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File #: 2018-0496   
Type: Contract Status: Agenda Ready
File created: 7/26/2018 In control: Operations, Safety, and Customer Experience Committee
On agenda: 9/20/2018 Final action:
Title: AUTHORIZE the Chief Executive Officer to award a two year, Indefinite Delivery, Indefinite Quantity Contract No. MA48849-2000 to Cummins Inc. for bus engine ignition coils with a first year base contract amount of $678,129, inclusive of sales tax, and a second year contract amount of $695,106, inclusive of sales tax, for a total contract value of $1,373,235, subject to resolution of protest(s), if any.
Sponsors: Operations, Safety, and Customer Experience Commit
Indexes: Accounting, Budgeting, Bus Acquisitions, Bus Engine Replacement (Project), Bus Maintenance Projects, Contracts, Maintenance, Metro Divisions, Operations and Maintenance, Operations Maintenance (Project), Procurement, Purchasing, Rolling stock, Strategic planning
Attachments: 1. Attachment A - Procurement Summary, 2. Attachment B - DEOD Summary
Related files: 2018-0673
Date Action ByActionResultAction DetailsMeeting DetailsAudio
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Meeting_Body

OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE

SEPTEMBER 20, 2018

 

Subject

SUBJECT:                     BUS ENGINE IGNITION COILS

 

Action

ACTION:                      CONTRACT AWARD

 

Heading

RECOMMENDATION

 

Title

AUTHORIZE the Chief Executive Officer to award a two year, Indefinite Delivery, Indefinite Quantity Contract No. MA48849-2000 to Cummins Inc. for bus engine ignition coils with a first year base contract amount of $678,129, inclusive of sales tax, and a second year contract amount of $695,106, inclusive of sales tax, for a total contract value of $1,373,235, subject to resolution of protest(s), if any.

 

Issue

ISSUE

 

This procurement is for the acquisition of new bus engine ignition coils which are required for maintaining the safe and reliable operation of the bus fleet.  Award of this Contract will ensure that Bus Maintenance has adequate inventory to repair and maintain buses according to Metro maintenance standards.

 

Background

BACKGROUND

 

The component usage reports from Material Management revealed that over 5,000 engine ignition coils were issued to Bus Maintenance to replace failed components and to support replacement during engine rebuild programs. The engine ignition coils are installed by Metro Mechanics at the Central Maintenance Shops and at all bus operating divisions. Buses cannot operate without properly functioning engine ignition coils.

 

Discussion

DISCUSSION

Ignition coils are an electronic engine management component that are a part of the bus’s ignition system.  The ignition coil is the component responsible for generating the engine spark, and any problems with the ignition coil can quickly lead to engine performance issues.  The engine ignition coils support over 90% of our bus fleet which have Cummins 8.9 ISLG and L9N Near-Zero engines installed. The ignition coil is an Original Equipment Manufacturer (OEM) part delivered direct from the engine manufacturer, Cummins, due to historical problems encountered with aftermarket ignition parts, including increased road calls and service reliability.

 

The Contract to be awarded is a “requirements type” agreement in which we commit to order only from the awardee, up to the specified quantity for a specific duration of time, but there is no obligation or commitment for us to order any or all of the ignition coils that may be anticipated.  The bid quantities are estimates only, with deliveries to be ordered and released as required. The Diversity and Economic Opportunity Department (DEOD) did not recommend a Disadvantaged Business Enterprise (DBE) goal for this solicitation due to the lack of opportunities for subcontracting. Opportunities for subcontracting were not apparent.  The purchased engine ignition coils are installed by Metro Mechanics.   

 

Bus engine ignition coils will be purchased and maintained in inventory and managed by Material Management.  As ignition coils are issued, the appropriate budget project numbers and accounts will be charged.

 

Determination_Of_Safety_Impact

DETERMINATION OF SAFETY IMPACT

 

Award of contract will ensure that all operating divisions and the Central Maintenance Facility have an adequate inventory to maintain the equipment according to Metro Maintenance standards.

 

Financial_Impact

FINANCIAL IMPACT

 

Funding in the amount of $678,129 for these ignition coils is included in the FY19 budget under account 50441, Parts - Revenue Vehicle in multiple bus operating cost centers under project 306002 Operations Maintenance, and in the Central Maintenance cost center 3366 under project 203035 Bus Engine Replacement Project.

                                          

Since this is a multi-year contract, the cost center manager and Chief Operations Officer will be accountable for budgeting the cost in future fiscal years. 

                     

Impact to Budget

                     

The current source of funds will come from Federal, State, and local funds including sales tax and fares. This fund allocation maximizes allowable fund use given approved provisions and guidelines.

 

Implementation_of_Strategic_Plan_Goals

IMPLEMENTATION OF STRATEGIC PLAN GOALS

 

Approval of this recommendation supports the following Metro Strategic Plan Goal:  Provide high quality mobility options that enable people to spend less time travelling. This project will maintain the reliability of the bus fleet, in an effort to provide a world-class transportation system that enhances quality of life for all who live, work, and play within LA County.

 

Alternatives_Considered

ALTERNATIVES CONSIDERED

 

The alternative is to not award the Contract and procure engine ignition coils on the open market on an as-needed basis.  This approach is not recommended since it does not provide a commitment from the supplier to ensure availability and price stability.

 

Next_Steps

NEXT STEPS

 

Metro’s requirements for bus engine ignition coils will be fulfilled under the provisions of the Contract.

 

Attachments

ATTACHMENTS

 

Attachment A - Procurement Summary

Attachment B - DEOD Summary

 

Prepared_by

Prepared By:                        James D. Pachan, Superintendent of Maintenance, (213) 922-5804

 

Reviewed_By

Reviewed by:                     Debra Avila, Chief Vendor/Contract Management (213) 922-6383

                                                               James T. Gallagher, Chief Operations Officer (213) 418-3108