Loading...
sr-061212-3b0 Yof City Council Report Santa Monica' City Council Meeting: June 12, 2012 Agenda Item: J F% To: Mayor and City Council From: Edward F. King, Director of Transit Services Subject: Purchase and Delivery of Fifty -eight Forty -foot Low Floor Compressed Natural Gas Powered Buses Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a contract in the amount of $30,626,936 with Gillig LLC, a California -based company, to furnish and deliver up to 58 forty -foot, low floor, Compressed Natural Gas (CNG) powered transit buses over a two -year period, Fiscal Years 2012 -13 and 2013 -14. Executive Summary Santa Monica's Big Blue Bus (BBB) developed a capital improvement program to replace aging buses as they approach the end of their useful service. The Federal Transit Administration guidelines set the useful life of a transit vehicle at 12 years of age. Buses to be replaced with this award are 15 years old. Buses at this age are more costly to maintain than newer buses. The buses are also equipped with diesel engines although they are powered with bio- diesel fuel that meets alternative fuel requirements. The purchase of the 58 CNG buses would enable the BBB to eliminate all diesel engine transit buses from the fleet so that the entire BBB transit fleet is powered with alternative fuel. Federal purchasing regulations allow transit properties to procure vehicles and equipment by "piggybacking" on another agency's purchase. Piggybacking is the post - award use of a contractual process that allows an agency that was not involved in the original competitive procurement to purchase the same supplies /equipment through that original process. The BBB has the opportunity to participate on the State of Minnesota contract agreement with Gillig LLC, which would allow the City to expedite the 1 purchasing process and enable BBB to replace vehicles approximately eight months earlier than issuing a separate Request for Proposal. The total order cost of $30,626,936 would be funded using Federal /State grants and County transit sales tax funds. Discussion The BBB currently operates 58 New Flyer buses purchased in 1997. The Federal Transit Administration guidelines set the useful life of a transit vehicle at 12 years. BBB has a capital improvement program to replace aging buses as they approach the end of their useful service and these 58 buses have been identified for replacement. With the replacement of these buses the entire BBB fleet will be powered by alternative fuel engines. In November and December 2011, staff evaluated four 40 -foot buses provided by different manufacturers. The evaluation allowed motor coach operators to drive the buses. Maintenance technicians evaluated vehicle components. Motor coach cleaners inspected buses and put them through the service lane and fuel island. All employees who participated in this cross functional process provided feedback using a technical rating sheet to score their likes /dislikes of the vehicle. As a result, the list of potential vendors for consideration was reduced to three manufacturers. Due diligence for these three buses and detailed discussion with each vendor took place in February 2012. This process included analysis of technical specifications, production timeline, and pricing of vehicles and support service /spare parts. Staff also evaluated piggybacking (assignment) options currently available with each respective vendor. Piggybacking is the post -award use of a contractual process that allows an agency that was not involved in the original competitive procurement to purchase the same supplies /equipment through that original process. Under this procedure,. the original purchaser may assign the option for additional units to another 2 agency. Comparing this process to developing and issuing an RFP, BBB sought to obtain the most competitive price as a result of volume discounts afforded by vendors of large orders. Staff also contacted transit agencies that had recently purchased buses through these programs and vendors. A cost analysis comparing pricing with existing assignment options was conducted for the three finalists, North American Bus Industries, Inc. (NABI), New Flyer of America, and Gillig LLC (Attachment A) The pricing for NABI was determined based on the option clause under the current contract that was awarded by Council on February 23 2010 while both New Flyer and Gillig were based on recent procurements completed by San Diego NITS and the State of Minnesota respectively, with the manufacturers confirming the costs reported by the purchasing agencies. Both San Diego MTS and Minnesota conducted a competitive bid process governed by federal requirements, making the assignment of buses applicable to Santa Monica. Staff also reviewed both competitive bid processes to ensure that they met the City's Municipal Code Section 2.24.080, Competitive Bid Requirements, and concluded that both Minnesota's and San Diego's bid processes complied with the City's requirements. All required federal certifications have been received by the manufacturers from the agencies through the competitive bid process. Pricing was compared on the cost of the base bus plus the costs of extended warranties for the engine and transmission, spare parts, Americans with Disabilities Act equipment and delivery charges. The comparison summarized in Attachment A shows that Gillig's proposal would cost $2,320,738 less than exercising an option on the existing contract with NAB[, and $1,240,324 less than an option with New Flyer of America. The vendor that provided the most responsive and best pricing was Gillig LLC, a Hayward, California bus manufacturer. Gillig has been manufacturing buses for over 100 years and is the second largest producer of transit buses in North America. They 3 produce an average of 1,200 to 1,300 buses per year for transit systems throughout the country. They are recognized as providing a high quality transit bus to their customers and providing a high level of service after the sale. As noted in Attachment A, the base bus will include all major components plus heating /air conditioning, Advanced Fleet Management System components, the G.E. Mobileview Penta 8 digital security camera system, and Recaro seats for operator comfort. The Big Blue Bus contacted the State of Minnesota for assignment on the existing contract between Minnesota and Gillig LLC. On March 26, 2012, BBB received confirmation that Minnesota would assign 58 buses from its 650 bus contract with Gillig LLC to the City of Santa Monica at the agreed upon cost and pricing structure of their current contract. Under Municipal Code Section 2.24.080, the State of Minnesota contract with Gillig LLC meets the Code requirements for piggy -back purchases. The State's contract pricing is available to BBB for procurement of the Gillig bus specified in the contract document between Gillig LLC and the State of Minnesota. Staff recommends that the City contract with Gillig LLC to purchase up to 58 coaches for a total amount of $30,626,936. Financial Impacts & Budget Actions The contract to be awarded to Gillig LLC is $30,626,936 for: 58 Transit Coaches $24,668,560.00 Extended Warranties $469,800.00 Spare Parts $366,265.02 Tax $2,359,177.81 ADA Equipment & Delivery $1,910,114.00 Contingency $853,019.00 0 Funds are included in the FY 2012 -13 CIP at C410519.589000. Future funding is contingent upon Council approval. Prepared by: Patrick Campbell, Chief Operations Officer Approved: Edward F. King" Director of Transit Attachment: A. Cost Analysis Forwarded to Council: 4 Rod Gould City Manager ATTACHMENT A CNG 40 -FOOT BUS ORDER contingency 853,018.50 Contract Amount 30,626,935.33 NAB[ NEW FLYER GILLIG Base Bus 469,298.00 464,185.32 425,320.00 Extended Warranty - Engine 5,455.00 8,100.00 6,000.00 Extd. Warranty - Transmission 2,455.00 2,916.00 2,100.00 Tax (9.25 %) 43,410.07 42,937.14 40,091.35 Subtotal 520,618.07 518,138.46 473,511.35 ADA Equipment /Delivery 24,861.00 15,442.47 32,933.00 Cost per Bus - 545,479.07 533,580.93 506,444.35 Total Cost (58) buses - 31,637,785.77 30,557,371.50 29,373,772.30' Spare Parts 418,187.00 418,187.00 366,265.02 Tax 38,682.30 38,682.30 33,879.51 Subtotal 456,869.30 456,869.30 400,144.53 Total Cost of 1st Order 32,094,655.07 31,014,240.80 29,773,916.83 contingency 853,018.50 Contract Amount 30,626,935.33 Reference Contract No. 9591 (CCS).