File #: 2022-0527   
Type: Contract Status: Passed
File created: 8/5/2022 In control: Operations, Safety, and Customer Experience Committee
On agenda: 9/15/2022 Final action: 9/22/2022
Title: CONSIDER: A. AUTHORIZING the Chief Executive Officer to award a 24-month firm fixed unit price Contract No. SP88119000, to Powertech Converter Corporation (Powertech) for the purchase of ten (10) new Auxiliary Converters in support of the P3010 Light Rail Vehicle (LRV) fleet for a total contract amount of $977,586.52, inclusive of sales tax; and B. FINDING that there is only a single source of procurement for the item(s) set forth in Recommendation A above and that the purchase is for the sole purpose of duplicating or replacing supply, equipment, or material already in use. (REQUIRES TWO-THIRDS VOTE OF THE FULL BOARD)
Sponsors: Operations, Safety, and Customer Experience Commit
Indexes: Budgeting, Contracts, Expo Line Operating Project (Project), Light rail vehicles, Maintenance, Metro Rail E Line, Procurement, Purchasing, Rail Fleet Services, Rolling stock, Safety, Vehicle fleets, Vehicle maintenance
Attachments: 1. Attachment A - Procurement Summary, 2. Attachment B - DEOD Summary

Meeting_Body

REVISED

OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE

SEPTEMBER 15, 2022

 

Subject

SUBJECT:                     P3010 AUXILIARY CONVERTER SPARES

 

Action

ACTION:                     APPROVE CONTRACT AWARD                     

 

Heading

RECOMMENDATION

 

Title

CONSIDER:

 

A.                     AUTHORIZING the Chief Executive Officer to award a 24-month firm fixed unit price Contract No. SP88119000, to Powertech Converter Corporation (Powertech) for the purchase of ten (10) new Auxiliary Converters in support of the P3010 Light Rail Vehicle (LRV) fleet for a total contract amount of $977,586.52, inclusive of sales tax; and

 

B.                     FINDING that there is only a single source of procurement for the item(s) set forth in Recommendation A above and that the purchase is for the sole purpose of duplicating or replacing supply, equipment, or material already in use.

 

(REQUIRES TWO-THIRDS VOTE OF THE FULL BOARD)

 

Issue

ISSUE

 

This single source procurement is for the acquisition of ten (10) P3010 spare auxiliary converters.  These auxiliary converter assemblies will be used as float units to support the overhaul and repairs of the P3010 fleet.  PUC §130237 allows use of a single source of supply for the sole purpose of duplicating or replacing equipment, material or supplies.  Powertech owns proprietary software and hardware design and is the Original Equipment Manufacturer (OEM) of these auxiliary converter assemblies on the P3010LRV.  Powertech is the only recommended contractor for this single source procurement.

Background

BACKGROUND

 

On August 7, 2012, Kinkisharyo International, LLC was awarded the P3010 LRV Contract for a base order of 78 LRVs.  Four options, for an additional 157 LRVS, were subsequently exercised, for a total of 235 vehicles. 

 

This Board Action is to approve Contract SP88119000 in support of Metro’s P3010 Light Rail Vehicle (LRV) to procure ten (10) P3010 Auxiliary Converter units required to facilitate the overhaul and maintenance of the fleet. The existing auxiliary converter on the Kinkisharyo (KI) P3010 LRV was designed and built by Powertech Converter Corporation (Powertech). It was determined by Metro’s engineering and operations teams that Powertech possesses rights and control over proprietary data, equipment, and software necessary to ensure full operational capability of the auxiliary converter units. Therefore, the spare units must be obtained from the Original Equipment Manufacturer (OEM), Powertech.

 

Discussion

DISCUSSION

 

The P3010 LRVs are Metro’s newest and largest fleet. To support maintenance and maintain vehicle availability, spare auxiliary converter assemblies are required. The auxiliary converter, or auxiliary power supply, converts high voltage DC to low voltage AC and DC to power various onboard train systems and equipment. The auxiliary converter is specially designed for the vehicle and is vital to the operation of the vehicle. Spare units were not procured with the vehicle.

 

Spare auxiliary converters are required to maintain vehicle availability in the case of an auxiliary converter failure on the P3010 fleet and will act as a float for the upcoming overhaul cycle of the equipment. The unit is integrated to work with the P3010 LRVs and has been designed, tested, and verified for the P3010. 

 

Determination_Of_Safety_Impact

DETERMINATION OF SAFETY IMPACT

 

This board action will ensure that safety is preserved by ensuring that auxiliary converters are available to support the availability of the P3010 LRVs. 

 

Financial_Impact

FINANCIAL IMPACT

 

Funding of $977,586.52 for the Contract is included in the FY23 Budget in Cost Center 3947, Project 300066, and Account 50441. 

 

Impact to Budget

Funding for this effort includes operating eligible sources like Fares, Prop A 35, Measure M, and STA. Using these funding sources maximizes the project funding allocations allowed by approved provisions and guidelines.

Equity_Platform

EQUITY PLATFORM

 

This procurement serves to maintain the availability of the P3010 LRV fleet. The P3010 fleet is Metro’s largest and operates on nearly all operating routes that serve Equity Focus Communities. Approval of this procurement ensures riders of all of Metro’s light rail lines will not suffer from vehicle availability due to a lack of spare auxiliary converters.

 

Implementation_of_Strategic_Plan_Goals

IMPLEMENTATION OF STRATEGIC PLAN GOALS

 

The recommendation supports Metro Strategic Plan Goal No. 5 to “provide responsive, accountable, and trustworthy governance within the Metro organization”.  New auxiliary converter assemblies will ensure fleet reliability, support vehicle overhaul and maintenance activities, and provide safety for Metro’s passengers in all operational modes.  Contract Modification Authority and Contract extension safeguards overhaul production continuance while meeting passenger safety and fleet reliably.

 

Alternatives_Considered

ALTERNATIVES CONSIDERED

 

The system has been designed and proven to work on the P3010 fleet.  To purchase this unit from another source will require extensive design work, including integration of proprietary hardware and software with other vehicle systems and requalification of the unit for performance and electromagnetic interference (EMI).  This will significantly increase the time and cost of acquiring this unit and perhaps make the procurement infeasible. 

Next_Steps

NEXT STEPS

 

Upon Board approval, the procurement of spare auxiliary converters will move forward.

 

Attachments

ATTACHMENTS

 

Attachment A - Procurement Summary

Attachment B - DEOD Summary

 

Prepared_by

Prepared by:              Bob Spadafora, Senior Executive Officer, Rail Fleet Services (213) 922-3144

                                                  Richard M. Lozano, Senior Director, Rail Fleet Services           323)-224-4042

                     Debra Avila, Deputy Chief Vendor/Contract Management Officer, (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