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Amendment to the Jacobs Engineering Group, Inc Scope of Services for Low/No Emission Bus Architectural and Engineering Services
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DESCRIPTION: Requesting Board authorization to amend the scope of services for Jacobs Engineering Group, Inc., previously authorized in Resolution No. 25-041, for Low/No emission bus design services. |
AGENDA NO: Click or tap here to enter text. |
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ACTION REQUEST: Approval |
RECOMMENDATION:
recommendation
Authorize the Interim Chief Executive Officer to amend the scope of services for Jacobs Engineering Group, Inc., previously authorized in Resolution No. 25-041, for Low/No emission bus design services.
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ISSUE/BACKGROUND:
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In Spring 2023, RTA was awarded a major FY23 Low/No Vehicle Emission Grant by the Federal Transit Administration (FTA). The $71.4 million award was initially scoped to fund a transition in RTA’s fixed route bus fleet to a zero-emission fleet with 20 Battery Electric Buses (BEBs), a solar power-based microgrid for power generation, charging infrastructure, and workforce development.
In July 2025, the RTA Board of Commissions passed Resolution No. 25-041 authorizing a contract with Jacobs Engineering Group, Inc. (Jacobs) in an amount not to exceed $5.1 million for design services associated with this project. In order to streamline the Low/No project delivery process, FTA had authorized transit agencies to include partnerships with other entities in the grant application, including design and engineering firms. Per the FTA grant, “if an application that involves such a partnership is selected for funding, the project will be deemed to satisfy the requirement for a competitive procurement.” Jacobs was RTA’s named design/engineering partner in the FY23 Low/No grant and as such, was scoped to design the battery electric charging infrastructure, microgrid, and related facility improvements necessary to accommodate the new fleet of 20 battery electric buses.
Around the same time as the Board’s adoption of Resolution No. 25-041, FTA circulated a letter inviting FY23 Low/No grant recipients to modify their Low/No grant submissions to change from battery electric technology to a different bus propulsion technology. This letter was interpreted as a reflection of FTA’s changing view of battery electric technology, with an emerging preference for other Low/No propulsion technologies such as Compressed Natural Gas (CNG), and a de-emphasis on battery electric technology. RTA consulted with FTA Region VI and several industry partners following receipt of this letter and initially made the decision to proceed with the original battery electric bus scope. However, in the subsequent months, the 2023 Low/No grant was not moving expeditiously toward grant obligation. With a grant obligation deadline of September 2026, with RTA’s urgent need for new buses, and with an emerging understanding that a different propulsion system may be the best path to obligating the grant, RTA made the decision to submit a modified Low/No grant scope to FTA, changing the vehicle propulsion system to CNG. The modified scope was submitted in April 2026. RTA is confident that the grant will be obligated by the September deadline, allowing RTA to start the procurement process for new buses and related infrastructure. The revised grant scope is under FTA review. FTA submitted to RTA clarifying questions on August 14th and on September 1st to finalize the paper grant agreement.
Please note that RTA and Jacobs never executed the contract that was authorized by the Board in Resolution No. 25-041. Contract negotiations with Jacobs were well underway but had not yet concluded when RTA determined that a change in 2023 Low/No grant scope would be the best course of action. Thus, Jacobs has not incurred any costs on this project so far, and RTA has not remitted any payments to Jacobs to date.
While RTA remains optimistic about the potential of battery electric bus technology, RTA is also enthusiastic about the benefits of CNG propulsion. In comparison to standard diesel bus technology, CNG buses generate substantially less air pollution with dramatically lower nitrogen oxide, sulfur oxide, and particulate matter emissions; they generate up to 25% less carbon dioxide emissions; and they are up to 40% quieter than diesel buses. Furthermore, CNG buses are substantially less expensive than battery electric buses. RTA has accordingly modified the scope of the grant to include 33 CNG buses vs. the 20 battery electric buses in the original grant scope, thereby allowing RTA to more expeditiously replace older buses in the fleet that are at the end of their useful life. In addition to the 33 buses and related CNG fueling and maintenance infrastructure, the revised scope that was submitted to FTA in the spring includes other improvements to RTA’s East New Orleans maintenance facility that will allow for the eventual relocation of fixed bus route operations from Canal to the East. A prior planning effort that was completed in 2025 confirmed the East’s suitability for bus operations given the size and capacity of the facility.
Given the grant obligation deadline this fall, RTA is eager to commence design work with RTA’s named design and engineering partner on the project, Jacobs. Resolution No. 25-041 authorized a design contract not-to-exceed amount of $5.1 million. Staff is not requesting any modification to this authorized design fee. Rather, staff is requesting board approval to amend the prior scope of the project and therefore the scope of Jacobs’ design services-CNG infrastructure and other facility improvements that will allow for the eventual relocation of the bus fleet to East New Orleans.
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DISCUSSION:
Staff followed the process for sole-source procurement, based on competitive selection guidance established by FTA for this grant process. The justification forms are attached to this report.
Jacobs has prepared a comprehensive scope of design services that spans initial conceptual design and facility conditions assessment all the way to 100% construction documents. In addition to the core design tasks, Jacobs’ scope includes other services to ensure an efficient construction timeline, a project that remains within budget, and a seamless transition from construction to operations.
At present, the design process contains several unknowns that will have to be investigated during an initial scoping and conceptual design phase. For instance, the maintenance bays at RTA’s East New Orleans facility will have to be modified to ensure proper heating, air conditioning, and ventilation to ensure safe operations of CNG buses. The extent of modifications needed to the maintenance building will become clearer after the Jacobs team, in coordination with RTA staff, has been able to complete a comprehensive series of site inspections and analyses of the existing building.
Because of these unknowns, RTA and Jacobs have broken the Low/No design and engineering contract into two phases. The first phase includes a) conceptual design to address the aforementioned design variables and to arrive at a more fully defined project scope and b) schematic design of certain elements of the project that are already well defined (e.g. the design of CNG fueling infrastructure). This first phase has a not to exceed budget of $1,793,768 and is therefore well within the $5.1 million previously authorized by the Board. The phase I design services will influence the scope and cost of the second phase of design services, which will collectively remain within the $5.1 million previously authorized by the Board.
The revised project budget that RTA submitted to FTA in spring 2026 includes a robust budget for facility design and construction, given the current number of design variables. Note that staff is committed to delivering the facility component in as efficient and cost-effective manner as possible. If cost estimates during the design phase suggest that the facility may be delivered for less than the budgeted amount, RTA could ask FTA for a budget revision to allow for the purchase of additional buses beyond the 33 currently in scope. Staff will apprise the Board of evolving scope and budget considerations during the design process.
From the start of design services this fall, Jacobs should require approximately 27 months for its services, all the way through construction completion. Therefore, the contract term is for three (3) years with the possibility of a one-year extension to account for any unforeseen circumstances.
FINANCIAL IMPACT:
The total amount for the architectural and engineering services, as previously authorized by the Board in Resolution No. 25-041, is not-to-exceed $5.1 million and will be funded 80% by the FTA FY23 Low/No Emission Grant in an amount not-to-exceed $4,080,000 and 20% by local RTA funds in an amount not-to-exceed $1,020,000. Within this $5.1 million, the phase I design services that the Board is being asked to authorize are not to exceed $1,793,768. These funds are from budget code 01-0000-00-1501-000-00-00-00000-00000-00 and are included in the FY2026-30 Capital Investment Program.
This cost for the phase I services is well within a reasonable range (6%) of the Independent Cost Estimate that was prepared for this work. The Independent Cost Estimate for this work--$1,690,000-is within 6% of the not to exceed budget for the Phase I design work.
NEXT STEPS:
Execute a contract with Jacobs and issue a Notice to Proceed to kick off phase I of design services for the project.
ATTACHMENTS:
1. Board Resolution
2. Resolution No 25-041 from July 2025
3. Jacobs Contract Draft Scope of Work
4. Approved Sole Justification for Jacobs
5. Independent Cost Estimate (ICE)
6. FTA Correspondence Approving the Shift in Grant Scope to Compressed Natural Gas
Prepared By: Rafe Rabalais, rrabalais@rtaforward.org
Title: Director of Capital Projects
Reviewed By: Dwight Norton, dnorton@rtaforward.org
Title: Chief Planning & Capital Projects Officer
Reviewed By: Gizelle Johnson-Banks
Title: Chief Financial Officer
9/8/2026
Ronald G. Baptiste Date
Interim Chief Executive Officer