Contract No. 2801

CONTRACT MODIFICATIONS-CHANGE ORDER No. 1
SEATTLE DEPARTMENT OF TRANSPORTATION
GOODS AND SERVICES CONTRACT FOR STREETCAR VEHICLES

Pursuant to the Section 5.9 of the Special Provisions of the Contract, the contract is
modi?ed to replace the following sections in their entirety and to add new special
provisions addressing the administration of technical specifications as follows, with all
other provisions of the contract to remain in effect:

5.2.2 DELIVERY SCHEDULE

The Contractor shall deliver the cars and provide commissioning support to meet the
Conditional Acceptance milestone (5.6.1) for the base order and ?rst option car, no later
than the dates specified below:

 

Car No. Conditional Acceptance
1 4!22f2015
2 6130l2015
3 5129l2015
4 51123015
5 6!0512015
6 613022015
7 (Option Car) SH 5201 5

5.2.3 DAMAGES

Streetcars and materials procured under this Contract are needed to support opening of
the First Hill Streetcar Line. SDOT will suffer signi?cant tangible and intangible damages
if the opening has to be delayed. The parties acknowledge and agree that the project
opening has been delayed by delays in delivery and acceptance of the streetcars.

Because of the difficulty of determining the actual loss to SDOT, the parties agree that
the Contractor shall pay to SDOT liquidated damages at the rates set forth below.

Damages resulting from delays between October 6, 2014 and December 31, 2014 are
converted to a lump sum of $111,000, which sum shall be paid by additional spare parts
to be delivered by the Contractor to SDOT. SDOT shall specify the spare parts, which
shall be priced as speci?ed in Schedule of the Contract price.

Damages resulting from delay between January 1, 2015 and May 31, 2015 are waived
in consideration of changes to liquidated damages to be assessed beginning June 1,
2015 as follows:

a) June 1 to June 15: $500 per car per day
b) June 16 to June 30: $750 per car per day
c) July 1 to Delivery: $1,000 per car per day

The parties agree that these payments are not a penalty, but are a reasonable forecast
of the actual damages that SDOT would suffer.

The total amount for liquidated damages shall not exceed ten percent of the Total
Base Contract Price. SDOT may deduct liquidated damages from progress payments
due under this Contract.

5.4.3 SHIPPING DESTINATION

All cars, including the first option car, shall be shipped to SDOT's First Hill Streetcar
Maintenance Facility on 3. Charles St. between 7th Ave. S. and 8th Ave. S., in Seattle,
Washington. The Contractor shall be responsible for all work and all costs associated
with the placing of cars in a ready-to-run condition on the rails of SDOT's Streetcar
System. One of the cars, to be specified by SDOT, shall subsequently be shipped to
South Lake Union Maintenance Facility at 318 Fairview Avenue in Seattle,
Washington, at Contractor?s expense.

5.7.1 PAYMENT PROCEDURES

SDOT shall pay to the Contractor, at the times and in the manner hereinafter provided,
the amounts set forth in the Contract for the cars and other work furnished pursuant to
the Contract. The Contractor agrees to accept such amounts as full and final payment
for all labor, materials, supplies, equipment, overhead, profit, taxes, duties, and charges
of whatever nature incurred by the Contractor in performing its obligations under the
Contract.

The Contractor shall submit invoices to SDOT detailing the payment milestones
completed in the payment period. The Contractor may submit only one invoice per
month. The invoice shall be accompanied by all documentation that supports the

2

amount of the payment being requested. SDOT reserves the right to inspect any and all
items relating tO payment verification, on the Contractor?s premises. The Contractor
must submit the progress report and schedule update (TS 19.1) with or before
the invoice in order to receive payment.

Progress payments are specified percentages for each milestone listed below and are
based on the Price Items 1, 2, and 3 as shown on Form Ill, Schedule of Prices. As
shown on Form Schedule A, Price Item 2 includes g? shipping, duty, and customs
costs.

The Contractor's invoices shall account the work events described in the progress
payment schedule below. Progress payment invoices shall not exceed the following
stated percentages Of the Contract price at the time of the following stated work events:

 

CUMULATIVE PERCENTAGE

 

PRICE PRICE
ITEM1: ITEM 2: ITEM 3:

 

 

 

SPARE
PARTS,
SPECIAL
6 TOOLS AND
STREET SYSTEM TEST
MILESTONE CARs SUPPORT EQUIPMENT
A Ten percent of Price Items 1, 2 and 3
upon NTP. 10 10 10
Ten percent of Price Items 1, 2 and 3
upon approval of the project schedule. 20 20 20

 

Ten percent of Price Items 1, 2 and 3
upon award Of subcontracts for: carbody, truck
frames, prepulsion system, friction brake
system, doors, HVAC, auxiliary power system,
communication system, and TWO. 30 30 30

 

Ten percent of Price Items 1, 2 and 3
upon approval of all truck frame fatigue tests
and carbody structural tests, including any

required follow-on stress analyses. 4D 40 40

 

Two and one half percent Of Price Item
1 upon completion Of each car shell including
final paint times 8 cars 15% total). 55 40 40

 

Two and one half percent Of Price Item
1 upon arrival Of each car shell at the
Contractor?s final assembly location 
times 6 cars 15% total). 70 40 4O

 

 

 

 

 

 

 

 

 

CUMULATIVE PERCENTAGE

 

 

 

 

 

 

 

 

 

 

 

 

 

PRICE PRICE PRICE
ITEM 1: ITEM 2: ITEM 3:
SPARE
PARTS,
SPECIAL
TOOLS AND
STREET SYSTEM TEST
MILESTONE DESCRIPTION CARS SUPPORT EQUIPMENT
(3.1 (3.1: One and one quarter percent of
56. Price Item 1 upon delivery of electrical
2 components (traction inverter, HVAC,
pantograph and OESS) to carbuilder facility.
G2: One and one quarter percent of
Price Item 1 upon completion of installation of
all roof equipment, interior electrical lockers
and panels, carbody wiring, and terminations
for each car times 6 cars 15% total). 85 40 40
Twenty five percent of Price Item 2
(System Support) upon approval of the
following ?rst article inspections: coupler,
doors, HVAC, auxiliary power system,
propulsion system, OESS, and friction brakes 85 65 40
I One percent of Price Item 1 on
shipment of the each car from the Contractor's
final assembly location (provided cars meet
"Shipment Authorization" defined in Section
times 6 cars 6% total). 91 65 40
Twenty-five percent of Price item 2 upon
delivery of approved training, operating and
maintenance manuals. 91 90 40
Fifty percent of Price Item 3 (Spare
Parts, Special Tools, and Test Equipment)
upon delivery of fifty percent of the total
value of spare parts, Special tools, and test
equipment 91 90 90
One half percent of Price Item 1 upon
substantial completion of each streetcar per
OF times 5 cars total). 94 90 90
One half percent of Price Item 1 upon
conditional acceptance of each streetcar by
SDOT per CP 5.6.1 times 6 cars 3%
total). 97 90 90

 

 

 

 

 

CUMULATIVE PERCENTAGE

 

 

PRICE PRICE PRICE
ITEM 1: ITEM 2: ITEM 3:
SPARE
PARTS,
SPECIAL
6 TOOLS AND
STREET SYSTEM TEST
MILESTONE DESCRIPTION CARS SUPPORT EQUIPMENT

 

One half percent of Price Item 1 upon
final acceptance of each streetcar by SDOT

 

 

 

 

per CP 5.6.2 (0.5 times 6 cars 3% total). 100 90 90
Ten percent of Price Item 3 upon

delivery Of all Spare parts. special tools, and

test equipment. 100 90 100
0 Ten percent of Price Item 2 at Contract

100 100 100

 

 

 

 

 

Within thirty (30) days after receipt of an invoice by SDOT, SDOT shall either

Pay 100% of the invoice, or

Pay the amount SDOT determines is properly due. and inform the Contractor in
writing of the reason for withholding any amounts not paid, or

Notify the Contractor in writing that SDOT elects to defer payment as specified in
Section CP 5.7.2

SDOT may withhold all or part of a payment to protect SDOT from loss because
of:

Defective work not remedied;

Third-party claims filed, or evidence reasonably indicating that a third-party Claim
will be filed;

Failure of the Contractor to make payments properly to subcontractors or
suppliers, or for labor, materials, or equipment;

Damage to 
The Contractor's failure to carry out the work in accordance with the Contract; or

The Contractor's failure to comply with any provision or requirement of the
Contract.

SDOT may withhold accrued liquidated damages from payments due to the Contractor.

No approval for payment. nor any payment by SDOT, shall constitute an acceptance of
any cars or other Contract deliverables that are not in accordance with the Contract.

 

5.8.2 OPTION FOR ADDITIONAL CARS

At the option of SDOT, the Contractor shall provide additional cars at the applicable
Option Unit Price per additional streetcar as defined in this Section and listed on the
Form Schedule of Prices-Price Summary. SDOT shall order additional cars by written
notice to the Contractor. The notice shall specify the quantity of additional cars being
ordered. SDOT may place one or more orders for additional cars, or none, but in no
event shall SDOT order more than a total of twenty-five (25) additional option streetcar
vehicles.

An option to order additional cars may be exercised at any time of SDOT's choosing up
to seventy-two (72) months after NTP. Delivery of additional cars shall be in accordance
with the following: The first additional car shall be delivered not more than eighteen (18)
months after exercising of the option, but not before delivery of the last car of the base
order or previous option order. All following cars procured under this provision shall be
delivered at a rate of one (1) car per month.

5.8.2.2 PAYMENT FOR OPTION CARS

Payment for options shall be made in accordance with the progress payment schedule
below:

 

 

 

 

CUMULATIVE
MILESTONE DESCRIPTION PERCENTAGE
A Ten percent of the total option price immediately following 10
execution of the option.
Twenty?five percent of the unit price for each option streetcar 35
upon completion of the car shell.
Twenty percent of the unit price for each option streetcar upon 55

installation and completion of wiring of the car body mounted
components of the following major sub-systems: Propulsion System,
Friction Brake System. Auxiliary Electrical Equipment, HVAC, and
Doors.

Thirty percent of the unit price for each Option streetcar on 35
shipment of each streetcar from the Contractor's plant, (provided cars
meet "Shipment Authorization" de?ned in Section 5.4.1 

Ten percent 10%) of the unit price for each streetcar upon conditional 95
acceptance of the car by SDOT.

 

 



 

 

 

 

 

 

 

CUMULATIVE
MILESTONE DESCRIPTION PERCENTAGE

Five percent of the unit price for each streetcar upon final 100

acceptance of the car by SDOT.

 

 

 

 

 

ADMINISTRATION OF TECHNICAL SPECIFICATIONS: SUBMITTAL AND TESTING
REQUIREMENTS

- SDOT will expedite review and approval of CDRL submittal requirements. At
SDOT's discretion, that are not related to vehicle safety and ongoing
maintenance may be waived by our Project Engineer.

- At SDOT's discretion, the scope of some non?safety testing requirements may be
modified by our Project Engineer to accelerate testing.

 

 

 

 

 

 

 



CONTRACTOR CITY OF  

By: f. . By: 
(Signature) . (Signature)

Name: Josef Husek Meme: Scott Kubly

Title: President, lnekon Group Title: Director. of Transportation

 

 

Date:   Date: