Meeting_Body
OPERATIONS, SAFETY AND CUSTOMER EXPERIENCE COMMITTEE
OCTOBER 18, 2018
Subject
SUBJECT: BUS C-FRAMES
Action
ACTION: AWARD CONTRACT
Heading
RECOMMENDATION
Title
CONSIDER:
A. FINDING that the procurement of Bus C-Frames under Public Utilities Code (PUC) Section 130237, as an Original Equipment Manufacturer (OEM) item, constitutes a single source procurement method for the purpose of duplicating equipment already in use; and
B. AUTHORIZING the Chief Executive Officer to award a single source two-year, Indefinite Delivery, Indefinite Quantity Contract No. MA53981000 to The Aftermarket Parts Company, LLC (New Flyer Parts) for C-Frames Left Hand (LH) and Right Hand (RH). The Contract first year base amount is $653,889, inclusive of sales tax, and the second year Contract amount is $653,889, inclusive of sales tax for a total Contract Not-to-Exceed value of $1,307,778.
(REQUIRES 2/3 VOTE OF THE BOARD)
Issue
ISSUE
This procurement is for the acquisition of bus C-Frames 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 on an annual basis approximately 130 left-hand and 125 right-hand C-Frame assemblies were issued to Bus Maintenance to support replacement of these components that were damaged during normal operation. The C-Frame assemblies are installed by Metro Mechanics at the Central Maintenance Shops as a part of the Bus Midlife Program and at all bus operating divisions when necessary. Buses cannot operate without C-Frames that are in adequate operating condition.
Discussion
DISCUSSION
The C-Frames are being replaced during the Bus Midlife Overhaul Project on the 45’ composite NABI buses. There is a C-Frame on the right hand-side and left-hand side of the bus that supports the rear drive axle and body of the bus. C-Frame cracks or damage requires that buses be removed from service in accordance with Metro Maintenance Standards and North American Out-of-Service Criteria, which are the guidelines used by the California Highway Patrol (CHP) to inspect our bus fleet during the annual bus operating division inspections.
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 C-Frames that may currently 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 establish a Small Business Enterprise (SBE) goal for this solicitation due to the lack of subcontracting opportunities. The purchased C-Frame assemblies are installed by Metro Mechanics.
C-Frames will be purchased and maintained in inventory and managed by Material Management. As C-Frames 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 have an adequate inventory to maintain the equipment according to Metro Maintenance standards.
Financial_Impact
FINANCIAL IMPACT
The funding of $653,889 for these assemblies is included in the FY19 budget under account 50441, Parts - Revenue Vehicle within multiple bus operating cost centers in project 306002 Operations Maintenance and in the Central Maintenance cost center 3366, under project 203024 Midlife 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 including any option exercised.
Impact to Budget
The current source of funds for this action are Federal section 5339 and Proposition C 40% local matching. This funding source currently maximizes allowable project fund allocations given approved funding provisions and guidelines.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
Approval of this recommendation supports the following Metro Strategic Plan Goal: Deliver outstanding trip experiences for all users of the transportation system. This project will help maintain safety and reliability standards 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 C-Frames 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 C-Frames 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
