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FY2021 Low-No Emissions Bus Program
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DESCRIPTION: Reauthorize execution of a contract with Low-No Emissions bus vendor for buses and associated charging infrastructure at a revised contract price |
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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Reauthorize the Chief Executive Officer to execute a contract with New Flyer of America for the purchase of three low-no emissions buses and construction of associated charging infrastructure for an amount not to exceed $6.4M.
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ISSUE/BACKGROUND:
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The FY2021 Low-No Emissions Grant was approved in the summer of 2021 and coauthored by New Flyer, the bus manufacturer, as allowed by FTA for this grant program. The federal grant amount is $5.15M and was awarded in September, 2024. The Performance End Date of the grant is March 30, 2026. The contract pricing previously authorized by the Board (Resolution No. 23-025 on April 25th, 2023) was for $5.7M for three (3) 40’ electric buses and the necessary charging infrastructure. No contract has been executed to date.
The June 2024 revised pricing, which is for the same number of buses and associated infrastructure, increased the overall cost by $620K. Staff is budgeting an additional $1.0M for this project to cover this $620K cost increase and $380K for project contingency (6% of the overall project cost).
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DISCUSSION:
Pricing with the vendor cannot be locked in until a purchase order is issued. The FTA released the grant funds associated with the No Emissions Bus Pilot (Low-No 2021) in September, 2024. Furthermore, the transition in the RTA’s financial system impacted staff’s ability to set up new capital projects and associated purchase orders. Delays in the release of funds contributed to increased costs due to supply chain and inflation related issues.
As issuance of a purchase order will lock in pricing, staff does not anticipate any cost overruns, though a project contingency has been included in the budget in the unlikely event of any complications.
FINANCIAL IMPACT:
This authorization will allow the project team to execute a contract with our partner, New Flyer, on the design and procurement of buses and infrastructure, thereby minimizing impact to the project schedule while also locking in current pricing.
The increase in budget-both for the revised contract amount and for project contingency-translates to approximately $750K in additional local match. This increment will be sourced from RTA’s adopted 2024 capital budget and the account number is 01-0000-00-1501-000-00-00-00000-00000.
NEXT STEPS:
Upon Board approval to move forward with this contract execution, the project team will issue a purchase order and notice to proceed with New Flyer and will initiate the procurement of the three (3) 40’ electric buses and associated charging infrastructure. Staff expects the manufacture and delivery of the buses to take 18-24 months based on the current backlog of orders, although the RTA’s position in the queue could improve depending on the manufacturer’s capacity and status of other orders.
ATTACHMENTS:
1. Resolution
2. Revised pricing proposal from New Flyer dated June 13, 2024 for vehicles and charging rails
3. Revised pricing proposal from New Flyer date June 24, 2024 for charging infrastructure
4. Pricing proposal from New Flyer dated January 31, 2023
5. Board Resolution 23-025
6. Grant agreement for LA2024-03
Prepared By: Rafe Rabalais, rrabailais@rtaforward.org
Title: Director of Capital Projects
Reviewed By: Dwight Norton, dnorton@rtaforward.org
Title: Chief of Infrastructure and Planning
Reviewed By: Gizelle Johnson-Banks
Title: Chief Financial Officer
10/14/2024
Lona Edwards Hankins Date
Chief Executive Officer