Metro - File #: 2025-0191

• File #: 2025-0191
• Type: Contract
• Status: Agenda Ready
• File created: 3/4/2025
• In control: Operations, Safety, and Customer Experience Committee
• On agenda: 5/15/2025
• Title: CONSIDER: A. FINDING that after rejecting all bids for a High-Density Storage System solicited under Public Utilities Code (PUC) section ?130232 the equipment may be purchased at a lower price on the open market; and B. AUTHORIZING the Chief Executive Officer to award a firm fixed price Contract No. OP119312(3)000 to Southwest Material Handling, Inc., pursuant to PUC ?130233, for the High-Density Storage System in the amount of $889,636.50 inclusive of sales tax, subject to the resolution of any properly submitted protest(s), if any. (REQUIRES TWO-THIRDS VOTE OF THE FULL BOARD)
• Sponsors: Board of Directors - Regular Board Meeting
• Indexes: Bids, Budgeting, Contract administration, Contracts, Invitation For Bids, Logistics, Maintenance, Maintenance of way, Operations and Maintenance, Procurement, Purchasing, Railroad facilities, Request For Proposal, Safety, Small Business Enterprise, State Of Good Repair, Strategic planning

Meeting_Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
MAY 15, 2025

Subject
SUBJECT: HIGH-DENSITY STORAGE SYSTEM

Action
ACTION: AWARD CONTRACT

Heading
RECOMMENDATION

Title
CONSIDER:

A. FINDING that after rejecting all bids for a High-Density Storage System solicited under Public Utilities Code (PUC) section ?130232 the equipment may be purchased at a lower price on the open market; and

B. AUTHORIZING the Chief Executive Officer to award a firm fixed price Contract No. OP119312(3)000 to Southwest Material Handling, Inc., pursuant to PUC ?130233, for the High-Density Storage System in the amount of $889,636.50 inclusive of sales tax, subject to the resolution of any properly submitted protest(s), if any.

(REQUIRES TWO-THIRDS VOTE OF THE FULL BOARD)

Issue
ISSUE

This procurement is for the replacement of a Metro owned and operated Pallet Racking System. A High-Density Storage System is used to store Metro inventory utilizing a hydraulic lift system that eliminates the need for a forklift and has a smaller footprint, allowing for a higher density in the storage of materials. This equipment is required to support light and heavy rail material needs throughout the Metro system. The current storage system is nearly 30 years old and has been in operation since 1995. In the last several years it has experienced reduced reliability and has now surpassed its useful life and requires replacement.

Staff recommends awarding the High-Density Storage System contract through a negotiated process rather than a bid after three formal solicitations were completed, and no bids were found to be responsive.

Background
BACKGROUND

The Logistics Warehouse (A11) currently has pallet racks that require a forklift to remove and store material. The current setup requires a larger footprint in comparison to the proposed new system, as the old system requires larger aisles and spacing between pallets. Replacing the forklift will increase safety, efficiency, ...