Meeting Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
SEPTEMBER 19, 2024
Subject
SUBJECT: ALTERNATOR ASSEMBLY
Action
ACTION: AWARD CONTRACT
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to award a two-year, Indefinite Delivery / Indefinite Quantity (IDIQ) Contract No. MA113336000 to TK Services, Inc., the lowest responsive and responsible bidder to supply alternator assemblies in the not-to-exceed (NTE) amount of $2,805,153.48, inclusive of sales tax, subject to the resolution of any properly submitted protest(s), if any.
Issue
ISSUE
This procurement is for the acquisition of alternator assemblies required for maintaining the safe and reliable operation of the bus fleet. The high voltage alternators have failed at an increased rate due to the age of this equipment, and this contract will support the replacement of these components. The award of this contract will ensure that Metro’s Bus Maintenance has an adequate inventory to repair and maintain buses according to Metro maintenance standards.
Background
BACKGROUND
The high voltage alternators are used on Metro’s New Flyer Xcelsior buses to provide power to the heating and ventilation systems. These buses were purchased in 2013 and 2015, and the buses are experiencing higher failure rates of the high voltage alternators. The replacement of the alternators is extremely important in ensuring proper functioning air conditioning systems on the bus fleet.
Discussion
DISCUSSION
Metro’s current bus fleet of New Flyer Xcelsior buses are equipped with an alternator assembly to supply the electrical current for the bus interior climate control system. The alternator assembly is crucial for supplying a continuous source of high voltage power, that enables the bus air conditioning system to maintain desired temperatures throughout the interior of the bus for the comfort and safety of our riders. The Alternator Assembly is replaced at the bus operating divisions in response to performance issues or assembly failures.
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 to order any or all of the alternator assemblies that may be required. The bid quantities are estimates only, with deliveries to be ordered and released as necessary. The requirements type agreement will ensure that Metro only purchases the quantity of parts needed to repair equipment with damaged components.
Material management will purchase, maintain, and manage alternator assemblies in inventory. As they are issued, the appropriate budget project numbers and accounts will be charged.
Determination Of Safety Impact
DETERMINATION OF SAFETY IMPACT
The award of this contract will positively impact safety by ensuring bus operating divisions have an adequate inventory of parts to maintain the bus fleet according to air conditioning manufacturer and Metro Maintenance standards. Ensuring a proper supply of alternator assemblies ensures a safe environment for customers by providing optimal air conditioning in Metro buses.
Financial Impact
FINANCIAL IMPACT
Funding of $1,402,576.74 is included in the FY25 budget under multiple bus operating cost centers in project 306002 Operations Maintenance under Line 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 funding sources for this action include Proposition A, Proposition C, Measure R, Measure M, Transportation Development Act, STA/SB1, and Federal grant. These sources are eligible for Bus Operating or Capital projects. Using these funding sources maximizes the project funding allocations allowed by approved provisions and guidelines.
Equity Platform
EQUITY PLATFORM
The benefits of this action are to ensure the bus fleet serving Los Angeles County, including many Equity Focus Communities (EFC), are able to provide vital transportation services to neighborhoods where disparities within the region can exist between residents’ access to jobs, housing, education, health, and safety. Bus transportation provides an essential lifeline for the residents in 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 procurement of alternators to ensure that performance and reliability of the bus fleet ensures the highest level of bus service.
The Diversity and Economic Opportunity Department (DEOD) established a two percent (2%) goal for this procurement. TK Services, Inc. made a 2% DBE commitment.
Implementation of Strategic Plan Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
Procuring alternator assemblies for the Xcelsior buses supports Strategic Goal 1: Provide high-quality mobility options that enable people to spend less time traveling. Installing alternator assemblies will maintain the reliability of the bus fleet and ensure that our customers can 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 alternator assemblies as needed, using the traditional “min/max” replenishment method. This strategy is not recommended since it does not require 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 requirements for the alternator assemblies 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
