PROJECT BACKGROUND
On June 18, 2005, the Governor of Texas signed into law, effective September 1, 2005, the Hybrid Delivery System Act, Transportation Code, Chapter 451, Subchapter Q (as amended, the “Enabling Legislation”). The Enabling Legislation and other laws grant METRO the authority to allow private entities to develop, design, construct, equip, finance, operate and/or maintain qualifying transportation facilities.
The Metropolitan Transit Authority of Harris County ("METRO") adopted the use of the hybrid delivery process to develop the METRORail Expansion Project (the "Project"), including the four light rail facilities (North Corridor, Southeast Corridor, Uptown Corridor and East End Corridor), certain Roadway Facilities, and facilities that may be necessary to support provision of operation and maintenance functions. The North Corridor and Southeast Corridor will receive funding from the Federal Transit Administration (“FTA”) as well as state and local funds. The Uptown Corridor and East End Corridor will be developed with state and local funds.
METRO modified the initial scope of the project, by including incorporation of light rail technology and the addition of financing to the scope, and asked Parsons Transportation Group (PTG) to develop its team as appropriate to address the project requirements. The HRT restructured its team to form the Houston Rapid Transit Joint Venture (HRT). HRT is a joint venture team comprised of PTG, Granite Construction Company, Kiewit Texas Construction L.P., and Stacy and Witbeck, Inc. HRT’s joint venture includes personnel from all four companies. Overall policies are set by the Joint Venture Board and execution of these policies is the responsibility of the entire joint venture team. PTG is the joint venture lead.
HRT partners entered into an interim contract with METRO to perform certain pre-development services for the Project while proceeding with negotiation of a final Development Agreement and Implementation Agreements. The Project includes the following contracts: 1) Development (Facility Provider), 2) Design-Build-Finance, 3) Vehicle Supplier Finance, 4) Operation and Maintenance Contract.
METRO and HRT will proceed with the Project development as long-term collaborative partners, working together and drawing on the respective strengths of each party to maximize value, minimize Project impacts and to design, construct, equip, operate and maintain the Project within the available funds while providing a transit system capable of meeting the standards and criteria of performance, reliability, availability and safety as specified.
METRO and HRT wish to work together to develop a Project that is sensitive to and enhances the quality of life of people living and working in the neighborhoods located adjacent to the planned corridors and Facilities; fosters and maintains positive community relations; is responsive to the needs and input of Project stakeholders; and advances METRO’s goals of public outreach and involvement, diversity, enhanced participation by small and disadvantaged business enterprises, and incorporation of public art.
METRO has implemented a Small Business/Disadvantaged Business Enterprise (SBE/DBE) Program in order to maximize participation and promote equal opportunity and nondiscrimination in all of its procurement matters and to provide opportunities for small businesses to participate in contracting and procurement at METRO. This program is designed to create a level playing field on which small businesses and disadvantaged businesses can compete fairly in all facets of METRO’s procurement activities. This program will utilize procedures that promote inclusion and opportunity while maintaining race and gender neutral measures in their operations.
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