Meeting_Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
OCTOBER 15, 2026
Subject
SUBJECT: NEAR-ZERO NATURAL GAS-FUELED ENGINES
Action
ACTION: AWARD CONTRACT
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to:
A. FIND the procurement of Near-Zero Natural Gas-Fueled Engines under Public Utilities Code (PUC) Section 130237, as an Original Equipment Manufacturer (OEM) item, constitutes a single-source procurement method for the purpose of duplicating equipment already in use; and
B. AWARD a single-source, five-year, Indefinite Delivery, Indefinite Quantity Contract No. MA139582000 to Cummins Sales and Service (Cummins) for 680 engines to replace engines on Metro buses. The five-year contract is for a total Not-To-Exceed (NTE) contract amount of $70,990,755.60, inclusive of sales tax; subject to the resolution of any properly submitted protest(s), if any.
(REQUIRES TWO-THIRDS VOTE OF THE FULL BOARD)
Issue
ISSUE
This procurement is for the acquisition of Cummins Replacement Engine Request (RER) L9N Near-Zero Emissions engines, which will be installed as part of the Central Maintenance Shops (CMS) bus midlife engine replacement program over the next five fiscal years (FY27 - FY31). The Cummins RER L9N near-zero engines will run on Renewable Compressed Natural Gas (RCNG) and replace the older Cummins L9N engines currently installed in the El Dorado National (ENC) 40-foot and New Flyer (NFI) 60-foot articulated buses.
The CMS engine replacement program aligns with Metro’s strategic plans to lower greenhouse gas emissions from the current bus fleet and transition to Zero-Emission Buses for future procurements. This procurement is required to ensure the current bus fleet is properly maintained and that the engine replacement program continues without delays or impact on revenue service.
Background
BACKGROUND
In October 2016, staff responded to a Board request to provide a comprehensive plan to further reduce greenhouse gas emissions. The report to the Board identified a comprehensive approach to reducing greenhouse gas emissions, including procuring zero-emission buses and using Low NOx Near Zero CNG engines operating on RCNG for midlife engine repowers beginning in FY18.
In August 2017, Metro entered into a contract with Cummins Pacific LLC to purchase up to 395 near-zero-emission engines for the midlife refurbishment program. The Air Quality Management District (AQMD) provided $1.875 million in grant funding for 125 of the near-zero-emission engines. Metro has received $9.6 million of $12.6 million in pending reimbursements for vouchers submitted to the California Air Resources Board (CARB) Hybrid and Zero-Emissions Truck and Bus Voucher Incentive Project (HVIP) to offset the cost of the near-zero-emission engines.
In November 2022, Metro staff entered into an additional contract to purchase up to 800 near-zero engines for the midlife program. CMS issued the final task orders to purchase new near-zero-emission engines under the existing contract in August 2024, and this new contract is needed to support the midlife near-zero-engine replacement program.
Discussion
DISCUSSION
The MIDLIFE program is designed to increase the reliability of the bus for the duration of its lifecycle. Replacing the high mileage engine in the bus with a new one is one of many components that are replaced due to wear and tear. The engine replacement contributes to the overall reliability of the MIDLIFE’d bus and reduces mean miles between roadcalls related to engine failures.
CMS staff identified the need to purchase up to 680 natural gas-fueled heavy-duty engines to replace the engines currently installed in the ENC 40-foot buses and the NFI 60-foot articulated buses during FY27 through FY31. Cummins will deliver the RER L9N Near Zero Emission engines under this procurement for installation by Metro mechanics as part of the midlife engine replacement program.
The Cummins RER L9N Near Zero Emission engine is currently the only CNG mid-range engine to receive emissions certifications from the Federal Environmental Protection Agency (EPA) and California Air Resources Board (CARB) for meeting the 0.02 g/bhp-hr optional Near Zero NOx emissions standard.
The Cummins RER L9N Near Zero natural gas engines are warranted against defects in design and materials for two years with unlimited mileage, as well as full parts and labor for all warrantable failures.
The contract to be awarded is a “requirements type” agreement in which we commit to order only from the awardee, up to the specified quantity for a specific duration of time. Still, we are not obligated to order any or all of the Cummins RER L9N Near-Zero engines that may be anticipated. The bid quantities are estimates only, with deliveries to be ordered and released as required. In addition, Material Management will purchase, maintain, and manage the Cummins RER L9N Near-Zero natural gas engine inventory.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
Awarding this Contract will positively impact safety by reducing NOx emissions by ninety percent (90%) and greenhouse gas emissions by nine percent (9%) from Metro buses. Installing these new engines will also ensure buses are maintained in accordance with Metro Maintenance standards and improve on-road performance, safety, and reliability.
Financial_Impact
FINANCIAL IMPACT
The total contract value is Not-To-Exceed (NTE) $70,990,755.60. The $10,126,623 funding for the additional engines required during the current fiscal year is included in the FY27 budget in cost center 3366, under project 203052, Bus Midlife Program, and line item 50441, Parts- Revenue Vehicle. Since this is a multi-year Contract, the project manager, cost center manager, and Chief Operations Officer will be accountable for budgeting the cost in future fiscal years.
Impact to Budget
This procurement will be funded by Federal formula funds and local Proposition C 40%. These sources are eligible for Bus Operating or Capital projects.
Equity_Platform
EQUITY PLATFORM
The award of this contract ensures the bus fleet can 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 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 underserved communities.
The Disadvantaged Business Enterprise (DBE) contract goal for this procurement is zero percent (0%). The U.S. Department of Transportation (USDOT) has issued an Interim Final Rule (IFR) that makes changes to the DBE Program, including suspension of goals and enforcement, effective October 3, 2025. While the DBE commitment is not a factor in the staff recommendation, Cummins Sales and Service listed one Metro-certified small business to perform on this contract.
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.
As part of these ongoing efforts, this item is expected to contribute to further reductions in VMT. This item supports Metro’s systemwide strategy to reduce VMT through equipment purchase activities that will improve and further encourage transit ridership, ridesharing, and active transportation. 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
The procurement of the Cummins RER L9N Near Zero Emissions engines supports Strategic Goal 1) Provide high-quality mobility options that enable people to spend less time traveling. Installing the Cummins RER L9N Near Zero Emissions engines will maintain the reliability of the bus fleet and ensure customers can arrive at their destinations without interruption and in accordance with scheduled service intervals for Metro bus operations.
Alternatives_Considered
ALTERNATIVES CONSIDERED
Alternatives to awarding this Contract for near-zero-emission, natural-gas-fueled heavy-duty engines include procuring the engines on an as-needed basis using the traditional min/max replenishment system method. The "min/max" replenishment system method calculates minimum and maximum inventory levels. This strategy is not recommended because it does not require a supplier commitment to ensure availability, timely delivery, continued supply, and a guaranteed fixed price for natural gas-fueled heavy-duty engines.
A second alternative is to procure 2026 model-year engines available for the El Dorado National and New Flyer buses. This alternative is not recommended because the 2026 engines have a higher NOx rating of 0.05 g/bhp-hr standard than the requested RER engines, which have a lower NOx rating of 0.02 g/bhp-hr standard. Therefore, purchasing the 2026 model year engines would result in higher harmful air pollution emission output to the environment. Metro’s directive for clean bus technology is to purchase the lowest-emission engines available, and using the RER engines meets that requirement.
Next_Steps
NEXT STEPS
The contract will fulfill Metro’s requirements for Cummins RER L9N engines for the bus midlife refurbishment program, and the refurbishment of the El Dorado National 40-foot and New Flyer 60-foot articulated bus fleets will continue under the Operations Support Services bus mid-life and engine replacement program.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - DEOD Summary
Prepared_by
Prepared By: Harold Torres, Senior Director, Central Maintenance,
(213) 922-5714
Gary Jolly, Senior Executive Officer, (213) 922-5802
Matthew Dake, Deputy Chief Operations Officer, (213) 922-4061
Reviewed_By
Reviewed by: Conan Cheung, Chief Operations Officer, (213) 418-3034
Mathew Antonelli, Chief Vendor/Contract Management,
(213) 893-7114
