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Warranty Extension of Hybrid Transmissions
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DESCRIPTION: Warranty Extension of Hybrid Transmissions |
AGENDA NO: |
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ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
recommendation
To authorize the Chief Executive Officer to purchase a four-year extended warranty on the Allison Hybrid System for fifteen (15) 2024 New Flyer Hybrid buses, at a cost not to exceed $660,585, bringing the total contract amount to $19,260,585 under PO-915236.
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ISSUE/BACKGROUND:
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The original purchase of fifteen (15) 2024 New Flyer Hybrid buses included a two-year manufacturer’s warranty for the Allison Hybrid System under PO-915236, totaling $18,600,000.
To ensure continued reliability, efficiency, and protection against potential system failures, staff recommend purchasing an additional four-year extended warranty. This will extend coverage beyond the manufacturer’s warranty, reducing long-term maintenance risks and unplanned repair costs associated with hybrid components.
Maintaining warranty coverage aligns with the agency’s commitment to cost-effective lifecycle management of its fleet and ensures operational continuity for hybrid bus services.
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DISCUSSION:
The extended warranty provides comprehensive coverage for the Allison Hybrid System, including parts and labor, ensuring minimal downtime and predictable maintenance expenses. By extending the warranty now, the agency secures favorable pricing and uninterrupted warranty protection.
This proactive step safeguards the agency’s investment in hybrid technology and supports environmental and operational goals by maintaining the efficiency and dependability of the hybrid fleet.
FINANCIAL IMPACT:
Funding for this warranty is made available under the existing local account code 01-0000-00-1402-000-00-00-00000-00000 in the amount of $660,585, the revised total cost under PO-915236 will be $19,260,585.
NEXT STEPS:
Upon RTA Board approval, staff will process the purchase of the extended warranty through Allison Transmission, ensuring continuous coverage for the 2024 New Flyer Hybrid buses.
ATTACHMENTS:
1. Resolution
2. Extended Warranty Allison
3. SR-2894 New Orleans option # 2023-056 Warranty XDE40 TC 01
4. PO# 9115236 - 21 Transit Buses - Oracle
5. State Contract Procurement Routing Sheet - Extended Warranty
Prepared By: Alger Pennaman II
Title: Fleet Asset Manager
Reviewed By: Ryan Moser
Title: Chief Asset Management Officer
Reviewed By: Gizelle Banks
Title: Chief Financial Officer
11/7/2025
Lona Edwards Hankins Date
Chief Executive Officer