:
title
Change Order: Northern ADA Complementary Paratransit and Route Deviation Provider Services Modification 2 - Rate Modifications (MV Transportation, INC.)
end
AGENDA ITEM TYPE:
Procurement Contract/Change Order
RECOMMENDATION:
Approve and authorize the Executive Director to execute Modification 2 (and associated disbursements) for contract 20-03243 with MV Transportation Inc. (MV) that will increase rates for trip reimbursement and cost of Operations in the amount of $339,045.
BACKGROUND:
UTA Special Services Business Unit (SSBU) is responsible for meeting Paratransit and Route Deviation (F-Routes) statutory regulations of the Federal Transportation Administration (FTA) under 49 CFR 37.121(a): …“each public entity operating a fixed-route system shall provide paratransit or other special service to eligible individuals with disabilities that is comparable to the level of service provided to individuals without disabilities who use the fixed-route system.”
On May 20, 2020, the Board approved a contract with MV Transportation Inc. to operate Paratransit and fixed-route-deviation service in the Northern UTA service area. Option 4 of the contract, providing for a 6th year of contract performance was executed on May 6, 2025.
In 2023-24 there was a concerning drop in service performance. During that time, MV’s locally contracted office developed and implemented an intense restructuring and refocus to uphold the service delivery standards expected from UTA, and increased drivers wages to attract a larger, experienced candidate pool. MV’s performance during the last several months has had marked improvements with on-time trips consistently above 95%. The increase in performance has been substantial and sustained. Due to this, MV and UTA SSBU have agreed to a rate increase which has been in negotiations since October 2024.
Additionally, Ridership hours have been increasing over the contract period; with 14-26% more hours than the original RFP response anticipated. This is an unavoidable contribution to rising costs.
|
Annual Hours |
Priced RFP |
Current Average |
Difference |
Percent |
|
Paratransit |
40,368 |
51,157.3 |
10,789.3 |
26.73% |
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Fixed Deviation (Flex) |
16,200 |
18,543.6 |
2,343.6 |
14.47% |
DISCUSSION:
This request reflects the growing service demands and operational costs in supporting our Northern area Paratransit and Flex Route service delivery from Brigham to Farmington by increasing the hourly contract rates for March and April 2025, of the prior contract year and also increasing the rates for the sixth contract year (May 1, 2025 through April 30, 2026).
This request for new rates in contract year 6 impacts the original contract by $339,045.
A one-time lump sum payment reflecting increases compared to actuals for March 2025 to September 2025 will reflect UTA’s commitment to continuous improvements, while the remainder of the contract will be billed for actual hours of service delivery at the updated rate schedule. The following table of rates will be updated in the modified contractual agreement with this approval from the UTA Board of Trustees.
|
Type of Rate |
Current Contract Rates, Year 5 |
Negotiated and Accepted Year 5 Mar/Apr 2025 |
Current Contract Rates, Year 6 |
Negotiated and Accepted Year 6 May 2025-Apr 2026 |
|
Monthly Operating Fixed Amount |
$88,562.36 |
$90,373.97 |
$90,373.07 |
$94,909.36 |
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Variable Paratransit per Vehicle Hours |
$48.73 |
$51.98 |
$50.43 |
$53.80 |
|
Fixed Deviation Route (Flex) |
$41.17 |
$44.72 |
$42.60 |
$46.28 |
If this modification is approved in the amount of $339,045 for Year 6, UTA staff will return to the Board to obtain approval of a modification for Year 7 in the approximate amount of $392,503.
CONTRACT SUMMARY:
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Contractor Name: |
MV Transportation, Inc. |
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Contract Number: |
20-03243-02 |
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Base Contract Effective Dates: |
May 1, 2020 - April 30, 2027 |
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Extended Contract Dates: |
N/A |
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Existing Contract Value: |
$25,034,554 |
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Amendment Amount: |
$339,045 |
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New/Total Contract Value: |
$25,373,599 |
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Procurement Method: |
RFP |
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Budget Authority: |
Approved 2025 Operating Budget |
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ALTERNATIVES:
Not providing fair and reasonable compensation for the high level of service delivery and operations that MV and UTA have worked diligently to improve upon would have a severe negative impact on the community/area of service from Farmington to Brigham City, for those who have disabilities, their caregivers and support/day programs enrollment.
The service delivery would be impacted and improvements potentially reversed or abandoned as MV may be forced to reduce their services and dependability, availability and quality of operators.
FISCAL IMPACT:
Contract Cost Breakdown:
Contract Year 6 current estimated total cost to date= $4,187,568
Lump Sum March 1, 2025 - September 30, 2025= $159,845
Labor Rate Increase October 1, 2025 - December 31, 2025= $76,811
Labor Rate Increase January 1, 2026 - April 30, 2026= $102,389
Total Proposed Year 6 Contract Cost= $4,526,613
In January 2026 a separate analysis will be presented on the impact to the original RFP award in preparation of Option 5 to extend to Contract Year 7 (May 2026-April 2027).
• 2025 Modification Total: $236,656
• 2026 Modification Total: $102,389
Modification Total: $339,045
Approved Contract Total Value with Modification: $25,373,599
Contract Expenditures to Date: $18,517,748.41
Remaining Value with Modification: $6,855,850.59
ATTACHMENTS:
• Change Order: Northern ADA Complementary Paratransit and Route Deviation Provider Services Modification 2 - Rate Modifications (MV Transportation, INC.)