City Council Meeting: September
Agenda Item: 3-B
To: Mayor and City Council
From: Edward F. King, Director of
and Delivery of Seven 60’ Low-Floor Articulated Compressed Natural Gas Powered
recommends that the City Council authorize the City Manager to:
1. Execute an assignment agreement
with San Diego Metropolitan Transit System (SDMTS) and New Flyer of America,
Inc., a Canadian-based company, to release seven 60’ low-floor articulated
Compressed Natural Gas (CNG) powered transit buses from SDMTS contract
B0570.02-12 and assign them to the City.
2. Negotiate and execute a contract
agreement with New Flyer of America, Inc. to furnish and deliver seven 60’
low-floor articulated CNG-powered transit buses in an amount not to exceed $6,825,464, including base bus, delivery, tax, spare parts and
3. Issue a Notice to Proceed (NTP)
to New Flyer of America, Inc. to furnish and deliver seven 60’ low-floor
articulated, CNG-powered transit buses.
regulations allow transit properties to procure vehicles and equipment by
“piggybacking” on another agency’s purchase.
Piggybacking is the post‑award use of a contractual process that
allows an agency that was not involved in the original competitive procurement
to purchase the same supplies/equipment through that original process. Santa
Monica’s Big Blue Bus (BBB) would piggyback on SDMTS’ contract agreement
B0570.02-12 with New Flyer of America, Inc. to expedite the purchasing process
and enable BBB to replace seven vehicles that have reached the end of their
useful life. The total amount, not to exceed $6,825,464, would be funded using
Federal/State grants and County transit sales tax funds.
BBB developed a capital improvement
program to replace aging buses as they approach the end of their useful
service. The Federal Transit Administration (FTA) guidelines set the useful
life of a transit vehicle at 12 years.
The purchase of the seven 60’ low-floor articulated CNG-powered
transit buses would replace seven 40’ buses that have reached their useful life
cycle. The new articulated buses are more reliable and efficient. Seating
capacity would increase from 40 seats per bus to 58 seats per bus. These buses
would assist in reducing overcrowding on high volume routes.
BBB currently operates 24
NABI buses purchased in 2002. FTA guidelines set the useful life of a transit vehicle
at 12 years. BBB has a capital improvement program to replace aging buses as
they approach the end of their useful service life. Seven of these 24 buses
have been identified for replacement.
The replacement of these buses with 60’ articulated buses would increase
seating capacity by 126 seats, or 18 seats per bus. This would reduce
overcrowding and increase rider comfort.
The breakout of the purchase for seven transit vehicles is:
7 CNG 60’ Buses including Delivery, Warranties and ADA equipment
In an effort to fast track
the procurement process at a minimum of eight months, staff recommends
piggybacking as opposed to issuing a Request for Proposal (RFP). Piggybacking
is the post-award use of a contractual process that allows an agency that was
not involved in an original competitive procurement to purchase the same
supplies/equipment through that original process. Under this procedure, the
original purchaser may assign the option for additional units to another
agency. Comparing this process to developing and issuing an RFP, BBB sought to
obtain the most competitive price as a result of volume discounts afforded by
vendors of large orders. Staff also contacted transit agencies that had
recently purchased buses through these programs and vendors. SDMTS recently purchased 60’ CNG powered
buses and had provisions in their contract to release option buses to other
Staff reviewed SDMTS’ 60’ CNG bus procurement to
ensure proper requirements and documentation were followed per federal
guidelines. Two responses were received:
one from New Flyer of America, Inc. and one from NABI, Inc. declining to submit
a proposal. SDMTS reviewed the proposal
that was submitted by New Flyer, Inc. and a responsive and responsible
determination was made. It should be
noted that NABI and New Flyer have since merged under the name New Flyer of
America, Inc. New Flyer of America, Inc.
is the only manufacturer of CNG articulated buses.
SDMTS’ RFP evaluation criteria included, but were not limited to, the following:
Minimum Vehicle Performance Requirements
Projected Operating Cost and Reliability
Warranty and After-Market Parts Support
Proposed Technical Deviations
Deviations from Contract
Terms and Conditions
Advanced Design Provisions
System Safety Provisions
Past Performance, Customer
References, and Current Commitments
Qualifications and Financial
Stability of the Proposer
BBB staff confirmed that SDMTS’
competitive bid process met the City’s Municipal Code Section 2.24.080,
Competitive Bid Requirements. All required federal certifications have been
received by the manufacturer from SDMTS through the competitive bid process. In addition, BBB staff conducted an
independent cost estimate using LA County’s regional bus pricing average for
60’ articulated CNG buses and deemed New Flyer’s price to be fair and
reasonable. The price per bus is
$817,432, including ADA equipment, delivery, and warranties.
New Flyer of America, Inc.
is a Canadian-based bus manufacturer with several United States locations
including assembly plants in St. Cloud, Minnesota and Crookston, North Dakota and
a service center in Ontario, California. New Flyer of America, Inc. has been
manufacturing buses for more than 85 years and is the largest producer of
transit buses in North America. They are recognized as providing a high quality
transit bus to their customers and providing a high level of service after the
sale. The base bus would include all
major components plus, but not limited to, heating/air conditioning, Advanced
Fleet Management System components, the G.E. Mobileview
Penta 16 digital security camera system, two ADA
wheelchair accessible seating with securement systems, and Recaro seats
for operator comfort.
On July 28, 2014, BBB
received confirmation that SDMTS would
assign seven buses from SDMTS’ contract agreement B0570.02-12 with New Flyer of
America, Inc. to the City of Santa Monica at the agreed upon cost and pricing
structure of their current contract. Under Municipal Code Section 2.24.080, the
SDMTS contract with New Flyer of America, Inc. meets the Code requirements for
piggyback purchases. SDMTS’ contract pricing is available to BBB for
procurement of 60’ articulated CNG buses specified in the contract document
between New Flyer of America, Inc. and SDMTS.
Impacts & Budget Actions
The contract agreement to be awarded to New Flyer of America Inc.
is for an amount not to exceed $6,825,464 (including a 5%
Contingency). Funds are available in the FY 2014-15 Capital Improvement
Program budget in account C410519.589000.
Prepared by: Getty Modica, Transit
Forwarded to Council:
Director of Transit Services