Meeting_Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
JANUARY 16, 2025
Subject
SUBJECT: REPLACEMENT OF NON-REVENUE VEHICLES THROUGH CALIFORNIA STATEWIDE CONTRACT
Action
ACTION: APPROVE CONTRACT AWARD
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to:
A. UTILIZE the State of California Statewide Fleet Vehicles Contract for a not-to-exceed expenditure amount of $24,259,612 inclusive of sales tax, for 142 electric sedans, 5 electric trucks, 97 hybrid sport utility vehicles (SUVs), 125 pick-up trucks, and 118 cargo/passenger vans. Four suppliers will fulfill delivery of the vehicles under contract with the State of California; and
B. NEGOTIATE options required for the vehicles purchased through the State of California Statewide Fleet Vehicles Contract to meet Metro’s needs (e.g. light bars, extended range EV batteries, stake beds, etc) for a not-to-exceed amount of $2,431,900.
YAROSLAVSKY AMENDMENT: Report back in 120 days with a non-revenue vehicle purchasing policy that prioritizes zero-emission vehicles. The report should review and, to the extent feasible, mirror existing zero-emission fleet purchasing policies at the City of Los Angeles and County of Los Angeles.
BUTTS AMENDMENT: As related to the Yaroslavsky amendment, incorporate where needed, exceptions for sedans and other light weight vehicles used for safety and security and operational requirements.
Issue
ISSUE
For several years, Metro’s non-revenue fleet has not been replaced per the expected life schedule due to supply chain issues that resulted from the pandemic. As such, Metro is currently utilizing non-revenue vehicles that are as much as 20 years old and, in some cases, have up to 285,000 miles of service. Older vehicles with extraordinarily high mileage are unreliable and cost much more to maintain due to wear and tear. Metro non-revenue vehicles support all Metro departments and must be reliable to do this effectively. Metro will also need reliable non-revenue vehicles to support the upcoming rail expansions.
Non-revenue vehicles have been posted in the past using traditional procurement methods; however, the bidding process was not successful due to either not receiving any bids or receiving bids that were nearly double the Independent Cost Estimate (ICE). The delays caused by these failed bids has resulted in a significant backlog of non-revenue vehicles in the procurement process. Utilization of the State of California Statewide Fleet Vehicles Contract will allow Metro to procure 63% of the common types of non-revenue vehicles used by Metro staff, while continuing to procure the backlog of 282 specialty vehicles using traditional procurement methods. The California Statewide contract also has very competitive pricing for zero emission (ZE) vehicles, which will accelerate the procurement of the 147 ZE vehicles and allow for replacement of older, higher emission non-revenue vehicles.
Background
BACKGROUND
Various departments require non-revenue vehicles to support Maintenance, Transportation, and Construction programs. All 487 non-revenue trucks, sedans, SUVs, and cargo and passenger vans that will be replaced have exceeded the minimum required service requirements and need replacement, as many of these vehicles have been in service for more than 20 years.
These vehicles are experiencing reduced reliability, requiring significant and frequent repairs to keep them in service. Some of these vehicles have also been determined unreliable, with excessive mechanical failures, costly/frequent repairs, and high levels of service unavailability. Their current condition renders them no longer cost-effective to maintain, and replacements are now required.
Discussion
DISCUSSION
This procurement is to replace 487 Metro-owned and operated SUVs, Trucks, Sedans, and Cargo and Passenger Vans that have exceeded the policy requirement of 6 years and/or 150,000 miles of service.
All departments throughout the agency rely on these vehicles, including Bus and Rail Divisions, Wayside Systems, Maintenance of Way Engineering, Risk Management, Operations Planning, and Public Relations, just to name a few. The new vehicles will be used for Operator Relief, Maintenance Support, and Facilities Maintenance, as well as support Revenue Services and various administrative functions. The new vehicles provide several benefits to Metro, including Environmental Impact, Cost of Ownership, and Safety.
Utilizing the State of California Statewide Fleet Vehicles Contract will allow Metro to purchase vehicles given multiple unsuccessful procurements in the past due to a combination of lack of bidders and unacceptable bids that greatly exceeded the Independent Cost Estimates (ICE). This approach allows Metro to purchase many of these vehicles at prices below the ICE, which is a substantial savings to Metro. Purchasing through the Statewide Fleet Vehicles Contract also has the added benefit of a shorter lead time due to the specification of common vehicles that are more readily available. Shortening the lead time to purchase will reduce the current procurement backlog as a result of dealers/manufacturers cancelling orders due to recent supply chain issues.
Options will be negotiated by the Chief Operations Officer. The type of options negotiated will be for the upfitting of light bars, ladder racks, stake beds, and other accessories necessary for Metro to conduct normal Metro support activities. This will also include extended range batteries to allow Electric Vehicles purchased to provide the necessary range to minimize impact on Metro operations.
Environmental Impact
The new vehicles benefit customers, employees, and the communities where Metro vehicles operate by reducing harmful emissions. In alignment with the recent Board approval of the EV Parking Strategic Plan, Metro is committed to transitioning the non-revenue fleet to zero-emission vehicles with 147 of the 487 vehicles (30%) being battery electric. One hundred and forty-two existing sedans will be replaced with 142 Ford Mach E Crossovers, with an upgraded battery to provide the necessary range to meet Metro’s needs. Ninety-seven, or 20%, being hybrid. The remaining 243 vehicles are passenger vans and trucks that are not available with electric or hybrid powertrain options at this time.
Cost of Ownership
The benefits of new replacement vehicles, such as better fuel efficiency, fewer repairs, increased reliability, and shorter repair times, will greatly reduce the cost of maintaining the existing fleet.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
Safe operation of the non-revenue vehicle fleet is paramount to the safety of the Metro employees who operate them. Excessive age and mileage lead to wear and tear of the major vehicle systems, e.g., drive trains, steering, suspension, and engines. This results in increased breakdowns during operation.
The new vehicles are equipped with more technologically advanced safety features, including dynamic braking, emergency airbags, and antilock braking, making them safer for staff to operate than aging vehicles.
Financial_Impact
FINANCIAL IMPACT
The recommended award is $24,259,612 for the State of California Statewide Fleet Vehicles Contract plus $2,431,900 for options, totaling $26,691,512. This request is within the Life of Project (LOP) Budget of $36,350,000. This budget is contained within multiple Capital Projects, as listed in the table below. The budget for this procurement is in Cost Center 3790, Maintenance Administration, and 3196, Central Oversight & Analysis under Account 53106, Acquisition of Service Vehicles.
Impact_to_Budget
The current sources of funds for this action are the State Transportation Development Act (TDA) and Local Measure R 35%. TDA funding is eligible for Capital and Operating Projects, and Measure R 35% is not eligible for Bus and Rail Operations. Given fund guidelines and provisions, using these funding sources maximizes the allocation intent.
Equity_Platform
EQUITY PLATFORM
This action will provide support vehicles for staff across the agency’s various departments and roles. Staff rely on support vehicles for a range of activities, including providing efficient and timely rail/bus services. The 487 vehicles procured will replace the aging vehicles in various departments throughout Metro to support revenue services of Rail and Bus Operating Divisions, including Downtown Los Angeles, El Monte, Long Beach, and Sun Valley.
The Diversity and Economic Opportunity Department (DEOD) did not establish a Small Business Enterprise (SBE) / Disabled Veteran Business Enterprise (DVBE) goal for this solicitation. Metro used the California Statewide Contract to purchase this large quantity of vehicles after supply chain issues created by the COVID-19 pandemic impacted its ability to replace aging vehicles for several years.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
The non-revenue vehicles support Strategic Goal 1: Provide high-quality mobility options that enable people to spend less time traveling. They will help maintain the reliability of rail/bus service and ensure that our customers are able to arrive at their destinations without interruption and in accordance with the scheduled service intervals.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The alternative of continuing to operate the current vehicles was considered for the 487 trucks, sedans, SUVs, cargo, and passenger vans still in service. Retaining these vehicles for use by Metro employees is not recommended. The diminished reliability, high maintenance costs, frequent repairs, and higher emissions have rendered these vehicles a poor alternative for continued operation.
Utilization of the State of California Statewide Fleet Vehicles Contract is the alternative to the traditional Requests For Proposals (RFP), which has been unsuccessful in recent years due to lack of bidders and extreme price markups from the few available bidders. The Statewide Fleet Vehicles Contract allows Metro to purchase common vehicles at standard or discounted prices without the inherent time delays of individual procurements and the special-order process. This will also allow Metro to purchase all six different types of vehicles under a single procurement, reducing the time and effort needed for multiple procurements.
Next_Steps
NEXT STEPS
Following the execution of the contract, the state-approved vendors will commence delivery upon receipt from the manufacturers. The delivery of all 487 vehicles is scheduled before the end of calendar year 2025.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - DEOD Summary
Prepared_By
Prepared by: Alan Tang, Senior Director Non-Revenue Fleet Maintenance, (562) 658-0231
Gary Jolly, Bus Maintenance Superintendent, (213) 922-5802
James Pachan, Senior Executive Officer, (213) 922-5804
Matthew Dake, Deputy Chief Operations Officer, (213) 922-4061
Debra Avila, Deputy Chief Vendor/Contract Management, (213) 418-3051
Reviewed_By
Reviewed by: Conan Cheung, Chief Operations Officer (213) 418-3034
