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| MTA (NYC Transit) awarded New Flyer for additional 72 buses on 690 bus order... (R.I.P. Orion V) (303601) | |||
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MTA (NYC Transit) awarded New Flyer for additional 72 buses on 690 bus order... (R.I.P. Orion V) |
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Posted by Gold_12th on Fri Mar 20 22:52:51 2015 It is requested that the Board formally ratify the declaration of an Immediate Operating Need (ION) approved by the VicePresident, Materiel waiving formal competitive bidding pursuant to Article III, Paragraph A of the All-Agency Procurement Guidelines and Public Authorities Law 1209 Subsection 9(a) and approve the purchase of 72 low floor 40-foot standard diesel buses manufactured by New Flyer of America, Inc. (New Flyer). Contract B-40656 was a competitively solicited and negotiated Request for Proposal (RFP) for the purchase of 690 low floor 40- foot standard diesel buses to replace buses that are beyond their 12-year useful life. The award was split between Nova Bus LFS, a Division of Prevost Car (US), Inc. (Nova) and New Flyer, the only two bus manufacturers that are structurally qualified to build buses for NYC Transit; it included an option to purchase up to 700 additional buses utilizing a run-off process, through which both contractors will compete by submitting updated proposals. Contract B-40656-1 was awarded to Nova Bus for 414 buses with deliveries scheduled from May 2015 through April 2016; and Contract B-40656-2 was awarded to New Flyer for 276 buses with deliveries scheduled from February 2015 through October 2015. It should be noted that New Flyer is currently delivering ahead of schedule by approximately 35 buses. Despite efforts by DOB to extend the life of 72 Orion V buses from 1999 in order to keep them on the road until 2017, an unforeseen increase in the number and severity of problematic structural issues in this fleet was observed in September 2014 which has been attributed to accelerated internal corrosion and fatigue-type frame failures that occur over time and are not readily detectable. As a result, the Department of Buses (DOB) initiated a comprehensive structural survey of the entire 1999 Orion V fleet in addition to its regular inspections. Preliminary results of the survey indicated structural deterioration of the bus frames. As these buses are more than 12 years old, they are no longer covered by a structural warranty. Given the age of the buses as well as the fatigue and corrosion, any additional structural repairs would be cost prohibitive and would only temporarily mitigate the problems; DOB senior management has determined that it is imperative that these buses are replaced as soon as possible. In December 2014, NYC Transit Procurement reached out to Nova and New Flyer to determine their ability to accommodate the urgent need to replace the 72 buses. New Flyer indicated that it had capacity opportunities in the 3rd and 4th quarters of 2015, while Nova indicated that it would not have available capacity until a year later during the 3rd or 4th quarter of 2016. Subsequently, Nova’s senior management indicated that given the challenges they are facing with their current order of 414 buses and the resulting delays to the delivery schedule, Nova would not be in a position to take on any additional orders from NYC Transit at this time. Therefore, instead of conducting an expedited run-off for the 72 buses, it was determined that an ION to modify New Flyer’s contract would be issued to meet the urgent need to replace these 72 buses. New Flyer will deliver these 72 buses in parallel with its delivery of buses from the base order starting in August 2015 and finishing in December 2015. New Flyer’s initial proposal was for $496,990 per bus ($35,783,280) which is the same unit price contained in the base contract. After extensive discussions, NYC Transit Procurement was successful in getting New Flyer to reduce its unit price by $3,402 per bus to $493,588 per bus ($35,538,336) resulting in a total savings of $244,944. Based on a comparison of New Flyer’s final price to the base pricing from Contract B-40656-2, current market conditions and therelevant Producer Price Index, New Flyer’s final price for the 72 buses was found to be fair and reasonable. |
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