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TO:

THROUGH:

FROM:

BOARD OF DIRECTORS

ARTHUR T. LEAHY. CHIEF EXECUTIVE 0

DEBRA A. JOHNSON INTERIM CHIEF OPER

One Gateway Pl aza Los An geles, CA 90012-2952

213 .922.2ooo Tel metro. net

OCTOBER 16, 2013

SUBJECT: P3010 LIGHT RAIL VEHICLE ACQUISITION UPDATE

ISSUE

Update the Board on the status and recent developments of the P301 0 Light Rail Vehicle (LRV) Acquisition program_

BACKGROUND

On April 30, 2012 the Board approved a contract with Kinkisharyo (KI) for the manufacture and delivery of 78 new Light Rail Vehicles. The Board action also included four options for a total of 235 vehicles. The 78 base order vehicles are intended for use on the Foothill and the Expo 2 light rail extensions. On August 20, 2012, a formal notice to proceed (NTP) was issued and work on the project began. Under the terms of the contract, the 78 base order vehicle delivery is scheduled to be completed by January 20, 2017 (53 months after NTP).

In July 2013, the Board authorized the CEO to exercise options for an additional 97 vehicles, bringing the total new vehicle order to 175. The option vehicles will be delivered by February 2019 after the 78 base order vehicles.

Metro's project team, including members from both Transit Operations and Procurement, has been working closely with Kinkisharyo (KI) to meet the very aggressive vehicle production and delivery schedule while adhering to the contract specifications_ In addition to the Metro project team, two consulting firms also support the P301 0 LRV program. L TK Engineering Services is the technical consultant and CH2M HILL is the management consultant Both firms are excellent and continue to play key roles in moving the project forward.

PROGRAM UPDATE

The Metro project team meets weekly with the Kl project team to monitor program status and resolve project issues. Major project activities that have taken place in recent months include:

• Design Review meetings, in the US and Japan. Discussion topics include:

o Friction Brakes, Doors, Heating Ventilation and Air Conditioning (HVAC), Trucks, Cab Mock-Up, and Car shell Propulsion

• First Article Inspections o Under frame, Roof, Sidewalls, and End Caps

• Received and reviewed Kl's Contract Deliverable Requirement Documents

• Developed Engineer's Independent Cost Estimates for Metro requested Contract Modifications (Attachment A)

• Updated Master Integrated Schedule

• Completed development of draft Safety and Security Criteria Certification Checklist

• Reviewed Specification Conformance Checklist

PMOC STATUS REPORT

In July 2013, Metro received the Project Management Oversight Contractor (PMOC) Monthly Monitoring Report. The report highlighted key program accomplishments, as well as lists a number of concerns with the P301 0 Light Rail Vehicle Procurement project. The major concerns included:

• Baseline schedule late and does not provide enough detail

• Accurate cost reporting on proposed Metro initiated changes

• Final United States assembly site may be behind schedule

• Failure of Floor/Roof Fire Test

• Metro project staff experience

Baseline Schedule Following the PMOC report, an updated program schedule was received and approved by Metro. Schedule details have been included in the latest approved schedule. The program schedule will be updated monthly and any changes will include mitigation measures to maintain the scheduled vehicle production and delivery.

Accurate cost reporting on proposed Metro initiated changes Metro and Kl are working together to process several Metro initiated changes. Through internal cost estimating and rough order cost information from Kl, we are well aware of the magnitude of the cost impact to the program. Metro has program funding to cover

P3010 Light Rail Vehicle Update Page2

these changes, as well as possible changes in the future. To maintain the program schedule, Kl is proceeding with the changes. There is some risk associated with not having officially approved changes. Metro is moving through its internal change order process and we are fully aware of the risk, but the change process (as defined in the base contract) is consistent with the change process undertaken on bus and rail vehicle programs throughout the country. We have a good working relationship with Kl and both parties understand that these changes will be reviewed and processed as specified in the approved base contract.

Final United States assembly site may be behind schedule Kl's selection, negotiation and signing of contracts for the final assembly site in Palmdale, California are well under way. In discussions with Kl, they have informed Metro that they need approximately six months to ready the site for arrival of the car shells and assembly of the first pilot cars. Kl has set up final assembly sites for previous projects and their prediction is based on this experience. While this is not a contract requirement, to mitigate this concern, Metro has requested a plan from Kl for this activity and will monitor the progress and report back to management and the PMOC.

Failure of Floor/Roof Fire Test Completion of this test is on target with Kl's announced schedule, December 2013. Kl has conducted two internal tests, and although both tests failed, the results have been promising. Kl has indicated that they have identified the cause of the failures and are implementing mitigations. Kl anticipates a successful test by the scheduled date.

Project staff experience Metro staff experience represents no risk or concern to the program.

• The General Manager has nearly 35 years of experience with Metro in a wide variety of positions in both bus and rail. The issue raised regarding the Project Director, is not about his experience but about his range of responsibilities. At this point the Project Director is focused on the P301 0 project. The fact that the Project Manager is new to Metro is an asset. She is an experienced rail engineer who brings a fresh view to Metro. Unlike previous procurements where Project Managers also had other responsibilities, she is dedicated solely to the P301 0 Program. Also, unlike previous procurements, the realignment of these programs under the new department, Transit Capital Programs, ensures that the staff is focused on supporting the bus and rail vehicle capital projects, and efforts are not diluted or delayed by supporting ongoing Operation needs.

• As mentioned above, Metro hired two consultants to ensure all aspects of the program are fully supported. CH2M HILL was selected to provide project oversight and management support, and L TK Engineering Services was selected to cover the technical portions of the program. This allows Metro to adjust staff levels as needed in each of these areas to support the fast pace of design, testing, manufacturing, quality assurance, final assembly, and on-site activities.

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• Executive Management is aware of and has approved the Transit Capital Project organization structure and resource allocation. They also have made it clear that if and when additional resources are required, all necessary resources will be allocated. This is not a project risk.

In summary, there are no "red flags" to suggest an impact to the scheduled delivery of the 78 base order production vehicles in 53 months from the Notice to Proceed as contractually required.

NEXT STEPS

Project management staff will continue to work with the Contractor and advisory Consultants, and will update the Board on a regular basis.

cc:

Attachment A:

Paul Taylor, Deputy Chief Executive Officer Richard Hunt, General Manager, Transit Capital Programs

Independent Cost Estimates for Metro requested Contract Modifications

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RFC Initiated By: Description:

The addition of back-up Train Operator's 001 Joint Discussion

Display (TOO)

002 llletro Operations Exterior Signs w/ color route ID

P301 0 Project 003

Team Exterior Rear View Mirrors

P3010 Project Ground Fault Detection on the Auxiliary 005

Team Power Supply System

006 llletro 0 perations Interior Route Information Signs

007 llletro Operations Revise Sand Box Location

008 Joint Discussion Location for Emergency Tool Enclosures

009 llletro Operations Adding LED light on the interior recording cameras

010 llletro Operations Door Close Operator Alert

011 llletro Operations Train Operator Log -in for Vehicle Operation in 'On-rv'ode'

012 llletro 0 perations AIDA Door Open Alert

Adding Graphic Design on Floor and Seats 013 llletro Operations

at AIDA and Priority Seating Areas

014 llletro Operations Four Digits Car Numbers

Total ROM Estimated Cost:

P3010 Light Rail Vehicle Update

Attachment A

P3010 LRV Request For Change Proposal (RFC) Log Status as of· October 9 2013

Rough Order Magnitude Potential

(ROM) Schedule Background:

For Base Buy LRV Only (Dollars$)

Impact:

The loss of a TOO will require that a vehicle immediately be taken out of service. Providing a second TOO will provide $ 858,000 Yes full network redundancy and improve operational reliability.

llletro Operations requested the addition of a alpha-numeric color block/dot at the beginning of the side and front $ 700,000 Yes destination signs . This will facilitate the ability of English challenged passengers to navigate llletro's LRV network

system . The loss of the rear view cameras will require that a vehicle immediately be taken out of service; especially during

$ 475,000 Yes street running operation. Providing exterior rear view mirrors will provide redundancy and improve operational reliability.

Historically, the auxiliary loads (inverters , traction motors , air compressors, motor alternators , HVAC compressors and heater elements) were powered by 750 Vdc. The technical specification was written to provide ground fault protection

$ 200,000 - for the auxiliary equipment powered by 750 Vdc. However, as most auxiliary equipment on the P3010 is now powered by the APS at 208 Vac the request is to provide the intended protection on the load side, rather than the input side of the APS. Due to the longer routes , llletro Operations requested to replace the interior announcement signs with larger displays

$ 1,200,000 suitable for displaying more inform ation concurrently, such as next several stations , last station , points of interest at next sta tion, and graphic information . To permit sanding from cleaning platform and use of Automatic Sanders, llletro Operations requested to move the

$ 525,000 location of the sandbox fill ports from unspecified location on the exterior to the interior, under the seats against the cab I partition. To minimize the need for undersea! equipment enclosures and facilitate cleaning, there was joint discussion to

$ relocate the emergency tools from under a passenger seat to an articulation locker that is used to store the emergency llorlrlPr

$ 150,000 To make the public aware that their location is being monitored and recorded by live video cameras llletro Operations requested that all cameras recording in public areas have an illuminated LED. To ensure that revenue schedule is maintained, llletro Operation requested that a flashing visual alert be added to alert

$ 50,000 the Operator when the doors have been open at station platform for 15 seconds .

To improve the system's safety and security, llletro Operations would like to restrict operation of the LRV in ON mode

$ 350,000 to certified train operators only. This may be achieved with the addition of a Log-In feature which requires Operators to enter a valid Employee 10 in a Log-In screen, or make use of a contactless smart card that contains the Employee ID inform at ion llletro Operations and Safety requested to add Audible AIDA tone at each side door when the doors are open to guide

$ 300 ,000 vis ually-impaired passengers to door openings . The tone shall be consistent with those at AIDA compliant street crossinQs. llletro Operations and AIDA Group requested to add demarcation features to improve the visibility of wheelchair parking

$ 400,000 Yes and priority seating areas to help ensure the avai labi lity to the disabled community.

The change in number of digits for the car numbers is required to accommodate unique car numbering. Three digit $ 30,000 car num bers are insufficient due to the expected increase in llletro fleet size.

$ 5,238,000

Current Disposition

RFC 001 -Issued with MAKI-0365, received technical and corrrnercial

roposal

RFC 002 -Issued via MAKI-0363, pending for Kl's proposal

RFC 003 - Issued with MAKI-0369, pending for Kl's proposal

RFC 005 pending for issue

RFC 006 -Issued via MAKI-0567, pending for Kl's proposal

RFC 007 -Issued via MAKI-0568, pending for Kl's proposal

RFC 008- Publication pending via MAKI-0569

RFC 009 -Issued via MAKI-0570, I pending for Kt's proposal

RFC 010 -Issued via MAKI-0571, pending for Kt's proposal

RFC-011 -issued via MAKI-0572, pending for Kl's proposal

RFC 012 - Issued via MAKI-0573, pending for Kt's proposal

RFC 013 -Issued via MAKI-0574, pending for Kt's proposal

RFC 014 -Issued via MAKI-0591, pending for Kl's proposal.

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