Meeting_Body
REVISED
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
JULY 16, 2026
Subject
SUBJECT: BUS ACQUISITION OF 40’ BATTERY ELECTRIC BUSES
Action
ACTION: APPROVE RECOMMENDATIONS
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to:
A. AWARD Contract No. OP118576(2)000 with El Dorado National (California), Inc. (ENC), for the manufacturing and delivery of a base order of 220 Battery Electric Buses (BEBs) in the amount of $337,698,727.58 for the base contract, including taxes and delivery; exclusive of any contract option buses, subject to the resolution of any properly submitted protest(s), if any;
B. INCREASE the Life-Of-Project (LOP) for Capital Project 201078 from $52,000,000, established to purchase up to 40 BEBs under the Washington State contract, by $382,355,185 to purchase up to 220 Battery Electric Buses (BEBs) and provide funding for professional and technical support, internal labor, and contingencies, for a total LOP of $434,355,185; and
C. NEGOTIATE AND EXECUTE future contract modifications to the contract up to $1,000,000.
Issue
ISSUE
New zero-emission buses are required to help Metro transition to a ZEB fleet and replace Compressed Natural Gas (CNG) buses that have reached the end of their useful life. To support this goal, the contract award will authorize the purchase of 220 BEBs and increase the LOP budget to fund the acquisition of the BEBs.
Background
BACKGROUND
At its July 2017 meeting, the Board approved Motion 50, issued by Directors Bonin, Garcetti, Najarian, Hahn, and Solis (Attachment A), which endorsed a ZEB Strategic Plan to transition Metro’s entire bus fleet to zero-emission by 2030. This was contingent on cost and performance being equivalent to CNG buses and on continued advancements in charging infrastructure.
In 2018, the California Air Resources Board (CARB)’s Innovative Clean Transit (ICT) regulation mandated that all transit agencies in the state operate 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.
At its January 2023 meeting, the Board authorized staff to issue a federally funded Best Value Request for Proposals (RFP) using competitive negotiations pursuant to PCC § 20217 for the procurement of new BEBs and charging infrastructure. In April 2024, Metro released an RFP for zero-emission buses, with a base order of 260 battery-electric buses (BEBs) and 20 hydrogen fuel cell electric buses (FCEBs), and options to purchase up to 1,980 ZEBs.
In November 2025, staff canceled the RFP for several reasons, including the proposers not meeting certain safety requirements, deviations sought on Metro’s Terms and Conditions and the Manufacturing Careers Policy (MCP), high price of the BEB (7.4% over the Independent Cost Estimate (ICE) per bus), as well as the entry of new battery electric bus manufacturers in the US market.
In December 2025, Metro issued two solicitations: OP118576(2), for a base order of 220 battery-electric buses (BEBs) with options for up to 1,600 additional BEBs, representing a potential total of 1,820 vehicles, as well as OP139029, for 20 BEBs. The technical specifications in these solicitations were refined by eliminating prescriptive requirements for less critical features while ensuring a continued focus on safety for both operators and riders.
The first solicitation, OP118576(2), included a delivery schedule designed to align bus deliveries with the retirement of CNG buses and depot electrification projects at Divisions 9 and 18. The second solicitation, OP139029, was issued to encourage participation by newer manufacturers and support continued growth within the U.S. bus manufacturing industry.
Discussion
DISCUSSION
The decision to cancel and re-release solicitations has led to an increase in the number of proposers, the submission of proposals with lower costs than the Independent Cost Estimate (ICE), reduced lead times for bus deliveries, and the incorporation of critical safety requirements into the bus design by proposers.
The staff recommendation presents the contractor who is most advantageous to Metro for the purchase of a base order of 220 battery-electric buses. ENC’s offer represents the highest-rated offer to Metro for BEBs when all technical and pricing factors are considered in accordance with the RFP evaluation criteria, including U.S. content and the U.S. Employment Plan. The Procurement Summary (Attachment B) provides detailed evaluation results and rankings for all proposers, including the weighted scores for each evaluation factor.
ENC was originally founded in 1975 as National Coach Corporation and went through many changes throughout the years, with facilities in Gardena, CA, Chino, CA, Carson, CA and other manufacturing facilities in Kansas. In 2003, El Dorado National, California opened their Riverside, CA manufacturing facility where they still operate today. As part of their parent company REV Group, formerly Allied Specialty Vehicles, ENC was awarded a 40’ CNG bus contract by LA Metro in October of 2017. The total quantity of ENC buses purchased by LA Metro through base and option contracts is 554. These buses continue to operate in revenue service and serve many areas throughout the Metro service area.
In January 2024, REV Group declared its intention to cease operations at ENC due to supplier challenges and a highly competitive transit bus market. Although ENC was initially scheduled to close in October, Rivaz Inc. announced on October 18, 2024, that it had acquired ENC from REV Group. Rivaz Inc. is a clean-tech company based in Pasadena involved in extracting critical battery materials and manufacturing zero-emission commercial vehicles.
A few notable agencies that also operate ENC buses are PACE Suburban Bus, City of Gardena, and Victor Valley Transit.
The new BEBs will include new technology and safety enhancements, such as an integrated operator compartment, an advanced driver assistance system (collision avoidance), an acoustic vehicle alerting system, and an optional mirrorless driver assistance camera system. The BEB range is estimated at 174-250 miles on a single charge.
The base order of 220 BEBs will be assigned primarily to Divisions 9 (El Monte) and 18 (Carson) to support the electrification of North Hollywood to Pasadena BRT and other local routes. Bus deliveries will begin in Spring 2028. The Contract also includes options for up to an additional 1,600 BEBs. The contract will include an assignment clause that allows Metro to assign any unused bus options to any municipal operator that would like to purchase buses under Metro’s contract.
Metro’s Manufacturing Careers Policy (MCP) was applied to this procurement. By applying MCP, ENC must attract and retain skilled workers, support workforce development, and ensure compliance with labor standards.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
The new BEB buses incorporate several features that will improve operator, passenger, and pedestrian safety. Some of the safety enhancements that may be on new buses include self-leveling ADA boarding ramps, improved vehicle monitoring, pedestrian warning systems, video monitors, real-time video security system accessibility, and improved passenger door sensors. Operator compartments will also be integrated into the bus design to improve operator safety and security. In addition, the buses will offer increased space for strollers, reducing the need to fold them. This enhancement will facilitate easier entry and bolster safety for young children and their caregivers.
Financial_Impact
FINANCIAL IMPACT
The total requested LOP increase is a combination of the contract amount for the 220 BEB base order of $337,698,727.58, 10% contract modification authority, and internal labor, professional, and technical support, for a total of $382,355,185.34. Available project funds will be budgeted under project 201078 in cost center 3320 Zero Emission Acquisition and Implementation. The initial LOP for $52,000,000 was approved in November 2025 for the purchase of up to 40 BEBs on the Washington State Department of Enterprise Services contract. This is a multi-year contract, and the cost center manager, project manager(s), and Sr. Executive Officer of Vehicle Engineering and Acquisition will be responsible for budgeting the costs in future years.
Impact to Budget
Funding for base order buses will come from a combination of state, federal, and local funds. $42.5M local funds are eligible for bus and rail operating and capital projects. Funding and expenditures for the project are detailed in Attachment D.
Equity_Platform
EQUITY PLATFORM
The acquisition of 220 BEBs will operate on routes restructured under the NextGen transit service plan, with service provided by Division 9 in El Monte and Division 18 in Carson. The service areas of the corridors are 147 square miles, encompassing 2.2 million people in 650,000 households and 750,000 employees. Therefore, the corridors contain approximately 21% of the County’s population and approximately 20% of the County’s employment.
Priority populations are defined as disadvantaged or low-income communities under Senate Bill 535 (SB 535) and Assembly Bill 1550 (AB 1550). There is great overlap between these areas and areas that Metro defines as Equity Focus Communities. The zero-emission bus program projects are targeted at benefiting communities with some of the greatest mobility needs in Los Angeles County. The projects’ service corridors are composed of 88% in Low-Income Communities as identified by AB 1550, 73% in Disadvantaged Communities as identified by SB 535, and 61% in Equity Focus Communities as defined by Metro’s EFC definition. EFCs benefiting from the zero-emission bus transit acquired as part of this project or located in, but are not limited to, El Monte, Rosemead, Paramount, Willowbrook, Bellflower, and Hawthorne.
El Dorado National (California), Inc. (ENC), a Transit Vehicle Manufacturer (TVM), is on the Federal Transit Administration’s (FTA) list of eligible TVMs. However, the U.S. Department of Transportation (USDOT) has issued an Interim Final Rule (IFR) that makes changes to the DBE Program and pauses the reporting and submission requirements for DBE goals. Until further notice, TVMs are not required to submit DBE goals. However, as referenced above, Metro’s MCP will apply to 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 improving 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.
This item supports Metro’s systemwide strategy to reduce VMT through capital investments and operational purchase activities that will improve 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
These recommendations support Goal #3, Enhance communities and lives through mobility and access to opportunity, and Goal #4 Transform LA County through regional collaboration and national leadership.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The Board may choose not to purchase BEB buses and continue using CNG buses, which is not recommended because the current bus fleets have reached or are expected to exceed their useful life. Operating CNG buses past their useful life requires additional investment to replace costly components on aged chassis. Extending vehicle life also adversely impacts fleet reliability and diminishes the quality of service provided to Metro’s passengers. Lastly, extending CNG bus operations conflicts with Metro’s Zero-Emissions Goal.
Next_Steps
NEXT STEPS
Upon Board approval, staff will execute the contract award with ENC and issue a Notice to Proceed.
Attachments
ATTACHMENTS
Attachment A - Board Motion 50
Attachment B - Procurement Summary
Attachment C - DEOD Summary
Attachment D - Expenditure and Funding Plan
Prepared_by
Prepared by:
Daniel Surmenian, Senior Director, Project Delivery Team (213) 922-5830
Amy Romero, Deputy Executive Officer, Project Management, (213) 922-5709
Debra Avila, Deputy Chief Vendor/Contract Management Officer, (213) 418-3051
Reviewed_By
Reviewed by: Conan Cheung, Chief Operations Officer, (213) 418-3034
