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New Flyer Proprietary Parts
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DESCRIPTION: For the purchase of proprietary bus parts from New Flyer |
AGENDA NO: Click or tap here to enter text. |
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ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
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Authorize the Chief Executive Officer to award a contract for the purchase of proprietary bus parts from New Flyer.
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ISSUE/BACKGROUND:
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There are roughly 1500 parts or 30-35% of our parts installed on our New Flyer and Orion buses (varies by SR) that are considered a sole source, or proprietary. The only place to purchase these proprietary parts is through New Flyer Parts (NFI),t the RTA needs an effective method to procure these parts.
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DISCUSSION:
All of our current fixed-route buses contain parts that are proprietary to New Flyer parts (NFI), including our Orion buses. Meaning these parts can only be purchased through NFI. For example, some of these parts could be manufactured by New Flyer, Or a manufacture could produce a part exclusively for New Flyer, thus making NFI the only company available to purchase a specific part from.
NFI acquired Orion’s parts division when they went out of business in 2012. There are roughly 30-35% of the parts that are considered a sole source, or proprietary for all of our fixed-route buses. We are limiting the purchases within this scope to solely those that are considered proprietary and cannot be purchased elsewhere, attached is a list of most of those parts and pricing with NFI parts.
The purpose of the purchase order is to put in place the method to procure these proprietary parts from NFI. This request would supply our proprietary parts purchases for two years. It will help to establish a JIT (just in time) inventory and supply chain of these types of parts.
After evaluating expected costs associated with purchasing proprietary parts needed to keep our fleet maintained and running, the best solution is to establish a sole source contract with New Flyer to purchase these parts. Establishing this Sole source purchase order will allow our maintenance department to expediently procure these exclusive parts from New Flyer.
FINANCIAL IMPACT:
The Funding would be through local funding, the expected cost is $525,000 per year. We are looking to fund this project for a two-year term and a total funding cost of $1,050,000.
NEXT STEPS:
When approved to proceed, the team will continue to develop this proposal in accordance with the Notice of Funding and sole Source justification.
ATTACHMENTS:
1. Resolution
2. Sole Source Justification
3. New Flyer Solicitation Request Routing sheet
Prepared By: Ryan Moser
Title: Maintenance Manager
Reviewed By: Raymundo Delgadillo
Title: Director of Bus Maintenance
Reviewed By: Thomas Stringer
Title: Chief Operations Officer
3/22/2021
Alex Wiggins Date
Chief Executive Officer