Meeting_Body
CONSTRUCTION COMMITTEE
MARCH 19, 2025
Subject
SUBJECT: ZERO EMISSION BUS (ZEB) CHARGING INFRASTRUCTURE FOR DIVISIONS 18 & 7
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
CONSIDER:
A. FINDING that authorization of the use of alternative delivery methods, including Progressive Design Build Operate Maintain (PDBOM), pursuant to Public Utilities Code Section 130242 (b), will achieve integration of design, project works, and operations and maintenance of charging equipment in an efficient manner for ZEB Charging Infrastructure Projects at Divisions 18 & 7; and
B. APPROVING a competitive solicitation of a PDBOM contract to achieve the proposed design approach, specific project features and functions, and other project criteria in addition to price, pursuant to Public Utilities Code 130242 (e).
(REQUIRES TWO-THIRDS VOTE OF THE FULL BOARD)
Issue
ISSUE
Pursuant to Public Utilities Code Section 130242, staff is requesting Board approval to use an alternative project delivery method prior to the release of a competitive solicitation process that employs other criteria in addition to price and includes operations and maintenance of the charging equipment within the scope for the selection of a PDBOM contractor to provide electric bus charging infrastructure at two Bus Maintenance Facilities (Division 18 located in the City of Gardena and Division 7 located in the City of West Hollywood). Upon determination of the qualified firm, staff will return to the Board with a recommended selection for approval.
Background
BACKGROUND
In 2018, the California Air Resources Board (CARB) proposed the Innovative Clean Transit (ICT) regulation that required all transit agencies in the state to transition to all Zero Emission fleets by 2040. In addition, ICT ZEB purchase requirements for large transit agencies require 25% of bus purchases to be zero emissions by 2023, 50% by 2026, and 100% by 2029. Metro has met all state-mandated program requirements a decade earlier than the ICT mandate of 2029. In September 2019, Metro awarded its final option for CNG buses and committed to having 100% zero emissions in all future procurements.
In 2021, Metro electrified the G Line, which has accumulated more than five million miles of zero-emission service. The electrification of the J Line is also underway, with both the Harbor Gateway Transit Center completed, and civil construction at Division 9 (El Monte) and the El Monte Transit Center underway. In April 2024, Metro released the largest solicitation for ZEBs in U.S. history, with a base order of 260 battery electric buses (BEBs) and 20 hydrogen fuel cell electric buses (FCEBs), with options to purchase up to 1,160 ZEBs. The option amounts were later increased to 1,980 ZEBs.
In April 2024, the Board approved Motion 31.1 by Directors Yaroslavsky, Bass, Krekorian, Dupont-Walker, and Solis (Attachment A), reaffirmed its commitment to transitioning Metro’s bus fleet to zero emission while ensuring availability of operations and maintenance funding to support the full seven million annualized revenue service hours as planned through the NextGen Bus Plan.
In September 2024, staff prepared a more-detailed plan to deliver a 100% zero emission bus fleet no later than 2035. The plan identifies Divisions 18 & 7 as the next two bus divisions to be electrified and to be delivered through a progressive contracting approach. The project will create more than 400 electric bus charging positions between the two divisions. Staff have identified an opportunity to include operations and maintenance of the charging equipment, charge management system (CMS) and energy management systems (EMS) under the project scope and to proceed with a PDBOM alternative project delivery method.
Discussion
DISCUSSION
The PDBOM approach would select a contractor under a three-phase contract. During Phase I, the contractor advances design, selects the charging equipment and operations and maintenance (O&M) provider, and executes early work packages (i.e. equipment purchase, utility upgrades, etc.). During Phase II, the contractor performs final design and construction. During Phase III, the contractor performs the activities necessary to meet performance requirements as outlined in the O&M scope of services for the charging equipment installed as part of this project.
The scope of work for the project was evaluated to determine the delivery method that is best-suited to meet Metro’s needs. The anticipated scope of work includes the following features:
• Design and construction of electrical upgrades and civil infrastructure at bus Divisions 18 & 7
• Specification and procurement of charging equipment, CMS, and EMS
• Utility coordination with Southern California Edison (SCE)
• Operations and maintenance of battery electric bus (BEB) charging equipment, CMS, and EMS to performance standards required by the contract
• Development of a training program to train Metro staff on the operations and maintenance of BEB charging equipment
Staff recommends a PDBOM project delivery method to achieve project goals. A PDBOM approach will provide the following:
• Efficient risk allocation and pricing of risk of emerging technologies
• Competition and selection of a qualified contractor and single point of contact to deliver the full scope across all project phases
• Collaboration between Metro and the contractor to develop a scope of work that delivers a high-quality project throughout the design, construction, and operations and maintenance phases
• Reduced contractor risk premiums and claims over the life of the project as well as reduced probability and impact of risks that are retained by Metro
• Optimized interface management with both other Metro projects and bus service delivery
• Performance-based operations and maintenance phase that includes deductions for failure to meet performance requirements and incentives for meeting or exceeding performance requirements
The PDBOM contractor will be selected through a best value process that factors both qualifications and pricing. During the progression of the design, the contractor will provide Metro with open book detailed cost estimates that will become the basis of negotiations between Metro and the contractor. A contract will be awarded (subject to Board approval) if the final negotiated price is acceptable to Metro. If the price is not acceptable, Metro will have the option to not award a contract and release the design package as a separate solicitation.
Considerations
BEB charging equipment and charge management technologies remain emergent. While original equipment manufacturers (OEMs) continue to develop technologies and approaches to meet the needs of transit agencies transitioning to zero emission, emerging equipment, maintenance resources, and workforce have not yet fully matured. A PDBOM contracting approach will encourage OEMs to establish maintainable designs, provide robust product data and standard operating procedures, and enhance support and troubleshooting. Furthermore, by bundling the design, construction, operations, and maintenance activities under a single PDBOM contract, Metro will receive a turnkey solution that reduces Metro’s exposure to technological risk. The contract would establish the PDBOM contractor as the sole entity responsible for all project phases and will ensure seamless execution of the O&M scope beginning with equipment acceptance. It will also reduce contractor interfaces (e.g. between Design Build and O&M contractors), which eliminates finger-pointing, and introduce incentives and deductions that give Metro the leverage necessary to ensure O&M performance requirements are met throughout the life of the contract. The approach also is anticipated to reduce life of project O&M costs, reduce administrative costs and Metro staff administrative level of effort, and introduce opportunities for innovation.
In the long run, a PDBOM approach will prioritize and ensure the reliability, availability, and maintainability of the BEB charging equipment, as the contractor will be required to meet performance levels that guarantee equipment is working and available to charge buses when Metro needs it. The approach will also establish managed charging plans that ensure buses are charged sufficiently to meet service rollout while minimizing Metro’s energy costs.
Metro is coordinating with ATU on the maintenance for BEB charging equipment and, per the Collective Bargaining Agreement, sent a subcontracting protocol letter informing them of project approach prior to release of the solicitation for industry review. The approach is analogous to the arrangement for compressed natural gas (CNG) fueling stations. While the contractor will be responsible for the overall performance of the BEB charging equipment, Metro ATU-represented employees will provide escort to support the activities of the contractor and perform preventative and corrective maintenance activities agreed upon by Metro and the contractor. Metro personnel will be trained by the contractor about safety and emergency procedures. The contractor will also prepare and provide a comprehensive training program for Metro personnel in anticipation of handover to Metro of all O&M activities at the end of the contract. Metro will continue to collaborate with its labor partners to prepare the workforce for and ensure a seamless transition to zero emissions.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
The recommended Board action will have no detrimental safety impact.
Financial_Impact
FINANCIAL IMPACT
Approval of the recommendations will allow staff to proceed with a competitive solicitation process for a PDBOM project delivery method. Staff will plan for and use allocated fiscal year budgets to support the solicitation and early phases of the PDBOM process, until such time as an agreed upon price can be reached with the selected contractor. Metro has secured approximately $272 million federal and state grant and fund allocations for charging equipment at these divisions. Federal sources include the Low or No Emission Grant Program, Carbon Reduction Program, Congestion Mitigation and Air Quality Program, and the Coronavirus response and Relief Supplemental Appropriations Act of 2021. State sources include the Transit and Intercity Rail Capital Program, Senate Bill 125 Zero Emission Transit Capital Program, and State Transportation Improvement Program. Upon completion of design and staff negotiations of an agreed upon price, a Life of Project (LOP) budget will be developed, and staff will seek Board approval of the recommended LOP.
Impact to Budget
The anticipated project development and program planning activities will be funded by their respective projects. The funds will be allocated to Division 18 project 802118, Division 7 project 802107. Staff continue to apply for grants and will apply other applicable funding sources as they become available.
Equity_Platform
EQUITY PLATFORM
The Zero Emission Bus (ZEB) Charging Infrastructure Projects at Divisions 18 and 7 align with LA Metro’s Equity Platform by addressing key considerations related to environmental justice, community benefits, workforce development, and improved service reliability for historically underserved populations. Transitioning Divisions 18 and 7 to zero-emission infrastructure will contribute to improved air quality in nearby communities, which have historically borne the brunt of transportation-related pollution. Both divisions are located in areas with significant populations of low-income residents and communities of color, aligning the project with Metro’s commitment to reducing environmental health disparities. Incorporating clean energy solutions reduces greenhouse gas emissions and mitigates adverse climate change impacts that disproportionately affect vulnerable populations. The integration of advanced charge management and energy systems ensures buses are consistently charged and available for service. This supports the NextGen Bus Plan’s goals of providing reliable and frequent service, particularly in neighborhoods where transit dependency is highest. The project expands charging capacity, enabling equitable access to zero-emission buses for all riders, ensuring that communities served by Divisions 18 and 7 benefit from improved mobility options.
The PDBOM approach emphasizes the inclusion of workforce training programs to prepare Metro staff for the operations and maintenance of BEB charging systems. This supports job creation and skill development, particularly for workers in disadvantaged communities. Metro will encourage contractors to adopt inclusive hiring practices, such as partnering with local workforce development organizations and prioritizing small, minority, and disadvantaged business enterprises (DBEs) in procurement. The project team will engage local stakeholders to develop and implement an engagement plan to mitigate construction impacts on neighboring communities. Clear communication strategies and disruption minimization plans will ensure that local residents and businesses are not disproportionately burdened during project implementation. This project exemplifies Metro’s commitment to advancing equity and environmental justice by ensuring that underserved communities benefit from the transition to a zero-emission bus fleet. The proposed PDBOM delivery method supports innovation while aligning with Metro’s strategic goals to enhance mobility, foster regional collaboration, and lead on sustainability. Through thoughtful planning and execution, the ZEB Charging Infrastructure Projects at Divisions 18 and 7 will deliver meaningful improvements to Metro’s service and the communities it serves.
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 operational activities that will maintain and support transit ridership. By facilitating Metro’s transition to a zero-emissions bus fleet, the PDBOM approach recommended here will support the operations and maintenance of emerging charging and vehicle technologies and ensure a high-quality customer experience both during and after this transition. 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
These recommendations support Strategic Goal #1 to provide high-quality mobility options that enable people to spend less time traveling; Goal #3 to enhance communities and lives through mobility and access to opportunity; and Goal #4 to transform LA County through regional collaboration and national leadership.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The Board may direct staff to pursue a traditional project delivery method without operations and maintenance components. This is not recommended because the party performing the O&M scope of work, whether Metro or another contractor, may not be able to take on the risk of guaranteeing charging equipment performance. It would also likely increase the cost of the O&M scope.
Next_Steps
NEXT STEPS
Upon approval of the recommendations, staff will release a competitive solicitation to select a PDBOM contractor for the ZEB Charging Infrastructure Projects at Divisions 18 & 7. Staff will return to the Board with a recommendation to award a contract to a qualified proposer and establish a preconstruction budget for Phase I of the contract.
Attachments
ATTACHMENTS
Attachment A - Zero Emission Buses Board Motion 31.1
Prepared_by
Prepared by: Shaun Miller, Deputy Executive Officer, Project Management, (213) 922-4952
Michelle McFadden Quinn, Executive Officer, Projects Engineering (213) 922-3026
Reviewed_By
Reviewed by: Conan Cheung, Chief Operations Officer, (213) 418-3034
Timothy Lindholm, Chief Program Management Officer, (213) 922-7297
