REPORT TO THE DULLES CORRIDOR COMMITTEE

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Edwina Horton
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1 REPORT TO THE DULLES CORRIDOR COMMITTEE RECOMMENDATION TO AWARD A SOLE SOURCE CONTRACT FOR ELECTRICAL POWER SERVICE FOR INTERIM TESTING, COMMISSIONING AND PRE-REVENUE OPERATIONS FOR PHASE 2 OF THE DULLES CORRIDOR METRORAIL PROJECT April 2017

2 PURPOSE Staff requests the Dulles Corridor Committee approve and recommend to the Board of Directors that the Airports Authority enter into a sole source contract with Dominion Virginia Power (DVP) for electrical power service for the interim testing, commissioning and pre-revenue operations for Phase 2 of the Dulles Corridor Metrorail Project (Project).

3 BACKGROUND The Airports Authority is required to provide interim testing, commissioning and pre-revenue operations prior to turnover of the completed Project to the Washington Metropolitan Area Transit Authority (WMATA). The Airports Authority has contracts with DVP for electric service at Ronald Reagan Washington National and Washington Dulles International Airports and the Dulles Toll Road, with rates established through the Virginia Energy Purchasing Governmental Association (VEPGA) structure.

4 BACKGROUND (Continued) The new DVP contract for the interim testing, commissioning and pre-revenue operations is based on the same VEPGA negotiated rate structure currently used by participating agencies, including the Airports Authority. DVP is the only provider of electricity in the Project region.

5 DISCUSSION The proposed DVP rates include the costs of generating and distributing electricity, fuel surcharges and miscellaneous fees. The contract cost for interim testing, commissioning and pre-revenue operations will be approximately $10,500,000 for the period April 2017 through December The base rate is fixed through August 2019 and then will be adjusted to a new fixed rate. This cost is included in the current project cost forecast and available budget.

6 DISCUSSION (Continued) Upon turnover of the completed Project to WMATA in late 2019, this contract will expire, and WMATA will enter into a separate contract for system operations. The proposed contract would be awarded as a sole source contract, permitted, with proper justification, under Contracting Manual Section 1.4.1(d) Utility Services and Supplies. Intent to award this sole source contract was posted on the Airports Authority s website, and no firm offered a statement of capabilities to provide the service.

7 RECOMMENDATION Staff requests that the Dulles Corridor Committee approve and recommend to the Board of Directors that the Airports Authority approve the award of a sole source contract to Dominion Virginia Power for electrical power service for interim testing, commissioning and pre-revenue operations for Phase 2 of the Dulles Corridor Metrorail Project.

8 DULLESMETRO.COM

9 DULLES CORRIDOR ENTERPRISE REPORT TO THE DULLES CORRIDOR COMMITTEE RECOMMENDATION TO AWARD A SOLE SOURCE CONTRACT FOR ELECTRICAL POWER SERVICE FOR INTERIM TESTING, COMMISSIONING AND PRE-REVENUE OPERATIONS FOR PHASE 2 OF THE DULLES CORRIDOR METRORAIL PROJECT PURPOSE APRIL 2017 Staff requests that the Dulles Corridor Committee approve and recommend to the Board of Directors that the Airports Authority enter into a sole source contract with Dominion Virginia Power (DVP) for electrical power service for the interim testing, commissioning and pre-revenue operations for Phase 2 of the Dulles Corridor Metrorail Project (Project). BACKGROUND The Airports Authority is required to provide interim testing, commissioning and prerevenue operations prior to turnover of the completed Project to the Washington Metropolitan Area Transit Authority (WMATA). The Airports Authority has contracts with DVP for electric service at Ronald Reagan Washington National and Washington Dulles International Airports and the Dulles Toll Road, with rates established through the Virginia Energy Purchasing Governmental Association (VEPGA) structure. The new DVP contract for the interim testing, commissioning and pre-revenue operations is based on the same VEPGA negotiated rate structure currently used by participating agencies, including the Airports Authority. DVP is the only provider of electricity in the Project region. DISCUSSION The proposed DVP rates include the costs of generating and distributing electricity, fuel surcharges and miscellaneous fees. The contract cost for interim testing, commissioning and pre-revenue operations will be approximately $10,500,000 for the period April 2017 through December This cost is included in the current project cost forecast and available budget. The base rate is fixed through August 2019 and then will be adjusted to a new fixed rate. Upon turnover of the completed Project to WMATA in late 2019, this contract will expire, and WMATA will enter into a separate contract for system operations. The proposed contract would be awarded as a sole source contract, permitted, with proper justification, under Contracting Manual Section 1.4.1(d) Utility Services and Supplies. Intent to award this sole source contract was posted on the Airports Authority s website, and no firm offered a statement of capabilities to provide the service.

10 RECOMMENDATION Staff requests that the Dulles Corridor Committee approve and recommend the Board of Directors approve the award of a sole source contract to Dominion Virginia Power for electrical power service for interim testing, commissioning and pre-revenue operations for Phase 2 of the Dulles Corridor Metrorail Project. Prepared by: Dulles Corridor Metrorail Project April 2017

11 Proposed Resolution Authorizing Award of Sole Source Contract to Dominion Virginia Power for the Electrical Power Service for Interim Testing, Commissioning and Pre-Revenue Operations for Phase 2 of the Dulles Corridor Metrorail Project WHEREAS, The Airports Authority is required to provide interim testing, commissioning and pre-revenue operations prior to turnover of the completed Dulles Corridor Metrorail Project Phase 2 (Project) to the Washington Metropolitan Area Transit Authority (WMATA); WHEREAS, The Airports Authority currently has contracts with Dominion Virginia Power (DVP) for electric service at Ronald Reagan Washington National and Washington Dulles International Airports and the Dulles Toll Road, with rates established through the Virginia Energy Purchasing Governmental Association (VEPGA) structure; WHEREAS, The new DVP contract for the interim testing, commissioning and pre-revenue operations is based on the same VEPGA negotiated rate structure currently used by participating agencies, including the Airports Authority; WHEREAS, DVP is the sole provider of electricity in the Project region; WHEREAS, The contract cost for interim testing, commissioning and prerevenue operations, which is included in the current Project cost forecast and available budget, will be approximately $10,500,000 for the period April 2017 through December 2019; WHEREAS, The base rate is fixed through August 2019 and then will be adjusted to a new fixed rate; WHEREAS, Upon turnover of the completed Project to WMATA in late 2019, the contract will expire, and WMATA will enter into a separate contract for system operations;

12 WHEREAS, The Contracting Manual, in paragraph 1.4.1(3)(d), authorizes the award of sole source contracts when utility services or supplies are available from only one actual, or practicable source ; and WHEREAS, As required by the Contracting Manual, notice of this intended sole source award was published on the Airports Authority s website for the required time period and no firm offered a statement of capabilities to provide the service; now, therefore, be it RESOLVED, That the President and Chief Executive Officer is authorized and directed to award a sole source contract to Dominion Virginia Power for electrical power service for interim testing, commissioning and pre-revenue operations for Phase 2 of the Project, consistent with the terms presented to the Dulles Corridor Committee at its April 19, 2017 meeting. For Consideration by the Dulles Corridor Committee and Board of Directors on April 19, 2017 NOTE: Recorded vote is required.

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