Meeting_Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
FEBRUARY 20, 2025
Subject
SUBJECT: OPERATION AND MAINTENANCE OF COMPRESSED NATURAL GAS FUELING STATIONS AT DIVISIONS 2, 8, 9, & 15
Action
ACTION: AWARD CONTRACT
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to award a firm fixed unit rate, Contract No. OP125246000 to Clean Energy, for the Operation and Maintenance (O&M) services of Compressed Natural Gas (CNG) fueling stations at Divisions 2, 8, 9, and 15, for a Not-To-Exceed (NTE) amount of $6,150,097 for the three-year base period, and $2,036,432 for the first one-year option term and $2,036,432 for the second one-year option term, for a combined NTE amount of $10,222,962, effective March 1, 2025, subject to the resolution of any properly submitted protest(s), if any.
Issue
ISSUE
The existing contract for CNG fueling station operations and maintenance (O&M) services at Divisions 2, 8, 9, and 15 will expire on February 28, 2025. Effective March 1, 2025, a new contract award is required to ensure service continuity and safe and timely operations.
Background
BACKGROUND
Metro is transitioning from a CNG (renewable natural gas) to a zero-emission bus fleet. Metro's bus electrification efforts reached a key milestone in July 2020 when the first electric buses debuted on the Metro G Line (Orange). More were phased in throughout 2020 so that, by the start of 2021, 100% of the G Line buses were battery-electric. As staff works to transition other divisions to an electric fleet fully, Metro will still require operating and maintenance services to its CNG compounds to fuel the non-electric buses with CNG. Our goal is to reduce tailpipe pollutant emissions further and contribute to improved air quality while reducing noise and increasing comfort for passengers.
On August 1st, 2013, the Board awarded a 10-year, firm fixed unit rate Contract No. OP33432555 to Clean Energy for CNG fueling station O&M services at Divisions 2, 8, 9, & 15. Under the existing contract, the contractor is responsible for conducting preventive maintenance, as-needed repairs, staff training, maintaining records, and complying with the regulations of the authorities having jurisdiction. Effective August 1, 2023, Contract Modification 1 was executed for a one-year, no-cost time extension. Effective July 31, 2024, Contract Modification 2 extended the performance period by two months to September 30, 2024. Effective September 30, 2024, Contract Modification 3 was executed to extend the Period of Performance by an additional five months through February 28, 2025. Staff has processed these contract modifications within the approved contract modification authority to allow for continuity of services until a new contract could be established.
This action is necessary to support the existing fleet of CNG buses currently in service until these divisions fully transition to a zero-emission electric bus fleet. In lieu of awarding another 10-year contract, the recommendation is to pursue a five-year contract to allow flexibility in assessing future needs to support CNG infrastructure as Metro transitions to an electric bus fleet.
Discussion
DISCUSSION
Under this new contract, the Contractor must perform comprehensive O&M services of the CNG equipment at Metro Bus Divisions 2, 8, 9, & 15, including maintenance of all related electrical systems, fuel hoses, nozzles, and the gas monitoring system. The Contractor must provide all repair parts, overhaul services, and consumables, including compressor oils, lubricants, and dryer desiccants. In addition, the Contractor must provide all scheduled and unscheduled replacements for compressors, motors, valves, and all other equipment and appurtenances necessary to operate Metro’s CNG fueling facilities efficiently.
The Contractor will also provide Metro personnel with the necessary training to perform routine maintenance work and pay for all associated labor costs per contract requirements. Furthermore, the contract includes terms and liquidated damages to minimize equipment downtime and bus roll-out interruption. Liquidated damages may be imposed if the bus roll-out schedule is not met, and buses are directed to alternate locations for fuel to meet the scheduled roll-out. For example, lack of fueling capacity or fueling performance, or if more than one CNG compressor is not available to operate between 5:00 PM and 5:00 AM daily. Lastly, the contract includes requirements for CNG facility de-commissioning during the contract's life to accommodate Metro’s electric bus fleet deployment and phase-out of the CNG buses.
Determination_OF_Safety_Impact
DETERMINATION OF SAFETY IMPACT
The approval of this item will ensure O&M service continuity and provide prompt response time, ensuring the delivery of safe, quality, on-time, and reliable services to our customers and the public.
Financial_Impact
FINANCIAL IMPACT
The FY25 budget includes $5,000,000 for this action under cost center 3367-Facilities Maintenance, account 50308, Service Contract Maintenance, project 306002, Bus Maintenance. The total contract value is $10,222,962 over a five-year (60-month) period.
Since this is a multi-year contract, the cost center manager and Deputy Chief of Infrastructure Maintenance & Engineering will be accountable for budgeting the cost in future years.
Impact to Budget
This action's current source of funds includes operating eligible sales tax funding, including Proposition A/C, Measure R/M, the Transportation Development Act, and State Transit Assistance. Given approved funding provisions and guidelines, applying these funds to this project maximizes the intent of the eligible funding.
Equity_Platform
EQUITY PLATFORM
Due to the lack of subcontracting opportunities, the Diversity and Economic Opportunity Department (DEOD) did not recommend a Disadvantaged Business Enterprise (DBE) participation goal for this procurement. However, Clean Energy made a 0.65% DBE commitment for this contract.
Metro Operations supports Equity Focus Communities while increasing mobility options and access to jobs, educational institutions, and other opportunities. The services provided by this contract could affect those patrons that use bus services within Division 2 (720 E. 15th St, Los Angeles), Division 8 (9201 Canoga Ave, Chatsworth), Division 9 (3449 Santa Anita Ave, El Monte), and Division 15 (11900 Branford St, Sun Valley) service areas.
The CNG fueling stations ensure our customers have access to reliable transportation to meet their daily needs and support healthier communities by building cleaner infrastructure in areas of historic socioeconomic disparities and minimizing the volatile compounds created by standard fueling options.
Vehicle_Miles_Traveled_Outcome
VEHICLE MILES TRAVELED OUTCOME
VMT and VMT per capita in Los Angeles County are lower than national averages, the lowest in the SCAG region, and on the lower end of VMT per capita statewide, with these declining VMT trends due in part to Metro’s significant investment in rail and bus transit.* Metro’s Board-adopted VMT reduction targets align with California’s statewide climate goals, including achieving carbon neutrality by 2045. To ensure continued progress, all Board items are assessed for their potential impact on VMT.
This item supports Metro’s systemwide strategy to reduce VMT through maintenance activities that will further encourage transit ridership. Metro’s Board-adopted VMT reduction targets were designed to build on the success of existing investments, and this item aligns with those objectives.
*Based on population estimates from the United States Census and VMT estimates from Caltrans’ Highway Performance Monitoring System (HPMS) data between 2001-2019.
Implementation_Of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
This Board action supports Strategic Goal 2: Deliver outstanding trip experiences for all transportation system users as we are committed to providing attractive, affordable, efficient, and safe service. This Board action also supports Strategic Goal 5, providing responsive, accountable, and trustworthy governance within the Metro organization. Performing preventive maintenance, inspections, and as-needed repairs will ensure timely bus rollouts and provide safe and reliable operation of CNG fueling stations at Metro bus Divisions 2, 8, 9, & 15.
Alternatives_Considered
ALTERNATIVES CONSIDERED
Another alternative considered is to provide O&M services with in-house staff. This would require hiring and training additional certified personnel and purchasing tools, equipment, vehicles, and supplies. In addition, internal staff would assume the added responsibility and liability. Staff assessment indicates this is not cost-effective for Metro as the required expertise and operational knowledge are highly specialized and costly. Therefore, utilizing professionals with the knowledge and experience of industry standards throughout the country is a best practice.
Next_Steps
NEXT STEPS
Upon approval by the Board, staff will execute a firm fixed unit rate Contract No. OP125246000 with Clean Energy for Operation and Maintenance (O&M) of Compressed Natural Gas (CNG) fueling stations at divisions 2, 8, 9, & 15, effective March 1, 2025.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - DEOD Summary
Prepared by: Errol Taylor, Deputy Chief Operations Officer, Infrastructure Maintenance & Engineering, (213) 922-3227
Chris Limon, Executive Officer, Facilities Maintenance, (213) 922-6637
Eladio Salas, Senior Director, Facilities Maintenance, (213) 418-3232
Debra Avila, Deputy Chief, Vendor/Contract Management, (213) 418-3051
Reviewed by: Conan Cheung, Chief Operations Officer, (213) 418-3034
