Fleet Management Consulting Implementation ServicesVILLAGE OF OAK BROOK
PROFESSIONAL SERVICES AGREEMENT
This AGREEMENT is dated as of the Aday of_� 2018 („Agreement'l, and is by and between the VILLAGE
OF OAK BROOK, an Illinois municipal corporation (” illage'% and MERCURYASSOCIATES, INC., 7361 CALHOUNPLACE,
SUITE 680, ROCKVILLE, MD 20855 ("Consultant').
IN CONSIDERATION OF the recitals and the mutual covenants and agreements set forth in the Agreement, and pursuant to the
Village's statutory powers, the parties agree as follows:
SECTION 1. SCOPE OF SERVICES. The Village
retains the Consultant to perform, and the Consultant agrees to
perform, all necessary services to perform the work in
connection with the project identified below ("Services"),
which Services the Consultant shall provide pursuant to the
terms and conditions of this Agreement:
Fleet Management Consulting Implementation Services of
Tasks I — 4 as more fully described in the attached Scope of
Work
SECTION 2. TIME OF PERFORMANCE. The
Consultant shall perforin the Services as indicated in the
attached Scope of Work s as mutually agreed upon by the
Village and Consultant ("Time of Performance'l.
SECTION 3. COMPENSATION.
A. Agreement Amount. The total amount
billed by the Consultant for the Services under this Agreement
shall not exceed $19,900.00, including reimbursable expenses,
without the prior express written authorization of the Village
Manager. Payment shall be made upon completion of the
services and final acceptance by the Village.
B. Taxes. Benefits. and Royalties. Each
payment by the Village to the Consultant includes all
applicable federal, state, and Village taxes of every kind and
nature applicable to the Services as well as all taxes,
contributions, and premiums for unemployment insurance, old
age or retirement benefits, pensions, annuities, or similar
benefits and all costs, royalties, and fees arising from the use
of, or the incorporation into, the Services, of patented or
copyrighted equipment, materials, supplies, tools, appliances,
devices, processes, or inventions. All claim or right to claim
additional compensation by reason of the payment of any such
tax, contribution, premium, costs, royalties, or fees is hereby
waived and released by Consultant.
SECTION 4. REPRESENTATIONS OF
CONSULTANT. The Consultant represents and certifies that
the Services shall be performed in accordance with the
standards of professional practice, care, and diligence
practiced by recognized consultants in performing services of
a similar nature in existence at the Time of Performance. The
representations and certifications expressed shall be in
addition to any other representations and certifications
expressed in this Agreement, or expressed or implied by law,
which are hereby reserved unto the Village.
The Consultant further represents that it is financially solvent,
has the necessary financial resources, and is sufficiently
experienced and competent to perform and complete the
Services in a manner consistent with the standards of
professional practice by recognized consultants providing
services of a similar nature. Paul T. Lauria. President, shall
be primarily responsible for carrying out the Services on
behalf of the Consultant ("Key Project Personnel'. The Key
Project Personnel shall not be changed without the Village's
prior written approval. The Consultant shall provide all
personnel necessary to complete the Services. The Consultant
shall provide all personnel necessary to complete the Services.
SECTION 5. INDEMNIFICATION: INSURANCE•
LIABILITY.
A. Indemnification. The Consultant proposes
and agrees that the Consultant shall indemnify and save
harmless the Village, its officers, officials, employees and
volunteers, against all damages, liability, claims, losses, and
expenses (including attorneys' fee) that may arise, or be
alleged to have arisen, as a result of the Consultant's
negligence or misconduct in the Consultant's performance of,
or failure to perform, the Services or any part thereof, or any
failure to meet the representations and certifications set forth
in Section 4 of this Agreement.
B. Insurance. The Consultant acknowledges
and agrees that the Consultant shall, and has a duty to,
maintain adequate insurance, in an amount, and in a form and
from companies, acceptable to the Village. The Consultant's
maintenance of adequate insurance shall not be construed in
any way as a limitation on the Consultant's liability for losses
or damages under this Agreement.
C. No Personal Liability. No elected or
appointed official, or employee of the Village shall be
personally liable, in law or in contract, to the Consultant as the
result of the execution of this Agreement.
SECTION 6. GENERAL PROVISIONS.
A. Relationship of the Parties. The
Consultant shall act as an independent contractor in providing
and performing the Services. Nothing in, nor done pursuant
to, this Agreement shall be construed to: (1) create the
relationship of principal and agent, employer and employee,
partners, or joint venturers between the Village and
Consultant; or (2) to create any relationship between the
Village and any subcontractor of the Contractor.
B. Conflicts of Interest. The Consultant
represents and certifies that, to the best of its knowledge: (1)
no Village employee or agent is interested in the business of
the Consultant or this Agreement; (2) as of the date of this
Agreement, neither the Consultant nor any person employed
or associated with the Consultant has any interest that would
conflict in any manner or degree with the performance of the
obligations under this Agreement; and (3) neither the
Consultant nor any person employed by or associated with the
Consultant shall at any time during the term of this Agreement
obtain or acquire any interest that would conflict in any
manner or degree with the performance of the obligations
under this Agreement.
C. No Collusion. The Consultant represents
and certifies that the Consultant is not barred from contracting
with a unit of state or local government as a result of (1) a
delinquency in the payment of any tax administered by the
Illinois Department of Revenue unless the Consultant is
contesting, in accordance with the procedures established by
the appropriate revenue act, its liability for the tax or the
amount of the tax, as set forth in Section 11-42.1-1 et seq. of
the Illinois Municipal Code, 65 ILCS 5/11-42.1-1 et seq.; or
(2) a violation of either Section 3313-3 or Section 33E4 of
Article 33E of the Criminal Code of 1961, 720 ILCS 5/33E -I
et seq. If at any time it shall be found that the Consultant
has, in procuring this Agreement, colluded with any other
person, firm, or corporation, then the Consultant shall be liable
to the Village for all loss or damage that the Village may
suffer, and this Agreement shall, at the Village's option, be
null and void.
D. Termination. Notwithstanding any other
provision hereof, the Village may terminate this Agreement at
any time upon 15 days prior written notice to the Consultant.
In the event that this Agreement is so terminated, the
Consultant shall be paid for Services actually performed and
reimbursable expenses actually incurred, if any, prior to
termination, not exceeding the value of the Services
completed.
E. Compliance with Laws and Grants.
Consultant shall give all notices, pay all fees, and take all
other action that may be necessary to ensure that the Services
are provided, performed, and completed in accordance with a0
required governmental permits, licenses, or other approvals
and authorizations that may be required in connection with
providing, performing, and completing the Services, and with
all applicable statutes, ordinances, rules, and regulations,
including without limitation the Fair Labor Standards Act; any
statutes regarding qualification to do business; any statutes
prohibiting discrimination because of, or requiring affirmative
action based on, race, creed, color, national origin, age, sex, or
other prohibited classification, including, without limitation,
the Americans with Disabilities Act of 1990, 42 U.S.C. §§
12101 et seg., and the Illinois Human Rights Act, 775 ILCS
5/1-101 et seq. Consultant shall also comply with all
conditions of any federal, state, or local grant received by the
Village or Consultant with respect to this Contract or the
Services. Consultant shall be solely liable for any fines or
civil penalties that are imposed by any governmental or quasi -
governmental agency or body that may arise, or be alleged to
have arisen, out of or in connection with Consultant's, or its
subcontractors, performance of, or failure to perform, the
Services or any part thereof. Every provision of law required
by law to be inserted into this Contract shall be deemed to be
inserted herein.
F. Default. If it should appear at any time that
the Consultant has failed or refused to prosecute, or has
delayed in the prosecution of, the Services with diligence at a
rate that assures completion of the Services in full compliance
with the requirements of this Agreement, or has otherwise
failed, refused, or delayed to perform or satisfy the Services or
any other requirement of this Agreement ("Event of
Defauft'% and fails to cure any such Event of Default within
ten business days after the Consultant's receipt of written
notice of such Event of Default from the Village, then the
Village shall have the right, without prejudice to any other
remedies provided by law or equity, to (1) terminate this
Agreement without liability for further payment; or (2)
withhold from any payment or recover from the Consultant,
any and all costs, including attorneys' fees and administrative
expenses, incurred by the Village as the result of any Event of
Default by the Consultant or as a result of actions taken by the
Village in response to any Event of Default by the Consultant.
G. Assignment. This Agreement may not be
assigned by the Village or by the Consultant without the prior
written consent of the other party.
H. Notice. All notices required or permitted to
be given under this Agreement shall be in writing and shall be
delivered: (1) personally; (2) by a reputable overnight courier;
or by (3) by certified mail, return receipt requested, and
deposited in the U.S. Mail, postage prepaid. Unless otherwise
expressly provided in this Agreement, notices shall be deemed
received upon the earlier oC (a) actual receipt; (b) one
business day after deposit with an overnight courier as
evidenced by a receipt of deposit; or (c) three business days
following deposit in the U.S. mail, as evidenced by a return
receipt. Notices and communications to the Village shall be
addressed to, and delivered at, the following address:
Village of Oak Brook
1200 Oak Brook Road
Oak Brook, Illinois 60523
Attention: Doug Patchin, Public Works
Director
Notices and communications to the Consultant shall be
addressed to, and delivered al, the following address:
Mercury Associates, Inc.
7361 Calhoun Place, Suite 680
Rockville, MD 20855
Attention: Paul T, I.auria, President
1. WaiveY, Neither the Village nor the
Consultant shall be under any obligation to exercise any of the
rights granted to them in this Agreement except as it shall
determine to be in its best interest from time to time. The
failure of the Village or the Consultant to exercise at any time
any such rights shall not be deemed or construed as a waiver
of that right, nor shall the failure void or affect the Village's or
the Consultant's right to enforce such rights or any other
rights.
ATT
By:
Charlotte Pnuss, Village Clerk
ATTEST:
c
J. Third 1'nrl�cneRciarv, No claim as a third party
beneficiary under this Agreement by any person, firm, or
corporation shall be made or be valid against the Village.
K. Governin Lnw• Venue. This Agreement shall be
govenucd by, consumed and enforced in accordance with the
internal laws, but not the conflicts of Imus rules, of the State of
Illinois. Venue for any action arising out of this Agreement
shall be in the Circuit Court for DuPage County, Illinois.
L. E_rhiblls and Other A reemenls. If any conRict exists
between this Agreement and any exhibit attached hereto or
any other Agreement between the parties relating to This
transection, the terms of this Agreement shall prevail.
M. No Disclosure of Cofiidentlal Information b the
Consultant. The Consultant acknowledges that it shall, in
performing the Services for life Village under this Agreement,
have access, or be directly or indirectly exposed, to
Confidential Information. The Consultant shall hold
confidential all Confidenlial Information and shall not disclose
or use such Confidential Information without the express prior
wrilten consent of the Village. The Consultant shall use
reasonable measures at least as strict as those the Consultant
uses to protect Its own confidential information. Such
measures shall include, without limitalion, requiring
employees and subcontractors of the Consultant to execute a
nondisclosure agreement before obtaining access to
Confidential Information.
MERCURY ASSOCIATES, INC.
ANNIMP
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Its: Pra_fa 1 dmf
ATTACHMENT A
SCOPE OF WORK
Proposal to Provide
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SCOPE OF WORK
Mercury Associates, Inc. (Mercury) has developed the following implementation tasks for
the Village's consideration. These tasks are based on specific areas of concern as
provided by the Village.
Task 1: Project Management and Data Collection
Task 1.1: Initiate and Manage the Project
We will start the project with a formal kick-off meeting whose primary objectives will be to
introduce the key members of the Village of Oakbrook (VOB) and Mercury Associates,
Inc. (Mercury) project teams to one another and to confirm both parties' understanding of
key study parameters including project goals and objectives, scope, timeline, critical
success factors, and deliverables. We also will discuss logistical procedures such as key
points of contact and work location when members of our project team are on site. This
meeting will be scheduled based on availability of both VOB and Mercury's project team
member calendar availability.
We will submit a brief progress report on a monthly basis, recapping the work
accomplished to date. The written progress reports will be integrated with our monthly
invoices. We also can conduct periodic conference calls, if desired, with representatives
of the Public Works Department and/or Vehicle Maintenance Division (VMD) or other
appropriate VOB officials to discuss such things as obstacles to study progress or desired
outcomes encountered, and preliminary findings and recommendations being
considered.
Task 1.2: Collect and Review Information
Prior to kicking off this implementation project, we will provide VMD with a formal written
information request. This will identify the documentary material that we would like to
obtain prior to any on-site visit. This may include PM inspection forms; in-house parts
policies and procedures; DVIR forms; annual DOT inspection forms; original equipment
manufacturer (OEM) service guidelines (for the specific vehicle make/models identified);
and all current SOPS governing these processes. Additionally, we will request all
documentary information for the PubWorks system and a temporary login for Mercury's
Information Technology team.
We will also request an updated fleet inventory for all fleet assets included in the project.
This will include, for each vehicle, year, make, model, serial number (VIN), vehicle ID
number, class code and description, user agency name, in-service date, recent and
current meter readings and meter reading dates, maintenance and repair work order
records (defined by parts cost, labor, sublet) during a recent 12 -month period, DOT and
other safety inspection dates, etc.
Please note that our proposed level of effort (and budget) for this task assumes that VOB
will be able to furnish these data to us using the Excel spreadsheet that we provide. It
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also assumes that these data will be substantially accurate and complete, requiring
minimal data scrubbing or normalization by our project team.
If necessary, we can set up a cloud -based SharePoint portal to facilitate VOB's
transmission of materials to our project team.
In addition to collecting information from VOB, we will research available OEM materials
on the two selected vehicles for PM program development, technical service bulletins,
recalls, Federal Motor Carrier Safety Administration (FMCSA) roadside inspection defects
(if available) and other printed materials available to ensure our final PM processes meet
all OEM and regulatory service standards and we are prepared to discuss these
standards during the team -building exercise in Task 2.
Task 2: Develop Daily Vehicle Inspection Reporting (DVIR) Program
(VOB Scope Requirement: DVIRs for all vehicles and equipment regardless of
department (PW, Police, Fire, Admin) as well as applicable IDOT CDL requirements.)
Task 2.1: Develop Current State of DVIR Processes
Mercury will review and evaluate VOB's current DVIR processes pursuant to the Federal
Motor Carrier Safety Administration (FMCSA) requirements outlined in 49 CFR Part
396.11, Inspection, Repair, and Maintenance and any other that may be superseded by
State of Illinois regulations. We will perform the following activities to assess the current
state of VOB's DVIR program:
Identify any inherent deficiencies where the program may not be in compliance
with applicable state or federal regulations;
• Review and observe the execution of the current program and ability to ensure
regulatory compliance is properly in place to prevent and mitigate any liability
exposure;
• Visibly observe the actual daily pre/post inspection practices performed by VOB
drivers so that we better understand the challenges and existing gaps in the
current processes;
• Directly engage and interview select team members (i.e., dispatchers,
supervisors and vehicle operators) accountable for the DVIR compliance;
• Review the online FMCSA Safety Management System (SMS) and VOB's
Behavior Analysis & Safety Improvement Categories (BASICs) profile to
identify improvement opportunities related to vehicle maintenance deficiencies
discovered during a representative period (e.g., last quarter or last 12 months)
of historical DOT roadside inspections;
• Audit actual submitted DVIR forms to identify gaps with driver completeness;
the type and frequency of defects recorded by drivers to better understand links
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and deficiencies with PM program quality; the chain of custody practices
ensuring repairs are corrected and properly signed off by the driver; and the
DVIR form filing practices.
We will summarize our findings of the current state of the VOB's DVIR processes and
practices and provide recommendations in a written report, which will be provided to VMD
in draft form for review and comment.
Task 2.2: Develop DVIR Processes, Forms, Manual, and Training
Based on best management practices and our experience, and after collaborating with
VMD to revise the DVIR process, we will develop new DVIR practices that are fully aligned
with FMCSA and applicable state and local requirements. We will then meet with VOB
representatives to review the proposed DVIR inspection process, checklists, and
management policies. The objectives of this task element will be to enable Mercury to
design and deliver 2 primary tasks with 3 optional tasks for an additional fee, if elected by
VOB:
1. Revised DVIR form(s);
2. DVIR program standard operating procedure (SOP) reference manual;
3. Training materials for "train -the -trainer" PowerPoint presentation in order for
VOB to conduct the DVIR training and certification program or the option of the
Mercury team to conduct the "Live" training. (Optionao;
4. DVIR training participant examination and testing materials (Optionan; and
5. DVIR participant program completion certificate template. (Optional)
The SOP will include detailed work instructions that should be maintained in a written
reference manual to be used by VOB employees. This reference manual will then be used
as a point of departure to develop a training module that can be used to train a select
group of VOB employees as "train -the -trainers" who will be trained, tested, and certified
as internal resources to train other VOB employees on the proper procedures to conduct
DVIR inspections.
Task 2.3: Conduct "Train -The -Trainer" and Certification Program (Optional)
In this optional task, we will equip VOB DVIR trainers from Public Works with the
confidence, skills, and tools required to be a successful trainer of the DVIR inspection
program. We will certify (based on our experience) VOB DVIR trainers as having
successfully completed the requisite training and have the necessary knowledge and
skills to train other VOB employees in conducing DVIR inspections. We will work with
VOB to schedule one live training session where we will observe VOB's selected trainers
as they provide instruction to VOB employees using the established curriculum in a
classroom setting. Based on their performance, we will provide feedback as necessary to
ensure that their training is complete and accurate and is performed in a manner
conducive to an instructional environment.
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We will assist VMD in creating and distributing DVIR training certificates to the successful
trainees completing the training and the examinations with a passing score. We will
document our observations of the live "train -the -trainer' DVIR session and provide
recommendations for improvement.
Task 3: Preventive Maintenance (PM) Program Assessment and
Redesign
(VOB Scope Requirement: Define PMs as they relate to each unit as well as the frequency
(how often) and criteria (miles, hours, etc.) for each. Documentation (inspections forms)
that identify what will be performed for each PM.)
Task 3.1: Develop PMA Process Current State Through Team Building Exercise
We will utilize the information provided in Phase I to identify preliminary weaknesses and
wastes in the current state as defined in VOB's written materials. We will also calculate
baseline metrics of the current state (data permitting), which we will later use to
benchmark technician productivity versus SRT (performance measurement time
standards) metrics. We will share the observations and baseline metrics with VOB
management in order to better understand the current state. We will research available
OEM materials on the two selected vehicles (e.g., Police Patrol and 5 -Ton Dump Truck),
technical service bulletins, recalls, Federal Motor Carrier Safety Administration (FMCSA)
roadside inspection defects (if available) and other printed materials available to ensure
our final PMA processes meet all OEM and regulatory service standards.
We will then design and conduct an on-site Lean team building exercise with selected
VOB stakeholders (e.g., supervisors and technicians) who are experienced to perform
both of the selected PMAs. The team building exercise will include the following steps:
1. Review the current state step-by-step processes for the two PMAs;
2. Develop form flowcharts for the current PMA processes;
3. Review the proximity and staging of required parts and supplies for the selected
PMAs;
4. Observe the required list of tools used to complete each PMA; and
5. Spend time observing technicians as they perform both of the PMAs.
We will develop a baseline value—stream map (VSM) that includes all activities, materials,
people, and information that must flow in order to provide the selected PMAs. The VSM
will show the current state of the PM processes and several potential areas for
improvement as identified during the team building exercise. We will ask for the group's
input to identify areas of waste that currently exist and to agree on specific steps and/or
processes that will need to change to eliminate or reduce the wastes. We will develop
additional process mapping, if appropriate, to depict PMA processes. We will employ a
methodology for creating a clean, safe, and orderly high-performance work environment.
The concept is that an orderly environment promotes efficiency and productivity. The
methodology is called the five "S" process that includes reviewing the following areas:
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• Sort — Clearly distinguish needed items from unneeded and eliminate the latter
(e.g., excess supplies, outdated data or information, books, catalogues, files).
• Set in Order/Straighten — Organize and identify a specific place for everything.
Keep needed items in the correct place to allow for easy and immediate retrieval.
Immediately recognize items out of place, and an excessive or insufficient number
of items. Eliminate time wasted locating items to improve customer service.
• Shine — Keep the workplace neat and clean. A clean and organized environment
can boost employee morale and create a sense of ownership and belonging.
• Standardize — This is the method by which sort, straighten and shine are made
habitual. Standardization enhances organizational performance and eliminates the
need to repeat steps. It encourages consistency.
• Sustain — The effective, ongoing application of these principles in order to
improve organizational performance through maintaining established procedures.
Task 3.2: Redefine the Current State PMA Inspection Form
In this task, we will collaborate with VOB in order to review and solidify agreement
surrounding the current state, the baseline VSM, other process mapping methodologies
employed, and review recommendations generated during the team building exercise.
We will work closely with the VOB team to develop the future state PMA inspection forms
using recommended OEM intervals and VOB's breakdown between service interruption
data. We will incorporate vehicle operator daily, weekly, monthly, and yearly inspection
and maintenance requirements to ensure warranty compliance is addressed in the
revised form.
Task 3.3: Develop Refined PMA Forms, Manual, and Develop Training
After collaborating with the VOB team to revise the PMA inspection forms, we will meet
with a selected team of management and supervisory stakeholders to review how the
current process can be streamlined and improved to increase efficiencies to enhance
technician performance and productivity.
The team will work together to design a more efficient step-by-step process removing any
wasted motion during the PMA inspection processes. The objectives of this exercise will
be to:
1. Optimally map PMA form flow for two vehicle classifications (e.g., Police Patrol and
5 -Ton Dump Truck);
2. Document tools needed to perform the inspection;
3. Identify parts necessary for staging and/or kitting;
4. Establish standard repair times to maximize technician productivity;
5. Create a quality control inspection methodology for supervisors to maintain
program integrity; and
6. Design PMA program training materials to create the VOB training curriculum.
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For each task identified in the PMA checklist, we will work closely with VOB's hand-picked
subject matter experts (SME) to number each task in the checklist for easy identification
and define precise work instructions for each task to be included in the new PMA
inspection checklist. The detailed task work instruction defined by the team will serve as
an integral part of the new reference manual which will be developed to serve as standard
work instruction that will be used as part of the final training program materials. We will
also include a process to ensure resultant repairs (i.e., follow-on repairs) discovered
during the PMA inspection process are documented on a separate part of the PMA
checklist form. The PMA checklist form will contain a standard process that delineates
items on the PMA certification checklist being inspected into two separate categories: "�
= Okay and W = Deficiency found in which the latter requires a detailed description of
the actual defect discovered including the checklist task line number as a reference. The
X deficiencies discovered will then be recorded as a follow-on repair in a designated area
of the PMA inspection form. This standard process enables the technician to complete
the PMA inspection process and the next technician to open a separate work order to
complete the follow-on repairs discovered during the PMA. Using a standardized process
like this enables the shop to create a different work order(s) (separate from the PMA
inspection process) necessary to manage an effective PMA program and achieve VOB's
desire to optimize its standard repair labor times.
We will work with the VOB SMEs to develop a quality control inspection (QCI) procedures
that can be used to evaluate those technicians performing the PMA inspections ensuring
the integrity of the program is consistently monitored and maintained at a high level. A
well-managed QCI process enables supervisors to quality check each technician's PMA
inspection work task by task relative to the established work instructions ensuring safety,
quality, and consistency. The QCI can be used as a technician training and evaluation
tool to document our critical feedback during the "live" training.
Task 3.4; Finalize PMA Forms, Manuals, Exam and Training Materials
Mercury will assemble all of the newly developed and prepared forms, manuals, time
standards and final training curriculum materials for VOB. The materials (i.e.,
deliverables) included in the final PMA program documentation are as follows;
• Revised PMA checklists for two different vehicles (e.g., Police Patrol and 5 -Ton
Dump Truck);
PMA program reference manual;
Training materials for VOB designated "trainer" to conduct the technician
PMA training and certification program;
• Participant examination and certification templates;
PMA performance measurement time standards (SRTs);
• Parts kitting list and special tools list to be purchased as part of the PMA
process: and
• A standard QCI process template.
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Finally, at the option of VOB, we will provide an executive briefing to summarize the new
PMA program to select a select group of VOB leaders or stakeholders for an additional
fee.
Task 3.5: Conduct a live "PMA Training Class" for VOB Employees (Optional)
In this optional task, we will conduct a live PMA training class for select VOB employees
to enhance their confidence, skills, and the tools required to be a successful trainer of the
PMA inspection program. We will certify (based on our experience) VOB PMA trainer($)
as having successfully completed the requisite training and have the necessary
knowledge and skills to train other VOB employees in conducing PMA inspections. We
will work with VOB to schedule one live training session where we will train VOB
employees using the established curriculum in a classroom setting. Based on their
performance, we will provide feedback as necessary to ensure that their training is
complete and accurate and is performed in a manner conducive to an instructional
environment.
We will assist VOB in creating and distributing PMA training certificates to the successful
trainees completing the training and the examinations with a passing score. We will
document our observations of the live "PMA" session and provide recommendations for
improvement.
Task 4: Assess Fleet Management Information System (FMIS)
(VOB Scope Requirement: Review the PubWorks Fleet component and assist in
developing it based on our needs.)
Mercury is uniquely qualified to meet VOB's fleet technology advisory needs, bringing
hands-on fleet operational knowledge, extensive experience implementing and
integrating fleet information systems, as well as unmatched record of serving public and
private fleet operations. In the last decade, Mercury has arguably served more fleet
operations in North America than any other consulting firm in the industry. Moreover, we
understand the unique fleet equipment and operational activities associated with local
governments, like VOB.
Our firm has extensive experience assisting clients procure, implement, and optimize the
use of a wide -variety of fleet solutions, including fleet management information systems,
telematics, fuel management products, and motor pool administration programs. We have
worked with nearly every commercial -off-the-shelf (COTS) fleet solutions in the industry,
as well as most of the industry leading enterprise resource planning and asset
management systems. Additionally, Mercury assessed hundreds of organizations' use of
fleet solutions, as well as determining the functional appropriateness of these systems to
meet our clients' current and future needs - more than any other independent fleet
consulting firm in the industry.
Our approach to every system evaluation is to review and document the organization's
functional requirements. We accomplish this through a highly interactive process in which
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we interview key personnel within the fleet operation, as well as other relevant
organization components (e.g., field operations, finance department, and information
technology personnel).
Task 4.1: Conduct a PubWorks FMIS Assessment
In this task, we will interview personnel in key roles within the fleet operation, such as
parts management, shop manager, technicians, fuel management, tire tracking, accident
tracking, motor pool, administration, insurance, vehicle licensing and registration
management, fleet replacement planning, and administration. Our focus during the
interviews will be to establish a clear understanding of the VOB's functional requirements
in a system to support its fleet operation, which we will document.
Task 4.2: PubWorks FMIS Collaboration with Key VOB Personnel
We will then collaborate with key personnel (VOB and PubWorks) to review VOB's fleet
system requirements and identify any gaps in the functional capabilities or current
configuration of PubWorks. We will compile a list of any functional gaps and provide the
VOB with a summary assessment of our findings.
Task 5: Develop Policies and Procedures for Specific Areas of Fleet
Management
(VOB Scope Requirement: Develop what would be considered the minimum standard for
policies and procedures as they relate to fleet operations, safety, etcj
Every fleet organization should publish a series of policies and procedures that address,
organize, and simplify fleet operations. They must be carefully developed and consistently
applied. A logical, well -structured, and performance -guiding policies and procedures
Fleet Management Handbook is essential for success in a number of important ways.
• Monitoring the progress and, where necessary, expediting the completion of
work. This includes protocols for passing work from one technician or shop to
another, and/or from the shop to a vendor.
• Following up on repairs when completion by a technician or vendor is
excessively slow, and on parts for which delivery is overdue
• Ensuring that appropriate controls over the services and costs provided by a
vendor are in place. Such controls are particularly important as vehicles
approach their planned replacement dates.
• Scheduling work into the shop in advance, in order to ensure the cost-effective
utilization of in-house resources and to minimize maintenance and repair turn-
around time and downtime.
• Performing minor repairs while the driver and his/her crew wait.
• Distributing work to technicians to promote high levels of productivity,
efficiency, and effectiveness, and minimizing repair turn -around time by (e.g.)
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assigning work to a specific technician based on the skills needed to complete
the job.
• Establishing priority systems for identifying vehicles that should be moved
ahead in the repair queue based on their importance and/or the type of work
involved.
Policies and procedures are living documents that must be reviewed, updated, and
continue to evolve to meet the ever-changing needs of the organization.
Task 5.1: Develop a Fleet Policy and Procedure Manual
In this task, we will work closely with a VOB focus group to identify and develop the
required elements of a set of fleet policies and procedures that can be used as a set of
standards to manage the VOB fleet management operation. The bullet points below are
sub -elements that may be considered for inclusion in the appropriate policies and
procedures.
Policies and Procedures Manual Inclusions
• Asset utilization tracking and exception reporting
• Reassignment or removal of underutilized assets
• Specification development and approval
• Asset delivery and acceptance
• Asset upfitting and modification approval process
• Decommissioning (removal of VOB identification, property, equipment, etc.)
• Purging of inventoried maintenance and repair parts
• Disposal approach and procedures (i.e., on-line auction)
• Operation and use of VOB owned fleet assets
• Annual stateflocal vehicle safety inspection
• Preventive maintenance program design and execution
• Pre/post trip operator inspection and defect reporting
• Operator misuse and/or abuse
• Quality control
• Warranty management
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Insourcing versus outsourcing determination
Contractor/vendor selection, contract establishment. and Derformancra
• inventory management and control (physical inventory cycle counts)
• Parts receiving and inventory documentation
• Fueling facility operation and maintenance
• Commercial fuel transaction/credit card program management
• Customer satisfaction measurement
Task 6: Define Fleet Roles and Responsibilities
(VOB Scope Requirement: Define the roles and responsibilities (not actual job
descriptions) for individuals involved in fleet operations.)
Task 6.1: Establish Program Design and Implementation Planning Team
We will work with VOB officials to identify potential members of a cross -functional
planning team with which we will work to develop the design of and a plan (e.g., "RACI"
responsibility assignment matrix that defines who is responsible, held accountable, to be
consulted, and/or informed) for implementing a global fleet management program. We
expect that the core will include representatives from such departments as:
• Finance;
Public Safety;
• Public Works peers;
• Information Technology;
• Human resources;
• Procurementisourcing; and
• Others
In addition to the core team members, we will work with VOB to identify subject matter
experts who might be needed on an ad hoc basis. This task will also include identifying
and/or determining the level of authority that has been delegated to the core team.
Examples of questions might be:
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Will the core team be responsible for mapping processes required to meet the
objective?
• Who has the final decision rights over the design and implementation of the
new program and the principles that will govern and strategies that will guide
it?
We will provide a written summary document in draft form detailing the results of this
RACI exercise for VMD review and approval.
Task 7: Develop Service Level Agreement Templates
(VOB Scope Requirement: Develop an internal service agreement (expectations,
prioritization) between Fleet Maintenance and Village Departments. AND Develop service
level agreement template(s) that can be used with outside services and vendors.)
A Service Level Agreement (SLA) is a fundamental and essential management tool for
any fleet management organization and its partners to conduct business in a professional
manner. Each SLA is a bilateral agreement that carefully defines the service expectations
and performance standards and remedies for noncompliance for both parties that enter
into the agreement. SLAB are negotiated in good faith so they are fair for each party to
take ownership for their actions.
Each SLA defines the formal relationship between the fleet organization and its primary
customers and suppliers (i.e., vendor or service provider). An SIA results from a
negotiation between two parties that documents each other's understanding of service
level expectations between the two organizations. To be effective, each SLA incorporates
two major elements: service and management elements. The service elements clarify
services by listing the services provided, the conditions of service availability, and service
standards including timeframes, deadlines in which services are provided, the
responsibilities of both parties, costs versus service tradeoffs, and finally, remedies for
agreement breaches and escalation procedures. Without a formal SLA, the customer or
supplier does not have any boundaries for demanding resolution to something that may
be become a problem or is perceived to be a problem.
Creating a mutually beneficial SLA accomplishes several key purposes that are listed
below:
• Sets realistic expectations for the service provider
• Defines for the service provider what's important to the customers
• Indicates how each provider should spend their time.
• Tells the provider how they will be judged for their performance
Clearly state the levels of service and responsibilities for both parties
• Ensures both parties are on the same page when it comes to administering the
service levels spelled out in the SIA
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In addition, establishing an SLA provides a solid foundation upon which to build a
productive and professional partnership between the service provider and the customer.
The tasks articulated below will allow us to work closely with the Village to create an SLA
template for one customer and one service provider. This template will then enable VOB
to begin the process to work with each customer and service provider to create additional
SLAB to formalize their partnership moving forward.
Task 7.1: Develop SLA Template
Based on our extensive experience working with multiple clients Mercury has developed
standard SLA templates that can be adapted to the VOB operation. Mercury will engage
with VOB key personnel to provide a standard SLA template that can be customized for
each of the Village's customers and vendors.
Task 7.2: Assist VOB Fleet Management in the SLA Negotiation (Optional)
Upon the request of VOB, we will assist with SLA negotiations between VMD and the
targeted customer departments. The purpose of this task to leverage our industry
expertise to negotiate a fair agreement between VOB and its customers.
PROJECT BUDGET
Our proposed fees for performing the work associated with the tasks identified in our
Technical Proposal are $59,500. This amount includes only professional services for the
baseline tasks and does not include the optional tasks (Task 2.3, Task 3.5, and Task 7.2).
Expenses for travel and other incidentals, if required, will be billed to VOB as incurred
and in addition to our professional fees.
A breakdown of the effort and cost by task and project team member is provided in the
following table.
1 Project marmgemeM and data co0edion _-t— 121 S 2,100 2'; $ 350 14 $ 2,75C
insp
2 Develop daily DVI R edion reporting program 2 $ 400: 241 $ 4,200 26 _S 4,600
3 Develop PM program (IwIW rig detail for 2 asset clessea) — 4 $ 800 i 72 5 12,600 76 $ 13,400
4 Assess fleet management irdormatlon system � _--- ----
._v — 2, S 400 501 $ 8,750 52 $ 9,150
5 'Develop key Oaot po8cles end procedures
6 - -- 4) $___. 800 ,_&1 $ 14,700 881-i 15,500
j ne roles.and respons9, Mie;.,,,,__ ___ 2 5..__400 22' $ 3,8501 24 $. _4280
7 yDevebp service level epreemert template 2i $ 400 541 $ 9,4501-- Be $ 9,850
We will submit progress payment invoices on a monthly basis for the estimated
percentage of work completed on each work plan task through the end of the prior month.
Our standard payment terms are Net 30 and payment can be made by check, EFT, or
credit card.
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