Meeting_Body
SYSTEM SAFETY, SECURITY AND OPERATIONS COMMITTEE
MARCH 15, 2018
Subject
SUBJECT: PROCUREMENT OF FIVE 60’ ARTICULATED ZERO
EMISSION TRANSIT BUSES
Action
ACTION: APPROVE RECOMMENDATIONS
Heading
RECOMMENDATION
Title
CONSIDER:
A. AUTHORIZING the Chief Executive Officer (CEO) to execute Modification No. 1 to the firm fixed price Contract No. OP28367-001, Part D, awarded to New Flyer of America (NF) for the:
1. Increase in the base contract procurement of 60 foot zero emission vehicles from a quantity of thirty-five (35) to forty (40);
2. Increase in the quantity of On-Route chargers from seven (7) to eight (8) and Shop chargers from one (1) to two (2); and
3. Increase the contract amount by $7,371,287, from $51,211,033 to $58,582,320.
B. AUTHORIZING the CEO to increase the price for Optional Vehicle Features, Spare Parts, and Training Aids by $530,575 from a not-to-exceed amount of $8,839,064 to a not-to-exceed amount of $9,369,639; and
C. INCREASING the life-of-project budget of CP 201073 from $72,101,419 to $80,003,282 for the purchase of forty zero emission buses, charging equipment, installation costs, infrastructure upgrades, and contingency.
Issue
ISSUE
Consistent with Metro Board direction, Metro is in the process of converting the Metro Orange Line (MOL) from 100% Compressed Natural Gas (CNG) operation to 100% Zero Emission Buses (ZEB) operation by 2020. Two of three contracts have been awarded to procure the forty-five ZEB’s required to fully electrify the line. One contract was issued to Build Your Dreams for five 60-foot ZEB’s; the other contract was awarded to New Flyer for thirty-five 60-foot ZEB’s. The intent was to procure the remaining five ZEB’s from NF under a contract partially funded by a special Low or No Emission (Lo/No) grant. The vehicles proposed under the third contract are identical to the vehicles that will be provided by NF under Contract No. OP28367-001, Part D. To make effective and efficient use of both Metro’s and New Flyer’s resources it is recommended to merge these contracts.
This action authorizes the amendment of Contract No. OP28367-001, Part D, to New Flyer for the addition of five 60-foot battery electric buses, associated charging equipment, price adjustments for Optional Vehicle Features, Spare Parts and Training Aids, and adjustment to the LOP.
Discussion
DISCUSSION
In April 2016, Metro was awarded a Federal Transit Administration (FTA) Lo/No grant in the amount of $4,275,000, with Metro responsible for the matching funds, for the purchase of five New Flyer 60-foot battery electric, articulated buses and charging equipment for deployment on the Metro Orange Line. At the time Metro was in the midst of a competitive solicitation for thirty-five 60’ battery electric articulated buses. To preclude potential conflict with the competitive solicitation, it was determined to be in Metro’s best interest to complete the solicitation before executing the contract for the five buses funded by the Lo/No grant.
In March 2017, the Metro Board awarded Contract No. OP29199 to BYD Motors for the procurement of five 60-foot Zero Emission Buses and charging equipment. These buses are a replacement of the five buses that were bought-back by BYD.
In July 2017, the Metro Board awarded Contract No. OP28367-001, Part D, to New Flyer of America for the procurement of thirty-five 60-foot Zero Emission Buses and charging equipment.
Following the successful completion of the competitive solicitation, staff evaluated the best options for exercising the contract for the buses funded by the Lo/No grant. The analysis determined that the most effective and efficient use of its resources is to merge the contract awarded to NF for the procurement of 35-quantity 60-foot ZEB’s with the contract to NF for the procurement of 5-quantity 60-foot ZEB’s funded by the Lo/No grant. However, such an approach will require approval by the Metro Board to modify awarded contract OP28367-001. The Contract will need to be modified as follows:
• Increase the quantity of vehicles from 35 to 40;
• Increase the quantity of associated on-route and shop chargers from 7 to 8 and 1 to 2; respectively;
• Increase in the associated costs for vehicles and chargers by $7,371,287;
• Increase the associated costs for Optional Features, Spare Parts, and Training Aids by $530,575; and
• Increase the LOP by $7,901,863 from $72,101,419 to $80,003,282.
Local Employment Program (LEP)
The contract award approval for the New Flyer 60-foot ZEB was made contingent upon New Flyer augmenting their LEP commitment to include program elements that New Flyer offered at the July 2017 Board meeting. The new contract elements were formally adopted by Director Bonin’s amendment to the award approval. The new LEP elements include:
• A commitment for New Flyer to create jobs that meet or exceed the living wage standard for the City of Los Angeles Government Contractors
• A commitment for New Flyer to develop a pre-apprenticeship program which will result in sustainable career development and transferable skills in vehicle manufacturing for Californians
• A commitment that New Flyer include a minimum 40% of the new jobs created under the LEP will be provided to Disadvantaged workers from underrepresented communities in manufacturing, such as minorities, women, veterans, and disabled citizens in California
These additional LEP contractual elements have all been added to the Contract with New Flyer and will be measured by staff for compliance. Staff is monitoring progress to all LEP commitments through quarterly reports and annual audits. Most of New Flyers commitments for new hiring will support their warranty repair services scheduled over this multiyear contract.
Transit Vehicle Manufacturer (TVM) Certification
The Diversity and Economic Opportunity Department (DEOD) did not recommend a Disadvantaged Business Enterprise (DBE) participation goal for this rolling stock procurement. Transit Vehicle Manufacturers (TVMs), as a condition of authorization to bid or propose on FTA-assisted transit vehicle procurements, are required to establish and submit for FTA's approval an annual overall DBE percentage goal for their overall TVM activity. New Flyer of America submitted a TVM Certification with their proposal indicating that they have an approved program. New Flyer established an overall 4.20% DBE goal and is currently on FTA’s list of eligible TVMs. In compliance with 49 CFR Part 26.49, TVMs report directly to FTA.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
There will be anticipated safety improvements for operating these new battery electric buses in Metro’s bus fleet. These buses will also incorporate the latest safety features and designs, including improved ADA amenities and boarding ramps. The batteries and high voltage powertrain equipment on these buses includes special safety provisions, and “locks out” employee access while they are energized. New buses also will provide a safer, cleaner environment for Metro patrons and employees.
Financial_Impact
FINANCIAL IMPACT
For FY18, there is $5,172,680 programmed to cover expenses for purchasing these buses. Because this is a multi-year contract, the Cost Center Manager will be responsible for ensuring that future year funding is programmed.
Impact to Budget
There is no anticipated impact to the FY18 budget for this action. Future funding for this procurement may come from various eligible available federal, state and local funding sources including financing options and grants that are eligible for bus capital projects. Staff will pursue all sources of funding maximizing their use for these activities.
Alternatives_Considered
ALTERNATIVES CONSIDERED
Staff considered awarding a separate new contract for five vehicles, one on-route charger, and one shop charger. This option was not selected as it would unnecessarily duplicate the administrative work for Metro and New Flyer for the exact same vehicle and charging equipment as on Contract No. OP28367-001, Part D.
Next_Steps
NEXT STEPS
Upon Board approval, staff will execute the Contract Modification with New Flyer.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - Contract Modification/Change Order Log
Attachment C - DEOD Summary
Attachment D - Funding and Expenditure Plan
Prepared_by
Prepared by: Steve Schupak, Sr. Manager, Project Control (213) 617-6294
Jesus Montes, Sr. Executive Officer, Vehicle Acquisition (213) 418-3277
Reviewed_By
Reviewed by: James T. Gallagher, Chief Operations Officer (213) 418-3108
Debra Avila, Chief Vendor/Contract Management Officer (213) 418-3051
