Title
Heavy Duty Transit Buses - State of Washington Cooperative Agreement - COOP 04824 (Ordinance S-53211) - Citywide
Description
Request to authorize the City Manager, or his designee, to adopt the State of Washington cooperative purchasing agreement and enter into contracts with Gillig LLC and New Flyer of America, Inc. to provide replacement heavy-duty transit buses as needed by the Public Transit Department. Further request to authorize the City Controller to disburse all funds related to this item. The total value of the contracts will not exceed $174,395,737.
Report
Summary
The Public Transit Department operates a fleet of over 500 heavy-duty buses of different sizes and propulsion types, requiring regular replacement of aging vehicles in compliance with Federal Transit Administration (FTA) requirements. The fleet includes approximately 265 Compressed Natural Gas (CNG) buses fueled using renewable CNG. This contract will allow for the purchase of new and replacement buses of various sizes. Replacing these buses will retire aging vehicles, improve overall reliability, reduce emissions, and support the continued state of good repair across the transit system, as required by the FTA.
Procurement Information
In accordance with Administrative Regulation 3.10, standard competition was waived as a result of an approved Determination Memo based on the following reason: Special Circumstances Alternative Competition. The Cooperative Contract Usage Agreement with the State of Washington will allow the City of Phoenix to use any State of Washington cooperative agreements, including Contract 04824 for heavy-duty transit buses. The cooperative agreements comply with all City procurement requirements for competition and price reasonableness. The cooperative contract adheres to all necessary FTA regulations and certifications required for the use of federal funding. By joining an existing competitively bid contract, the City benefits from the significant economies of scale to receive lower unit pricing, reduced administrative costs, and enable faster procurement timelines. Cooperative purchasing also ensures access to vetted vendors, standardized specifications, and compliance with federal requirements. In recent years, the FTA has also strongly encouraged the utilization of cooperative agreements due to the reduction in the number of transit vehicle manufacturers available in the industry.
Contract Term
The Washington State cooperative contract began on April 1, 2026 for a two-year term with the option to extend for up to an additional 36 months. The City's contracts will begin on or about November 1, 2026 and extend in alignment with the cooperative contract up to March 31, 2031.
Financial Impact
The aggregate contracts value will not exceed $174,395,737. Funding is available in the Public Transit Department's capital budget using local, regional, and federal funds.
Department
Responsible Department
This item is submitted by Deputy City Manager Cynthia Aguilar and the Public Transit Department.