Legislation Details

File #: 2024-1142   
Type: Contract Status: Agenda Ready
File created: 12/17/2024 In control: Operations, Safety, and Customer Experience Committee
On agenda: 10/15/2026 Final action:
Title: AUTHORIZE the Chief Executive Officer to:?? AWARD a five-year firm-fixed-price contract, Contract No. OP136051000, to Merak North America LLC for the overhaul of 487 HVAC assemblies for the P3010 Light Rail Vehicle (LRV) fleet in the Not-To-Exceed (NTE) amount of $10,275,213.00, subject to the resolution of any properly submitted protest(s), if any; and ESTABLISH a Life of Project (LOP) budget of $82,562,929 for the P3010 Component Overhaul tasks – Phase 2.
Sponsors: Board of Directors - Regular Board Meeting
Indexes: Budget, Budgeting, Contracts, Deferred maintenance, Equipment maintenance, Firm Fixed Price Contract, Grant Aid, Guidelines, Heating, cooling and ventilation equipment, Light rail transit, Light rail vehicles, Maintenance, Maintenance equipment, Metro Rail A Line, Metro Rail C Line, Metro Rail E Line, Procurement, Revenue Service, Rolling stock, Safety, State Of Good Repair, Strategic planning, Vehicle fleets
Attachments: 1. Attachment A - Procurement Summary, 2. Attachment B - DEOD Summary, 3. Presentation
Date Action ByActionResultAction DetailsMeeting DetailsAudio
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Meeting_Body

OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE

                     OCTOBER 15, 2026

 

Subject

SUBJECT:                     P3010 LIGHT RAIL VEHICLE (LRV) HEATING, VENTILATION, AND AIR CONDITIONING (HVAC) EQUIPMENT OVERHAUL

 

Action

ACTION:                     AWARD CONTRACT

 

Heading

RECOMMENDATION

 

Title

AUTHORIZE the Chief Executive Officer to:  

 

A.                     AWARD a five-year firm-fixed-price contract, Contract No. OP136051000, to Merak North America LLC for the overhaul of 487 HVAC assemblies for the P3010 Light Rail Vehicle (LRV) fleet in the Not-To-Exceed (NTE) amount of $10,275,213.00, subject to the resolution of any properly submitted protest(s), if any; and

 

B.                     ESTABLISH a Life of Project (LOP) budget of $82,562,929 for the P3010 Component Overhaul tasks - Phase 2.

 

Issue

ISSUE

 

In accordance with Original Equipment Manufacturer (OEM) guidelines, the P3010 LRV fleet HVAC equipment requires an overhaul at 5-year or 600,000-mile intervals. Overhauling the HVAC equipment at this interval ensures continued reliability while providing cooling and heat for Metro’s passengers. HVAC equipment failures are considered an operational safety hazard for both the passengers and the train operator. Upon equipment failure, the vehicle is removed from revenue service until the HVAC equipment is repaired.

 

Background

BACKGROUND

 

The P3010 LRV fleet consists of 235 rail cars manufactured by Kinkisharyo International LLC (Kinkisharyo). The fleet was placed in revenue service between 2016 and 2023, operating on all of Metro’s light rail lines (A, C, E, K, and L) and amassing over 122,596,296 cumulative fleet miles.

 

The P3010 fleet is currently undergoing a Component Overhaul Program under existing Capital Project #214009. The Phase 1 projects include four critical vehicle systems that are planned for completion by the end of FY29:

 

•                     Friction brake and air compressor

•                     Truck systems (axles, gearbox and traction motors)

•                     Slewing ring

•                     Fleet battery replacement

 

Discussion

DISCUSSION

 

The P3010 LRV fleet’s car builder, Kinkisharyo, and the HVAC Original Equipment Manufacturer (OEM) identified a preventive maintenance overhaul at the 600,000-mile interval, when specific HVAC components are overhauled or replaced to ensure sustained reliability and safety. Two HVAC units mounted on the vehicle rooftop are subject to outdoor weather environments (e.g., heat, cold, dust, and debris), with a high probability of declining reliability and service delays due to the “always on” feature and harsh weather conditions.

 

Phase 2 includes additional overhaul projects, including overhauls of the vehicle master controller, high-speed circuit breaker, pantograph, coupler, low-voltage power supply, propulsion equipment, and HVAC, and to establish an LOP budget for the Phase 2 projects.  This contract represents the first of Phase 2 component overhaul projects required to keep the P3010 fleet in a constant State of Good Repair (SGR). Separate contracts for additional required overhauls are currently in various stages of development.

 

Determination_Of_Safety_Impact

DETERMINATION OF SAFETY IMPACT

 

Safety is of the utmost importance to Metro’s passengers and employees, and the LRV heating and ventilation equipment must operate at full potential in accordance with internal and external ambient temperatures. Therefore, Metro must maintain the P3010 LRV fleet HVAC equipment without deferred maintenance while meeting Transit Asset Management Federal guidelines on equipment State of Good Repair (SGR).  Upon approval, this action will ensure the HVAC equipment continues to provide Metro’s passengers and train operator employees with optimum comfort in a climate-controlled environment while riding Metro’s light rail system.

 

Financial_Impact

FINANCIAL IMPACT

 

The financial impact of this  action will establish an $82,562,929 LOP budget for P3010 Phase 2 and award Merak North America a firm-fixed price contract to overhaul the HVAC equipment.  As agency procurement guidelines require, the Board will separately approve contracts for the projects included in Phase 2 that are in process or are in the mobilization stage.  Upon contract award to Merak expenditures in FY27 will include project deliverables up to First Article Inspection.   The annual budget amount for FY27 is planned at $17,705,793 inclusive of phase 1 projects and the commencement of phase 2 project under Capital Project - CP214009.

Since this is a multi-year project, the Component Overhaul Superintendent, Division Director, and Senior Executive Officer of Rail Fleet Services will ensure that the balance of funds is budgeted in future years. The Project Manager and Cost Center Manager will also be responsible for budgeting future costs.

 

Impact to Budget 

The current source of funds for this action is Measure M State of Good Repair 2%.  This funding is eligible for Operating Capital Projects. 

 

Equity_Platform

EQUITY PLATFORM

 

This contract award will ensure Metro’s P3010 LRV fleet remains in constant good repair while providing vital rail transportation services via the A, C, E, and L rail lines. These lines include many Equity Focused Communities (EFCs) where disparities may exist in residents' access to jobs, housing, education, health, and safety. These EFCs include Long Beach through Downtown LA and Pomona, as well as Santa Monica through South LA.

 

At this time of solicitation, the Diversity and Economic Opportunity Department (DEOD) did not recommend a Small Business Enterprise/Disabled Veteran Business Enterprise (SBE/DVBE) goal for this procurement due to the lack of certified small businesses that perform this service. Merak North America LLC listed one SBE firm to perform the services of 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 statewide climate goals, including achieving carbon neutrality by 2045. To ensure continued progress, all Board items are assessed for their potential impact on VMT.

This item supports Metro’s systemwide strategy to reduce VMT through rail vehicle equipment overhaul activities that will maintain 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

 

Approval of the P3010 LRV fleet HVAC overhaul supports Strategic Goal 1) Provide high-quality mobility options that enable people to spend less time traveling.

 

The recommendation supports Metro’s Strategic Plan Goal 5) Provide Responsive, Accountable, and Trustworthy governance within the Metro organization.

 

Alternatives_Considered

ALTERNATIVES CONSIDERED

 

An alternative considered is to defer the HVAC equipment overhaul, but this is not recommended, as deferring maintenance increases the risk of HVAC equipment failure. This will negatively impact revenue service, cause passenger and train operator discomfort, and reduce equipment design life characteristics.   

 

Next_Steps

NEXT STEPS

 

Upon Board Approval, the P3010 fleet HVAC equipment overhaul will commence according to stakeholders' mutually agreed production schedules, consisting of 5 kits or 10 HVAC overhauls per month over a 5-year project period.

 

Attachments

ATTACHMENTS

 

Attachment A - Procurement Summary

Attachment B - DEOD Summary

 

Prepared_by

Prepared by:            Bob Spadafora, Senior Executive Officer, Rail Fleet Services

(213) 922-3144

                              Richard M. Lozano, Superintendent, Rail Fleet Services           

                              (323) 224-4042

Matthew Dake, Deputy Chief Operations Officer

(213) 922-4061

Debra Avila, Deputy Chief Vendor/Contract Management Officer, (213) 418-3051

 

 

 

Reviewed_by

Reviewed by:                     Mat Antonelli, Chief Vendor/Contract Management Officer

                     (213) 893-7114

                     Conan Cheung, Chief Operations Officer

                     (213) 418-3034