35 One Gateway Plaza Los Angeles, CA

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1 35 One Gateway Plaza Los Angeles, CA Tel metro. net SYSTEM SAFETY AND OPERATIONS COMMITTEE FEBRUARY 21, 2013 SUBJECT: ACTION: TURBOCHARGERS APPROVE CONTRACT AWARDS RECOMMENDATION Authorize the Chief Executive Officer to award a 24-month, indefinite delivery/indefinite quantity, firm fixed price contract under Bid Number to the following lowest responsive and responsible bidders for turbochargers for an amount not-to-exceed $2,697,251 inclusive of sales tax and a one-year option: 1. Performance Turbochargers, LLC for line item 1 (Turbocharger Asm.- Series 50G Gas) for a total contract value of $1,350,605 and; 2. Cummins Cal Pacific, LLC for line item 2 (Turbocharger Asm.,- Engine, Cummins ISL for a total contract value of $1,346,646. ISSUE The turbocharger is a bus power plant component that compresses the air going into the engine to provide extra power and burn the mixture of fuel in the cylinders more efficiently. Turbochargers are changed out approximately one time during the life of the engine, about four to five years. DISCUSSION The turbochargers specified under this procurement are either original equipment manufacturer (OEM) approved or have been tested and qualified by Metro to ensure satisfactory performance for all buses operating in transit 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, but there is no obligation or commitment for us to order any or all of the turbochargers that may be anticipated. The bid quantities are estimates only, with deliveries to be ordered and released as required.

2 DETERMINATION OF SAFETY IMPACT Installation of these turbochargers will ensure that buses are maintained in accordance with Metro maintenance standards. This will improve bus running performance and reliability of the bus, which will have a beneficial impact on system safety. Award of this contract will ensure that all divisions have adequate inventory to maintain the equipment. FINANCIAL IMPACT The total contract value is $2,697,251. Funding of $210,000 for these components is included in the FY13 budget under multiple bus operating cost centers in project Operations Maintenance under Line 50441, Parts- Revenue Vehicle. Since this is a multi-year contract, the cost center manager, project manager, and Executive Director will ensure that the remaining funds are budgeted in future fiscal years, including any option exercised. Impact to Budget The source of funds for this procurement is the Enterprise Fund. No other source of funds was considered because these funds are specifically designated for bus operations. ALTERNATIVES CONSIDERED The alternative is to not award the contract and continue to procure turbochargers on an as-needed basis at a higher cost. This approach is not recommended since it does not provide a commitment from the supplier to ensure availability and price stability. NEXT STEPS Metro's requirements for turbochargers will be fulfilled under the provisions of the contract. ATTACHMENTS A. Procurement Summary B. Bid Tabulation Turbochargers 2

3 Prepared by: Questions: Michael Stange, Executive Director, Maintenance (213) Michelle Stewart, Assistant Administrative Analyst, Operations (213) Turbochargers 3

4 Chief Administrativ Services Officer Frank Afejandro ChiefOperations Officer Arthur T. Leahy Chief Executive Officer Turbochargers 4

5 ATTACHMENT A PROCUREMENT SUMMARY TURBOCHARGERS Contract Number: Recommended Vendor: Item 1: Performance Turbochargers, LLC, 8482 Cherry Avenue, Fontana, CA Item 2: Cummins Cal Pacific, LLC, 1939 Deere Avenue, Irvine, CA Type of Procurement (check one): 1:8]1FB D RFP D RFP-A&E D Non-Competitive D Modification D Task Order 4. Procurement Dates: A. Issued: 10/30/12 B. Advertised/Publicized: 11/15/12 C. Pre-proposal/Pre-Bid Conference: N/A D. Proposals/Bids Due: 12/18/12 E. Pre-Qualification Completed: N/A F. Conflict of Interest Form Submitted to Ethics: Yes G. Protest Period End Date: 2/20/13 5. Solicitations Picked up/downloaded: 11 Bids/Proposals Received: 7 6. Contract Administrator: Telephone Number: Tanya Allen (213) Project Manager: Telephone Number: Michael Stange (213) A. Procurement Background Procurement of turbochargers was conducted as a formal sealed bid, competitive acquisition, in support of awarding long-term Master Agreements in order to ensure availability and price stability. IFB was issued October 30, 2012 and advertised November 15, 2012 and is a Firm-Fixed Price contract. Two Amendments were issued during the solicitation phase of this IFB; Amendment No. 1 was issued on November 27, 2012 to answer request for approved equal Amendment No. 2 was issued on December 4, 2012 to change manufacturer's part numbers Turbochargers 5

6 B. Evaluation of Proposals/Bids A total of seven bids were received and opened December 18, All firms that submitted offers were found to be in full compliance with the bid requirements The firms recommended for award, Performance Turbocharger, LLC and Cummins Cal Pacific, LLC were determined to be the lowest responsive responsible bidders. C. Cost/Price Analysis The recommended bid price of $2,697,251 has been determined to be fair and reasonable based upon adequate price competition and selection of the lowest responsive and responsible bidder for each line item. Calculated price savings will be $33,104 based on the difference between historical prices and the bid price. Bidder/Proposer Total Bid Comments Name Amount 1. Performance Lowest unit price on Turbochargers, LLC $2,890,597 Line Cummins Cal Pacific, Lowest unit price on LLC $1,346,646 Line 2. Did not bid on Line Valley Power Did not offer lowest Systems, Inc. $2,342,692 unit prices 4. Prevost Car (US) Inc. $2,951,398 Did not offer lowest unit prices 5. Custom Turbo $2,983,115 Did not offer lowest unit prices 6. MCI Services Parts, Did not offer lowest Inc. $3,004,110 unit prices 7. Muncie Reclamation Did not offer lowest and Supply $3,013,408 unit prices D. Background on Recommended Contractor The responsive and responsible low bidder for line 1, Performance Turbochargers, LLC, located in Fontana, CA has been a distributor of turbochargers, charge-air coolers, engine brakes, starters and alternators, fuel injection pumps, injectors, fuel filtration and fuel additives and other related products for buses for 8 years. Performance Turbochargers, LLC has provided similar bus parts to other transit agencies, including Golden Gate Bridge Highway and Transp. District (Golden Gate Transit), Riverside Transit Agency, MV Transportation. To date, Performance Turbochargers has provided satisfactory service and products to Metro on previous small purchases. Turbochargers 6

7 The responsive and responsible low bidder for line 2, Cummins Cal Pacific, LLC, located in Irvine, CA has been a distributor of engines and repower of automotive, industrial, marine and retrofits parts and sales and other related products for buses for 21 years. Cummins Cal Pacific, LLC has provided similar bus parts to other transit agencies, including Orange County Transportation Authority (OCTA), San Diego Metropolitan Transit System, and Omnitrans. To date, Cummins Cal Pacific, LLC has provided satisfactory service and products to Metro on previous small purchases. E. Small Business Participation The Diversity and Economic Opportunity Department recommended a 5% Disadvantaged Business Enterprise Anticipated Levels of Participation (DALP) for this procurement. The recommended awardees, Performance Turbochargers, LLC and Cummins Cal Pacific, LLC did not make any DBE commitments. Achieving the DALP percentage is neither a condition of award nor an issue of responsiveness. Turbochargers 7

8 ATTACHMENT B LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY BID TABULATION Bid No: Turbochargers Bids Out: 10/30/12 Total 29 Bids Opened: 12/18/12 Total 7 Advertisement Date(s): 11/15/12 Newspaper: LA Daily News Performance Turbochargers, LLC Prevost Car (US) Inc. Custom Turbo MCI Services Parts, Inc. Item I MT A Item I No. Code Description latyl UM Unit Price I Total Price Unit Price I Total Price Unit Price I Total Price Unit Price I Total Price PRICING- 12 Month 1 I !Turbocharger Asm.- Series 50G Gas EA $2, $611, $2, $706, $2, $715, $3, $733, I !Turbocharger Asm.- Engine,Cummins ISL EA $1, $697, $1, $627, $1, $636, $1,8oo.ool $648, Sub Total12 Month I $1,309, $1,333, $1,351, $1, ool PRICING -12 Month 1 I !Turbocharger Asm. -Series 50G Gas EA $2, $630, $3, $731, $3, $736, $3, $733, !Turbocharger Asm. -Engine, Cummins ISL EA $1, $718, $1, $648, $1, $655, $1,8oo.ool $648, Sub Total Option 1 $1,348, $1,380, $1,391, $1,381, Month and Option Subtotal $2,658, $2,713, $2,743, $2,762, Sales Tax 8.75% $232, $237, $240, $241, GRAND TOTAL I $2,890, $2,951, $2,983, $3,004,11 o.ool Muncie Reclamation and Cummins Cal Pacific, Valley Power Systems, Supply LLC Inc. Item T MT A Item I No. Code Description latyl UM Unit Price I Total Price Unit Price I Total Price Unit Price I Total Price 1 I PRICING -12 Month !Turbocharger Asm. - Series 50G Gas 1240 I EA $2, $718, no bid I $0.00 $4, $1,061, I Turbocharger Asm. - Engine.Cummins ISL EA $1, $646, $1, $613, no bid I $0.00 PRICING -12 Month Sub Total 12 Month I $1,365,ooo ooll $613, $1,061 ' !Turbocharger Asm.- Series 50G Gas EA $3, $740, no bid I $0.00 $4, $1,093, I !Turbocharger Asm.- Engine,Cummins ISL EA $1, $665, $1, $624, no bid I $0.00 Sub Total Option 1 $1,405, $624, $1,093, Month and Option Subtotal $2,770, $1,238, $2,154, Sales Tax 8.75% $242, $108, $188, GRAND TOTAL I $3,013, $1,346, $2,342, I hereby certify Performance Turbochargers, LLC and Cummins Cl Pacific, LLC as being the lowest responsive, responsible bidders and recommend the award to them for total price, including sale/~j>$~, 697, 251. ~ 4-"L _ ate Signature Page 1 of 1