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1 One Gateway Plaza Los Angeles, CA Tel metro. net SYSTEM SAFETY AND OPERATIONS COMMITTEE FEBRUARY 21, 2013 SUBJECT: ACTION: ELECTRIC FAN SYSTEM APPROVE CONTRACT AWARD RECOMMENDATION Authorize the Chief Executive Officer to: A. Award a firm fixed price contract under Bid No to North American Bus Industries, the lowest responsive and responsible bidder, for the procurement of 200 electric fan system units for an amount not-to-exceed $2,607,255 inclusive of sales tax. B. Exercise an option with North American Bus Industries to purchase up to 121 additional electric fan system units subject to availability of funding for an amount not-to-exceed $1,640,484 inclusive of sales tax. ISSUE As part of Transit Operations bus midlife/re-power program, bus engines and related components are replaced and refurbished in accordance with established maintenance schedules. This maximizes bus running efficiency, reliability, and useful life. One scheduled replacement component is the fan system. The existing fan system in the NAB I series buses are hydraulic. They will be replaced with an electric fan system. This procurement is required to ensure the current engine replacement program can continue without delays and that revenue service is not impacted. DISCUSSION The NABI ARTIC 60FT series buses are in the process of being refurbished through the bus midlife program. These buses are being re-powered with a Cummins ISLG 320 HP natural gas fueled engine. The new fan system package will include a radiator, fan assemblies, controllers, power generation and necessary wiring, and are warranted to be free from defects in design and materials for two-years with full parts and labor on all warrantable failures.
2 DETERMINATION OF SAFETY IMPACT Installation of these new electric fan systems will ensure that the buses are maintained in accordance with Metro Maintenance standards. This will improve on-road running performance and reliability of the bus, which will have a beneficial impact on system safety. FINANCIAL IMPACT The base and option contract value for these components is $4,247,739. Funding of $2,607,255 for the procurement of 200 electric fan system units is included in the FY13 budget in cost center 3366 Central Maintenance Shops, under Capital Project , FY12-FY14 Bus Midlife Project program, line item 50441, Parts- Revenue Vehicle. The cost center manager, project manager, and Executive Director will ensure that the remaining $1,640,484 for purchase of the remaining 121 electric fan system units will be budgeted in future fiscal years and fit within the approved capital Life of Project (LOP) budget. Impact to Budget The source of the funds for this procurement is Prop PTMISEA. No other sources of funds were considered for the 321 electric fan system units because these are the designated funds available for bus engine replacement. ALTERNATIVES CONSIDERED The alternative is not to award this master agreement contract and procure electric fan system units on an as-needed basis, using the traditional "min/max" replenishment system method. The "min/max" replenishment system method calculates minimum and maximum inventory levels. This strategy is not recommended since it does not provide for a commitment from the supplier to ensure availability, timely delivery, continued supply and a guaranteed fixed price for electric fan system units. NEXT STEPS Refurbishment of the NAB I bus fleet will continue in accordance with the bus mid-life and engine replacement program schedules. The engine replacement of this NAB I bus series is scheduled to be completed by the end of the second quarter of FY14. ATTACHMENTS A. Procurement Summary B. Bid Tabulation Electric Fan System 2
3 Prepared by: Questions: Michael Stange, Interim Executive Director, Maintenance Michelle Stewart, Assistant Administrative Analyst, Operations (213) Electric Fan System 3
4 Chief Administrative Services Officer Frank Aleja ro Chief Op ations Officer Arthur T. Leahy Chief Executive Officer Electric Fan System 4
5 ATTACHMENT A PROCUREMENT SUMMARY ELECTRIC FAN SYSTEM 1. Contract Number: Recommended Vendor: North American Bus Industries, 2338 U.S. 3. Highway 42 South, Delaware, OH Type of Procurement (check one): 1:8:1 IFB D RFP D RFP-A&E D Non-Competitive D Modification D Task Order 4. Procurement Dates: A. Issued: 11/15/12 B. Advertised/Publicized: 11/26/12 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: 1/11/13 G. Protest Period End Date: 2/22/13 5. Solicitations Picked up/downloaded: 12 Bids/Proposals Received: 4 6. Contract Administrator: Telephone Number: Otto Ojong (213) Project Manager: Telephone Number: Dan Quigg (213) A. Procurement Background Procurement of electric fan system units 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 November 15,2012 and advertised November 26,2012. Contract type is Firm-Fixed Price (FFP) and no amendments were issued during the solicitation phase of this IFB. B. Evaluation of Proposals/Bids A total of four bids were received on December 18, All firms that submitted offers were found to be in full compliance with the bid requirements. The firm recommended for award, North American Bus Industries (NABI), was determined to be the lowest responsive responsible bidder.
6 C. Cost/Price Analysis Explanation of Variances The recommended bid price of $4,247,739 has been determined to be fair and reasonable based upon adequate price competition and selection of the lowest responsive and responsible bidder. Bidder/Proposer Name Bid/Proposal Amount 1. NAB I $4,247, Gillig LLC $4,257, New Flyer Industries $4,389,964 4 Engineered Machined Products $4,719,663 Inc. D. Background on Recommended Contractor North American Bus Industries (NABI) is based in Delaware, Ohio, and has manufacturing facilities in Budapest and Kaposvar, Hungary and Anniston, Alabama. NABI has been in business for twenty years, and is a leader in the manufacturing and delivery of mass transit buses. NAB I currently produces foot steel frame buses, and foot composite buses. NABI has previously delivered CNG buses for Metro. The firm also produced composite structure fortyfive foot CNG buses and sixty-foot articulated CNG buses for Metro. Bus quality and reliability have been very good. In addition, the company has produced buses for many other major transit agencies such as Miami-Dade Transit (MDT), Greater Cleveland Regional Transit Authority (GCRTA) and New Jersey Transit (NJT). NABI has a local support-services facility in Mira Lorna, CA. The company is well capitalized and there is a low financial or performance risk with this company. 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. North American Bus Industries (NABI) made no DBE commitment by listing themselves and no subcontractors/suppliers to perform the required scope of work. Certification verification revealed that NABI is not DBE certified. Achievement of the DALP is encouraged through the term of the contract; it is neither a condition of award, nor an issue of responsiveness. The awardee is encouraged to utilize DBE firms when opportunities are available. ESTABLISHED DALP% PROPOSED 5% RACE-NEUTRAL 0% DALP% Electric Fan System 6
7 ATTACHMENT B BID TABULATION Bid No: Engine Cooling Electric Fan System Bids Out: 11/15/12 Total 12 Bids Opened: 12/18/12 Total 4 Advertisement Date(s): 11/26/12 Newspaper: LA Daily News North American Bus Industries (NASI) New Flyer Industries Canada ULC Gillig LLC Item No. Description Qty Unit Unit Price Total Price Unit Price Total Price Unit Price Total Price Engine Cooling Electric Fan System for NASI Models 60BRT-01, 60BRT-01.03, 60BRT and 60BRT EA $11, $2,397,476.0( $12, $2,478,254.0( $12, $2,439,000.0C Engine Cooling Electric Fan System for NAB I Models 60BRT-01, 608RT-01.03, 60BRT and 60BRT EA $12, $1,508,491.2 $12, $1,558,494.5< $12, $1,475,595.0( Engineered Machined Products Inc. (EMP) Unit Price Total Price $13, $2,704,000.0( $13, $1,635,920.0( Sub total $3,905, $4,036, $3,914, Sales Tax 8.75% $341, $353, $342, Total I $4,247, $4,389, $4,257' $4,339, $379, $4,719, I hereby certify North American Bus Industries (NABI) as being the lowest responsive, responsible bidder and recommend the award to them for a total price of $4,247,739.41, including sales tax. 1/ '/ /;3 I Date' ~ Signature
8
APPROVE CONTRACT MODIFICATION AWARD
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