Meeting_Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
SEPTEMBER 15, 2022
Subject
SUBJECT: ENGINE PISTON KITS
Action
ACTION: APPROVE CONTRACT AWARD
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to award a two-year, Indefinite Delivery / Indefinite Quantity (IDIQ) Contract No. MA85347000 to Cummins, Inc. the responsive and responsible bidder for Engine Piston Kits. The contract’s one-year base amount is $581,774 inclusive of sales tax, and the one-year option amount is $596,330, inclusive of sales tax, for a total contract amount of $1,178,104, subject to resolution of protest(s), if any.
Issue
ISSUE
This procurement is for Engine Piston Kits used by the bus maintenance department for the repair of the Cummins Compressed Natural Gas (CNG) engines in Metro buses. The pistons are an essential component of the engine's combustion cycle, producing the energy required to propel the bus down the street. The pistons are required for the engine to operate and perform effectively. The bus operating divisions and Central Maintenance Shops use the piston kits to perform repairs to the engines. It is imperative to always have an inventory of piston kits on hand to service our bus fleet.
Award of this contract will ensure the operating divisions have adequate inventory to repair and maintain the buses according to Metro maintenance standards and are necessary to ensure service continuity and avoid any interruption to Metro operations.
Background
BACKGROUND
The engine piston kit is the main component for the operation of the CNG engines used in Metro buses. The piston compresses an air/fuel mixture in the engine to complete the combustion process used to create energy. The energy is then transferred to the drive system and provides the propulsion for the bus to travel down the road. Pistons can fail due to the advanced mileage and heavy-duty service the Metro bus fleet provides. A failed piston will take the bus out of service due to poor performance or visible exhaust emissions. The proper functioning of the pistons ensures that the CNG engine remains operational, which is essential to ensuring the performance, reliability, and safety of the Metro bus fleet.
Discussion
DISCUSSION
The engine piston kit is a critical component of CNG engines, and replacement of piston kits is required to ensure a proper functioning engine. The availability of the engine piston kit in inventory is crucial to ensure the reliability of the bus fleet to provide a high level of service to Metro’s customers. The availability of the engine piston kits in inventory reduces bus downtime and keeps buses in revenue service.
The contract to be awarded is a “requirements type” agreement in which Metro commits to order only from the awardee, up to the specified quantity for a specific duration of time. However, there is no obligation or commitment to order any specific quantity of the engine piston kits that may currently be anticipated. The bid quantities are estimates only, with deliveries to be ordered and released as required. The engine piston kits will be purchased and maintained in inventory and managed by Material Management. As engine piston kits are issued, the appropriate budget project numbers and accounts will be charged.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
The award of this contract will ensure that all operating divisions have adequate inventory to maintain the bus fleet according to Metro Maintenance standards. This action will prevent deferred maintenance and ensure bus availability for revenue service.
Financial_Impact
FINANCIAL IMPACT
The funding of $581,774 for this product is included in the FY23 budget in various bus operating cost centers, under project 306002 - Operations Maintenance, under line item 50441 - M/S Parts - Revenue Vehicle.
Since this is a one-year contract with a one-year option, the cost center managers and Chief Operations Officer will be accountable for budgeting the cost in future fiscal years.
Impact to Budget
The current funding sources for this action are Federal, State, and Local, including sales tax and fares. These sources are eligible for Bus Operating or Capital projects. Using these funding sources maximizes the project funding allocations allowed by approved provisions and guidelines.
Equity_Platform
EQUITY PLATFORM
All Metro buses currently in our fleet that operate on CNG are equipped with the Cummins Compressed Natural Gas engines, and the award of this contract of piston kits ensures the bus fleet that serves most regions in Los Angeles County, including many underserved communities, 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 Diversity and Economic Opportunity Department (DEOD) established a two percent (2%) DBE goal and verified the commitment by the successful bidder for this procurement.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
The engine piston kit supports Strategic Goal 1: Provide high-quality mobility options that enable people to spend less time traveling. Procuring engine piston kits for inventory will help ensure the bus fleet's reliability and enable our customers to arrive at their destinations on schedule and without interruption.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The alternative is to not award the contract and procure the engine piston kits on an as-needed basis, using the traditional “min/max” replenishment method. This strategy is not recommended since it does not provide for a commitment from the supplier to ensure availability, timely delivery, continued supply, and a guaranteed fixed price for the parts.
Next_Steps
NEXT STEPS
Upon approval by the Board, staff will execute Contract No. MA85347000 for the procurement of engine piston kits with Cummins Inc. at the one-year base amount of $581,774 inclusive of sales tax, and the one-year option amount of $596,330, inclusive of sales tax, for a total contract amount of $1,178,104.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - DEOD Summary
Prepared_by
Prepared by: Harold Torres, Sr. Director Central Maintenance (213) 922-5714
James Pachan, Sr. Executive Officer (213) 922-5804
Tanya Allen, Procurement Planning Administrator (213) 922-1018
Debra Avila, Deputy Chief Vendor/Contract Management (213) 418-3051
Lillia Montoya, Deputy Chief Operations Officer, Admin & Development (213) 922-4061
Reviewed_By
Reviewed by:
Conan Cheung, Chief Operations Officer (213) 418-3034
