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SR-09-29-2015-3D City Council Report City Council Special Meeting: September 29, 2015 Agenda Item: 3.D 1 of 5 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 2 of 5 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 3 of 5 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. 4 of 5 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 5 of 5 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)