Meeting_Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
FEBRUARY 18, 2021
Subject
SUBJECT: TURBOCHARGERS
Action
ACTION: AWARD CONTRACT
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to award a two-year, indefinite delivery/indefinite quantity Contract No. MA72029-2000 to Cummins Inc., the lowest responsive and responsible bidder for Turbocharger Assemblies. The Contract one-year base amount is for $583,353 inclusive of sales tax, and the one-year option amount is $594,670, inclusive of sales tax, for a total contract amount of $1,178.023, subject to resolution of protest(s), if any.
Issue
ISSUE
This procurement is for the acquisition of turbochargers which are required for maintaining the safe and reliable operation of the bus fleet. Award of this contract will ensure that Bus Maintenance has adequate inventory to repair and maintain buses according to Metro maintenance standards.
Background
BACKGROUND
Metro’s current bus fleet is primarily powered by Cummins natural gas engines that are equipped to turbochargers to meet performance and emissions requirements. The turbochargers are a critical part of the engine operation. Turbocharger problems can significantly impact engine performance. Turbochargers are replaced at the Central Maintenance Shops and bus operating divisions in response to performance problems or engine failures.
Discussion
DISCUSSION
The turbocharger is a component that compresses air going into the engine to provide extra power and burn a mixture of fuel in the engine cylinders more efficiently. The turbochargers specified under this procurement are either Original Equipment Manufacturer (OEM) approved or have been tested and qualified by Metro to ensure satisfactory performance for all buses operating in transit service.
The contract to be awarded is a “requirements type” agreement in which we commit to order only from the awardee, up to a specified quantity for a specific duration of time, but there is no obligation or commitment to order all of the turbochargers 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 purchased turbochargers are installed by Metro Mechanics.
Turbochargers will be purchased and maintained in inventory and managed by Material Management. As turbochargers are issued, the appropriate budget project numbers and accounts will be charged.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
Award of contract will result in a positive impact on safety by ensuring bus operating divisions have an adequate inventory of parts to maintain the bus fleet according to engine manufacturer and Metro Maintenance standards. Ensuring an adequate supply of critical parts ensures the performance and reliability of the bus fleet which will have a beneficial impact on system safety.
Financial_Impact
FINANCIAL IMPACT
The funding of $583,353 for these products is included in the FY21 budget under multiple bus operating cost centers in project 306002 Operations Maintenance under Line 50441, Parts - Revenue Vehicle.
Since this is a multi-year contract, the cost center managers and Chief Operations Officer will be accountable for budgeting the cost in future fiscal years.
Impact to Budget
The source of funds for this action is Federal, State, and Local funds including Fares. Allocation of these funds to this effort maximizes their intended use given approved funding guidelines and provisions.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
The procurement of turbochargers for the Cummins natural gas engines supports Strategic Goal 1: Provide high-quality mobility options that enable people to spend less time traveling. The installation of turbochargers 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 turbochargers 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 turbochargers 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: Debra Avila, Chief Vendor/Contract Management (213) 418-3051
James T. Gallagher, Chief Operations Officer (213) 418-3108
