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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Bill Greene, Chief Finance Officer |
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PRESENTER(S): |
Todd Mills, Director of Supply Chain |
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TITLE:
title
Contract: Light Rail Tire Kit Parts (Penn Machine Company)
end
AGENDA ITEM TYPE:
Procurement Contract/Change Order
RECOMMENDATION:
Approve the Light Rail Tire Kit Parts contract, and authorize the Executive Director to execute the contract, and associated disbursements with Penn Machine Company for $3,166,880.32 over a period of five years.
BACKGROUND:
The Light Rail maintenance group must replace the tires on light rail vehicles as they wear out. Much like rubber tires on a bus, these are considered a consumable maintenance item that must be replaced based on safety, quality, and wear. This solicitation is for the tires on the S70 light rail vehicles.
DISCUSSION:
Earlier this year UTA conducted an IFB solicitation in order to leverage long-term purchasing volumes and to establish contract pricing for future purchases. Suppliers were provided a schedule of 3 deliveries per year of varying quantities for the next five years, with expectations to deliver the requested quantities on the future delivery dates. Two suppliers responded with bids and Penn Machine Company was selected as the lowest bid supplier. Penn Machine Company is the original equipment manufacturer (OEM) of the tires for the light rail vehicle.
UTA maintains a fleet of 77 S70 light rail vehicles, and each vehicle has 12 tires. The center truck tires last an average of 200,000 miles, and the power-truck tires last an average of 700,000 miles.
CONTRACT SUMMARY:
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Contractor Name: |
Penn Machine Company, LLC |
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Contract Number: |
22-03553BCM |
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Base Contract Effective Dates: |
May 16, 2022 - May 16, 2027 |
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Extended Contract Dates: |
N/A |
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Existing Contract Value: |
N/A |
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Amendment Amount: |
N/A |
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New/Total Contract Value: |
$3,166,880.32 |
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Procurement Method: |
Invitation For Bid (IFB) |
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Budget Authority: |
Maintenance Operations Budget |
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ALTERNATIVES:
Solicit individual bids from suppliers as the need arises, paying market price at the time of the bid.
FISCAL IMPACT:
Replacement of the tires is included in the annual maintenance parts budget and supporting 5-year financial plan.
ATTACHMENTS:
Contract: Light Rail Tire Kit ( Penn Machine Company)
Bid/Quote from Penn Machine Company