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Non-Revenue Support Vehicles
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DESCRIPTION: To amend Board Resolution 22-009 |
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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To authorize an amendment and ratify the procurement of hybrid support fleet vehicles from Courtesy Ford under an amended contract with the City of Alexandria instead of the State of Louisiana.
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ISSUE/BACKGROUND:
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On February 22nd, 2022, the Board approved Resolution 22-009 for the purchase of non-revenue support vehicles. The intent was to purchase 34 support vehicles, 25 Ford Hybrid Vehicles, and 9 Ford half-ton trucks. Due to high demand for vehicles and supply chain shortages, there is a 12-18 month backlog.
On September 1, 2022, the Agency received a letter from Courtesy Ford stating that Ford Corporation will not price protect (honor) the RTA Ford Hybrid Interceptor (non-revenue SUV) order, and the Agency would have to reissue a PO for 2023 pricing. The existing purchase order had 2022 pricing, and the dealer “thought that we would be price protected and rolled into the 2023my (model year)”. Ford states the reasons are high inflation and the supply chain issues stemming from the pandemic, impacts from the war in eastern Europe, microchip shortages, unprecedented manufacturing plant downtime, and high order submission. The State does not have a current contract for 2023 model year pricing available for the hybrid Interceptors yet, and pricing will not be available until sometime in November. Courtesy Ford states that the order bank will close by 9/16/2022, if we do not hit this date there will be a 12-18 month backlog on our order.
However, the current pricing is available for the half-ton trucks, the State contract is valid, and the dealership can honor that pricing.
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DISCUSSION:
Courtesy Ford identified that they have an active contract with the City of Alexandria that the Agency can utilize to procure the Hybrid support vehicles. The financial cost of these vehicles would be higher, this would require a reduction in the total quantity of vehicles from 34 to 30 (2 trucks and 2 hybrids) to stay within budget. Procurement has verified that the City of Alexandria procurement complies with FTA funds guidelines.
When the board awarded the vehicles, it was awarded to Courtesy Ford via the State contract using grant LA2021-024.1113.114211A, B, & C in order to meet the 9/16/2022, the CEO authorized the change from the State contract to the City of Alexandria’s contract, to the Courtesy Ford (same company) for the purchase of hybrid vehicles(Ford Interceptors). Amend resolution 22-009 to use the City of Alexandria’s contract with courtesy ford for the procurement of new hybrid SUV support vehicles, and continue to use the State contract to purchase the half-ton trucks.
FINANCIAL IMPACT:
Funding for this procurement is available through three grants, grant LA-2021-021.11113.114211A,b,c. The vehicle cost for the hybrids has increased by $3,8019 per vehicle. To compensate, the total vehicle quantity will be reduced by four (4) to keep the price within the confines of the available grant funds of $1,241,029. The estimated cost of procuring the Hybrid SUVs and the ½-ton trucks is $1,212,929.54.
NEXT STEPS:
Upon RTA Board approval, staff will work with procurement to complete the purchase of non-revenue vehicles.
ATTACHMENTS:
1. Resolution
Prepared By: Ryan Moser
Title: Director of Fleet Advancement
Reviewed By: Lona Hankins
Title: Deputy CEO of Planning & Infrastructure
Reviewed By: Gizelle Banks
Title: Chief Financial Officer
9/21/2022
Alex Wiggins Date
Chief Executive Officer