Title
Request Authorization to Enter Into Agreement with New Flyer of America for Transit Buses (Ordinance S-43908)
Description
Request an ordinance authorizing the City Manager, or his designee, to enter into a contract with New Flyer of America Inc. for the manufacture and delivery of 40' and 60' heavy duty transit buses for the Public Transit Department. Further request authorization for the City Controller to disburse the necessary funds in the amount not to exceed $98,703,419 over the five-year contract term.
Report
Summary
The City of Phoenix Public Transit Department (City) and the Regional Public Transportation Authority/Valley Metro (RPTA) combined efforts on a joint procurement to award a five-year contract for the purchase of 30', 40', 60' and Bus Rapid Transit (BRT) buses, and minimal spare parts. A single procurement on behalf of the City and the RPTA provides a strategic regional procurement to maximize economies of scale through a bulk purchase committment. Each agency will execute their own contracts with the manufacturers. The City will be purchasing 40' and 60' buses, fueled with diesel (either ultra-low sulfur or biodiesel) or compressed natural gas (CNG).
These buses will be used to replace aging buses that have exceeded their useful life, as well as augment fleet needs due to increased service levels resulting from implementation of the Transportation 2050 program.
Procurement Information
In September 2016, the RPTA issued a Request for Proposals (RFP) for the manufacture and delivery of heavy duty transit buses. Four proposals were received in January 2017 from the following proposers: El Dorado National Inc., Gillig LLC, New Flyer of America Inc., and Nova Bus. An evaluation committee consisting of qualified staff from the City of Phoenix, City of Tempe and the RPTA was appointed to conduct evaluations of the proposals, establish a competitive range, and select the proposer(s) to receive the contract award.
The RFP included the following evaluation criteria: proposer's technical specifications (0-200 points); proposer's product support (0-200 points); proposer's schedule (0-200 points); and proposer's total price (0-400 points). The committee developed questions and requests for clarification specific to each firm's proposal and to assumptions made in each firm's pricing structure. Based on these responses, the evaluation committee determined that El Dorado, Gillig, and New Flyer were within the competitive range and each firm was allowed an opportunity to submit a best and final offer (BAFO) before completing the evaluation and reaching a final award recommendation.
The evaluation committee evaluated the BAFOs based on the same requirements and criteria applicable to initial proposals. As a result, the committee recommends awarding the contract for 40' buses to New Flyer. The final scoring is as follows:
New Flyer of America Inc.: 936
Gillig LLC: 932
El Dorado National Inc.: 898
New Flyer submitted the only proposal for 60' buses. Staff conducted a price analysis and has determined that New Flyer's price for the 60' bus is fair and reasonable when compared to the independent cost estimate and recent comparable bus purchases. As such, staff recommends awarding the 60' bus contract to New Flyer.
The cost for the 40' bus is $517,829 for diesel and $554,866 for CNG. The cost for the 60' bus is $837,489 for diesel and $889,159 for CNG. The prices are firm and fixed for the first two years of the contract but will be adjusted in subsequent years based on the Producer Price Index (PPI).
Staff concurs with the evaluation committee's decision and recommends awarding the five-year contract for the manufacture and delivery of heavy duty transit buses to New Flyer of America Inc. as the best overall proposal. The RPTA Board approved the contract award on June 22, 2017.
Contract Term
The five-year contract period shall begin on or about Oct. 1, 2017.
Financial Impact
Based on planned quantities of each bus type to be purchased, reflecting the year in which buses are to be purchased and including any on-board equipment required to place the vehicle into service, the estimated five-year cost is $98,703,419. The estimated cost for fiscal year 2018-2019 is $3,330,000, based on the planned purchase of six 40' CNG buses.
Funds are available in the Public Transit Department CIP budget using Federal Transit Administration (FTA) funds (85 percent) and regional Proposition 400 funds (15 percent).
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.