Meeting_Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
JULY 18, 2024
Subject
SUBJECT: TURBOCHARGERS
Action
ACTION: AWARD CONTRACT
Heading
RECOMMENDATION
...Title
AUTHORIZE the Chief Executive Officer to award a two-year, Indefinite Delivery / Indefinite Quantity (IDIQ) Contract No. MA103954-2000 to Cummins Inc., the lowest responsive and responsible bidder to supply Turbocharger Assemblies in the not-to-exceed (NTE) amount of $1,624,966.51, inclusive of sales tax, and subject to the resolution of any properly submitted protest(s), if any.
Issue
ISSUE
Turbochargers are a major component of a bus engine, and the engine will not run without a properly functioning turbocharger. The stop-and-go service environment and high annual mileage accumulation on the bus fleet cause turbocharger failure, which requires replacement to ensure that the fleet remains in a State of Good Repair. Metro must maintain an adequate stock of turbochargers in inventory to ensure timely replacement of failed components, ensure the reliability of the bus fleet, and provide high-quality service to customers.
Background
BACKGROUND
This procurement is for the acquisition of turbochargers required for maintaining the safe and reliable operation of the natural gas engines installed in most of Metro’s bus fleet. Metro’s current bus fleet is primarily powered by Cummins natural gas engines that are equipped with turbochargers to meet performance and emissions requirements. The turbochargers are a critical part of the engine operation. Turbocharger problems can significantly impact engine performance. Turbochargers are replaced at the Central Maintenance Shops and bus operating divisions in response to performance problems or engine failures. The award of this contract will ensure that Bus Maintenance has an adequate inventory to repair and maintain buses according to Metro maintenance standards.
Discussion
DISCUSSION
The turbocharger is a component that compresses air entering the engine to provide extra power and burn a mixture of fuel in the engine cylinders more efficiently. The turbochargers specified under this procurement are either Original Equipment Manufacturer (OEM) approved or have been tested and qualified by Metro to ensure satisfactory performance for all buses in service.
The contract to be awarded is a “requirements type” agreement in which we commit to ordering only from the awardee up to the specified quantity for a specific duration of time. However, there is no obligation or commitment to order any or all of the turbochargers that may be anticipated. The bid quantities are estimates only, with deliveries to be ordered and released as required.
Turbochargers will be purchased, maintained in inventory, and managed by Material Management. The appropriate budget project numbers and accounts will be charged as turbochargers are issued. Metro Mechanics will install the purchased turbochargers.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
The award of the contract will positively impact safety by ensuring bus operating divisions have an adequate inventory of parts to maintain the bus fleet according to engine manufacturer and Metro Maintenance standards. Ensuring an adequate supply of critical parts ensures the performance and reliability of the bus fleet, which will have a beneficial impact on system safety.
Financial_Impact
FINANCIAL IMPACT
The funding of $799,450 for this product is included in the FY25 budget under multiple bus operating cost centers in project 306002 Operations Maintenance under Line item 50441, Parts - Revenue Vehicle.
Since this is a multi-year contract, the cost center managers and Chief Operations Officer will be accountable for budgeting costs in future fiscal years.
Impact to Budget
The current source of funds for this action includes Federal 5307, Proposition C, Measures R/M, STA, and the Transportation Development Act. These funding sources are eligible for bus and rail operations.
Equity_Platform
EQUITY PLATFORM
This action will ensure that the bus fleet that serves most regions in Los Angeles County, including many Equity Focus Communities (EFCs), is able to provide vital transportation services. Bus transportation provides an important lifeline for the residents of EFCs, and the Metro bus maintenance programs ensure the proper State of Good Repair of the bus fleet to provide transportation for these communities.
The Diversity and Economic Opportunity Department (DEOD) established an overall two percent (2%) DBE goal for this procurement. Cummins met the goal by making an overall 2% DBE commitment.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
The procurement of turbochargers for the Cummins natural gas engines supports Strategic Goal 1: Provide high-quality mobility options that enable people to spend less time traveling. The installation of turbochargers will maintain the reliability of the bus fleet and ensure that our riders are able to arrive at their destinations without interruption and in accordance with the scheduled service intervals for Metro bus operations.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The alternative is not to award the contract and procure the bus turbochargers as needed, using the traditional “min/max” replenishment method. This strategy is not recommended since it does not provide for a commitment from the supplier to ensure availability, timely delivery, continued supply, and a guaranteed fixed price for the parts.
Next_Steps
NEXT STEPS
Metro’s turbocharger requirements will be fulfilled under the contract's provisions.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - DEOD Summary
Prepared_by
Prepared By: Harold Torres, Senior. Director, Central Maintenance, (213) 922-5714
James Pachan, Senior Executive Officer (213) 922-5804
Matthew Dake, Deputy Chief Operations Officer (213) 922-4061
Debra Avila, Deputy Chief Vendor/Contract Management Officer (213) 418-3051
Reviewed by
Reviewed by: Conan Cheung, Chief Operations Officer (213) 418-3034
