Title
(CONTINUED FROM NOV. 17, 2021) - 40-Foot Heavy Duty Transit Bus Contract Award Recommendation (Ordinance S-48119)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with GILLIG, LLC to manufacture and deliver replacement 40-foot heavy-duty local transit buses for the Public Transit Department. Further request to authorize the City Controller to disburse all funds related to this item. The total value of the contract will not exceed $145,023,384.
Report
Summary
A Request for Proposals (RFP #PTD20-003) was issued to solicit this five-year contract with a transit vehicle manufacturing firm to manufacture and deliver 40-foot heavy-duty local transit buses that use compressed natural gas (CNG) or biodiesel as the fuel source. City Council approved the issuance of this solicitation at their Feb. 17, 2021 formal meeting. Buses will be ordered based on the Public Transit Department’s replacement schedule for local buses that have met or exceeded their useful life under Federal Transit Administration guidelines.
The Public Transit Department will also issue a solicitation for the procurement, evaluation and use of zero and near-zero emission buses, if approved by Council. The City’s most recent and previous testing of alternate transit vehicles demonstrated that CNG buses provided the best low-emissions option that also operates safely, effectively and reliably on long routes in the Phoenix climate. However, the "Green Transit" technology procurement will solicit the most up-to-date, environmentally friendly buses, including electric, hybrid or other alternative propulsion vehicles available for additional testing and on a long-term basis. The contract award recommended in this item will allow the City to replace buses that have exceeded their useful life and have reduced reliability and efficiency, while continuing to explore, evaluate and move forward with the alternative-powered buses as technologies advance and become available.
Procurement Information
RFP #PTD20-003 was issued on April 15, 2021, with two firms submitting proposals for consideration. An evaluation committee of qualified staff from Public Transit Department and Valley Metro was appointed to conduct detailed evaluations of all proposals received, establish a competitive range, and select a proposer to receive the contract award.
A technical advisory team was also established to provide technical assistance to the evaluation committee based on the advisors’ knowledge and experience with transit vehicle manufacturing and long-term maintenance practices. The technical advisory team’s role was to review the technical portions of each proposal for compliance with RFP specifications.
Each RFP was evaluated and scored based on the following criteria (1,000 points total possible):
- Design, Quality, and Production Process (up to 400 points);
- Price (up to 400 points); and
- Warranty (up to 200 points).
Two proposals were received from the following firms:
- GILLIG, LLC; and
- New Flyer.
The evaluation recommendations were reached by consensus in consideration of published selection criteria, with the committee selecting GILLIG, LLC for award. The following summarizes the results:
Proposers Total points
GILLIG, LLC 820
New Flyer 775
In accordance with Phoenix City Code section 43-14(J), a contract shall be awarded to the most highly-rated, responsible firm whose offer conforms in all material respects to the requirements and criteria outlined in the solicitation. Accordingly, the Public Transit Department’s Procurement Officer recommends the award to GILLIG, LLC.
Included in the RFP's pricing schedule was the following language: "The estimated quantities shown on the enclosed Price Schedules are estimates only, contingent upon availability of appropriated funds and subject to change during the term of the Contract. The City is not obligated to make purchases in these exact amounts." As such, Public Transit Department staff will continue exploring other viable technologies that meet the region's operational needs and look for opportunities to transition to other proven propulsion technologies.
Financial Impact
The term of the awarded contract shall be five years with an aggregate value of $145,023,384. Buses are funded 85 percent with federal funds and 15 percent with regional funds. The Public Transit Department estimates purchasing a maximum of 265 buses over the five-year period. Funds are available in the Public Transit Department's five-year Capital Improvement Program.
Concurrence
The Transportation, Infrastructure and Planning Subcommittee recommended approval of this item on Oct. 20, 2021 by a vote of 3-1.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.