R2017-91 Professional Services Agreement with Quetica, LLC for Decatur Supply Chain Study CP 2014-06

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computer algorithms and tools to provide supply chain and transportation consulting solutions to help organizations reduce their costs, increase profitability and efficiency. Quetica will apply proven supply chain network design and optimization methodology and technologies, as well as linear and integer programming algorithms*,to City's supply chain network planning and optimization initiative. The results of the analysis will provide the City with a strategy to address the most critical network constraints, as well as where to invest to grow revenue. PROJECT PROCESS Phase 1: Discovery Assess the Region's current network and operations, data availability and quality,processes and practices. Analyze constraints in supply chain operations to identify opportunities for operational improvement and new revenue generation. The assessment will include a representative sampling of stakeholders dependent on the availability of stakeholder data. The key findings will be documented in a discovery report. Quetica will collaborate with the City to complete the following tasks: 1.1 Stakeholder Interviews and Confidential Shipment Data Collection: Quetica will conduct interviews with up to ten(10) shipper and transportation service providers in the Decatur Area. When we interview the shippers, we focus on understanding their current supply chain network, future expansion plans, their network constraints, and recommendations on improvement. On the other hand, when we interview the transportation service providers, we focus on understanding the markets they serve,their challenges, and their feedback on network improvement opportunities. During these meetings, we will also seek permission to gain access to confidential shipment data to support the project. Quetica will sign a Non-Disclosure Agreement(NDA) with each of the companies and provide data requirement specification to collect relevant shipment data. Any exchange of data, whether through paper records or electronic data exchange will be conducted under the terms of Quetica's non-disclosure agreements. (It should be noted that due to the highly confidential nature of company shipment data, the client will not have access to this information). 1.2 Data Needs Assessment: Quetica will assess data available from public and private data sources for developing a network optimization model, document the data gaps, and develop a data strategy to address the data gaps. The data needs assessment include demand data assessment and network definition and capacity data assessment. Demand data includes current and forecasted commodity flow data into, out of, and within the study area. The proposed base year is 2014 and the forecast year is 2025. Quetica proposes to use the disaggregated FAF-4 domestic commodity flow data, disaggregated IL import/export data, and desensitized and aggregated private shipment data for freight network optimization. The network definition and capacity data includes network capacity and node data for Decatur's road, rail and intermodal networks. Quetica will also collect Last Revised:2017-06-01