Meeting_Body
OPERATIONS, SAFETY AND CUSTOMER EXPERIENCE COMMITTEE
MAY 20, 2021
Subject
SUBJECT: TRANSMISSION INTEGRAL COOLER
Action
ACTION: CONTRACT AWARD
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to award a two-year, firm fixed price Contract No. MA73599-2000 to Muncie Transit Supply, the lowest responsive and responsible bidder for transmission coolers. The Contract one-year base amount is $969,414 inclusive of sales tax, and the one-year option amount is $998,497, inclusive of sales tax, for a total contract amount of $1,967,911, subject to resolution of protest(s), if any.
Issue
ISSUE
This procurement is for the acquisition of transmission integral coolers which are required for maintaining the safe and reliable operation of the bus fleet. Award of this contract will ensure that Bus Maintenance has adequate inventory to repair and maintain buses according to Metro maintenance standards.
Background
BACKGROUND
The component usage reports from Material Management revealed that approximately 215 transmission coolers are issued annually to Bus Maintenance to support replacement of these components during transmission rebuild programs or for replacement of transmission coolers that crack, warp, or sustain other damage during normal operation. The transmission coolers are installed by Metro Mechanics at the Central Maintenance Shops and at all bus operating divisions. Buses cannot operate without properly functioning transmission coolers.
Discussion
DISCUSSION
A transmission cooler transfers heat generated in an automatic transmission to the radiator, where it is dissipated to atmosphere. Transmission coolers that crack, warp, or sustain other damage need to be replaced. The integral coolers in this procurement are mounted onto transmissions in nine-hundred buses that are part of Metro’s bus fleet.
The contract to be awarded is a “requirements type” agreement in which Metro commits to order only from the awardee, up to the specified quantity for a specific duration of time, but there is no obligation or commitment for Metro to order all of the transmission coolers that may be currently anticipated. The bid quantities are estimates only, with deliveries to be ordered and released as required. The Diversity and Economic Opportunity Department (DEOD) established a two percent (2%) DBE goal for this solicitation. The purchased transmission coolers are installed by Metro Mechanics.
Transmission coolers will be purchased and maintained in inventory and managed by Material Management. As transmission coolers are issued, the appropriate budget project numbers and accounts will be charged.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
Award of contract will ensure that all operating divisions and the Central Maintenance Facility have an adequate inventory to maintain the equipment according to Metro Maintenance standards.
Financial_Impact
FINANCIAL IMPACT
The funding of $969,414 for these transmission coolers is included in the FY22 budget request under account 50441, Parts - Revenue Vehicle in the Central Maintenance and multiple bus operating division cost centers. Funding is subject to Board approval.
Since this is a multi-year contract, the cost center manager and Chief Operations Officer will be accountable for budgeting the cost in future fiscal years including any option exercised.
Impact to Budget
Subject to board approval, the preliminary source of funds for this action are Proposition A/C, Measure R/M, and the Transportation Development Act. Use of these funding sources currently maximizes project funding allocations given approved funding provisions and guidelines.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
The procurement of transmission coolers supports Strategic Goal 1: Provide high-quality mobility options that enable people to spend less time traveling. The transmission coolers will maintain the reliability of the bus fleet and ensure that our customers 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 to not award the contract and procure transmission coolers on the open market on an as-needed basis. This approach is not recommended since it does not provide a commitment from the supplier to ensure availability and price stability.
Next_Steps
NEXT STEPS
Metro’s requirements for transmission coolers will be fulfilled under the provisions of the contract.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - DEOD Summary
Prepared_by
Prepared by: James D. Pachan, Superintendent of Maintenance, (213) 922-5804
Reviewed_By
Reviewed by: Debra Avila, Chief, Vendor/Contract Management (213) 418-3051
James T. Gallagher, Chief Operations Officer (213) 418-3108
