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File #: 2017-0629   
Type: Contract Status: Agenda Ready
File created: 9/14/2017 In control: System Safety, Security and Operations Committee
On agenda: 11/16/2017 Final action:
Title: CONSIDER: A. FINDING the only responsive responsible bid for acquisition of a Production Rail Tamper under Public Utilities Code (PUC) section 130232 has been rejected due to the lack of competition and the equipment may be purchased at a lower price on the open market (PUC ?130233); and B. AUTHORIZING the Chief Executive Officer to award a firm fixed price Contract no. OP42642000 with Plasser American Corporation, on the open market pursuant to PUC ?130233, for one Production Rail Tamper in the amount of $3,378,292, inclusive of sales tax. (REQUIRES TWO-THIRDS VOTE OF THE FULL BOARD)
Sponsors: Board of Directors - Regular Board Meeting
Indexes: Amalgamated Transit Union, Bids, Contract administration, Contracts, Equipment Acquisitions, Equipment maintenance, Maintenance, Maintenance equipment, Maintenance of way, Procurement, Purchasing, Railroad commuter service, Replacement Of Hi-Rail Multipurpose Utility Truck (Project), Replacement Of Rail Grinder Equipment (Project), Tracking systems
Attachments: 1. Attachment A - Procurement Summary, 2. Attachment B - DEOD Summary
Related files: 2017-0808
Meeting_Body
SYSTEM SAFETY, SECURITY AND OPERATIONS COMMITTEE
NOVEMBER 16, 2017

Subject
SUBJECT: PURCHASE OF PRODUCTION RAIL TAMPER

Action
ACTION: APPROVE CONTRACT AWARD

Heading
RECOMMENDATION

Title
CONSIDER:

A. FINDING the only responsive responsible bid for acquisition of a Production Rail Tamper under Public Utilities Code (PUC) section 130232 has been rejected due to the lack of competition and the equipment may be purchased at a lower price on the open market (PUC ?130233); and

B. AUTHORIZING the Chief Executive Officer to award a firm fixed price Contract no. OP42642000 with Plasser American Corporation, on the open market pursuant to PUC ?130233, for one Production Rail Tamper in the amount of $3,378,292, inclusive of sales tax.

(REQUIRES TWO-THIRDS VOTE OF THE FULL BOARD)

Issue
ISSUE

This procurement is for the replacement of a Metro owned and operated rail tamping machine. A rail tamping machine is used to "tamp" stone ballast underneath and around rail track for proper track leveling and support. This equipment is required to support the track maintenance of light and heavy rail track throughout the Metro system. The current machine 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 rail tamper machine contract through a negotiated process rather than a bid. Although a formal solicitation was attempted, only one bidder made an offer and that bid price was not deemed fair and reasonable. However, through cost analysis and negotiation Metro was able to obtain a significant price reduction from the bid price. Through market survey staff found no evidence that a re-solicitation would result in a better outcome.
Discussion
DISCUSSION

The new machine is a heavy duty, high performance switch and production tamping machine. It is a multifunctional machine with fully automatic track lifting, lini...

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