Meeting_Body
OPERATIONS, SAFETY AND CUSTOMER EXPERIENCE COMMITTEE
SEPTEMBER 20, 2018
Subject
SUBJECT: BUS ENGINE CYLINDER HEAD ASSEMBLIES
Action
ACTION: AWARD CONTRACT
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to award a two year, Indefinite Delivery, Indefinite Quantity Contract No. MA49128000 to Cummins Inc., for bus engine cylinder head assemblies. The Contract first year base amount is $834,968, inclusive of sales tax, and the second year Contract amount is $855,843, inclusive of sales tax, for a total contract value of $1,690,811.
Issue
ISSUE
This procurement is for the acquisition of new bus engine cylinder head assemblies 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 250 engine cylinder head assemblies were issued to Bus Maintenance to support replacement of these components during engine rebuild programs or for replacement of cylinder heads that crack, warp, or sustain other damage during normal operation. The engine cylinder head assemblies are installed by Metro Mechanics at the Central Maintenance Shops and at all bus operating divisions. Buses cannot operate without properly functioning engine cylinder head assemblies.
Discussion
DISCUSSION
A cylinder head assembly is a precisely engineered block of metal that sits on top of the engine and houses many of the engine’s moving parts, including the intake and exhaust valves, valve springs and lifters, and the spark plugs. Cylinder heads that crack, warp, or sustain other damage need to be replaced. The cylinder head assemblies support over 90% of our bus fleet which have Cummins 8.9 ISLG and L9N Near-Zero engines installed.
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 cylinder heads 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) did not establish a Small Business Enterprise (SBE) goal for this solicitation due to the lack of subcontracting opportunities. The purchased engine cylinder head assemblies are installed by Metro Mechanics.
Bus engine cylinder head assemblies will be purchased and maintained in inventory and managed by Material Management. As cylinder head assemblies 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 $834,968 for these cylinder head assemblies is included in the FY19 budget under account 50441, Parts - Revenue Vehicle in multiple bus operating division cost centers in project 306002 and in the Central Maintenance cost center 3366 in project 203025 Bus Engine Replacement Project.
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
The current source of funds for this action will come from Federal and local funds including sales tax and fares that are eligible for Bus and Rail Operating and Capital Projects. These funding sources maximize allowable fund use given approved funding provisions and guidelines.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
Approval of this recommendation supports the following Metro Strategic Plan Goal: Deliver outstanding trip experiences for all users of the transportation system. This project will help maintain safety and reliability standards in an effort to provide a world-class transportation system that enhances quality of life for all who live, work, and play within LA County.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The alternative is to not award the Contract and procure cylinder head assemblies 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 bus engine cylinder head assemblies 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) 922-6383
James T. Gallagher, Chief Operations Officer (213) 418-3108
