File #: 2024-0556   
Type: Contract Status: Agenda Ready
File created: 6/12/2024 In control: Operations, Safety, and Customer Experience Committee
On agenda: 10/24/2024 Final action:
Title: AUTHORIZE the Chief Executive Officer to execute Modification No. 2 to Contract No. SD105427000 with DSM&T Company, Inc., the responsive and responsible bidder for Electrical Wiring Harness Kits. This modification will exercise the one-year option in the Not-to-Exceed (NTE) amount of $543,207.60, increasing the total contract value from $543,207.60 to $1,086,415.20 and extending the contract term from November 9, 2024 to November 8, 2025.
Sponsors: Board of Directors - Regular Board Meeting
Indexes: Budgeting, Bus Maintenance Projects, Cleaning, Contracts, Location 30, Maintenance, Maintenance practices, Metro Divisions, Near zero emissions, Operations and Maintenance, Operations Maintenance (Project), Procurement, Program, Rolling stock, Strategic planning, Transit buses, Transmissions
Attachments: 1. Attachment A - Procurement Summary, 2. Attachment B - Contract Modification/Change Order Log Option, 3. Attachment C - DEOD Summary, 4. Presentation
Date Action ByActionResultAction DetailsMeeting DetailsAudio
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Meeting_Body

OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE

OCTOBER 24, 2024

 

Subject

SUBJECT:                     ENGINE ELECTRICAL WIRING HARNESS KITS

 

Action

ACTION:                      APPROVE RECOMMENDATION

 

Heading

RECOMMENDATION

 

Title

AUTHORIZE the Chief Executive Officer to execute Modification No. 2 to Contract No. SD105427000 with DSM&T Company, Inc., the responsive and responsible bidder for Electrical Wiring Harness Kits. This modification will exercise the one-year option in the Not-to-Exceed (NTE) amount of $543,207.60, increasing the total contract value from $543,207.60 to $1,086,415.20 and extending the contract term from November 9, 2024 to November 8, 2025.

 

Issue

ISSUE

 

This procurement is for the acquisition of Compressed Natural Gas (CNG) Engine Conversion Electrical Wiring Harness Kits that are required to maintain the safe and reliable operation of the bus fleet. The harness kits are required to install newer model near-zero emission engines during the Midlife Refurbishment Program of Metro’s New Flyer Xcelsior bus fleet. The engine conversion program updates the bus fleet with lower emission and more efficient L9N engines, providing Metro customers safer and more reliable transportation. The three wiring harness assemblies included in the harness kits are installed on the new CNG engines and replace outdated harnesses used on the older engines originally installed in these buses.

 

The award of this contract modification will ensure that Bus Maintenance has adequate inventory for the Midlife Program to continue repairing and maintaining buses according to Metro maintenance standards.  

 

Background

BACKGROUND

 

At its September 2023 meeting, the Board awarded an , Indefinite Delivery/Indefinite Quantity (IDIQ) Contract No. SD105427000 to DSM&T Company, INC. The contract base amount is a one-year base term of $543,207.60 inclusive of sales tax, and a one-year option amount is 543,207.60, inclusive of sales tax, for a total contract amount of $1,086,415.20. The first year was successful, and Metro’s Central Maintenance Shop’s Midlife Program is requesting approval for the 2nd year option. Staff issued a no-cost period of performance extension from September 28, 2024 through November 8, 2024. The 2nd year option would continue the Midlife Program engine harness replacement from November 9, 2024through November 8, 2025. 

 

Transit bus engines, transmissions, cooling systems, air conditioning systems, doors, and numerous other systems and components are controlled electrically by switches, sensors, and computers located throughout the buses. Electrical harnesses provide the connection to allow communication through electronic signals to control these systems and components. The harnesses are a critical part of the bus electrical systems, and degradation of the harnesses can significantly impact the performance and reliability of the engine, transmission, and cooling systems. Corrosion or wear of electrical connectors can result in performance problems, unnecessary in-service failures, and increased maintenance costs.

 

The Midlife Refurbishment Program is replacing engines on New Flyer Xcelsior buses that have been in service for over eight years, with an average mileage on these buses approaching 300,000 miles. The Midlife Refurbishment Program replaces the older Cummins ISLG engine with an environmentally cleaner and more efficient Cummins L9N engine. The updated engine improves the reliability of the bus fleet, results in fewer road failures, and provides better overall service for Metro customers. It also provides cleaner emissions for the greater Los Angeles County service area. The electrical wiring harness kits are required to install the new CNG near-zero emission engines during the Midlife Refurbishment of the Metro New Flyer Xcelsior bus fleet.

 

Discussion

DISCUSSION

 

The Cummins L9N Engine Conversion Electrical Wiring Harness Kits include three wiring harnesses specifically designed by Metro to interface with the Cummins L9N engine. These harnesses are installed on the New Flyer bus fleet during the Midlife Refurbishment process. The three harnesses replace existing harnesses that provide electrical current to components for the Cummins Engine, OBD II diagnostics, and catalytic converter.

 

Replacing older, high mileage engines with new engines covered by manufacturer warranties provides Metro with a more reliable transit bus fleet and reduced exhaust emissions. The harness kits replace harnesses degraded by engine compartment heat, water intrusion, and corrosion. Wiring harnesses degraded from extended use can often result in defects and engine performance issues. Replacing the harnesses will improve the reliability and extend the service mileage of the vehicle. 

 

The contract to be awarded is an Indefinite Delivery, Indefinite Quantity (IDIQ) agreement in which Metro commits to ordering only from the awardee up to the specified quantity for a specific duration of time. Metro is not obligated or committed to ordering any or all the required Electrical Wiring Harness Kits. The bid quantities are estimates only, with deliveries to be ordered and released as necessary.

 

Electrical Wiring Harness Kits will be purchased, maintained in inventory, and managed by Material Management. The appropriate budget project numbers and accounts will be charged as they are issued.

 

Determination_Of_Safety_Impact

DETERMINATION OF SAFETY IMPACT

 

Award of the Electrical Wiring Harness Kits contract will ensure that all operating divisions and the Central Maintenance Facility (CMF) have an adequate inventory to maintain the equipment according to Metro Maintenance standards. This action will prevent service impacts and deferred maintenance and ensure bus availability and reliability for revenue service.

 

Financial_Impact

FINANCIAL IMPACT

 

Funding in the amount of $543,207.60 for these Electrical Wiring Harness Kits is included in the FY25 budget under account 50441, Parts - Revenue Vehicle in multiple bus operating cost centers under project 306002 Operations Maintenance, and in the Central Maintenance Shops (CMS) cost center 3366 under project 203050 New Flyer/El Dorado Bus Midlife.

 

Since this is a multi-year contract, the cost center manager 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 Federal 5307/5308, Proposition A, Proposition C, Measure M, and TDA.  Using these funding sources maximizes the project funding allocations allowed by approved provisions and guidelines.

 

Equity_Platform

EQUITY PLATFORM

 

This action will ensure that Metro’s bus fleet, which serves most regions in Los Angeles County, can provide vital transportation services to neighborhoods, including many Equity Focus Communities (EFCs) where disparities within the region can exist between residents’ access to jobs, housing, education, health, and safety. Bus transportation provides an important lifeline for the residents in underserved communities, and the Metro bus maintenance programs ensure the proper State of Good Repair of the bus fleet to provide transportation for these EFCs. The Cummins L9N Near Zero natural gas engines that utilize the Electrical Wiring Harness Kits from this procurement reduces Nitrous Oxide (NOx) emissions by ninety percent (90%) and greenhouse gas emissions by nine percent (9%) compared to the standard ISL-G CNG powered engine currently installed in this bus fleet. Implementation will result in improvements in the air quality along bus routes, benefitting EFCs.

 

DSM&T Company, Inc. made a 2% Disadvantaged Business Enterprise (DBE) commitment, and the current level of participation is 2.13%, exceeding the DBE commitment by 0.13%.

 

Implementation_of_Strategic_Plan_Goals

IMPLEMENTATION OF STRATEGIC PLAN GOALS

 

The Electrical Wiring Harness Kits supports Strategic Goal 1: Provide high-quality mobility options that enable people to spend less time traveling. Procuring Electrical Wiring Harness Kits for inventory will help ensure the bus fleet's reliability and enable our customers to arrive at their destinations on schedule and without interruption.

 

Alternatives_Considered

ALTERNATIVES CONSIDERED

 

The alternative is not to award the contract modification and procure Electrical Wiring Harness Kits on the open market as needed. This approach is not recommended since it does not provide a commitment from the supplier to ensure availability and price stability. Not awarding the contract modification would negatively impact the Midlife Refurbishment program and result in delays or deferral of the engine repower program. Additionally, Metro bus maintenance divisions and the fleet would be negatively impacted.

 

Next_Steps

NEXT STEPS

 

Upon approval by the Board, staff will execute a contract modification to Contract No. SD105427000 for the procurement of Electrical Wiring Harness Kits with DSM&T Company, Inc., exercising the one-year option in the amount of $543,207.60, inclusive of sales tax, for a total contract amount of $1,086,415.20.

 

Attachments

ATTACHMENTS

 

Attachment A - Procurement Summary

Attachment B - Contract Modification/Change Order Log

Attachment C - DEOD Summary

 

Prepared_by

Prepared By:  David Ball, Senior Manager, (213) 922-5895

                                          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