Meeting_Body
SYSTEM SAFETY, SECURITY AND OPERATIONS COMMITTEE
JANUARY 21, 2016
Subject/Action
SUBJECT: COMPRESSED NATURAL GAS FUEL CYLINDERS
ACTION: APPROVE CONTRACT AWARD
Heading
RECOMMENDATION
Title
AWARD a not-to-exceed Contract under Bid No. IFB MA17204 to Worthington Cylinder, the lowest responsive and responsible bidder, for the procurement for Indefinite Delivery, Indefinite Quantity for Compressed Natural Gas (CNG) fuel (cylinder) tanks for an amount not-to-exceed $1,462,181.00 inclusive of sales tax.
Issue
ISSUE
In 1998, Metro initiated an Accelerated Bus Replacement program for its transit bus fleet. Between 1999 and 2002, over 1,200 40’ CNG buses were purchased. All of these buses used CNG cylinders that cannot be used after they reach their 15 year expiration limits. CNG cylinders are tested and date stamped for a given lifespan. Federal regulations do not permit the use of CNG cylinders past their expiration dates, and there is no known process to recertify or otherwise extend the life of CNG cylinders.
Discussion
DISCUSSION
Metro has been purchasing an average of 200 buses annually and continues to receive new buses under the current contract with New Flyer. However due to the Accelerated Bus Replacement program in 1999, there remains a short-term equipment deficit for the next few years. Purchasing cylinders for a replacement program is necessary to bridge this time gap and minimize the impact on bus service.
The first series of buses targeted for CNG fuel cylinder replacement are 2000-01 New Flyer 5300 Series buses with repowered engines. The New Flyer buses have expiring CNG cylinders and have been removed from service. The CNG cylinders being purchased are designed to fit in this particular type of bus. Current inventory and this contract will enable Bus Maintenance to replace CNG fuel cylinders in 150 buses. It is anticipated that additional buses will be required for CNG fuel cylinder replacement depending on future bus service requirements at which point supplemental procurements will be initiated.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
Award of contract will result in a positive impact on safety. Replacing the CNG cylinders on the bus will help ensure the safe and compliant operation of the vehicle.
Financial_Impact
FINANCIAL IMPACT
The funding of $1,462,181.00 for these fuel cylinders is included in the FY16 budget in cost center 3366, under project 306002, Operations Maintenance and line item 50441, Parts- Revenue Vehicle.
Impact to Budget
The source of funds for this procurement will come from Federal, State and local funding sources that are eligible for Bus and Rail Operating or Capital Projects. These funding sources will maximize the use of funds for these activities.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The alternative is not to award this master agreement contract and procure CNG cylinders on an as-needed basis, using the traditional "min/max" replenishment system method. The "min/max" replenishment system method calculates minimum and maximum inventory levels. This strategy is not recommended since it does not provide for a commitment from the supplier to ensure availability, timely delivery, continued supply and guaranteed fixed price CNG cylinders.
Unless additional funding is identified to procure new buses, there are no alternative options available other than replacing CNG cylinders on Metro buses with expiring cylinders. Not pursuing this strategy will impact the quantity of buses available for revenue service and would necessitate service reductions.
Next_Steps
NEXT STEPS
Upon receipt of the new CNG cylinders, 5300 series buses will be brought to the Central Maintenance Shops for removal of expired fuel cylinders and installation of new cylinders.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - DEOD Summary
Prepared_by
Prepared by: Amy Romero, Director, (213) 922-5709
Christopher Reyes, Transportation Planning Manager III, Operations (213) 922-4808
Reviewed_By
Reviewed by: Ivan Page, Interim Executive Director, Vendor/Contract Management
James T. Gallagher, Chief Operations Officer
