Meeting_Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
FEBRUARY 15, 2024
Subject
SUBJECT: PURCHASE OF ELECTRIC VEHICLE (EV) CROSSOVERS
Action
ACTION: APPROVE CONTRACT AWARD
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to award a firm fixed price contract under IFB No. DR113478 with Elite Auto Network, the lowest responsive and responsible bidder for 21 Toyota bZ4X Electric Vehicles (EV) Crossovers for a total of $1,305,792.28 inclusive of sales tax, subject to the resolution of any properly submitted protest(s), if any.
Issue
ISSUE
This procurement is to replace 21 Metro owned and operated gasoline and gasoline hybrid Sport Utility Vehicles (SUV’s) and sedans with 21 EV Crossovers. SUV’s and sedans identified for replacement have exceeded the policy requirement of 6 years and/or 150,000 miles of service or were previously placed out of service and scrapped due to major collision damage.
Metro is committed to promoting and using zero-emissions vehicles across the system, including in our non-revenue fleet. Transitioning from gasoline and gasoline hybrid SUV’s and sedans to EV Crossovers will align the department with the company goal and reduce Metro’s carbon footprint.
Background
BACKGROUND
Non-revenue vehicles are required by various departments to support maintenance, transportation, and construction programs. Several non-revenue vehicles have exceeded the minimum required service requirements and are in need of replacement, including twenty-one older and higher mileage SUV’s and sedans. Two vehicles need replacement because of major collision damage and nineteen vehicles need replacement due to the normal wear and tear of 12 - 16 years in service with an average of 167,000 miles. In the last few years, these SUV’s and sedans have experienced reduced reliability and have required significant and frequent repairs to keep them in service. These vehicles have now surpassed their useful life and were determined unreliable with excessive mechanical failures, costly/frequent repairs, and high levels of service unavailability. The current condition of these vehicles renders them no longer cost effective to maintain and replacements are now required.
The Toyota bZ4X Electric Vehicles being procured have several clear advantages over gasoline and gasoline hybrid vehicles in terms of environmental impact, cost of ownership, performance, and technological innovation.
Discussion
DISCUSSION
The award of this firm fixed price contract with Elite Auto Network will allow the replacement of twenty-one SUV’s and sedans. Various departments throughout the agency rely on these SUV’s and sedans, including bus and rail divisions, Wayside systems, Maintenance of Way Engineering, Risk Management, Operations Planning, and Public Relations. The new SUVs will be used for operator relief, maintenance support, construction project management, and to support various administrative functions. The EV configuration of these vehicles ensures Metro operates zero tailpipe emission Battery Electric Vehicles to continue with Metro’s efforts of utilizing environmentally friendly equipment. The new Toyota bZ4X Electric Vehicles provide several benefits to Metro, including:
Environmental Impact
Metro is committed to promoting and using zero-emissions vehicles across the system, including in our non-revenue fleet. The transition to zero emission, non-revenue vehicles benefits customers, employees, and the communities where Metro vehicles operate with the elimination of harmful emissions in these environments. In alignment with the recent Board approval of the EV Parking Strategic Plan, Metro is committed to transitioning the non-revenue fleet to zero-emission vehicles.
Cost of Ownership
While having a more expensive purchase cost upfront, the high cost of fuel for gasoline vehicles and reduced maintenance for new vehicles will result in a cost reduction for maintaining the EV Crossovers as compared to gasoline and gasoline hybrid vehicles.
Safety
THE EV Crossovers are equipped with numerous technologically advanced safety features, including dynamic braking, emergency airbags, and antilock braking, making them safer to operate compared to the older gasoline and gasoline hybrid vehicles.
Charging Availability
Agencywide charging logistics for all Metro electric vehicles are addressed in Metro’s EV Parking Strategic Plan 2023-2028. With the planned expansion of available charging stations, non-revenue can increase the number of electric vehicles.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
Safe operation of the non-revenue vehicle fleet is paramount to the safety of the Metro employees that operate them. Excessive age and mileage lead to wear of the major systems of the vehicle, such as drive train, steering, suspension, and engine, resulting in potentially significant repair costs. Replacement of electric vehicle crossovers will minimize vehicle related safety issues.
Financial_Impact
FINANCIAL IMPACT
The recommended award is $1,305,792.28. This budget is contained within the Life of Project of Capital Project 208610 - FY23 Non-Revenue Equipment Replacement. The budget for this procurement is in Cost Center 3790, Maintenance Administration, Account 53106, Acquisition of Service Vehicles.
Impact to Budget
The current source of funds for this action are from Transportation Development Act funding. These funds are eligible for use on Capital and Operating projects. Allocating these funds to this effort maximizes project funding use given approved provisions and guidelines.
Equity_Platform
EQUITY PLATFORM
This action will provide support equipment (EV Crossovers) that will ensure efficient and timely rail and bus service to many underserved communities in Los Angeles County and ensure continued reliable transportation services. The EV Crossovers procured will be assigned to various departments throughout Metro; however, the EV Crossovers will provide support to Rail and Bus Operating Divisions located throughout Los Angeles County, including Downtown Los Angeles, El Monte, Long Beach, and Sun Valley. The adoption of the Toyota bZ4X Electric Vehicles aligns with environmental justice principles, addressing pollution disparities in communities disproportionately affected by traditional vehicles.
The Diversity and Economic Opportunity Department (DEOD) did not establish a Small Business Enterprise (SBE) / Disabled Veteran Business Enterprise (DVBE) goal for this solicitation.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
The contract for EV Crossovers supports Strategic Goal 2.3: Metro will support a customer-centric culture where exceptional experiences are created at every opportunity for both internal and external customers. The EV Crossover vehicles are required for support of bus, rail, administration, engineering, risk management and support departments focused on providing clean, safe, and reliable transportation services for Metro customers.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The alternative to operating the current vehicles was considered for the nineteen SUV’s still in service, but retaining these vehicles for use by Metro employees is not recommended. Diminished reliability, high maintenance costs, frequent repairs and higher emissions have rendered these SUV and sedans a poor alternative for continued operation.
Not purchasing the recommended EV Crossovers will significantly reduce the ability of Metro staff to support the Rail and Bus Operations that effectively provide world-class transportation for all, since the older SUV and sedans that are currently in use are more prone to breakdowns, which could cause delays in the response to incidents and major emergencies.
Other EV Crossovers were considered, but the BZ4X was the only vehicle in this class with the storage capacity, seating capacity, and range to fulfill the needs of replacing gasoline and gasoline hybrid SUVs.
Next_Steps
NEXT STEPS
Following the execution of the contract, the vendor will place an order for the vehicles and commence delivery upon receipt from the manufacturer. Delivery of all twenty-one vehicles is scheduled before the close of the calendar year 2024.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - DEOD Summary
Prepared_by
Prepared by: Gary Jolly, Bus Maintenance Superintendent, (213) 922-5802
James Pachan, Sr. Executive Officer (213) 922-5804
Matthew Dake, Deputy Chief Operations Officer (213) 922-4061
Debra Avila, Deputy Chief Vendor/Contract Management (213) 418-3051
Reviewed_By
Reviewed by: Conan Cheung, Chief Operations Officer (213) 418-3034
