Meeting_Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
MARCH 16, 2023
Subject
SUBJECT: PURCHASE OF OCS STINGER TRUCK
Action
ACTION: APPROVE RECOMMENDATIONS
Heading
RECOMMENDATION
Title
CONSIDER:
A. AUTHORIZING the Chief Executive Officer to award a firm-fixed-price contract, Contract No. OP92098000, to Nixon-Egli Equipment Company, for one (1) Overheard Catenary System (OCS) Stinger Truck for a firm fixed price of $882,520.78, inclusive of sales tax, subject to resolution of any properly submitted protest(s) if any; 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, as defined under Public Utilities Code 130237.
(REQUIRES TWO-THIRDS VOTE OF THE FULL BOARD)
Issue
ISSUE
The purchase of a new OCS Stinger truck is necessary for the OCS maintenance and State of Good Repair (SGR) renewal work on all Metro Light Rail Lines. This truck will replace an out-of-service, 30-year-old OCS Stinger Truck, which is beyond its useful life, and noncompliant with current emission control standards.
Background
BACKGROUND
Metro Traction Power Department maintains over 200 miles of OCS wires for all Metro Light Rail Train Lines. Metro is responsible for ensuring that all systems are properly maintained for the safety, reliability, and longevity of capital assets. The OCS Stinger Truck is required to maintain and repair the system.
Discussion
DISCUSSION
The OCS Stinger Truck is a critical piece of equipment that is used for a variety of tasks, such as lifting heavy copper wire rolls and pulling the OCS wires to achieve the required tension during the wire replacement activity. This truck will also support planned SGR OCS wire replacement projects, as well as perform emergency repairs in a timely manner to significantly reduce service interruptions and delays.
Metro staff researched Zero Emission (ZE) electric power drive trucks for purchase. The option to purchase a ZE electric power drive truck is very limited due to the truck not being readily available in the market. A new type of diesel engine is available that produces lower emissions, complies with the South Coast Air Quality Management District (SCAQMD) emission standard has improved efficiency in horsepower, and consumes less fuel.
A 2/3 vote of the board is required per Public Utilities Code 130237:
"Notwithstanding Section 130232, the commission may direct the purchase of any supply, equipment, or material without observance of any provision in this article regarding contracts, bids, advertisement, or notice upon a finding by two-thirds of all members of the commission that there is only a single source of procurement therefor and that the purchase is for the sole purpose of duplicating or replacing supply, equipment, or material already in use."
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
Metro maintenance crews need to lift six to eight thousand pounds of OCS wire, and pull the wire to achieve proper tension during the wire replacement activities. Purchasing a new crane truck will allow for safe heavy lifting operations, with better productivity.
Financial_Impact
FINANCIAL IMPACT
A total of $882,520 is needed for this action. The budget is contained in Capital Project 205121 - FY23 Metro Green Line OCS Wire Replacement Project. The Life of Project (LOP) budget is $41,766,242.00, which is within the project budget.
Since this is a multi-year contract, the Project Manager will be responsible for budgeting resources in future Fiscal Years.
Impact to Budget
The current source of funds for this action are Federal Section 5307, Proposition A/C, Measure R/M, and Transportation Development Act. Use of these funding sources currently maximizes funding allocations given approved funding provisions and guidelines.
Equity_Platform
EQUITY PLATFORM
The Metro Light Rail Line runs through Equity Focus Communities and the award of this contract is critical for repairing and maintaining the OCS wire, to avoid interruption of train operations and major delays to our Metro riders.
The Diversity and Economic Opportunity Department (DEOD) did not recommend an SBE or DVBE participation goal for this procurement due to limited suppliers and only one bid submitted for the Rail Bound Crane truck.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
The recommendation supports Metro Strategic Plan Goal #5: Provide responsive, accountable, and trustworthy governance within the Metro organization.
The new OCS Stinger Truck will improve the performance of OCS maintenance work, rail emergency response work for OCS repair, and new OCS wire installation. Purchasing a new crane truck will improve heavy lifting operations and will increase safety, performance, and productivity. With this, Metro is exercising good public policy judgment and sound fiscal stewardship.
Alternatives_Considered
ALTERNATIVES CONSIDERED
Staff considered not purchasing a new OCS Stinger Truck and performing an overhaul repair on the out-of-service, 30-year-old crane truck, however this is not recommended. The non-revenue department has performed an analysis for estimated cost of the overhaul option and determined that overhaul cost would be equivalent to purchasing a new truck due to limited spare parts, and new regulation compliance from SCAQMD and California DOT. It would not be fiscally responsible to repair the truck. Staff also considered using only the smaller existing crane truck which has significantly less capacity, but this will result in much lower than planned productivity.
Next_Steps
NEXT STEPS
Following the authorization and execution of the contract, the vendor will begin the manufacturing process and provide Metro with a production schedule to identify milestones to be consistent with the agreed schedule.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - DEOD Summary
Prepared by: Kelvin Zan, Executive Officer, Operations Engineering, (213) 617-6264
Errol Taylor, Deputy Chief Operations Officer, Maintenance and
Engineering, (213) 922-3227
Debra Avila, Deputy Chief Vendor/Contract Management (213) 418-3051
Reviewed by:
Conan Cheung, Chief Operations Officer, (213) 418-3034
