Los Angeles County One Gateway Plaza q.200n Tpl Metropolitan Transportation Authority Los Angeles, CA metro.4 I

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1 Los Angeles County One Gateway Plaza q.200n Tpl Metropolitan Transportation Authority Los Angeles, CA metro.4 I Metro 1 I 48 I I SYSTEM SAFETY AND OPERATIONS COMMITTEE MARCH 15,2012 SUBJECT: ENGINE REBUILD KlTS ACTION: AWARD CONTRACT FOR ENGINE REBUILD KlTS RECOMMENDATION Authorize the Chief Executive Officer to award a firm fixed price contract under Bid No with Valley Power Systems, Inc., the single lowest responsive and responsible bidder for the procurement of 75 engine rebuild kits for an amount not-to-exceed $2,230,779 inclusive of sales tax. ISSUE This procurement is required to ensure the current engine replacement program can continue without further delays and that revenue service is not impacted. DISCUSSION The NAB1 LF 7500 series buses are currently in the MTA's Bus Midlife Program and are equipped with the Detroit Diesel Series 50G model MK natural gas engine. The engines need to be re-built to reach their projected end of life ( years). The kits are to be used to re-build the engines while still in the buses (in-frame) in order to save time and reduce costs. The 75 kits covered under this procurement consist of new Original Equipment Manufacture (OEM) supplied components that are required to re-build the engines, and will ensure the new engine requirements are met. DETERMINATION OF SAFETY IMPACT Award of contract will result in a positive impact on safety. Rebuilding these engines will ensure that the bus is maintained in accordance with Metro Maintenance standards and improve on-road performance and reliability of the bus which will have a beneficial impact on system safety.

2 FINANCIAL IMPACT The funding of $2,230,779 for the procurement of 75 engine re-build kits is included in the FYI2 budget in cost center 3366 Central Maintenance Shops, under Capital Project , FY12-FYI4 Bus Midlife Project program and line item 50441, M&S- Parts, Revenue Vehicles. Impact to Budget No other sources of funds were considered for the 75 engine re-build kits in FYI2 because these are the designated funds available for bus engine replacement. By proceeding with the purchase of these engine installation kits operating costs will remain neutral. ALTERNATIVES CONSIDERED An alternative is to re-power rather than re-build the engines. However, a re-power of these buses will require substantial additional costs estimated at $2.6 million for replacement engines, wiring harnesses, plumbing and cooling system components.. NEXT STEPS Refurbishment of the NAB1 bus fleet will continue in accordance with Operations Support Services bus mid-life program and engine replacement program. ATTACHMENTS A. Procurement Summary B. Bid Tabulation Prepared By: Mike Stange, Deputy Executive Officer, Operations

3 Chief ~dministrative Services Officer ~h\tdi Operations Officer Arthur T. Leahy Chief Executive Officer

4 ATTACHMENT A PROCUREMENT SUMMARY ENGINE REBUILD KITS Contract Number: Recommended Vendor: Valley Power Systems Inc., 425 S. Hacienda Blvd., City of Industry, CA Type of Procurement (check one) : IFB RFP RFP - A&E Non-Competitive Modification Task Order Procurement Dates: A. Issued: 1/18/12 B. Advertised/Publicized: 1/25/12 C. Pre-proposal1Pre-Bid Conference: N/A D. Proposals/Bids Due: 2/09/12 E. Pre-Qualification Completed: N/A F. Conflict of Interest Form Submitted to Ethics: 2/17/12 G. Protest Period End Date: 3/14/12 Solicitations Picked up/downloaded: 1 I Contract Administrator: Otto Ojong Project Manager: Dan Quigg Bids/Proposals Received: 1 Telephone Number: (21 3) Telephone Number: (2 1 3) A. Procurement Backnround Procurement of engine re-build kits was conducted as a formal sealed bid, competitive acquisition, in support of awarding a Master Agreement in order to ensure availability and price stability. IFB was issued January 18,201 2 and advertised January 25, Contract type is Firm-Fixed Price (FFP). Two amendments were issued during the solicitation phase of this IFB. Amendment No. 1 issued on February I, 2012, provided answers to questions received from a potential bidder and corrected several part-numbers in the technical specifications. Amendment No. 2 issued on February 2, 2012, answered a follow-up question from a potential bidder and revised the Bid Form. One bid was received on February 9,2012. Valley Power Systems was determined to be the single lowest responsive and responsible bidder. Engine Rebuild Kits 4

5 B. Evaluation of Proposals/Bids Evaluation of the firm recommended for award was based on compliance with our IFB terms and conditions. The bidder was found to be in full compliance with our technical requirements. C. CostlPrice Analvsis Explanation of Variances The recommended price has been determined to be fair and reasonable based upon a price analysis conducted by staff. The price analysis compared the price offered by Valley Power Systems to the historical pricing on previous procurements for the individual components of the rebuild kit. D. Backaround on Recommended Contractor Valley Power Systems, Inc. (VPSI) is based in City of Industry, California, and has been in business since VPSI operates primarily as a franchised distributor and operator of service facilities for heavy-duty engines and transmissions. VPSl's marketing area includes the southern San Joaquin Valley, Southern California basin, and the Baja California region of Mexico. In addition, Valley maintains a substantial inventory and is an authorized distributor for various product lines such as Deutz, Doosan, E-One, Isuzu, John Deere, Lugger, MTU, Mercedes Benz Industrial, Northern Lights, Volvo and Waukesha. VPSl does business with other transit agencies including the Orange County Transit Authority, Santa Monica Big Blue Bus and Omnitrans. In the past, VPSl has provided satisfactory service and delivery to us. E. Small Business Participation The Diversity and Economic Opportunity Department (DEOD) recommended a 5% Disadvantaged Business Enterprise Anticipated Level of Participation (DALP) for this solicitation. Valley Power System, Inc. did not make a DBE commitment and indicated that there are no subcontracting opportunities. Meeting the DALP is neither a condition of contract award, nor an issue of responsiveness. SMALL BUSINESS GOAL 5% DALP SMALL BUSINESS COMMITMENT 0% Engine Rebuild Kits 5

6 ATTACHMENT B Bi&Out: 01M8112 Total 11 Bi&Opened: (W09/12 Tdal I AhrerbiM Date(s): OllW12 Nwapper LA Daily Nevus Item No. Descript~on C;UY Unit Valley FWa Systems Inc. Unit Ptice Tatal prim 1 Engine Rebuild Kit for Detroit Diesel (DDC) Series 50G M< style natural gas engines 75 EA $24, $1,854, Core deposit, if any 75 EA $2, $1 96,725.E Sub Tatal Sales Tax 8.7% Tatal Bid (including taxes and freight) $2,051, $179, $2,230, Engine Rebuild Kits