title
Proprietary Bus Parts
end
|
DESCRIPTION: Sole Source Request for Proprietary Bus Parts from New Flyer |
AGENDA NO: Click or tap here to enter text. |
|
ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
recommendation
To authorize the Interim Chief Executive Officer to approve a sole-source request for the purchase of Proprietary Bus Parts in the amount not to exceed $1,400,000.00 for a two year term.
end
ISSUE/BACKGROUND:
body
New Flyer Industries is the support team for the New Flyer, a leading manufacturer of transit vehicles in North America. As such, many parts required for proper maintenance and repair are proprietary and only available directly from the manufacturer. Maintaining a continuous supply of OEM parts is critical to ensuring fleet reliability, safety, and compliance with warranty and performance standards.
In 2023, the RTA board, through resolution 23-059, approved $1.2 million to procure proprietary bus parts from New Flyer Industries for a two-year term. In 2025, the Board approved resolution 25-056 in the amount of $700,000.00 to continue the purchase of proprietary parts.
Maintaining an uninterrupted supply of OEM replacement parts is essential to ensuring fleet reliability, passenger safety, regulatory compliance, and adherence to manufacturer performance standards and warranty requirements.
end
DISCUSSION:
Staff is seeking authorization to procure bus parts from New Flyer Industries for a two-year term in an amount not to exceed $1,400,000.00. The increase over the original annual expenditure reflects both actual fleet maintenance needs and the impact of approximately 25% inflationary cost increases that occurred due to tariffs and other market factors that have caused price increases.
Inventory levels are managed on a part-by-part basis and are determined by consumption rates and operational requirements. Demand projections for the upcoming two-year period are based on historical purchasing trends and expected maintenance activity, which indicate anticipated expenditures consistent with the requested funding level. Most of the requested funding is expected to be used for critical, high-cost, and frequently replaced components. Because these components are proprietary to New Flyer and cannot be obtained through alternative suppliers, maintaining an adequate procurement strategy is essential to minimizing vehicle downtime and ensuring fleet availability.
.
FINANCIAL IMPACT:
The funding for this project is made available through local account code 01-0000-00-1301-000-00-00-00000-00000 in the amount not to exceed $1,400,000.00 over a two-year period.
NEXT STEPS:
Upon Board approval, staff will execute the sole source procurement with New Flyer Industries Parts and award a purchase order to ensure the continued acquisition of proprietary replacement parts necessary to support fleet maintenance operations and service reliability. New Flyer.
ATTACHMENTS:
1. Resolution
2. New Flyer - Proprietary Bus Parts Letter.
3. Sole Source Routing Sheet
4. ICE - Proprietary Bus Parts
5. Previous Purchase Order - RTAP_01858 - New Flyer - Proprietary Bus Parts
Prepared By: Angela Doherty
Title: Manager of Inventory Control
Reviewed By: Ryan Moser
Title: Chief Asset Management Officer
Reviewed By: Gizelle Banks
Title: Chief Financial Officer
Click or tap to enter a date.
Ronald G. Baptiste Date
Interim Chief Executive Officer