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File #: 2018-0628   
Type: Contract Status: Agenda Ready
File created: 9/19/2018 In control: Operations, Safety, and Customer Experience Committee
On agenda: 11/15/2018 Final action:
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.
Sponsors: Operations, Safety, and Customer Experience Commit
Indexes: Bus Maintenance Projects, Contracts, Maintenance, Metro Divisions, Operations Maintenance (Project), Procurement, Rolling stock, Strategic planning
Attachments: 1. Attachment A - Procurement Summary, 2. Attachment B - DEOD Summary
Date Action ByActionResultAction DetailsMeeting DetailsAudio
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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