Meeting_Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
OCTOBER 18, 2018
Subject
SUBJECT: BUS ENGINE IGNITION CONTROL MODULES
Action
ACTION: AWARD CONTRACT
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to award a two year, Indefinite Delivery, Indefinite Quantity Contract No. MA44849-2000 to Cummins Incorporated the lowest responsive and responsible bidder for bus engine ignition control modules. The award is for a Base year not-to-exceed $678,866, inclusive of sales taxes, and a one year Option for a not-to-exceed amount of $694,369, inclusive of sales tax, for a total not-to-exceed 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 control modules, 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 nearly 500 engine ignition control modules were issued to Bus Maintenance to replace failed components and to support replacement during engine rebuild programs. The engine ignition control modules are installed by Metro Mechanics at the Central Maintenance Shops and at all bus operating divisions. Buses cannot operate without properly functioning engine ignition control modules.
Discussion
DISCUSSION
Ignition control modules are an electronic engine management component that is part of the bus’s ignition system. The ignition control module energizes the ignition coils for the designated cylinders in the firing sequence for the engine. Problems with the ignition control module can quickly lead to engine performance issues. The engine ignition control modules support over 90% of our bus fleet which have Cummins 8.9 ISLG and L9N Near-Zero engines.
The contract award is a “requirements type” agreement in which Metro commits 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 control modules 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 establish a Disadvantaged Business Enterprise (DBE) goal for this solicitation due to lack of subcontracting opportunities.
The purchased engine ignition control modules are installed by Metro Mechanics. Bus engine ignition control modules 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 $665,829 for these ignition control modules 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 203025 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 source of funds for this action are Federal Section 5339 and TDA Article 4. These funding sources currently maximize allowable funding 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 Goals: Provide high-quality mobility options that enable people to spend less time traveling. The new driver seat assemblies 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 to not award the contract and procure engine ignition control modules on the open market on an as-needed basis 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 control modules will be fulfilled under the provisions of the Contract.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - DEOD Summary
Prepared By: James D. Pachan, Superintendent of Maintenance, (213) 922-5804
Reviewed by: Debra Avila, Chief Vendor/Contract Management (213) 922-6383
James T. Gallagher, Chief Operations Officer (213) 418-3108
