SR-09-29-2015-3D
City Council
Report
City Council Special Meeting: September 29, 2015
Agenda Item: 3.D
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To: Mayor and City Council
From: Edward King, Director, Big Blue Bus, Transit Maintenance
Subject: BBB Fare Collection System Refurbishment
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute a sole source contractual
services agreement with SPX Genfare, an Illinois-based company, to refurbish
the existing fare collection system. This is a two year contract in an amount not
to exceed $3,401,394 (including a $150,000 contingency), with future year
funding contingent on Council budget approval;
2. Authorize the City Manager to issue a Notice to Proceed to SPX Genfare to
refurbish the existing fare collection system.
3. Authorize the Director of Transit Services to issue any necessary changes to
complete additional work within contract authority.
Executive Summary
The fare collection system and fareboxes installed in Big Blue Bus’ (BBB’s) fleet, which
were provided by SPX Genfare (formerly GFI), are in need of refurbishment. Staff
recommends a sole source award to SPX Genfare, an Illinois-based company, for the
refurbishment for an amount not to exceed $ 3,401,394, including sales tax and
contingency.
Background
BBB is equipped with an SPX Genfare fare collection system on its buses and in the
counting room. The 189 fareboxes across BBB’s fleet serve over 18 million passengers
annually. The fareboxes accept coin, cash, and magnetic passes and issue day passes.
The fareboxes were purchased through a contract with SPX Genfare that was ap proved
by Council in May 1998. The counting room vaults were approved in September 2002
and installed during the construction of the BBB’s Fuel and Wash Facility, which was
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completed in mid-2003. BBB has spent a total of $4.4 million with SPX Genfare since
1999.
Discussion
BBB’s current fare collection system is 17 years old and the counting room vaults are
approximately 13 years old. In order to offer customers seamless travel between Los
Angeles County regional systems, BBB installed LA Metro’s TAP mobile validators in
the Spring of 2015, enabling customers to use TAP cards for fare payment in place of
cash and fare media that are only accepted on the existing fareboxes. While many BBB
passengers have migrated over to the Metro TAP system, BBB fareboxes sti ll handle
over 90% of transactions with almost 50% of those transactions cash fare collection.
The fareboxes are in constant use with high rates of failure. Signs of excessive wear on
the units are apparent. A recent inspection of the fareboxes and cash vaulting systems
revealed that while some of the fare handling components within the fareboxes
themselves are in acceptable condition, many components are in need of replacement.
The farebox housing units display signs of rust and the mechanical components show
excessive play and are out of alignment. The cashbox receivers contained within the
fareboxes display rust and the door hinges show excessive wear, with many out of
alignment. The Ticket Reader/issue Machine (TRiM) units within the fareboxes also
show signs of rust and wear on the mechanical parts used to create and issue fare
media. The TRiM, which contains many moving mechanical components, is used to
issue and activate BBB’s magnetic passes, such as current day passes, a popular form
of fare media.
In contemplating next steps for a fully functioning fare collection system, BBB staff
considered the feasibility of using the existing fare collection system until a new regional
fare collection system was launched. BBB, other regional transit operators, and LA
County Metro (Metro) are engaged in a process to define future needs for the
replacement of TAP, the current regional fare collection system, and identify a singular
system that can be used throughout the region. A regional fare collection task force
comprised of Metro staff, a consultant, and the general managers of several large Muni
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Systems has held three workshops to begin the development of the next generation
system (TAPII). Eventually, this process will transition to the procurement and launch of
a new region-wide fare collection system, but this will not be completed for at least
another five to six years.
Due to the high number of failures as well as the difficulty of maintaining the system and
with obtaining replacement parts, it is not feasible to continue using the existing farebox
system as is for another five or more years. By refurbishing existing fareboxes and
vaults as well as upgrading the back end software, BBB would extend the useful life of
the SPX Genfare equipment for an additional five to ten years. W hen the next
generation of regional fare collection becomes available, BBB would be in a position to
align itself with that launch.
Full replacement of BBB’s existing fare collection system with all-new components
would not only be much more costly than refurbishment (a replacement fare system with
all new components is estimated to cost between $4,200,000 and $7,200,000) but could
place BBB in the position of having to retire a new fare system prior to the end of its
useful life when the regional fare collection system becomes available.
In terms of refurbishment specifications, it is recommended that the farebox housing be
replaced and the functions of the internal components within the existing fareboxes
replicated within the new farebox housing. Given the importance of their function and
volume of use, the TRiM units would be refurbished, separately, prior to installation
within the new farebox housing units.
The vault receivers installed in the counting room also require refurbishment due to
excessive wear from the metal-on-metal contact that occurs during the cash collecting
and vaulting procedures. The vault room equipment and infrastructure would remain
the same. The back end fare collection software was last upgraded in 2011. As part of
the refurbishment effort, the fare collection software would be upgraded to the current
release which would improve performance and reliability while enhancing functional and
reporting capabilities.
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Vendor/Consultant Selection
Staff recommends that SPX Genfare, the original manufacturer of the fareboxes,
refurbish the existing fare collection system and its related components on a sole
source basis. SMMC 2024.080 Exceptions to Competitive Bidding (d) Competition doe s
not exist because only one vendor possesses the unique ability or capability to meet the
particular requirements of the solicitation, such as a good or service that is copyrighted,
patented or otherwise only available from one license holder.
The fare collection system that would be refurbished has proprietary hardware and
software that can only be supplied and serviced by SPX Genfare. In addition, the
refurbishment would include genuine SPX Genfare components and software for which
only SPX Genfare can provide warranty and service. Based on the proprietary hardware
and software, and the ability to provide Original Equipment Manufacturer (OEM)
warranty, SPX Genfare is the only vendor that can refurbish the current Genfare fare
collection system.
Refurbishment by SPX Genfare would also ensure compatibility with the existing
electronic fare data extraction system, which extracts fare data from onboard fareboxes
and opens the cashbox compartment so the cashbox can be removed and cash fares
can be deposited in a secure vault.
A refurbishment by SPX Genfare at this time is economically sound as it would
eliminate the need for major infrastructure modifications to the facility that houses the
cashbox vaulting and the money counting systems. In addition, essential components
such as the TRiM units, which only fit inside of SPX Genfare’s farebox housing units,
would be refurbished and reused. SPX Genfare is the only vendor that can refurbish the
Genfare fare collection system using genuine OEM components and software. Lastly,
SPX Genfare is the only vendor that can provide an OEM warranty.
In accordance with SMMC 2.24.080(a), staff recommends a sole source award to SPX
Genfare for the refurbishment of the existing fare collection system and its related
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components for an amount not to exceed $ 3,401,394.
Financial Impacts and Budget Actions
The contract to be awarded to SPX Genfare is for an amount not to exceed $3,401,394
(including $150,000 contingency). Funds are available in the FY 2015 -16 Capital
Improvement Program budget. The contract will be charged to account
C410099.589000. Future year funding is contingent on Council budget approval.
Refurbished fareboxes $2,830,700
Refurbished garage/vaulting systems $138,610
Tax $282,084
Contingency $150,000
Total $3,401,394
Prepared By: Getty Modica, Transit Maintenance Officer
Approved
Forwarded to Council
Attachments:
A. Authorize the City Manager to Negotiate and Execute An Agreement with GFI
Genfare (web link)
B. Purchase Order for the Purchase and Installation of Bus Stationary Vaults (web
link)
Reference:
Agreement No. 10910
(CCS)