HomeMy WebLinkAboutContract 39085 (2) CITY SECRETARY
"ONTRACT NO,
PROFESSIONAL SERVICES AGREEMENT
This PROFESSIONAL SERVICES AGREEMENT ("Agreement") is made and entered into by
and between the CITY OF FORT WORTH (the "City"), a home rule municipal corporation situated in
portions of Tarrant, Denton, Parker and Wise Counties, Texas, acting by and through Karen L.
Montgomery, its duly authorized Assistant City Manager, and Mercury Associates, Inc. ("Consultant"), a
Maryland corporation acting by and through Randall G. Owen, its duly authorized Senior Vice President.
1. SCOPE OF SERVICES.
Consultant hereby agrees to provide the City with professional consulting services ("Services")
for the purpose of assessing the competitiveness of operations of the City's Equipment Services
Department ("ESD") as set forth in Exhibit A - Scope of Services attached hereto and incorporated
herein by reference.
2. TERM.
This Agreement shall commence upon execution by all parties but not later than September 4,
2009 ("Effective Date") and shall remain in effect until such time as the Services described in Exhibit A
and any amendments thereto are completed as required hereunder, unless terminated earlier in
accordance with the provisions of this Agreement.
3. COMPENSATION.
The City shall pay to Consultant a fee in the amount of$56,232 in consideration of Consultant's
performance of the Services in accordance with the provisions of this Agreement. Consultant shall not
perform any additional services for the City not specified by this Agreement unless the City requests and
approves in writing the additional costs for such services. The City shall not be liable for any additional
expenses of Consultant not specified by this Agreement unless the City first approves such expenses in
writing.
Consultant shall issue monthly invoices for Services rendered during the term of the Agreement.
Each invoice shall specify the work completed as of the invoice date, the work necessary to the
completion of the Services, and the percentage of the Services completed. The amount payable to
Consultant under each monthly invoice, when added to all payments previously tendered, shall not
exceed the percentage of the fee hereunder equal to the percentage of the total Services completed as of
the date of the invoice.
4. CONSULTANT COVENANTS.
4.1 Services Warranty.
Consultant warrants that all Services to be performed hereunder shall be performed in
accordance with professional standards in the automotive fleet consulting field. Consultant shall
comply with all applicable laws, ordinances, rules, regulations and statutes or any governmental
agency bearing on its performance of Services hereunder.
4.2 Personnel.
Consultant represents that it has, or will secure at its own expense, all personnel
necessary to perform the Services required under this Agreement. All of the Services required
hereunder shall be performed by Consultant, its officers, agents or employees, and all personnel
engaged in performing the Services shall be qualified to do so. "` - - _-
Consultant has designated certain individuals as the members of its t4ri F4 AkjWC RD
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the Services hereunder and provided information on the qualifications of each individual. These
designations shall be considered material representations and Consultant shall immediately notify
the City of any changes in the personnel assigned to perform the Services or their material
qualifications.
5. CLIENT COVENANTS.
5.1 Cooperation.
ESD shall cooperate with Consultant in Consultant's performance of Services, and shall
provide timely and expeditious access to ESD's facilities, personnel and information and data as
may be reasonably necessary for Consultant to complete the Services hereunder.
5.2 Information.
The City represents and warrants that all information and data provided by ESD or the
City to Consultant hereunder is accurate, timely and complete to the best of the City's knowledge.
Consultant shall not be liable to the City for any defect in the Services provided if such defect is
the proximate result of inaccurate information provided to Consultant by the City.
6. OWNERSHIP OF DELIVERABLES.
Consultant shall deliver to the City all deliverables required to be submitted consistent with the
Scope of Services set forth in Exhibit A. All deliverables shall be the property of the City, except to the
extent such deliverables include Consultant proprietary information, which shall be licensed at no
additional cost to the City on a non-exclusive basis. All working papers shall remain the property of
Consultant. Consultant shall maintain its working papers for a period of three (3) years from the date of
execution of this Agreement.
7. TERMINATION.
7.1. Written Notice.
The City or Consultant may terminate this Agreement at any time and for any reason by
providing the other party with 30 days written notice of termination.
7.2 Non-appropriation of Funds.
In the event no funds or insufficient funds are appropriated by the City in any fiscal period
for any payments due hereunder, City will notify Consultant of such occurrence and this
Agreement shall terminate on the last day of the fiscal period for which appropriations were
received without penalty or expense to the City of any kind whatsoever, except as to the portions
of the payments herein agreed upon for which funds shall have been appropriated.
7.3 Duties and Obligations of the Parties.
In the event that this Agreement is terminated prior to the Expiration Date, the City shall
pay Consultant for services actually rendered up to the effective date of termination and
Consultant shall continue to provide the City with services requested by the City and in
accordance with this Agreement up to the effective date of termination.
8. DISCLOSURE OF CONFLICTS AND CONFIDENTIAL INFORMATION.
Consultant hereby warrants to the City that Consultant has made full disclosure in writing of any
existing or potential conflicts of interest related to Consultant's Services under this Agreement. In the
event that any conflicts of interest arise after the Effective Date of this Agreement, Consultant hereby
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agrees to immediately make full disclosure to the City in writing. Consultant, for itself and its officers,
agents and employees, further agrees that it shall treat all information provided to it by the City as
confidential and shall not disclose any such information to a third party without the prior written approval
of the City. Consultant shall store and maintain City Information in a secure manner and shall not allow
unauthorized users to access, modify, delete or otherwise corrupt City Information in any way.
Consultant shall notify the City immediately if the security or integrity of any City information has been
compromised or is believed to have been compromised.
Consultant acknowledges that the City, as a governmental entity, is subject to certain mandatory
disclosure statutes, rules and procedures, including but not limited to, the Texas Public Information Act
(Tex. Gov't. Code § 552.001 et seq.). Consultant acknowledges that in order to protect any Consultant
proprietary or confidential information or materials held by the City, Consultant will need to clearly identify
any portions asserted to contain confidential or proprietary information. Consultant further
acknowledges that Consultant may be required to actively assert its interests before the Texas Attorney
General or other agencies or authorities in order to confer upon the City the ability to protect Consultant's
information. The City shall protect from unauthorized disclosure or use any Consultant proprietary or
confidential information in its possession or control which has been properly identified by Consultant.
Consultant accepts responsibility for protection of its own confidential information.
9. RIGHT TO AUDIT.
Consultant agrees that the City shall, until the expiration of three (3) years after final payment
under this Agreement, have access to and the right to examine at reasonable times any directly pertinent
books, documents, papers and records of the Consultant involving transactions relating to this
Agreement at no additional cost to the City. Consultant agrees that the City shall have access during
normal working hours to all necessary Consultant facilities and shall be provided adequate and
appropriate work space in order to conduct audits in compliance with the provisions of this section. The
City shall give Consultant reasonable advance notice of intended audits.
Consultant further agrees to include in any subcontractor agreements hereunder a provision to
the effect that the subcontractor agrees that the City shall, until expiration of three (3) years after final
payment of the subcontract, have access to and the right to examine at reasonable times any directly
pertinent books, documents, papers and records of such subcontractor involving transactions related to
the subcontract, and further that City shall have access during normal working hours to all subcontractor
facilities and shall be provided adequate and appropriate work space in order to conduct audits in
compliance with the provisions of this paragraph. City shall give subcontractor reasonable notice of
intended audits.
10. INDEPENDENT CONTRACTOR.
It is expressly understood and agreed that Consultant shall operate as an independent
contractor as to all rights and privileges granted herein, and not as agent, representative or employee of
the City. Subject to and in accordance with the conditions and provisions of this Agreement, Consultant
shall have the exclusive right to control the details of its operations and activities and be solely
responsible for the acts and omissions of its officers, agents, servants, employees, contractors and
subcontractors. Consultant acknowledges that the doctrine of respondeat superior shall not apply as
between the City, its officers, agents, servants and employees, and Consultant, its officers, agents,
employees, servants, contractors and subcontractors. Consultant further agrees that nothing herein
shall be construed as the creation of a partnership or joint enterprise between City and Consultant.
Unless specifically authorized by the City in writing, Consultant shall have no authority to act on behalf of
or to bind the City.
11. LIABILITY AND INDEMNIFICATION.
CONSULTANT SHALL BE LIABLE AND RESPONSIBLE FOR ANY AND ALL PROPERTY
LOSS, PROPERTY DAMAGE AND/OR PERSONAL INJURY, INCLUDING DEATH, TO ANYAND ALL
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PERSONS, OF ANY KIND OR CHARACTER, WHETHER REAL OR ASSERTED, TO THE EXTENT
CAUSED BY THE NEGLIGENT ACT(S) OR OMISSION(S), MALFEASANCE OR INTENTIONAL
MISCONDUCT OF CONSULTANT,ITS OFFICERS,AGENTS, SERVANTS OR EMPLOYEES.
CONSULTANT COVENANTS AND AGREES TO, AND DOES HEREBY, INDEMNIFY, HOLD
HARMLESS AND DEFEND THE CITY, ITS OFFICERS, AGENTS, SERVANTS AND EMPLOYEES,
FROM AND AGAINST ANY AND ALL CLAIMS OR LAWSUITS FOR EITHER PROPERTY DAMAGE
OR LOSS AND/OR PERSONAL INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF
ANY KIND OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN
CONNECTION WITH THIS AGREEMENT, TO THE EXTENT CAUSED BY THE NEGLIGENT ACTS
OR OMISSIONS OR MALFEASANCE OF CONSULTANT, ITS OFFICERS, AGENTS, SERVANTS OR
EMPLOYEES.
IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR ANY
INCIDENTAL OR CONSEQUENTIAL DAMAGES INCLUDING, BUT NOT LIMITED TO, LOSS OF USE,
LOSS OR DATA, LOSS OF REVENUE OR PROFIT.
12. ASSIGNMENT AND SUBCONTRACTING.
Consultant shall not assign or subcontract any of its duties, obligations or rights under this
Agreement without the prior written consent of the City. If the City grants consent to an assignment, the
assignee shall execute a written agreement with the City and the Consultant under which the assignee
agrees to be bound by the duties and obligations of Consultant under this Agreement. The Consultant
and Assignee shall be jointly liable for all obligations under this Agreement prior to the assignment. If the
City grants consent to a subcontract, the subcontractor shall execute a written agreement with the
Consultant referencing this Agreement under which the subcontractor shall agree to be bound by the
duties and obligations of the Consultant under this Agreement as such duties and obligations may apply.
The Consultant shall provide the City with a fully executed copy of any such subcontract.
13. INSURANCE.
Consultant shall provide the City with certificate(s) of insurance documenting policies of the
following minimum coverage limits that are to be in effect prior to commencement of any work pursuant
to this Agreement:
13.1 Coverage and Limits
(a) Commercial General Liability
$1,000,000 Each Occurrence
$1,000,000 Aggregate
(b) Automobile Liability
$1,000,000 Each accident on a combined single limit basis or
$250,000 Bodily injury per person
$500,000 Bodily injury per person per occurrence
$100,000 Property damage
Coverage shall be on any vehicle used by the Consultant, its employees, agents,
representatives in the course of the providing services under this Agreement. "Any
vehicle' shall be any vehicle owned, hired and non-owned
(c) Worker's Compensation
Statutory limits
Employer's liability
$100,000 Each accident/occurrence
$100,000 Disease-per each employee
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$500,000 Disease-policy limit
This coverage may be written as follows:
Workers' Compensation and Employers' Liability coverage with limits consistent
with statutory benefits outlined in the Texas workers' Compensation Act (Art. 8308— 1.01
et seq. Tex. Rev. Civ. Stat.) and minimum policy limits for Employers' Liability of
$100,000 each accidentloccurrence, $500,000 bodily injury disease policy limit and
$100,000 per disease per employee
(d) Errors&Omissions(Professional Liability):
$1,000,000 Each Claim Limit
$2,000,000 Aggregate Limit
If coverage is written on a claims-made basis,the retroactive date shall be
coincident with or prior to the date to the contractual agreement. The certificate of
insurance shall state that the coverage is claims-made and include the retroactive date.
The insurance shall be maintained for the duration of the contractual agreement and for
five(5)years following completion of the services provides under the contractual
agreement or for the warranty period,which ever is longer.An annual certificate of
insurance submitted to the City shall evidence coverage.
13.2 Certificates.
Certificates of Insurance evidencing that the Consultant has obtained all required
insurance shall be delivered to the City prior to Consultant proceeding with any work pursuant to
this Agreement. All applicable policies shall be endorsed to name the City as an additional
insured thereon, as its interests may appear. The term City shall include its employees, officers,
officials, agent, and volunteers in respect to the contracted services.Any failure on the part of the
City to request required insurance documentation shall not constitute a waiver of the insurance
requirement. The City reserves the right to make reasonable requests or revisions pertaining to
the types and limits of that coverage. A minimum of thirty (30) days notice of cancellation or
reduction in limits of coverage shall be provided to the City. Ten (10) days notice shall be
acceptable in the event of non-payment of premium. Such terms shall be endorsed onto
Consultant's insurance policies. Notice shall be sent to the Risk Manager, City of Fort Worth,
1000 Throckmorton, Fort Worth, Texas 76102, with copies to the City Attorney at the same
address.
14. COMPLIANCE WITH LAWS,ORDINANCES, RULES AND REGULATIONS.
Consultant agrees to comply with all applicable federal, state and local laws, ordinances, rules
and regulations. If the City notifies Consultant of any violation of such laws, ordinances, rules or
regulations, Consultant shall immediately desist from and correct the violation.
15. NON-DISCRIMINATION COVENANT.
Consultant, for itself, its employees, officers, officials, agents, subsidiaries, affiliates, personal
representatives, assigns, subcontractors and successors in interest, as part of the consideration herein,
agrees that in the performance of Consultant's duties and obligations hereunder, it shall not discriminate in
the treatment or employment of any individual or group of individuals on any basis prohibited by law. If
any claim arises from an alleged violation of this non-discrimination covenant by Consultant, its
employees, officers, officials, agents, subsidiaries, affiliates, personal representatives, assigns,
subcontractors or successors in interest, Consultant agrees to assume such liability and to indemnify and
defend the City and hold the City harmless from such claim.
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16. NOTICES.
Notices required pursuant to the provisions of this Agreement shall be conclusively determined
to have been delivered when (1) hand-delivered to the other party, its agents, employees, servants or
representatives, (2) delivered by facsimile with electronic confirmation of the transmission, or (3)
received by the other party by United States Mail, registered, return receipt requested, addressed as
follows:
To The CITY: To CONSULTANT:
Wayne Corum Paul Lauria, President
Director, Equipment Services Department Randall G. Owen, Senior Vice President
City of Fort Worth Mercury Associates, Inc.
4100 Columbus Trail 16051 Comprint Circle
Fort Worth TX 76133 Gaithersburg, MD 20877
(817)392-5118 ofc. (704)321-2600 ofc. &fax
(817) 392-5119 fax rowen@mercury-assoc.com
Wayne.Corum@fortworthgov.org
17. SOLICITATION OF EMPLOYEES.
Neither the City nor Consultant shall, during the term of this Agreement and additionally for a
period of one year after its termination, solicit for employment or employ, whether as employee or
independent contractor, any person who is or has been employed by the other during the term of this
Agreement,without the prior written consent of the person's employer.
18. GOVERNMENTAL POWERS.
It is understood and agreed that by execution of this Agreement, the City does not waive or
surrender any of its governmental powers.
19. NO WAIVER.
The failure of the City or Consultant to insist upon the performance of any term or provision of
this Agreement or to exercise any right granted herein shall not constitute a waiver of the City's or
Consultant's respective right to insist upon appropriate performance or to assert any such right on any
future occasion.
20. GOVERNING LAW/VENUE.
This Agreement shall be construed in accordance with the internal laws of the State of Texas. If
any action, whether real or asserted, at law or in equity, is brought on the basis of this Agreement, venue
for such action shall lie in state courts located in Tarrant County, Texas or the United States District Court
for the Northern District of Texas, Fort Worth Division.
21. SEVERABILITY.
If any provision of this Agreement is held to be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in anyway be affected or impaired.
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22. FORCE MAJEURE.
The City and Consultant shall exercise their best efforts to meet their respective duties and
obligations as set forth in this Agreement, but shall not be held liable for any delay or omission in
performance due to force majeure or other causes beyond their reasonable control (force majeure),
including, but not limited to, acts of God, acts of the public enemy, fires, strikes, lockouts, natural
disasters,wars, riots, material or labor restrictions by any governmental authority, and/or any other similar
causes.
23. HEADINGS NOT CONTROLLING.
Headings and titles used in this Agreement are for reference purposes only and shall not be
deemed a part of this Agreement.
24. REVIEW OF COUNSEL.
The parties acknowledge that each party and its counsel have reviewed and revised this
Agreement and that the normal rules of construction to the effect that any ambiguities are to be resolved
against the drafting party shall not be employed in the interpretation of this Agreement or exhibits hereto.
25. AMENDMENTS/MODIFICATIONS/EXTENSIONS.
No extension, modification or amendment of this Agreement shall be binding upon a party hereto
unless such extension, modification, or amendment is set forth in a written instrument, which is executed
by an authorized representative and delivered on behalf of such party.
26. THIRD PARTIES.
The City and the Consultant are the only parties to this Agreement and are the only parties entitled
to enforce its terms. Nothing in this Agreement gives, is intended to give, or shall be construed to give or
provide, any right or benefit,whether directly or indirectly or otherwise, to third persons.
27. ENTIRETY OF AGREEMENT.
This Agreement, including the schedule of exhibits attached hereto and any documents
incorporated herein by reference, contains the entire understanding and agreement between the City
and Consultant, their assigns and successors in interest, as to the matters contained herein. Any prior or
contemporaneous oral or written agreement is hereby declared null and void to the extent in conflict with
any provision of this Agreement.
28. SIGNATURE AUTHORITY.
The person signing this agreement hereby warrants that he/she has the legal authority to execute
this agreement on behalf of the respective party, and that such binding authority has been granted by
proper order, resolution, ordinance or other authorization of the entity. The other party is fully entitled to
rely on this warranty and representation in entering into this Agreement.
[SIGNATURE PAGE FOLLOWS]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiples this �+ day of
2009.
CITY OF FORT WORTH: MERCURY ASSOCIATES, INC.:
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Karen L. Montgomery c�/ andall G. Owen
Assistant City Manager/C / 709 Senior /Vice President
Date: q I
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City Secretary 13641
APPROV D A
tO F ND LEGALITY:
By:_
As istant City Attorney
CONTRACT AUTHORIZATION:
M&C: C-gL3-133
Date Approved:
OFFICIAL RECORD
Professional Services Agreement CITY SECRETARY
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EXHIBIT A
Scope of Services
Task 1 —Develop an Understanding of Current Operations
Consultant recognizes the importance to this project for the Consultant to develop an in-depth
understanding of ESD's history, institutions,finances, priorities, services, etc. Consultant will also want to
become intimately familiar with current fleet management practices and business processes. To
accomplish this Consultant will provide ESD with a structured information and data request("Data
Request")covering various aspects of fleet operations. This Data Request will include such items as a
fleet inventory, organization chart and position descriptions, past reports, policy statements, budgets,
maintenance histories, and other relevant documents. Consultant will provide the Data Request to the
City within 2 business days of notification by the City to the Consultant to proceed with the project. The
City shall provide all requested data and information to Consultant within 7 calendar days of receipt of the
Data Request. Consultant may request additional data as necessary. The City shall provide the additional
requested data and information within 7 calendar days of receipt of the Supplemental Data Request.
Consultant shall notify the City of any missing information or other insufficiency in response to a Data
Request or Supplemental Data Request within 7 calendar days of delivery of the data to Consultant.
Consultant will also want to hold a project kickoff meeting to introduce the key members of our project
team to the City and to confirm both parties' understanding of key study parameters such as scope,
deliverables, and timelines. Subsequently Consultant will interview ESD staff, tour facilities, and observe
service activities in action.
Consultant intends to accomplish this task during a one week trip to Fort Worth by our consultants. The
parties agree that this intended trip shall be commenced within two weeks of the Effective Date of this
Agreement and Consultant shall proceed diligently to complete this task without delay.
Task 2—Maintenance Services Competitiveness Assessment
In this task, Consultant will assess and compare the competitiveness of current fleet maintenance costs
against both other comparable organizations and private vendors and will calculate and analyze(subject
to the availability of existing data)quantitative measures of fleet performance and will compare
performance in key cost and service areas against established industry standards and benchmarks.
Consultant's objective in this task will be to develop cost data for each major fleet maintenance function
and activity such as parts management and inventory practices, in-house maintenance and repair
activities, procurement and management of commercial vendor services, and management of fueling
operations. Then, subject to the quality of available data, Consultant will also develop benchmark
comparisons for service quality for each of these same functions and activities. Consultant's approach for
completing this important task is described in more detail below.
Determine Current Service Costs. The objective of this effort is to calculate and document the current
cost of providing fleet maintenance services in a form that will provide a fair, "apples-to-apples" basis for
comparison between the ESD and on-site maintenance contractors who could provide fleet maintenance
services to the City(with special emphasis on the personnel cost liabilities). Consultant's emphasis will be
on identifying the avoidable costs of these services, and accumulating those costs in a form consistent
with the structure of contracts that municipalities use to acquire maintenance services.
With regard to the first of these considerations, it should be recognized that some of the costs that the City
currently incurs to provide fleet maintenance services in-house are not"transferable"to a contractor or
vendor should the performance of the service be outsourced;they are unavoidable. Examples of such
costs include depreciation of the maintenance facilities, fleet management administration overhead costs,
and most if not all City overhead costs allocable to a fleet maintenance organization. In this task,
Consultant will identify and separate those current service delivery costs that would go away from those
that would remain if a function were outsourced.
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With regard to the second consideration, most commercial fleet maintenance contracts define the cost of
providing maintenance and repair services in terms of"target"and"non-target' costs. Target costs refer
to a flat annual fee for providing all routine maintenance and repair services. A fair and accurate
comparison of in-house costs with each other, and with those proposed by contractors or commercial
providers requires that we first identify all existing costs incurred for routine maintenance and repair, and
then back out that portion of the costs which would not be avoidable under the commercial contract,that
is,those costs such as depreciation on the maintenance facility,which would continue to be incurred by
the City regardless of who provides the service.
In this example, attempting to compare maintenance costs on an activity or unit of service basis, such as
using a fully burdened labor rate, would not provide a fair comparison with a contract structured on the
basis of a fixed annual fee or target price. Furthermore, including unavoidable costs in the calculation of
current, in-house service-delivery costs would provide an unfair advantage to commercial vendors since
their contracts would not be burdened with these costs.
Determine Current Service Quality. The major thrust of this effort will be to calculate a series of
performance benchmarks, and to document findings from interviews with key fleet management
personnel and other stakeholders. Consultant will utilize the results of these processes to identify the
current level of service quality for each fleet maintenance activity. Consultant will calculate and interpret
the quantitative measures of performance, and utilize our own extensive knowledge of"best practices"in
other municipal fleet operations to gauge the level of performance in each of the operations examined.
Examples of performance measures and characteristics Consultant will compare include, but are not
limited to the following:
• Ratio of maintenance employees to vehicle equivalents;
• Average vehicle age;
• Total maintenance and repair cost per vehicle equivalent;
• Preventive maintenance compliance rate;
• Rate of scheduled to unscheduled repairs;
• Fleet availability percentage;
• Supervisor to mechanic ratio;
• Administrative support staff ratio;
• Mechanic productivity;
• Shop capacity utilization;
• Parts inventory turnover rate; and
• Parts usage per vehicle equivalent.
• Vehicle downtime;
• Maintenance turn-around time;
• Rework rate;
• Maintenance operation staffing levels;
• Average parts delivery times;
• Percent of orders filled from stock;
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• Stockout rates; and
• Parts operation staffing levels.
Task 3—Assess Equipment Services Activities
In this task, Consultant will assess the technical and administrative fleet activities in which ESD engages.
Such activities include vehicle acquisition and disposal,training and regulatory compliance, fuel
management and operations (including green fleet programs), and information technology practices.
Consultant will evaluate current practices using process mapping and gap analysis techniques aimed at
first defining and then identifying strengths and weaknesses in specific functional areas. Consultant will
utilize a detailed business process evaluation checklist to ensure the thoroughness of Consultant's review.
Consultant will determine how processes currently are performed through a combination of documentation
review, employee interviews,focus group meetings, and site visits. Consultant will determine how well
these processes are defined and executed by assessing:
1. Their intrinsic soundness (e.g., the clarity and logic with which they are documented, the way they
are communicated to employees, and the manner in which they are enforced);
2. Their consistency with industry best practices which Consultant has observed, and in many cases
defined, through Consultant's project team's combined decades of professional fleet
management, consulting, public speaking,writing, and training experience; and
3. Their results, as reflected in the quantitative measurement of costs and performance levels in the
previous task, and in the satisfaction levels of management officials, fleet management
employees, and fleet users.
Task 4—Review Fleet Replacement Practices
In this task, Consultant will evaluate policies, criteria, and other procedures used by the City to determine
when different types of assets in the fleet should be replaced; long-term replacement planning practices;
replacement financing practices and the adequacy of funding levels relative to replacement spending
needs based on established (or industry-standard) replacement cycles and life; and methods of handling
unforeseen replacement needs (due, for example, to the premature loss of a vehicle in an accident).
Task 5—Document Findings and Recommendations
Consultant will document its study methodology, findings, and recommendations in a formal report. The
report will provide the results of our competitiveness assessment, recommendations for lowering the cost
of fleet maintenance activities, recommendations for improving the effectiveness of equipment services
activities, and the results of our evaluation of fleet replacement practices.
Consultant will submit the report in draft form for review and comment by the City's project manager and
other appropriate officials/personnel. Consultant shall submit the draft report to the City at least 7 days
prior to the date required for submission of the final report, unless delayed by the City's failure to timely
respond to a Data request or Supplemental Data Request as specified above.
After review by the City and any necessary revision by Consultant, Consultant shall submit the final formal
report to the City. Consultant will submit up to five printed bound copies and one electronic copy of the
document. Consultant shall submit the formal report in final, revised form within 60 calendar days after
the Effective Date hereof unless delayed by the City's failure to timely respond to a Data request or
Supplemental Data Request as specified above.
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Page 1 of 2
City of Fort Worth, Texas
Mayor and Council Communication
DATE: Tuesday, August 18, 2009 REFERENCE NO,,:C,-d3'�
LOG NAME: 21MERCURYASSOCIATES
SUBJECT:
Authorize a Consulting Agreement with Mercury Associates, Inc., for a Competitiveness Study of the
Equipment Services Department for an Amount Not to Exceed $56,232.00
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute a Consulting Agreement
for a Competitiveness Study of the Equipment Services Department with Mercury Associates, Inc., for an
amount not to exceed $56,232.00
DISCUSSION:
In August 2008, MGT of America, Inc., recommended that Managed Competition be investigated for the
Equipment Services Department. The first step in a Managed Competition process in fleet management
involves a Competitiveness Study to determine how competitive the current organization is with the
remainder of the industry. The Competitiveness Study should take sixty days to complete.
Mercury Associates, Inc., is listed on the State of Texas, TXMAS Contract No. TXMAS-9-874V010, as a
fleet consulting firm. Mercury Associates, Inc., is an employee-owned consulting firm, incorporated in 2002
in the State of Maryland. The firm is headquartered in the Washington, DC, area and has 30 employees
located throughout the United States. Mercury Associates is a US Small Business Administration and
Department of Defense certified small business and holds a 10 year contract with the US General
Services Administration to provide fleet and logistics management consulting services to US federal
government agencies under GSA's Logistics Worldwide (LogWorld) schedule.
The Competitiveness Study would involve five tasks:
1. Develop an Understanding of Current Operations;
2. Complete a Maintenance Services Competitiveness Assessment including Determination of Current
Service Costs and Current Service Quality;
3. Assess Equipment Services Activities;
4. Review Fleet Replacement Practices; and
5. Document Findings and Recommendations.
Upon completion of the Competitiveness Study, City management will determine if the Managed
Competition process should continue with the publication of a Request for Proposal (RFP) for Fleet
Maintenance Services.
State law provides that a local government purchasing an item under a cooperative purchasing agreement
satisfies state laws requiring that the local government seek competitive bids for purchase of the item.
TXMAS contracts have been competitively bid to increase and simplify the purchasing power of local
government entities across the State of Texas.
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that funds are available in the current operating
budget, as appropriated, of the Equipment Services Fund.
FUND CENTERS:
httn-//anne cfwnet.ore/ecouncil/nrintmc.asp?id=12221&print=true&DocType=Print 8/11/2009
Page 2 of 2
TO Fund/A—cc oun t1CCenter9 FROM Fund/Account/Centers
1) P161 539120 0212015 $56,232.00
CERTIFICATIONS:
Submitted for City/ Manager's Office by: Karen Montgomery (6222)
Originating Department Head: Wayne Corum (5118)
Additional Information Contact: Wayne Corum (5118)
ATTACHMENTS
1. Competitiveness Study - Mercury Associates- Ft. Worth Quote.doc (CFW Internal)
2. FUNDS AVAILABLE.doc (CFW Internal)
3. MWBE.Qdf (CFW Internal)
http://apps.cfwnet.org/ecouncil/printmc.asp?id=12221&print=true&DocType=Print 8/11/2009