Meeting_Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
NOVEMBER 15, 2018
Subject
SUBJECT: ELECTRONIC CONTROL MODULE
Action
ACTION: AWARD CONTRACT
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to award a two year, Indefinite Delivery, Indefinite Quantity Contract No. MA49132000 to Cummins Inc., for electronic control modules for a one year base amount of $730,578, inclusive of sales tax, and a second year amount of $748,845, inclusive of sales tax, for a total contract value of $1,479,423, subject to resolution of protest(s), if any.
Issue
ISSUE
This procurement is for the acquisition of new engine electronic 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 300 engine electronic control modules were issued to Bus Maintenance to replace failed components and to support replacement during engine rebuild programs. The 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 control modules.
Discussion
DISCUSSION
Engine electronic control modules are an engine management component that is commonly known to be the brains of the engine. The control module provides key data to the engine and component parts and ensures efficient operation of the engine to meet emission regulations. Problems with the engine electronic control module can quickly lead to engine performance issues. The engine electronic control modules support over 90% of our bus fleet which have Cummins 8.9 ISLG engines and Cummins 8.9 ISLG Near-Zero engines.
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 engine 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) recommended a two percent (2%) DBE goal for this solicitation. The purchased engine electronic control modules are installed by Metro Mechanics.
Bus engine electronic control modules will be purchased and maintained in inventory and managed by Material Management. As electronic control modules 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 $730,578 for these engine electronic 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.
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 sources of funds for this action are Federal Section 5307, State SB1, Proposition A/C, Measure R/M, and Transportation Development Act. Use of these funding sources currently maximizes funding allocation given approved funding provisions and guidelines.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
The procurement of engine electronic control modules supports Strategic Goal 1: Provide high-quality mobility options that enable people to spend less time traveling. The new engine electronic control modules will maintain the reliability of the bus fleet and ensure that our customers are able to arrive at their destinations without interruption and in accordance with the scheduled service intervals for Metro bus operations.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The alternative is to not award the Contract and procure engine electronic control modules 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 electronic 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
