HomeMy WebLinkAboutc6transitvehicleagreement
February 4, 2014
FROM: Daryl Grigsby, Director of Public Works
Prepared By: Gamaliel Anguiano, Transit Manager
SUBJECT: TRANSIT VEHICLE PROCUREMENT AGREEMENT WITH CENTRAL CONTRA
COSTA TRANSIT AUTHORITY (CCCTA)
RECOMMENDATIONS
1. Authorize the City Manager or her designee to execute an agreement with Central Contra
Costa Transit Authority (CCCTA) to exercise piggyback purchase options for the
procurement of as many as three (3) 40-foot Low Floor clean diesel transit coaches from
Gillig Corporation.
2. Authorize the Finance Director to award Purchase Orders for vehicle acquisition if costs are
within the budgeted amounts.
DISCUSSION
Background
On December 26, 2012 the Central Contra Costa Transit Authority acted as the lead in a purchase
consortium, on behalf of 22 California cities, and coordinated the RFP and award process for new transit
vehicles. The RFP was awarded to in-state bus manufacturer Gillig Corporation for a minimum of seven
and a maximum of 71 heavy duty buses. These vehicles are to be made available over the course of a
five year contract term. This contract would also allow for participating cities to sign onto the same
contract, and exercise what are known as “piggy-back” purchase options. This option enables the City to
benefit from the already completed RFP process for the procurement of their own transit vehicles.
Staff is recommending the City of San Luis Obispo participate in this purchase consortium and sign on
to the CCCTA purchase contract with Gillig Corp. Participation will enable the City to acquire vehicles
that are consistent with its existing fleet and provide a completed purchase agreement for use with
upcoming vehicle replacement schedules. Three City vehicles are already reaching the replacement
threshold within the next year, and the coordinated purchase option saves considerable staff time by
eliminating a separate RFP process.
The agreement with CCCTA would allow, but not obligate, the City to exercise up to three purchase
options from this contract. There is no impact to the City resulting from the approval to use the
cooperative purchasing agreement since it does not obligate the City to purchase transit buses at this
time. When Federal funding for capital purchases becomes available, should the City decide and it be
approved by the Finance Director, the CCCTA purchase consortium contract will be an option the City
can use for acquiring transit vehicles or solicit other proposals from bus vendors.
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Piggyback Agreement
“Piggyback” purchasing is allowable under Federal Transit Administration (FTA) guidelines. These
agreements allow procurements by extending the contract rights to purchase goods and services from
one transit agency to another. The initial contract is awarded based on a competitive procurement
process with provisions that allow other agencies to order vehicles from the same contract after they
insure the award complied with FTA purchasing requirements. This type of cooperative purchasing is
also allowed under the City’s purchasing ordinance. The City has used this process in the past to
purchase fleet vehicles and buses.
Using this cooperative purchasing method will expedite the delivery of transit vehicles based on the
time savings associated with not having to prepare individual procurement documents and will secure
the City’s place on the bus manufacturing production schedule. This could save as much as six
months lead time in ordering vehicles.
FISCAL IMPACT
There will be no impact to the City resulting from the approval to use the cooperative purchasing
agreement since it does not obligate the City to purchase transit buses.
ALTERNATIVES
1. Defer Participation. The Council could defer the participation in this purchase consortium.
However, in order to participate in this particular consortium, transit agencies need to be
signed on before February 15th 2014. Waiting for another purchase consortium does not
guarantee another opportunity will meet the needs of the City nor present itself in time to
make the vehicle replacement schedule. The recommended fleet replacement schedule for
transit buses is for every twelve years or 500,000 miles. Three vehicles are already reaching
this threshold within the next year. Deferring the vehicle replacements beyond this point
could lead to excessive operating costs related to vehicle maintenance and repairs.
2. Deny Agreement. The Council could deny the use of the agreement with CCCTA and direct
staff to explore other purchasing alternatives. Staff does not recommend this option, as the
use of these types of agreements will expedite the process by not having to prepare the
procurement and technical documents needed for soliciting bids. This option is expected to
delay the purchase and delivery of a bus vehicle an additional six to eight months and would
not necessarily guarantee a lower price than what is provided through the agreement with
CCCTA were prices were quoted for as much as 71 vehicles.
3. Defer Agreement and Explore Fuel Alternatives. The Council could defer the use of the
agreement with CCCTA and direct staff to explore other purchasing options for alternative
fuels, such as Compressed Natural Gas (CNG), Hybrid or other alternate fuel models.
ATTACHMENTS
1. CCCTA agreement
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T:\Council Agenda Reports\Public Works CAR\2011\TRANSIT\CAR-RGTA-BUS OPTIONS-OCTOBER 4-2011\CAR-DRAFT Piggyback agreement with
RGRTA-v4.docx
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