State of Tennessee Department of Transportation Commissioner's Office Suite 700, James K
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STATE OF TENNESSEE DEPARTMENT OF TRANSPORTATION COMMISSIONER'S OFFICE SUITE 700, JAMES K. POLK BUILDING 505 DEADERICK STREET NASHVILLE, TENNESSEE 37243-1402 JOHN C. SCHROER (615) 741-2848 BILL HASLAM COMMISSIONER GOVERNOR December 22, 2016 Fiscal Review Committee 8th Floor, Rachel Jackson Bldg. 320 Sixth Avenue North Nashville, TN 37243 RE: River Marine Services, Inc. Contract to operate the Benton-Houston Ferry across the Tennessee River Committee Members, The referenced contract provides for the operation and maintenance for the Benton-Houston ferry across the Tennessee River for the Tennessee Department of Transportation (TOOT). The Contractor has operated this ferry since 1988 at which time the contract was advertised for bid but River Marine Services, Inc. was the only company that submitted a bid for these services. The contract has been renewed every five (5) years since 1988 as a Sole Source Contract. This package contains the following materials as required by your office: 1. Supplemental Documentation Required for Fiscal Review Committee form . 2. A copy of the approved Special Contract Request approving the Sole Source Procurement Method with documentation attached showing TOOT's attempt to locate another possible contractor. 3. A copy of the proposed Summary Sheet. 4. A copy of the proposed Contract to be signed by River Marine Services, Inc. and the Department of Transportation. Please advise if you have any questions or comments. Sincerely, Commissioner -- Supplemental Documentation Required for Fiscal Review Committee Alan Durham *Contact 615-741-5616 *Contact Name: Phone: *Presenter's Paul Degges and Brian Carroll name(s): Edison Contract RFS Number: 40100-05017 Number: (if applicable) (if applicable) *Original or 711117 *Current or 6/30/22 Proposed Contract Proposed End Begin Date: Date: Current Request Amendment Number: N/A (if applicable) Proposed Amendment Effective Date: N/A (if applicable) *Department Submitting: Department of Transportation *Division: Maintenance *Date Submitted: January 4, 2017 *Submitted Within Sixty (60) days: Yes If not, explain: N/A *Contract Vendor Name: River Marine Services, Inc. *Current or Proposed Maximum Liability: $3,350,000.00 *Estimated Total Spend for Commodities: N/A *Current or Proposed Contract Allocation by Fiscal Year: (as Shown on Most Current Fully Executed Contract Summary_ Sheet) FY: 2018 FY: 2019 FY: 2020 FY: 2021 FY: 2022 FY $670,000.00 $670,000.00 $670,000.00 $670,000.00 $670,000.00 $ *Current Total Expenditures by Fiscal Year of Contract: (attach backup documentation from Edison) FY: FY: FY: FY: FY FY $ $ $ $ $ $ IF Contract Allocation has been greater than Contract Expenditures, please give the NIA reasons and explain where surplus funds were spent: IF surplus funds have been carried forward, please give the reasons N/A and provide the authority for the carry forward provision: IF Contract Expenditures exceeded Contract Allocation, please give the N/A reasons and explain how funding was acquired to pay the overage: *Contract Funding Source/Amount: $3,350,000.00 Federal: N/A Revised April2014 Supplemental Documentation Required for Fiscal Review Committee State: NIA Interdepartmental: Other: NIA If "other" please define: NIA If "interdepartmental" please define: N/A Dates of All Previous Amendments Brief Description of Actions in Previous or Revisions: (if applicable) Amendments or Revisions: (if applicable) N/A N/A Method of Original Award: (if applicable) Sole Source *What were the projected costs of the a. $3,350,000.00 service for the entire term of the contract b. phone and email discussions with the prior to contract award? Contractor as to prices of gasoline, parts How was this cost determined? and payroll costs *List number of other potential vendors None who could provide this good or service; efforts to identify other competitive procurement alternatives; and the reason(s) a sole-source contract is in the best interest of the State. Revised April 2014 cy16-7639 7-16-15 REQUEST-SPECIAL Special Contract Request This form should be utilized to facilitate contract and procurement requests that require the Chief Procurement Officer's prior approval and that of the Comptroller of the Treasury, as a ppllcable. NOT required for a contract with a federal, Tennessee, or Tennessee local government entltv or a grant. Route a completed request, as one file in PDF format, via e-mail attachment sent to: [email protected]. APPROVED APPROVED DIQIUiy signed by Michael F. Michael F. ~~~,, ..... ,F.Peny-AK. o-CPO, ou=CPO, tmollaoody.kldd•tn.gov,c=US Perry - AK Doto: 2016.11.15 14:11:59 -<1600' 1 CHIEF PROCUREMENT OFFiaR DATE 1 ,....-CcJMPTROLLER OF THE TREASURY DATE ( J Request Tracking # 40100-05017 Department of Transportation 1. Contracting Agency (TOOT) D No Cost D Revenue 12] Sole Source 2. Type ofContract or Procurement Method D Proprietary D Competitive Negotiation . 0 Other ------- Lyn Brown ASA 2/Rest Area Coordinator Requestor Contact Information 3. Phone 615-532-3452 Fax 615-532-5995 ---- Ferry service across Tennessee 4. Brief Goods or Services Caption River between Benton and Houston Counties, TN This contract will replace the current contract due to expire 06/30/16. ·This Is the only way for anyone to get across the river at McKinnon as th&re Is no bridge at 5. - Description of the Goods or Services to be Acquired this location and the cost to build a bridge would be more expensive than the ferry service. It is estimated that a person would have to go 68 miles out of their way. 6. Proposed Contractor River Marine Services, Inc, 7-16 -15 REQUEST-SPE CIAL Request Tracking # 40100-05017 7. Name & Address of the Contractor's principal owner(s) H. Paul, Ritchie, President - NOT required for a TN slate education institution P. 0. Box 3524, Clarksville, TN 47043 8. Proposed Contract Period - with ALL options to extend exercised The proposed contract start date shall follow the approval date of 60 months this request. 9. Office for Information Resources Pre-Approval Endorsement Request IZJ Not Applicable D Attached - information technology (NIA to THDA) 10. eHealth Pre-Approval Endorsement Request - health-related professional, pharmaceutical, /sbora/ory, or imaging IZJ Not Applicable D Attached 11. Human Resources Pre-Approval Endorsement Request - stele employee training IZI Not Applicable 0 Attached 12. Are these goods or services currently available on a statewide contract? If YES, please explain why the current IZI NO DYES, statewide contract Is not being used for this procurement. 13. Maximum Contract Cost - with ALL options to extend exercised $3,350,000.00 14. Was there an initial government estimate? If so, what amount? IZI NO DYES,$ 15. Cost Determination Used- How did ageney arrive at the estimate of Discussion with Contractor, estimate expected costs? of possible repairs and inflation. 16. Explanation of Fair and Reasonable Price- Explain how agency Internet search for cost of repairs and determined that price is fair and reasonable Inflation. 17. Documentation of Discussions with Contractor- How did agency Phone calls, internet search for cost document discussions with Contractor? Attach documentation to this of repairs and inflation according to request as applicable. US Government This is the only way for anyone to get 18. Explanation of Need for or requirement placed on the State to across the river at McKinnon as there acquire the goods or services Is no bridge at this-location and the cost to build a bridge would be more expensive than the ferry service. It is estimated that a person would have to _g_o 68 miles out of their-way. 19. Proposed _contract impact on current State operations None After a search of the Internet, TOOT 20. Justification -Specifically explain why the goods or services should believes there is no other company In be acquired through the procurement method or contract type selected . the State of Tennessee Interested in operating this ferry nor has the experience that this company has in operating this fe rry. lls:v.- ,., ~..LL"~'l.'R,o i:i~F~f! 21. What costs will the State incur as a result of this contract? If any, please explain. ( 7-16-15 R~QUEST-SPECIAl Request Tracking # 40100-05017 22. What Is the total estimated revenue that the State would receive as a result of this contract? 23. Could the State also contract witf:l other parties Interested In OvEs entering substantially the same agreement? Please explain. 24. Summary of State responsibilities under proposed contract 25. Explanation of Need for or requirement placed on the State to This Is the only way for anyone to get acquire the goods or services across the river at McKinnon, TN as there Is no bridge at this location and the coat to build a bridge would be more expensive than the ferry service. It is estimated that a person would have to go 68 miles out of their way. 26. Evidence of Contractor's experience & length of experience We have another contract with River providing the goods or services to be procured. Marine who also· operates the Cumberland City Ferry. River Marine has operated both ferries since 1988. 27. Has the contracting agency procured the subject goods or ~YES, services before? If yes, provide the method used to purchase the goods or services and the name and address of Method: Sole Source the contractor. NamefAddress: River Marine Services, Inc. P.O. Box 3524, Clarksville, TN 47043 28. Contractor selection proc.ess and efforts to ide.ntlfy In an Internet search only three names reasonable, competitive, procurement alternatives were found for ferry operatlon.ln Tennessee. River Marine Services, Inc., Shelby County Port Commission and Starn Marine Enterprises. Both Shelby County Port Commission and Starn Marine Enterprises are an Inland water passage transportation companies that do not operate a ferry such as operated by River Marine Services, Inc.