Meeting_Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
JANUARY 17, 2019
Subject
SUBJECT: THREE-WAY MUFFLER CATALYSTS
Action
ACTION: AWARD CONTRACT
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to award a two year, Indefinite Delivery, Indefinite Quantity Contract No. MA56400000 to Cummins Incorporated, the lowest responsive and responsible bidder for Three-Way Muffler Catalysts. The award is for a Base year not-to-exceed of $607,663 inclusive of sales tax, and a one year Option for a not-to-exceed amount of $622,855, inclusive of sales tax for a total not-to-exceed contract value of $1,230,518, subject to resolution of protest(s), if any.
Issue
ISSUE
This procurement is for the acquisition of new three-way muffler catalysts, which are required for maintaining a safe and reliable bus fleet operation. Award of this contract will ensure that Bus Maintenance has adequate inventory to repair and maintain buses according to Metro maintenance standards.
Background
BACKGROUND
The component usage reports from Material Management revealed that on an annual basis approximately 125 three-way muffler catalysts were issued to Bus Maintenance to replace failed components and to support replacement during engine rebuild programs. The three-way muffler catalysts are installed by Metro Mechanics at the Central Maintenance Shops and at all bus operating divisions. Buses cannot operate without properly functioning three-way muffler catalysts.
Discussion
DISCUSSION
A three-way muffler catalyst is a simple, passive device that reduces exhaust noise and three harmful emissions from the buses: hydrocarbons (HC), carbon monoxide (CO) and nitrogen oxide (NOx). Problems with the three-way muffler catalyst can quickly lead to engine performance issues. The three-way muffler catalysts support over 90% of our bus fleet which have Cummins 8.9 ISLG engines and Cummins 8.9 ISLG Near-Zero engines.
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, but there is no obligation or commitment for us to order any or all of the three-way muffler catalysts that may be anticipated. The bid quantities are estimates only, with deliveries to be ordered and released as required. The Diversity and Economic Opportunity Department (DEOD) recommended a two percent (2%) DBE goal for this solicitation. The recommended contractor has proposed to meet or exceed the established goal. The purchased three-way muffler catalysts are installed by Metro Mechanics.
Three-way muffler catalysts will be purchased and maintained in inventory and managed by Material Management. As three-way muffler catalysts are issued, the appropriate budget project numbers and accounts will be charged.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
Award of contract will ensure that all operating divisions and the Central Maintenance Facility have an adequate inventory to maintain the equipment according to Metro Maintenance standards.
Financial_Impact
FINANCIAL IMPACT
Funding in the amount of $607,663 for these three-way muffler catalysts is included in the FY19 budget under account 50441, Parts - Revenue Vehicle in multiple bus operating cost centers under project 306002 Operations Maintenance, and in the Central Maintenance cost center 3366 under project 203025 Bus Engine Replacement Project.
Since this is a multi-year contract, the cost center manager and Chief Operations Officer will be accountable for budgeting the cost in future fiscal years.
Impact to Budget
The source of funds will come from Federal and local TDA 4 funds that are eligible for Bus capital projects. Use of these funding sources maximizes established funding provisions and guidelines.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
The procurement of three-way muffler catalysts supports Strategic Goal 1: Provide high-quality mobility options that enable people to spend less time traveling. The new three-way muffler catalysts will maintain the reliability of the bus fleet and ensure that our customers are able to 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 to not award the contract and procure three-way muffler catalysts on the open market on an as-needed basis. This approach is not recommended since it does not provide a commitment from the supplier to ensure availability and price stability.
Next_Steps
NEXT STEPS
Metro’s requirements for three-way muffler catalysts will be fulfilled under the provisions of the contract.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - DEOD Summary
Prepared_by
Prepared By: James D. Pachan, Superintendent of Maintenance, (213) 922-5804
Reviewed_By
Reviewed by: Debra Avila, Chief Vendor/Contract Management Officer (213) 922-6383
James T. Gallagher, Chief Operations Officer (213) 418-3108
