AGENDA #4b
MEMORANDUM
TO: Roger L. Stancil, Town Manager
FROM: K. Stephen Spade, Transportation Director
SUBJECT: Bids for the Purchase and Delivery of Transit Buses
DATE: October 9, 2006
PURPOSE
The purpose of this report is to award a contract for the purchase of replacement and expansion buses. Chapel Hill Transit plans to purchase 20 buses in the first year, including 4 sixty-foot articulated buses. Although no bids were received for the articulated buses, they were included in the solicitation. Efforts will continue to procure articulated buses and they could be re-bid in the near future and we anticipate their delivery also within the next 12 to18 months. The attached resolution would allow the purchase of up to 51 replacement and expansion buses if federal and local matching funds become available within the five-year project period.
The Town currently owns 86 buses that range in age from four to 19 years old. The national standard fleet age is seven years. Chapel Hill Transit staff has developed a plan to bring the existing fleet within the national average while providing a modest expansion over the next five years. This procurement is consistent with the adopted goals of the Town’s Comprehensive Plan to increase transit use in the community.
Buses to be Considered for Purchase
The Fleet modernization plan has recommended the purchase of 35’ and 40’ diesel low floor buses. Low floor buses do not have steps in the entry but rather have a passenger compartment that is considerably lower than that of traditional models. This stepless entry makes passenger boarding more convenient and efficient. In addition, low floor buses improve accessability for disabled. The 35’ low floor bus will seat 32 passengers and the 40’ low floor bus will seat 40 passengers.
Forty foot hybrid electric diesel low floor/hybrid drive systems are streamlined as there is no transmission gear shifting. Emissions are more than 90 percent cleaner than emissions from a contemporary diesel bus. The 40’ low floor bus will seat 40 passengers.
Sixty foot articulated low floor buses have an increased passenger capacity. To make them nimble enough to safely navigate streets with their increased length, they are fitted with an extra pair of wheels and a joint (usually located slightly behind the midpoint of the bus, behind the second pair of wheels). This type of bus has a steering arrangement on the rearmost axle, which turns slightly in opposition to the front steering axle. This allows the vehicle to negotiate turns in a somewhat crab-like fashion, an arrangement similar to that used on long hood-and-ladder fire trucks. The 60’ articulated low floor bus will seat 65 passengers.
Funding Sources
Grants in the amount of $7,456,589 for the first year of bus purchases are available from three different sources of federal funding. Congestion Mitigation and Air Quality Program funds will provide for the purchase of three hybrid electric buses and will be made available on October 1st of each year beginning with FY 2006. Congestion Mitigation and Air Quality funds are federal funds available to those projects that can demonstrate an improvement in the air quality. The Transit Capital Investment Program funds (Section 5309) are earmarked by the U.S. Congress for specific projects. The Bus and Bus Facilities funds (Section 5309) are specific to bus purchases and are allocated by the State of North Carolina from Federal Transit Administration funds.
The following summarizes project allocations.
|
Source of Funds |
YTD Allocations |
Future Year Allocations |
Total |
|
Congestion Mitigation and Air Quality |
$ 587,337 |
$1,174,674 |
$1,762,011 |
|
Transit Capital Investment Program |
$ 894,578 |
$ -0- |
$ 894,578 |
|
Bus and Bus Facilities Earmark |
$4,800,000 |
$ -0- |
$4,800,000 |
|
Total |
$6,281,915 |
$1,174,674 |
$7,456,589 |
On July 19, 2006, the Federal Transit Administration awarded the first year allocation of $587,337 for the purchase of hybrid buses. On July 20, 2006, the Federal Transit Administration approved a grant for $894,578 for bus replacement awarded from Transit Capital Investment Program funds. The bus and bus facilities earmark of $4,800,000 is pending and award is anticipated by October 31, 2006.
Local Match
To ensure the availability of local matching funds for the Transportation Department’s capital program a Capital Reserve Fund was created in 1993. The local matching funds required to match the initial purchase of this multi-year project are estimated to be $750,000. The balance will be sufficient to cover the cost of the buses and other programmed capital for FY 2007.
The Notice to Bidders was published in the July 31, 2006 edition of Passenger Transport and on the Town of Chapel Hill’s website. Bid notices were sent to 23 bus manufacturers and subcontractors throughout the United States and Canada. On September 21, 2006, two bids were opened and read.
Town staff developed specifications for buses using base bus specifications revised to include multi-year procurement language.
The Town’s solicitation included requests for pricing of 35-foot low floor buses, 40-foot low floor buses, 40-foot hybrid buses and 60-foot articulated buses. Bidders were required to submit technical information regarding specifications of the vehicle(s), training of operators and mechanics, a suggested list of spare parts and maintenance tools, and warranty provisions. This information may be used to calculate the cost of the vehicles over their useful life, vehicle performance, and standardization values for each manufacturer’s vehicle(s). These values are the anticipated additional lifetime costs to the Town that would result from the acquisition of any specific model of buses.
The Town received one technical package from Gillig Corporation, a manufacturer of 35-foot, 40-foot low floor and 40-foot hybrid buses. The bid from Gillig Corporation, the apparent low bidder, included a July 30, 2007 delivery date based on a contract award of October 13, 2006. A second bid was received from Millennium Transit Service. However, the bid from Millennium Transit Service was a non-responsive bid because the required bid bond of 5 percent was not included with its bid package. No bid was received for the 60-foot articulated bus.
The fleet modernization plan places a priority on replacing the maximum number of buses possible. Also significant is the need to utilize articulated buses to effectively mitigate overcrowding and control operating costs.
Staff believes the acquisition of articulated buses is important and does not want to abandon this opportunity without exploring all options. Therefore, the staff recommendation is structured to award a contract to Gillig Corporation but allow staff additional time to explore options to purchase articulated buses.
A summary of the bids received is as follows:
|
Qty |
Model |
Gillig Corporation |
Millennium Transit Svcs |
||
|
|
|
Unit Price |
Extended |
Unit Price |
Extended |
|
13 |
13 – 40’ Low Floor |
$324,573 |
$4,219,449 |
$350,721 |
$4,559,373 |
|
3 |
3 – 40’ Hybrid Low floor |
$519,573 |
$1,558,719 |
$612,620 |
$1,837,860 |
|
|
Parts Stocked |
|
$ 50,000 |
|
$ 40,000 |
|
|
Total |
|
$5,828,168 |
|
$6,437,233 |
The Gillig Corporation met all requirements of the specifications and procurement schedule. Manufacture and delivery of the buses have been quoted at 292 days from the date of award.
That the Council adopt the following resolution awarding a contract for sixteen 40-foot low floor buses with a five-year contract to the Gillig Corporation for additional buses as funds may be available.