SR-1000-001-07 (6)
BBB:SN:JS:RM:f\trans\admin\council\NewFlyerBuses.doc
Council Meeting: September 9, 2003 Santa Monica, California
To: Mayor and City Council
From: City Staff
Subject: Award of a Contract to New Flyer of America to Purchase Fifty-two
(52) New Forty-Foot (40’), Low-Floor, Liquefied Natural Gas (LNG)
Powered Transit Buses and Miscellaneous Spare Parts, with an
Option to Purchase up to Twenty (20) Additional Buses in Fiscal
Year 2004-05
Introduction
This report recommends that the City Council award a contract to New Flyer of
America (New Flyer) to furnish and deliver 52 new forty-foot (40’), low-floor, LNG
powered buses, including miscellaneous spare parts in the amount of
$21,434,677. These buses will replace 52 buses that currently exceed 12 years
of age. The bid also includes an option to purchase 20 additional buses. This
option may be exercised in fiscal year 2004-05 at the City’s discretion.
Background
Santa Monica’s Big Blue Bus developed a capital improvement program to
replace aging buses as they approach the end of their useful service. Federal
Transit Administration (FTA) guidelines set the useful life of a transit vehicle at 12
years of age. Experience indicates that buses exceeding this age are more costly
to maintain and suffer from major body corrosion due to the City’s proximity to
the ocean. In Fiscal Year 2002-03, 22 buses were scheduled for replacement
1
and in Fiscal Year 2003-04, 30 more buses will have exceeded their useful life
and are scheduled for replacement. A review of the condition of the current fleet
indicates that replacement of these vehicles should not be delayed. Additionally,
20 replacement buses are programmed in FY 2004-05.
Discussion
The Big Blue Bus was contacted by Long Beach Transit (LBT) to inquire about
the City’s interest in participating in their Request For Proposal (RFP) for the
procurement of LNG buses. The specifications for the forty-foot, low floor, LNG
buses included in the Long Beach RFP are similar to those required by the Big
Blue Bus. As a result, the City of Santa Monica requested that they be added to
the RFP and that respondents provide pricing for delivery of similar vehicles to
Santa Monica’s Big Blue Bus.
Participating in the LBT bid allowed the City to expedite the purchasing process
and will enable the Big Blue Bus to replace vehicles approximately eight months
earlier than would otherwise be possible. Receiving early delivery of the vehicles
reduces the costs associated with maintaining older vehicles.
The RFP was published by LBT and bids were received and opened in April
2003. The following two proposals for the forty-foot LNG buses were received:
2
Base Bid for 52 BusesNABI Inc.New Flyer
Price includes Base Bus, ADA Accessibility
$ 377,359 $ 372,581
Equipment, sales tax, and delivery charge
Price for 52 Buses$19,622,668$19,374,212
Spare Components including sales tax $ 122,356 $ 111,858
Total Contract Amount$19,745,024$19,486,070
Contingency (10%) $1,974,502 $1,948,607
Contract Amount for 52 buses $21,719,526$21,434,677
Option #1 for 20 BusesNABI IncNew Flyer
Price includes Base Bus, ADA Accessibility
$377,359 $380,665
Equipment, sales tax, and delivery charge
Total Price for 20 Buses$7,547,180$7,613,300
Grand Total$29,266,706$29,047,977
The contingency amount is to cover substitution of certain bus components to
provide commonality with components currently used on City of Santa Monica
buses.
Financial/Budgetary Considerations
Funds are available in the Transportation Fund for the purchase of fifty-two (52)
buses at $400,000 per bus.
$22,233,318 in CIP Account: C41051902.589000.
Appropriation authority for the additional option will be as set forth in FY 2004-05
budget. The option will be at the discretion of the City and will not be exercised
until funds have been appropriated.
3
Recommendation
City staff recommends that the City Council award a contract to New Flyer of
America for the purchase of fifty-two (52) new forty-foot Low-Floor LNG powered
transit buses with miscellaneous spare parts and one (1) additional option for
twenty (20) buses in fiscal year 2004-05.
Prepared by: Stephanie Negriff, Director of Transit Services
Joseph Stitcher, Assistant Director of Transit Services
Ralph Merced, Transit Maintenance Manager
4