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LabMar Ferry Contract Extension
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DESCRIPTION: Authorization to Execute a One-Year Contract Extension with LabMar Ferry Services, LLC |
AGENDA NO: Click or tap here to enter text. |
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ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
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To authorize the Chief Executive Officer to execute a one-year extension of the current agreement with LabMar Ferry Services, LLC, through December 31, 2026, in an amount not to exceed $10,525,778.00 as outlined in the draft 2026 operating budget.
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ISSUE/BACKGROUND:
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The current agreement with LabMar Ferry Services, LLC, for ferry operations and maintenance services is set to expire on December 31, 2025. A one-year extension is recommended to maintain operational continuity and ensure successful completion of major infrastructure projects currently underway. These projects include the renovation of the Algiers Point Ferry Terminal, procurement and installation of two new ferry landing barges, and integration modifications to support the use of the BELLE CHASSE II as a backup vessel. LabMar’s active role in these projects has been instrumental, and their institutional knowledge is critical to timely and effective delivery. Transitioning to a new operator at this stage would introduce delays, operational risks, and increased transition costs.
A competitive bid solicitation for ferry operations and maintenance services is anticipated to be issued in 2026 to identify a long-term contractor following the expiration of this one-year extension.
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DISCUSSION:
LabMar has been integrally involved in ferry operations and the design and planning of associated infrastructure. Their familiarity with the vessels, landing barges, and facility requirements ensures that ferry services continue safely and efficiently during project implementation. In addition, LabMar’s technical expertise is crucial for the upcoming integration modifications necessary to accommodate the BELLE CHASSE II vessel. This contract extension is supported by formal justification and aligns with the extension provisions in Section 4 of the existing agreement.
FINANCIAL IMPACT:
The 2026 draft budget estimates a total cost of $10,525,778.00 for continued ferry operations and maintenance. This amount includes base operational costs, surge service support for major events, and RTA-requested items such as emergency drydocking and janitorial services.
The anticipated funding sources are as follows:
• $5,140,000 - State of Louisiana (Long-term Cooperative Endeavor Agreement with LADOTD)
• $1,800,000 - State Transportation Fund
• $1,200,000 - Ferry Passenger Fare Revenue
• $1,700,778 - RTA General Operating Revenue
• $685,000 - Preventive Maintenance funding through the Federal Transit Administration (FTA)
Funding will be included in the FY2026 operating budget and supported by the sources listed above.
NEXT STEPS:
Upon Board approval, the CEO will execute the extension agreement and coordinate with LabMar to ensure continuity of ferry services into the 2026 calendar year. Final budget allocations will be confirmed during the FY2026 budget adoption process.
ATTACHMENTS:
1. Resolution
2. Existing Agreement with LabMar Ferry Services, LLC
3. 2026 LabMar Ferry Contract Cost Estimate
4. LabMar Contract Amendment
5. 2025 Purchase Order
Prepared By: Anitra Honore
Title: Senior Administrative Analyst
Reviewed By: Brian Marshall
Title: Chief Transit Officer
Reviewed By: Gizelle Banks
Title: Chief Financial Officer
8/11/2025
Lona Edwards Hankins Date
Chief Executive Officer