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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Viola Miller, Chief Finance Officer |
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PRESENTER(S): |
Todd Mills, Director of Supply Chain |
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TITLE:
title
Contract: Surplus S70 Brake System Parts (Wabtec Passenger Transit)
end
AGENDA ITEM TYPE:
Procurement Contract/Change Order
RECOMMENDATION:
Approve and authorize the Executive Director execute the purchase order and associated disbursements with Wabtec Passenger Transit in the amount of $648,763.16 for S70 brake system parts as listed in the purchase order.
BACKGROUND:
In 2010 Siemens contracted with Wabtec Passenger to provide warranty repairs on the braking system for our S70 fleet. Wabtec has had staff on-site at our Jordan River facility since that time, however, the warranty expired in March of 2023. Wabtec owned and maintained an inventory of parts necessary for these repairs at our Jordan River facility.
DISCUSSION:
As a result of the warranty expiration, Wabtec is no longer performing the repairs on the S70 fleet braking system. The inventory that was owned and maintained by Wabtec at our Jordan River facility is no longer needed by Wabtec, and Wabtec has offered to sell this inventory to UTA at a 47% discounted price. There are 121 part numbers with a total inventory value of $1,223,525.37.
UTA staff has taken over repairs of the S70 braking systems and needs these parts to continue the necessary repairs and maintenance. These parts are used regularly and are considered to be the latest versions of the components. UTA has over 675 S70 calipers in our fleet which will consume the purchased inventory in a relatively short amount of time.
CONTRACT SUMMARY:
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Contractor Name: |
Wabtec Passenger Transit |
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Contract Number: |
PO-1132262 |
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Base Contract Effective Dates: |
November 8, 2023 |
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Extended Contract Dates: |
NA |
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Existing Contract Value: |
NA |
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Amendment Amount: |
NA |
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New/Total Contract Value: |
$648,763.16 |
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Procurement Method: |
Purchase Order |
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Budget Authority: |
Light Rail Operating Budget |
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ALTERNATIVES:
Send the parts back to Wabtec, then put out individual quotes for parts as part of the inventory requisition process.
FISCAL IMPACT:
These parts are being offered to UTA at a 47% discount. Not purchasing these from Wabtec will most likely result in paying much more later. This is an inventory Purchase. Parts will be expensed against Light Rail budget as they are withdrawn from inventory.
ATTACHMENTS:
Purchase Order