EXECUTIVE MANAGEMENT COMMITTEE JUNE 20, 2013 OFF-SITE STORAGE & MAINTENANCE OF INACTIVE RECORDS APPROVE CONTRACT AWARD ACTION: RECOMMENDATION ISSUE
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1 66 One Gateway Plaza Los Angeles, CA Tel metro. net EXECUTIVE MANAGEMENT COMMITTEE JUNE 20, 2013 SUBJECT: ACTION: OFF-SITE STORAGE & MAINTENANCE OF INACTIVE RECORDS APPROVE CONTRACT AWARD RECOMMENDATION Award a ten year, indefinite delivery/indefinite quantity contract under Bid No.PS with Iron Mountain Information Management, LLC (Iron Mountain), the lowest responsive and responsible bidder for off-site storage and maintenance of inactive records. The recommended award is for an amount not-to-exceed $2,890,533 inclusive of sales tax and five one-year options, effective August 1, ISSUE Records documenting our critical infrastructure investments must be protected. The award of these contracts will ensure that vital records are available when needed for business continuity. Business records are maintained for legitimate business purposes, and when necessary, properly and permanently disposed of in accordance with the adopted Records Retention Schedule. There are approximately 65,000 boxes of inactive records stored off-site. These records are required for legal and operational purposes. They are being maintained in accordance with the Board approved Records Retention Schedule. Regular destruction of record boxes in accordance with the Records Retention Schedule has been on-hold pending resolution of litigation. The MTA is scheduled to receive thousands of technical construction records from the design and construction consultants on the Metro Rail and Measure R projects, the two Construction Authorities, as well as voluminous litigation materials pertaining to these projects. The storage vendor will provide secure storage for these records, retrieval services for approximately boxes of records each day in response to MT A requests for documents, and a database that utilizes barcode technology for secure door to desk and back to storage tracking of records storage boxes.
2 Records with short retention periods and all electronic storage media require secure oncall destruction services, which can be provided more cost effectively with a separate vendor. This service ensures we maintain compliance with California Government Code 6250 et al, PUC Records Management, 44 USC 3101 Federal Records Act, 49 CFR Part 1520 Security Sensitive Information, 5 USC 552a Federal Privacy Act, HIPPA Privacy Rules, ISO and other applicable laws, regulations and standards for safeguarding records and preventing the disclosure of private and/or privileged information. DISCUSSION It is expected that the quantity of boxes will continue to grow at the current rate of 10-15% per year over the next ten years. The contract amount reflects this expected increase in quantity. In-house digitization efforts have slowed the growth rate of 25% per year seen in prior years. As newer IT projects incorporate records retention rules into them, paper storage may diminish further. The quantity of materials requiring direct destruction services is likely to continue at its current level of an average of 78 cubic feet per month, about 85% paper and 15% electronic storage media. The impact of receiving records from the Construction Authorities, concluded legal matters, or changes in technology could influence the amount of direct destruction performed. DETERMINATION OF SAFETY IMPACT Approval of this item will continue to ensure proper handling and storage of inactive records at a facility designed for this purpose, thereby limiting risk of injury to Metro employees. FINANCIAL IMPACT The funding of $213,000 for these services is included in the FY14 budget in cost center 6440, Research & Records Information Management, under project , General Overhead. Since this is a multi-year contract the cost center manager and the Chief Administrative Services Officer will be responsible for ensuring that funds will be available in future years, including any options exercised. Impact to Budget The funding for this project is from the Internal Service Funds. No other sources were considered as these funds have been identified for this project. Off-Site Storage & Maintenance of Inactive Records Page 2
3 ALTERNATIVES CONSIDERED Digitize all paper records and store on electronic media: Digitizing paper records is expensive and only recommended for documents expected to be reused frequently. Most documents are stored for a statutorily required period, but are never reused. Therefore, the return on investment for digitizing all records is still unacceptably high compared to the cost of storing certain records off-site. Keep the records in the MTA's own buildings: This alternative is not recommended because it is more difficult and expensive than storing the records in a specialized facility. NEXT STEPS Upon Board approval contract's will be awarded to Iron Mountain for off-site storage and maintenance of inactive records. ATTACHMENT A. Procurement Summary Prepared by: Matthew Barrett, Research & Records Administrator (213) Don Howey, DEO, Administration (213) Off-Site Storage & Maintenance of Inactive Records Page 3
4 '-tlafoleflbh~ Michelle Lopes Cal w II Chief Administrative Services Officer Arthur T. Leahy Chief Executive Officer Off-Site Storage & Maintenance of Inactive Records Page 4
5 PROCUREMENT SUMMARY OFF-SITE STORAGE & MAINTENANCE OF INACTIVE RECORDS 1. Contract Numbers: PS A & B 2. Recommended Vendor: A. Iron Mountain Information Management, LLC B. Goodwill Southern California 3. Type of Procurement (check one): D IFB [8:1 RFP D RFP - A&E D Non-Competitive D Modification D Task Order 4. Procurement Dates: A. Issued: January 8, 2013 B. Advertised: January 8, 2013 C. Pre-Proposal Conference: January 16,2013 D. Proposal Due Date: February 20, 2013 E. Pre-Qualification Completed: April 30, 2013 F. Conflict of Interest Form Submitted to Ethics: May 6, 2013 G. Protest Period End Date: June 10, Solicitations Picked Proposals Received: 9 up/downloaded: Contract Administrator: Telephone Number: Tom Meng (213) Project Manager: Telephone Number: Joe Parise (213) A. Procurement Background ATTACHMENT A The RFP was issued in accordance with Metro's Acquisition Policy for the purpose of awarding a Fixed-Unit price contract to a qualified contractor to provide Off-Site Storage & Maintenance of Inactive Records. The contract type will be Firm, Fixed Unit Price. Five Amendments were issued during the solicitation phase of the procurement as follows: Amendment 1 was issued on January 8, This amendment revised the statement of work and corrected Schedule "A" Pricing and Schedule "B" Pricing. Amendment 2 was issued on January 25, This amendment revised the statement of work, adjusted the Schedule "A" Pricing and Schedule "B" Pricing, corrected the letter of Invitation, answered proposer's Off-Site Storage & Maintenance of Inactive Records Page 5
6 questions, provided a location map and document pictures, and provided the Pre-Proposal sign-in sheet. Amendment 3 was issued on January 31, This amendment added a Co-operative Purchasing Among Government Agencies form and answered additional proposer questions. Amendment 4 was issued on February 4, This amendment changed the proposal due date. Amendment 5 was issued on February 15, This amendment provided additional answers to proposer's questions. A total of nine proposals were received on February 20, B. Evaluation of Proposals The procurement was a standard Request for Proposals. The recommendation for award of contract is being made to the proposer with the highest score using the explicit factors methodology. The Request for Proposal reserved the right for Metro to make separate awards. A source selection committee consisting of Metro Research and Records Information Management staff and an outside industry consultant performed the evaluation in accordance with the RFP. This procurement has multiple awards. Proposals were evaluated based upon the following evaluation criteria and weights: Degree of the Contractors Skills and Experience. Degree of experience in providing records security Effectiveness of Management Plan Cost Proposal 20% 25% 20% 35% Of the nine proposals received, eight of the nine proposers were determined to be responsive to the RFP requirements. Two of the eight remaining firms are in the competitive range. They are listed below in alphabetical order: 1. Iron Mountain Information Management, LLC 2. Storetrieve, LLC Iron Mountain Information Management, LLC meets or exceeds all of the requirements of the Statement of work. Their secure destruction services division was superior to other facilities the evaluation committee inspected. Iron Mountain Information Management, LLC is the incumbent contractor for file storage and retrieval. Off-Site Storage & Maintenance of Inactive Records Page 6
7 Storetrieve. LLC's proposal demonstrated the ability and knowledge to complete the requested service in accordance with the Statement of Work for off-site storage. The site visit revealed that their record storage methods were less desirable to the other proposers. Listed in the table below are the overall rankings for Off-Site Inactive Records Management and Storage. Iron Mountain was rated best qualified overall with Storetrieve ranked second. Off-Site Inactive Records Management and Storage Weighted Average Factor Average 1 FIRM Score Weight Score Rank Iron Mountain Information 2 Management, LLC Degree of experience in 3 providing records security % Degree of Experience in 4 Providing Records Security % Effectiveness of Management 5 Plan % Cost Proposal Total % Storetrieve, LLC Degree of the Contractors skills 9 and experience % Degree of Experience in 10 Providing Records Security % Effectiveness of Management 11 Plan % Cost Proposal Total % C. Cost/Price Analysis Explanation of Variances This procurement's requirements were subjected to a full and open competition among competing contractors. The recommended price was determined to be fair and reasonable based upon adequate competition and comparison with independent cost estimate. A Best and Final offer (BAFO) was requested of the two highest rated proposers in the competitive range for this proposal and the results are listed below. Off-Site Storage & Maintenance of Inactive Records Page 7
8 Off-Site Inactive Records Management and Storage Recommended Proposer Proposal BAFO Name Amount Amount 1 Iron Mountain Information $2.957,362 $2,890,533 Management, LLC 2 Storetrieve, LLC $2,870,573 $2,763,441 D. Background on Recommended Contractor Iron Mountain is a member of the National Association of Information and Destruction (NAID). Iron Mountain is the incumbent contractor, having provided this service to the LACMTA for the past 15 years. Iron Mountain is based in Wilmington, New Castle County, Delaware and has been in business since Iron Mountain manages billions of information assets, including business records, electronic files, medical data, s and more for organizations around the world. E. Small Business Participation The Diversity and Economic Opportunity Department (DEOD) did not recommend a Disadvantaged Business Enterprise Anticipated Level of Participation (DALP) for this project. Off-Site Storage & Maintenance of Inactive Records Page 8
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