SYSTEM SAFETY, SECURITY AND OPERATIONS COMMITTEE JULY 17, 2014 PURCHASE OF HYBRID SEDANS APPROVE CONTRACT AWARD ACTION: RECOMMENDATION
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1 One Gateway Plaza Los Angeles, CA Tel metro. net SYSTEM SAFETY, SECURITY AND OPERATIONS COMMITTEE JULY 17, 2014 SUBJECT: ACTION: PURCHASE OF HYBRID SEDANS APPROVE CONTRACT AWARD RECOMMENDATION Authorize the Chief Executive Officer to award a firm fixed price contract under IFB OP with Fleet Vehicle Source, Inc. the lowest responsive and responsible bidder for 70 Hybrid Sedans for a firm fixed price of $1,916,887 inclusive of sales tax and environmental fees. DISCUSSION This procurement is for the replacement of 70 Metro sedans that have exceeded the policy requirement of six years and /or 150,000 miles. Further, the sedans identified for retirement are in excess of 9 to 13 years of age. We have extended their replacement for over 7 years to defer cost. The current condition of these vehicles renders them no longer cost effective to maintain and replacements are now required. Various departments throughout the agency use these sedans including bus divisions for operator relief and support departments to conduct Metro business with internal departments, outside agencies and vendors. The hybrid configuration of these vehicles ensures that Metro operates Super Ultra Low Emission Vehicle (SULEV) to continue with Metro's efforts of utilizing environmentally friendly equipment. The replaced vehicles are transferred to a contractor and sold at a public auction. DETERMINATION OF SAFETY IMPACT The safe operation of the vehicles is paramount to the safety of the Metro employees that operate them. Excessive age and mileage leads to wear of the major systems of the vehicle such as drive train, suspension and engine resulting in potentially significant repair costs. Replacement sedans will minimize vehicle related safety issues.
2 FINANCIAL IMPACT The recommendation for award is $1,916,887. These funds are included in cost center 3790 Maintenance Administration; project non-revenue vehicle/bus; account acquisition of service vehicle. The delivery of all70 vehicles is scheduled to be completed by December Impact to Budget to Operating Budget This acquisition is funded with Transit Development Act (TDA) local funds. Initially, there will be a modest impact to the Operating budget as these vehicles will replace existing vehicles with similar preventative maintenance schedules; however, savings are anticipated due to the cost avoidance of unscheduled repairs of the current aged fleet. Further, savings are anticipated as unscheduled repairs will be covered under the manufacturer warranty. As the manufacturer's warranty expires the Operating budget will begin to incur costs. These costs will increase as vehicle age and mileage increases. ALTERNATIVES CONSIDERED The alternative is to not purchase these vehicles and continue to use the existing sedans. This option is not desirable due to the high cost associated with maintaining older vehicles, the availability of repair parts and higher fuel costs. Additionally, they will continue to decrease in reliability. The reliability of the vehicles affects the departments who depend on using them to conduct Metro business throughout the county. The replacement sedans are hybrid configuration and will increase the quantity of hybrids that Metro currently operates. The hybrids have performed well in the Metro environment and the vehicles have proven to be safe and reliable. NEXT STEPS Following the execution of the contract, the vendor will place an order for the vehicles and commence delivery upon receipt form the manufacturer. Delivery of all seventy vehicles is scheduled before the close of the 2014 calendar year. ATTACHMENTS A. Procurement Summary Prepared by: Questions: Daniel Ramirez, Maintenance Operations Manager Mark Penn, Director Contract Administration Carolyn Kreslake, Transportation Planning Manager IV (213) Purchase of Hybrid Sedans 2
3 Arthur T. Leahy Chief Executive Officer Purchase of Hybrid Sedans 3
4 ATTACHMENT A PROCUREMENT SUMMARY HYBRID SEDAN VEHICLES Contract Number: OP Recommended Vendor: Fleet Vehicle Source, Inc. Type of Procurement (check one): ~ IFB D RFP D RFP-A&E D Non-Competitive D Modification D Task Order Procurement Dates: A Issued: 03/24/14 B. Advertised/Publicized: 03/24/14 C. Pre-proposal/Pre-Bid Conference: N/A D. Proposals/Bids Due: 04/14/14 E. Pre-Qualification Completed: 05/07/14 F. Conflict of Interest Form Submitted to Ethics: 05/09/14 G. Protest Period End Date: 06/23/14 Solicitations Picked up/downloaded: Bids/Proposals Received: 9 5 Contract Administrator: Telephone Number: Mona Ismail Project Manager: Telephone Number: Daniel Ramirez A. Procurement Background The procurement of 70 Hybrid Sedans was conducted as a formal seal bid and competitive acquisition in order to replace aging Metro non-revenue vehicles. IFB OP was issued in accordance with Metro's Acquisition Policy on March 24, 2014 and advertised during the week of March 24, The contract type is a Firm Fixed Price (FFP). Two amendments were issued during the solicitation phase of this IFB; amendment No. 1 issued on March 27, 2014 providing clarification to the Statement of Work (SOW); and amendment No.2 issued April10, 2014 to clarify the pricing sheet format and answer a question regarding the light rack for the vehicles. B. Evaluation of Proposals/Bids A total of 5 bids were received on April14, 2014 in response to this IFB solicitation. The firm recommended for award, Fleet Vehicle Source, Inc. submitted two bids. Their first bid was found to be fully compliant with the bid requirements which made Fleet Vehicle Source, Inc. the lowest, responsive, responsible bidder. Their other bid consisted of an alternate vehicle choice which did not meet Metro bid requirements; Purchase of Hybrid Sedans 4
5 and as a result, was not evaluated. Hanford Toyota was also found to be in full compliance but had a higher bid price than Fleet Vehicle Source, Inc. Carson Toyota had an acceptable bid, but did not complete the prequalification package. Longo Toyota's bid package was incomplete and Longo took exception to the registration requirements. Contract award is recommended to the lowest responsive, responsible bidder, Fleet Vehicle Source, Inc. C. Cost/Price Analysis The recommended price of $1,916,887 has been determined to be fair and reasonable based upon adequate price competition and selection of the lowest responsive and responsible bidder. Cost savings is $86, compared to the next lowest responsive and responsible bid. Bidder/Proposer Name Proposal Amount 1. Fleet Vehicle Source, Inc. 1,916, Longo Toyota- incomplete package 1,949, Hanford Toyota 2,006, Carson Toyota 2, 168, Fleet Vehicle Source Inc. - non-approved alternate item 1,831, D. Background on Recommended Contractor Located in West Sacramento, CA, Fleet Vehicle Source, Inc. has been in business for almost 5 years and is a leader in providing vehicles to commercial and government customers. In the past two years, Fleet Vehicle Source, Inc. has provided multiple orders to rental car companies such as Napleton, Hertz, Dollar, Budget, Thrifty, and vehicles for leases at a Ford/Lincoln dealer. Additionally, Fleet Vehicle Source, Inc. has provided vehicles under a Federal Agreement with the U.S. General Services Administration. These sales have been in amounts from approximately $50,000 to $4 million. E. Small Business Participation The Diversity and Economic Opportunity Department (DEOD) established a 5% Small Business Enterprise (SBE) goal for this solicitation. The manufacturer's cost includes transportation; therefore SBE trucking firms were not utilized. Fleet Vehicle Source did not make an SBE commitment and is not eligible for the SBE Preference. F. All Subcontractors Included with Recommended Contractor's Proposal Subcontractor Services Provided N/A Purchase of Hybrid Sedans 5
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