Title
Renewable Liquefied Natural Gas Contract - IFB PTD 23-001 - Request for Award
Description
Request to authorize the Transportation, Infrastructure and Planning Subcommittee to recommend City Council approval to enter into a contract with Sapphire Gas Solutions to provide renewable liquefied natural gas to the Public Transit Department for use in the operation of the transit fleet during the next five years.
THIS ITEM IS FOR CONSENT ACTION
Report
Summary
Renewable Liquefied Natural Gas (RLNG) is a fuel product generated from the decomposition of organic waste streams, or "biomass". RLNG captures the naturally occurring gas from society's waste streams for use as a carbon-neutral and reliable energy source. Typical sources of biomass production are landfills, livestock operations and dairy farms, wastewater treatment, and other industrial sources.
In furthering its efforts to reduce the City's carbon footprint and implement tactics outlined in the City's Climate Action Plan, the Public Transit Department (PTD) will transition to using RLNG to power its compressed natural gas heavy-duty buses which currently comprise approximately 2/3 of the bus fleet. The City's Climate Action plan calls for identifying sources of renewable energy, and to utilize renewable natural gas sources as a substitute for fossil natural gas. This contract will supply RLNG to PTD's three transit operating facilities (North Transit Facility, South Transit Facility, and West Transit Facility) for the next five years. During this time, the PTD will also begin Phase 1 of its Zero Emission Heavy-Duty Bus Fleet Transition plan as approved by City Council in December 2022, which includes acquiring and testing, on a long-term basis, newer-technology zero emission buses.
Procurement Information
An Invitation for Bid procurement was processed in accordance with City of Phoenix Administrative Regulation 3.10.
Two vendors submitted bids deemed to be responsive to posted specifications and responsible to provide the required goods and services. Following an evaluation based on price, the procurement officer recommends award to the following vendor:
Selected Bidder
Sapphire Gas Solutions: $59,262,584 million.
Contract Term
The contract will begin on or about July 1, 2023, for an initial two-year period, with one two-year option to extend, followed by an additional one-year option to extend (both options to be exercised at the City's sole discretion), totaling up to five years.
Financial Impact
The total cost of the contract, including taxes, will not exceed $59.8 million. Funding is available in the Public Transit Department's operating budget.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.