ORANGE COUNTY TRANSPORTATION AUTHORITY. Agreement to Purchase Compressed Natural Gas Articulated Buses. Staff Report

Transcription

1 ORANGE COUNTY TRANSPORTATION AUTHORITY Agreement to Purchase Compressed Natural Gas Articulated Staff Report

2 November 8, 2012 To: From: Subject: Transit Committee Will Kempton, Chief Executive Officer Agreement to Purchase Compressed Natural Gas Articulated Overview The Orange County Transportation Authority Transit Division operates 36 diesel articulated buses that have met the Federal Transit Administration mileage and/or threshold for retirement. Congestion Mitigation and Air Quality Program and Regional Surface Transportation Program funds have been programmed to begin the replacement of these buses. Authorization is requested to purchase 20 replacement buses through a solicited/competitive procurement conducted by the State of Minnesota Department of Transportation and approved by the Federal Transit Administration. Recommendations A. Authorize the Chief Executive Officer to execute Purchase Order No. C between the Orange County Transportation Authority and New Flyer of America, Inc., in an amount not to exceed $17 million, for the purchase of 20 articulated buses. The Orange County Transportation Authority will exercise assignable options under a contract with the State of Minnesota Department of Transportation for the purchase of 20 compressed natural gas-powered articulated buses. B. Amend the Orange County Transportation Authority Fiscal Year capital budget by $17 million to purchase 20 articulated buses. In addition, amend the Orange County Transportation Authority Fiscal Year revenue budget by $17 million to account for grant funding that will offset the purchase of the 20 articulated buses. These grant funds are comprised of Federal Highway Administration, Congestion Mitigation and Air Quality in the amount of $7.5 million, and Regional Surface Transportation Program funds in the amount of $9.5 million, which will be flexed or transferred to the Federal Transit Administration. Orange County Transportation Authority 550 South Main Street / P.O. Box / Orange / California / (714) 560-OCTA (6282)

3 Page 2 Discussion On August 13, 2012, the Orange County Transportation Authority (OCTA) Board of Directors (Board) approved the use of $17 million in Federal Highway Administration (FHWA), Congestion Mitigation and Air Quality (CMAQ), and Regional Surface Transportation Program (RSTP) funds for replacement of diesel-powered articulated buses. Consistent with this action, staff submitted a fleet plan to the Board on September 24, 2012, discussing how this procurement would be handled in accordance with the Federal Transit Administration (FTA)-approved guidelines under a contracted piggyback consortium agreement. The OCTA Fleet Plan considers the replacement of 36 diesel-powered articulated buses for fixed-route service. The available funding will replace 20 existing diesel-powered articulated buses that have met the FTA threshold for retirement. All 20 buses will be 2013 manufactured year models. The buses will be similar to the design and components contained in the compressed natural gas 40-foot fixed-route buses purchased by OCTA from New Flyer of America, Inc. (New Flyer), in On March 16, 2012, OCTA joined the State of Minnesota Department of Transportation (MnDOT) Cooperative Purchasing Venture (CPV). Under an FTA approved contract, operating entities joining the CPV are able to procure bus options that include 30-foot, 35-foot, 40-foot, and 60-foot buses. There are more than 200 vehicles available under assignable options through the MnDOT CPV. The contract with New Flyer under the MnDOT CPV includes a 60-foot articulated bus with the vehicle options OCTA requires. The vehicle options required by OCTA include wiring for the on-board video surveillance system, an enhanced fire detection/suppression system, and wiring for upgraded radio communication equipment. This will ensure OCTA fleet standardization. Standardizing the fleet minimizes training for operations and maintenance, and minimizes spare parts costs. New Flyer is proposing delivery of a first article by mid-2013, with delivery of all remaining buses within 410 days of the acceptance of the first article. Procurement Approach The Board approved procurement policies and procedures that allow for two options to purchase new vehicles. OCTA can issue a request for proposals (RFP), or piggyback on intergovernmental procurements and/or other governmental resources that may provide attractive procurement opportunities.

4 Page 3 Using the first option, OCTA would issue an RFP which would contain detailed bus specifications and federal requirements. The advantage of this procurement method would be that OCTA could specify exactly the type of transit bus desired. The disadvantage to this procurement option is time, as it would take a longer procurement/manufacturing timeline to deliver buses. The method used for this purchase is considered an intergovernmental procurement or piggybacking and is encouraged by the FTA for agency procurements of property or services in order to obtain better pricing through larger purchases. OCTA entered into a Joint Powers Agreement with the State of Minnesota in order to piggyback articulated buses at established prices negotiated by MnDOT and New Flyer. Staff determined that by purchasing buses under MnDOT s Contract No , Release No. B-347 (5), which contains similar specifications to OCTA s requirements for 60-foot articulated transit vehicles, the advantages are a shortened procurement and reduced delivery time. OCTA could receive the buses as soon as July 2013, with all 20 delivered by the second quarter of The FTA requires completion of a pre-award Buy America audit for purchases using FTA funds for rolling stock. The audit is to verify the requirement that 60 percent of the parts content of the vehicle to be purchased are made in the United States. A recipient purchasing revenue service rolling stock with FTA funds must ensure that a pre-award audit is complete before the recipient enters into a formal contract for the purchase. This purchase is contingent upon completion of OCTA s pre-award Buy America audit currently being performed by Internal Audit. Fiscal Impact The replacement of 20 articulated buses was not included as part of the Fiscal Year (FY) approved budget. Therefore, a budget amendment is necessary to account for both the capital expenditure and the grant revenue, which will offset the procurement of these replacement vehicles. If approved, the FY capital expenditure budget will increase by the amount of $17 million, Account D2116-N9L. The FY revenue budget will increase by the same amount, Account D2116-LE8, which will include both the CMAQ and RSTP grant funds that will be flexed or transferred from the FHWA to be included in an FTA grant application.

5 Page 4 Summary Staff recommends approval of Purchase Order No. C , in an amount not to exceed $17 million, with New Flyer of America, Inc., for the replacement of 20 articulated buses through the Minnesota Department of Transportation Cooperative Purchasing Venture contract. Staff recommends approval of the request to amend the OCTA FY budget by transferring $17 million from Congestion Mitigation and Air Quality and Regional Surface Transportation Program grant funds to Account D2116-N9L. Attachment None. Prepared by: Approved by: Antonio P. Chavira Manager, Maintenance Beth McCormick General Manager, Transit Virginia Abadessa Director, Contracts Administration and Materials Management