Meeting_Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
SEPTEMBER 15, 2022
Subject
SUBJECT: IGNITION CONTROL MODULE
Action
ACTION: APPROVE CONTRACT AWARD
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to award a two-year, Indefinite Delivery/Indefinite Quantity (IDIQ) Contract No. MA86135000 to Cummins, Inc., who was the responsive and responsible bidder, for ignition control modules. The contract’s first-year base amount is $548,316 inclusive of sales tax, and the one-year option amount is $562,024, inclusive of sales tax, for a total contract amount of $1,110,340, subject to resolution of protest(s), if any.
Issue
ISSUE
This procurement is for the acquisition of ignition control modules, which are computer controllers used on Cummins 8.9L ISLG near zero engines installed in Metro buses. This component is essential to the operation, control, and monitoring of the bus engine when in operation. The module controls the main functions of engine operation to ensure peak performance. The bus operating divisions replace the ignition control module upon failure, and it is imperative to have ignition control modules in stock to minimize service disruptions due to maintenance.
Award of this contract will ensure the operating divisions have adequate inventory to repair and maintain the buses according to Metro maintenance standards and are necessary to ensure service continuity and avoid any interruption to Metro operations.
Background
BACKGROUND
The ignition control module is the main controller for the operation of Cummins CNG engines on Metro buses. The ignition control module’s function is to monitor, control, and adjust engine parameters to keep the engine running in compliance with certified performance and emissions standards. An operational ignition control module is essential to ensure the reliability and safety of our bus engines.
Discussion
DISCUSSION
The ignition control module is the main computer for the Cummins 8.9L CNG engine. Replacement of the ignition control module is required upon failure of these components. The ignition control module's inventory and availability are crucial to ensure our passengers' safe transportation. In addition, the availability of the ignition control module will reduce bus downtime and keep the bus fleet in revenue service.
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. However, we have no obligation or commitment to order any specific quantity of the ignition control module that may currently be anticipated. The bid quantities are estimates only, with deliveries to be ordered and released as required.
The ignition control module will be purchased and maintained in inventory and managed by Material Management. As the ignition control module is issued from stock, the appropriate budget project numbers and accounts will be charged.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
The award of this contract will ensure that all operating divisions have adequate inventory to maintain the bus fleet according to Metro Maintenance standards. This action will prevent deferred maintenance and maintain the bus availability for revenue service.
Financial_Impact
FINANCIAL IMPACT
The funding of $548,316 for this product is included in the FY23 budget in various bus operating cost centers, under project 306002 - Operations Maintenance, under line item 50441 - M/S Parts - Revenue Vehicle.
Since this is a one-year contract with a one-year option, the cost center managers 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 funding for this action are Federal, State, and Local, including sales tax and fares. These sources are eligible for Bus Operating or Capital projects. Using these funding sources maximizes the project funding allocations allowed by approved provisions and guidelines.
Equity_Platform
EQUITY PLATFORM
The benefits of this action are to ensure that the bus fleet continues to serve most regions in Los Angeles County, including in many underserved communities, where these vital transportation services are needed to ensure residents’ access to jobs, housing, education, health, and safety. Bus transportation provides an important lifeline for these residents, and this action helps ensure the Metro bus maintenance programs provide the proper State of Good Repair for the bus fleet.
The Diversity and Economic Opportunity Department (DEOD) established a two percent (2%) DBE goal and verified the commitment by the successful bidder for this procurement.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
The ignition control module supports Strategic Goal 1: Provide high-quality mobility options that enable people to spend less time traveling. The ignition control module will help maintain the bus fleets' reliability and ensure that our customers can arrive at their destinations without interruption and in accordance with Metro bus operations.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The alternative is not to award the contract and procure the ignition control modules on an as-needed basis, using the traditional “min/max” replenishment system method. This strategy is not recommended since it does not provide for a commitment from the supplier to ensure availability, timely delivery, continued supply, and a guaranteed fixed price for the parts.
Next_Steps
NEXT STEPS
Upon approval by the Board, staff will execute Contract No. MA86135000 for the procurement of ignition control modules with Cummins Inc. at the one-year base amount of $548,316 inclusive of sales tax, and the one-year option amount of $562,024, inclusive of sales tax, for a total contract amount of $1,110,340.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - DEOD Summary
Prepared_by
Prepared by: Harold Torres, Sr. Director Central Maintenance (213) 922-5714
James Pachan, Sr. Executive Officer, 213-922-5804
Tanya Allen, Procurement Planning Administrator (213) 922-1018 Debra Avila, Deputy Chief Vendor/Contract Management (213) 418-3051
Lilia Montoya, Deputy Chief Operations Officer, Admin & Development (213) 922-4061
Reviewed_By
Reviewed by:
Conan Cheung, Chief Operations Officer, 213-418-3034
