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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Mary DeLoretto, Chief Service Development Officer |
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PRESENTER(S): |
Jared Scarbrough, Director of Capital Construction |
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Jesse Rogers, Bus Vehicle Procurement Manager |
TITLE:
title
Change Order: Battery Electric Buses and Associated Charging Equipment Modification No. 003-Price Increase for Base Order Buses (Gillig, LLC)
end
AGENDA ITEM TYPE:
Procurement Contract/Change Order
RECOMMENDATION:
Approve modification 003 to contract 20-03267 and authorize Executive Director to execute the modification and associated disbursements with Gillig, LLC in the amount of $1,053,600 for a bus price increase due to inflation.
BACKGROUND:
On April 14, 2021, the Board of Trustees approved a five-year contract (20-03267) with Gillig, LLC establishing pricing for battery electric buses and charging equipment. The original contract also included a base order of 44 electric buses including 13 for Park city and 31 for UTA. The first 11 of the 31 for UTA were delivered in early ’22 for the OGX BRT route in Ogden. Modification No. 1 was signed on August 17, 2021. It modified a number of specifications and resulted in an overall price decrease of $34,172.01. Modification No. 2 is proposed for Board approval on March 22, 2023. It will make several additional spec changes and result in an overall price increase of $378,240.00.
The vendor is now requesting a price increase over the originally contracted pricing for the remaining 20 buses on the base order. The 20 buses go into production in January 2023.
DISCUSSION:
This modification no. 003 to the base order and pricing contract reflects the cost increase requested by the vendor. The increase ask is $52,680 per bus. The total per bus price is going from $940,207 to $992,887. The total change request for the entire order is $1,053,600.
CONTRACT SUMMARY:
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Contractor Name: |
Gillig, LLC |
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Contract Number: |
20-03267-003 |
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Base Contract Effective Dates: |
2/20/21 thru 2/20/26 |
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Extended Contract Dates: |
N/A |
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Existing Contract Value: |
$ $46,354,818 |
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Amendment Amount: |
$1,053,600 |
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New/Total Contract Value: |
$ $47,399,418 |
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Procurement Method: |
RFP best value initially |
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Budget Authority: |
Part of 5-year Capital Plan |
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ALTERNATIVES:
Push back on vendor for cost increases. However, due to unprecedented cost increases, and the fact that Gillig has performed well for us and is not adding any markup to their sub’s increases, UTA feels this increase is not unreasonable.
FISCAL IMPACT:
The 20 Electric buses are being procured for the VW settlement award project. The cost increase will be funded by the project’s contingency budget.
ATTACHMENTS:
Contract Mod 003