An official State of Kansas government website.

Government Website icon

The .gov means it's official.
A .gov website belongs to an official government organization in the United States.

Padlock icon

The site is secure.
The https:// or lock icon ensures you're safely connected to the website and any information you provide is encrypted.

Publications iconKansas Register

Print icon

Volume 44 - Issue 6 - February 6, 2025

(Published in the Kansas Register February 6, 2025.)

South Kansas & Oklahoma Railroad

Request for Proposals

Request for Proposal

South Kansas and Oklahoma Railroad, L.L.C. – Southeast Kansas Short Line Rail Upgrade and Growth Project (“FY22 CRISI Rehabilitation Project”)

Confidentiality and Disclaimer

This Request for Proposal (“RFP”) has been prepared by Watco Companies, L.L.C. (“WATCO”) on behalf of its South Kansas and Oklahoma Railroad, L.L.C. (“SKOL”) and is being delivered to a limited number of external services and/or material providers (“Suppliers”) who, it is believed, may be interested in submitting a response. While the information contained herein is believed to be accurate, WATCO expressly disclaims any and all liability for representations, expressed or implied, contained in, or for omissions from, this RFP or any other written or oral communication transmitted to any interested party in the course of its evaluation. Only those particular representations and warranties, which may be made by WATCO in a definitive written agreement, when and if one is executed, and subject to such limitations and restrictions, as may be specified in such agreement, shall have any legal effect.

This document, and any attachments thereto, regardless of form or medium, is intended only for use by the addressee(s) and may contain legally privileged and/or confidential, copyrighted, trademarked, patented, or otherwise restricted information viewable by the intended recipient only. If you are not the intended recipient of this document (or the person responsible for delivering this document to the intended recipient), you are hereby notified that any dissemination, distribution, printing or copying of this document, and any attachment thereto, is strictly prohibited and violation of this condition may infringe upon copyright, trademark, patent, or other laws protecting proprietary and, or, intellectual property. In no event shall this document be delivered to anyone other than the intended recipient or original sender and violation may be considered a breach of law fully punishable by various domestic and international courts. If you have received this document in error, please respond to the originator of this message or email him / her / them at the address below and permanently delete and/or shred the original and any copies and any electronic form this document, and any attachments thereto and do not disseminate further.

Company Overview: South Kansas & Oklahoma Railroad

The SKOL is a 458.7-mile long (738.2 km) Class II short line railroad operating across rural Kansas and Oklahoma. The SKOL and its parent company, WATCO, own the underlying real estate and railroad right of way. It transports nearly 60,000 loaded railcars annually and is powered by more than 42 locomotives and 120 team members. The broad customer base served by the SKOL represents a commodity mix comprised of crude oil, grain and grain products, cement, coal, chemicals, steel, and plastics. The railroad began operations in 1987. SKOL’s Track Charts and Timetable can be referenced on the SKOL Rehabilitation Project website at https://www.watco.com/skol-2025-crisi-project.

Project Background and Scope of Work

This project (KDOT Project No. 70-24 RA-5412-24) provides for the rehabilitation of 49 at-grade crossings, installation of 37 miles of continuous welded rail (CWR) and surfacing of 37 miles of mainline track on the Neodesha subdivision between milepost 350.0 – 387.0 in the cities of Sherwin, Kansas and Cherryvale, Kansas in the counties of Cherokee, Labette, and Montgomery (“Project”). This upgrade will allow the SKOL to increase its load carrying capacity to 286,000 lbs. and upgrade to FRA Class 2 track standard from Class 1 track and be eligible to compete in the Class I-unit train program.

  1. Neodesha Subdivision Surfacing (MP 350.0-387.0) – Provide all necessary labor, equipment, and logistical services to dump ballast and surface mainline track.
  2. Continuously Welded Rail Installation (MP 350.0-387.0) – Provide all necessary labor, equipment, and logistical services to install CWR on the Neodesha East Subdivision of the SKOL.
  3. Rehabilitation Of 49 At-Grade Crossings – Provide all necessary labor, equipment and logistical services to complete rehabilitation and crossing upgrade work including: installation of ties, rail (with the exclusion of CWR scope), ballast and any other ancillary work.

To assist with the funding of the Project, the Federal Railroad Administration (FRA) selected the Kansas Department of Transportation (“KDOT”) to receive a grant under the Consolidated Rail Infrastructure and Safety Improvements (CRISI) program for the SKOL’s “Southeast Kansas Short Line Rail Upgrade and Growth Project.” Under this award, the KDOT and SKOL will provide a 20% non-federal match. In consideration for the foregoing and to ensure that the Project remains in the best interest of the people of the State of Kansas, this RFP and any subsequent contract entered therefrom, or work provided for the Project will be subject to the requirements of the Grant Agreement between the FRA and KDOT in conjunction with the agreement between KDOT and the SKOL.

Request for Proposal Intentions

The overall format of this RFP is designed to reflect to a prospective partner the scale of such an undertaking and document factors that create value in such a relationship. While this RFP is not an offer to contract, it represents a definition of specific functions and environments and an invitation to submit a proposal for selected Services.

Issuance of this RFP, preparation, and submission of a response by Suppliers, and the receipt and evaluation of Supplier’s responses by WATCO does not commit WATCO to award a contract to any bidder, regardless of the extent to which RFP requirements are met.

WATCO may modify the Project scope in whole or in part and/or may seek additional Supplier submissions. Only execution of a written contract will obligate WATCO to the terms and conditions contained in said contract. The RFP response and all supporting reference documentation submitted by the selected provider will be included in the final contract between WATCO and said Supplier. All requirements described in the RFP may become part of the contract, notwithstanding their omission from this section. Suppliers are invited to supply any standard form of agreement they prefer to use, so that WATCO may become familiar with the provisions contained therein.

Steps Involved in this Request for Proposal

  1. Issuance of RFP.
  2. Site visit/pre-bid meeting.
  3. Supplier question submittals.
  4. WATCO’s response to questions.
  5. Proposal deadline.
  6. Internal review of proposals.
  7. Agreement award.
  8. Contract issuance and execution.

Work Modifications

WATCO may request changes, additions, or reductions in the work under this contract. Supplier shall comply with those requests subject to an equitable adjustment in the contract price and schedule. Supplier shall not undertake any additional work without the express prior authorization of WATCO.

Preparation Costs

Costs incurred by the Suppliers in preparation of proposals in response to this RFP, shall be borne by said Suppliers. The rejection of any proposal, in whole or in part, will not render WATCO liable for such costs or damages arising from proposal preparation.

Proposal Evaluation

An evaluation team will review and determine which proposal(s) best meets WATCO, SKOL, KDOT, and FRA/CRISI requirements based on the Supplier’s responses in the RFP and its attachments.

All parties receiving and/or otherwise acquiring this RFP acknowledge that, in proceeding with an RFP response, WATCO will exercise discretion in its review and decision process. Each party submitting a response understands and agrees that it shall not assess any cause or action or claim in such party’s favor against WATCO, SKOL, or any person, firm, or legal entity associated with WATCO as a result of the exercise of such discretion.

WATCO reserves the right to reject, in whole or in part, any and all proposal submissions and award a contract or contracts as it sees fit. WATCO may choose to award separate contracts for various functional components, or to a sole Supplier based on the satisfaction of the interests being evaluated. Although WATCO will exercise its professional judgment in these matters, WATCO or any person, firm, or legal entity associated with WATCO because of the exercise may, in no way, be held liable for any direct or indirect actions arising out of the RFP process.

Evaluation Team Members

The WATCO evaluation team will be comprised of the following members:

  • Mike Mulnix, Roadmaster, SKOL
  • Jerod Gofourth, Assistant Roadmaster, SKOL
  • Jerry Waun, General Manager, SKOL
  • Cody McGee, Division Engineer, WATCO
  • Cameron Ginther, Director of Infrastructure, Division 1 and 2, WATCO
  • Patrick Forbes, VP of Operations, Division 1 and 2, WATCO
  • Alicia Stimpson, Purchasing Manager- Projects, WATCO
  • Shannon Kondracki, Track Engineering Buyer, WATCO
  • Jessica Lynn, Purchasing Manager–Engineering Services, WATCO

Evaluation Criteria

The contract will be awarded at WATCO’s sole discretion to the supplier whose proposal offers the best value based on the following (but not limited to) criteria:

  • Safety – Plan to ensure both WATCO and contractor safety criteria are met.
  • Timeliness – Ability to quickly deliver the work and provide supporting plan/timeline.
  • Cost of proposed project.
  • Sustainability Plan – Disposal and/or repurposing.
  • Quality of proposal and project management.
  • Ability to meet FRA/CRISI, KDOT, WATCO, and SKOL project requirements as outlined below.

All proposals will be reviewed for completeness and evaluated to provide WATCO with one or more “best value” strategies.

Mandatory Terms and Conditions for Submissions

By providing a submission in response to this RFP, Supplier, on behalf of itself and its subcontractors, understands and agrees that if Supplier’s submission is selected, any subsequent agreement between SKOL and Supplier shall be subject to the following:

WATCO’s Supplier Setup Process

  1. Complete supplier onboarding process in Coupa if supplier is not already set up in WATCO’s supplier database.
  2. Agreement to payment terms of Net 60.
  3. Suppliers current W-9, dated within 18 months of bid submission date.
  4. Executed WATCO Master Services Agreement (“MSA”) – located on the SKOL Rehabilitation Project website.
  5. Provide current Certificate of Insurance meeting requirements outlined in Exhibit C within the MSA:
    1. Including Railroad Protective Liability or Equivalent:
      1. $2M/Occurrence and $6M Aggregate
  6. Provide current EMR data sheet (Exhibit D within the MSA).
  7. For Contractors: The executed SKOL Track Services and Materials Agreement for this Project- located on the SKOL Rehabilitation Project website.
  8. For Material Suppliers: The executed SKOL Material Supply Agreement for this Project- located on the SKOL Rehabilitation Project website.
  9. If the responding Supplier is a qualifying DBE, M/WBE or SDVOB, or would expect to subcontract with any qualifying DBE, M/WBE, or SDVOB business, please include a certificate that includes the Agency name, effective date, and expiration date in your submission.

WATCO’s Contractor Safety Compliance

  1. Contractor, contractor employees, agents, and/or subcontractors must fully comply with all applicable FRA Railroad Workplace Safety Rules 49 C.F.R. Part 214.
  2. Contractor, contractor employees, agents, and/or subcontractors must be enrolled in an FRA 219 approved drug testing program. As of May 1, 2021, all contractors who are considered “Roadway Workers” per 49 CFR Part 243 will be required to have an FRA 243 Training Program in place:
    1. Provide copies of your FRA 219 and 243 acceptance letters.
  3. Complete MOW Contractor Safety with WATCO RWIC Qualifications course at http://www.watcocontractor.com. Instructions and more detailed course information can be found on the SKOL Rehabilitation Project website.

WATCO’s Additional Requirements

  1. Compliance with WATCO’s Track Specifications (Grade Crossing Specifications, CWR Policy 2024, Surfacing Specifications and Ballast Specifications)–all are located on the SKOL Rehabilitation Project website.
  2. Permits: Contractor is responsible for all federal, state and local permits required for the work.
  3. Utilities: Contractor is responsible for locating and protecting site utilities.
  4. Schedule: Contractor is responsible for providing a schedule for the completion of the work.
  5. Site Clean-Up: Contractor is responsible for site restoration and proper disposal of materials removed.
  6. Work Reporting: Daily work reports must be filled out and submitted to SKOLFY22CRISI@watco.com. An example of the Daily Work Report can be found on the SKOL Rehabilitation Project website:
    1. A detailed summary report must be submitted at the completion of the project.
  7. Work Windows: Impact to current railroad operations must be kept to a minimum. When work must take place that causes an active track to be taken out of service for the purposes of performing work that pertains to the to the project, the contractor must pre-arrange a defined work window with the railroad. This topic will be further discussed and clarified during the pre-proposal meeting.

FRA/CRISI Project Requirements for Contractors

Supplier will indemnify and hold SKOL/WATCO harmless from Losses (as defined in the MSA) arising from Supplier’s breach of such requirements:

  1. Compliance with Consolidated Rail Infrastructure and Safety Improvements Clauses Attachment 1A – can be referenced on the SKOL Rehabilitation Project website:
    1. Compliance with Buy America Provisions under 49 U.S.C. § 22905 (a) and 49 C.F.R. Part 661 for steel, iron, and manufactured products (“Buy America Rules”):
      1. Evidence of compliance with the Buy America Rules shall be provided to SKOL with both (1) a letter on Seller’s letterhead stating that the goods conform to all applicable Buy America Rules, and (2) a Certificate of Compliance pursuant to 49 CFR 661.6 substantially in form as described therein and can be found on the SKOL Rehabilitation website.
    2. Compliance with the domestic preference requirement Build America, Buy America Act (BABA), Public Law 117-58, § 70914 for construction materials.
    3. Compliance with Domestic Preferences for Procurements under 2 C.F.R § 200.322:
      1. The recipient or subrecipient should, to the greatest extent practicable and consistent with law, provide a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States (including but not limited to iron, aluminum, steel, cement, and other manufactured products). The requirements of this section must be included in all subawards, contracts, and purchase orders under Federal awards.
      2. For purposes of this section:
        1. “Produced in the United States” means, for iron and steel products, that all manufacturing processes, from the initial melting stage through the application of coatings, occurred in the United States.
        2. “Manufactured products” means items and construction materials composed in whole or in part of non-ferrous metals such as aluminum; plastics and polymer-based products such as polyvinyl chloride pipe; aggregates such as concrete; glass, including optical fiber; and lumber.
    4. Compliance with Davis-Bacon Act Requirements under 49 U.S.C. § 24312.

KDOT Project Requirements for Contractors

Supplier will indemnify and hold SKOL/WATCO harmless from Losses (as defined in the MSA) arising from Supplier’s breach of such requirements:

  1. Compliance with Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 U.S.C. § 2000d to 20000d-4), Kansas Department of Transportation Civil Rights Act Attachment – can be reference on the SKOL Rehabilitation Project website.
  2. Compliance with the Contractual Provisions Attachment (State of Kansas Department of Administration Form DA-146a Rev. 07-19) – can be reference on the SKOL Rehabilitation Project website.
  3. Compliance with the State of Kansas Policy Regarding Sexual Harassment, Discrimination, and Retaliation– can be reference on the SKOL Rehabilitation Project website.
  4. Compliance with the Certification of Company Not Currently Engaged in a Boycott of Goods or Services from Israel (K.S.A. 75-3740 e and 75-3740f. f) – can be referenced on the SKOL Rehabilitation Project website.
  5. For service contracts, Completion of a Certificate certifying compliance with K.S.A. 46-239(c) regarding contracts with Kansas legislator or firm of which a legislator is a member and substantially in the form Attachment provided on the SKOL Rehabilitation Project website.
  6. Supplier shall provide all data information when requested and required for WATCO/SKOL to complete required progress reporting for the Project.

All parties receiving and/or otherwise acquiring this RFP acknowledge that, in proceeding with an RFP response, WATCO will exercise discretion in its review and decision process. Each party submitting a response understands and agrees that it shall not assess any cause or action or claim in such party’s favor against WATCO, SKOL or any person, firm, or legal entity associated with WATCO as a result of the exercise of such discretion.

WATCO reserves the right to reject, in whole or in part, any and all proposal submissions and award a contract or contracts as it sees fit. WATCO may choose to award separate contracts for various functional components, or to a sole Supplier based on the satisfaction of the interests being evaluated. Although WATCO will exercise its professional judgment in these matters, WATCO or any person, firm, or legal entity associated with WATCO because of the exercise may, in no way, be held liable for any direct or indirect actions arising out of the RFP process.

Bid Submission and Questions Contact

Main Point of Contact

Site Visit/Pre-bid Meeting Information

The pre-bid meeting will be held at 10:00 a.mm. Tuesday, February 25, 2025, at Cherryvale Community Center, 712 S. Liberty St., Cherryvale, KS 67335. Please reach out to Mike Mulnix for any questions related to this event. Contractors are encouraged to be present at this meeting. Additional project specific information can be found and referenced on the SKOL Rehabilitation Project website at https://www.watco.com/skol-2025-crisi-project.

Questions and Clarifications

All questions and/or clarifications to this request must be submitted electronically via email to SKOLFY22CRISI@watco.com. All questions and responses will be consolidated and shared with all participants in this RFP process. All questions must be received no later than 5:00 p.m. (Central Time) Friday, March 7, 2025.

WATCO/SKOL will provide answers to all participants no later than Friday, March 14, 2025.

Response Format and Requirements

Although this is an RFP, and detailed descriptions of your proposal will be needed, participants are expected to keep the proposal concise and to the point.

Participants shall submit one (1) electronic copy (via email) of their formal RFP response by completing the Unit Price Form in Exhibit A, including all supporting documentation, to SKOLFY22CRISI@watco.com as directed above on or before the due date and time for receipt of proposals. Do not send RFP responses to any other person at WATCO. Late proposals will be rejected. WATCO limits email document size to 25MB. Responses may need to be transferred to a zip file for delivery.

WATCO reserves the right to request minor modifications or clarifications and to determine what constitutes a minor modification. WATCO further reserves the exclusive right to reject any proposal, which does not, in WATCO’s judgment, serve its best interest.

Price Proposal

Although there could be several details in determining pricing, WATCO would prefer that the proposal be broken out by individual line items with a total sum for the project. Please refer to Exhibit A, Unit Price Form, for the bid submission format.

Schedule of Events–SKOL FY22 CRISI Rehabilitation Project

  • Request For Proposal Release: Thursday, February 6, 2025
  • Site Visit/Pre-bid Meeting: Tuesday, February 25, 2025
  • Supplier Question Submittal Deadline: Friday, March 7, 2025
  • Supplier’s Questions Answered: Friday, March 14, 2025
  • Proposal Due Date: Wednesday, March 26, 2025
  • WATCO Internal Review: Thursday, April 3, 2025
  • Agreement Award: Friday, April 11, 2025
  • Anticipated Contract Issuance: Friday, April 18, 2025
  • Anticipated Contract Execution (Formal Supplier NTP): Friday, May 2, 2025

Mike Mulnix
Roadmaster
South Kansas & Oklahoma Railroad
Watco

Doc. No. 052851

Secretary of State Seal