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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Patrick Preusser, Chief Operating Officer |
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PRESENTER(S): |
Bryan Sawyer, Director of Fleet Engineering |
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TITLE:
title
Contract: Jordan River Rail Service Center Wheel Truing Machine (NSH USA Corporation)
end
AGENDA ITEM TYPE:
Procurement Contract/Change Order
RECOMMENDATION:
Approve and authorize the Executive Director to execute contract 24-03900 and associated disbursements with NSH USA Corporation with a not-to-exceed amount of $5,282,074.00.
BACKGROUND:
The current Midvale Rail Service Center (MRSC) wheel truing machine supports UTA’s 117 light rail vehicles, 38 bi-level cars, and 18 locomotives.
The MRSC machine is overdue for a major overhaul, which would require the machine to be taken offline for multiple months. UTA’s Jordan River Rail Service Center (JRRSC) was built with a provision for the future installation of a wheel truing machine. The procurement of this machine will allow UTA to equip the JRRSC facility with a wheel truing machine and transfer the wheel truing activities to the JRRSC facility, preventing service disruption.
DISCUSSION:
The scope of work for the contract is to design, build, test, deliver, and prepare equipment for fabrication, installation, and commissioning of a CNC Dual Axle Under Floor Wheel Lathe capable of performing wheel truing operations to maintain UTA’s current and future rail vehicles. The contractor is also responsible for providing documentation and training for the operation and maintenance of the machine.
The majority of the work is anticipated to be completed in 2025 and 2026, with final activities planned to extend into the first half of 2027.
CONTRACT SUMMARY:
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Contractor Name: |
NSH USA Corporation |
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Contract Number: |
24-03900 |
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Base Contract Effective Dates: |
Effective after last signature - December 31, 2027 |
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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: |
$5,282,074.00 |
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Procurement Method: |
RFP |
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Budget Authority: |
Approved 2025 Capital Budget |
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ALTERNATIVES:
1. UTA could take the MRSC wheel truing machine out of service and defer wheel truing maintenance activities until the machine was back online. This is not recommended due to the high likelihood of revenue service disruption as vehicles will reach condemning limits and be taken out of service until the wheel profiles can be restored to safe operating parameters by conducting wheel truing.
2. UTA could remove light rail vehicle trucks, disassemble the trucks to remove the wheelsets, and ship the wheelsets to a 3rd party contractor for wheel truing. Throughput of this option is anticipated to be insufficient to keep up with wheel truing demand, so this option is also not recommended due to the high likelihood of revenue service disruption.
FISCAL IMPACT:
The originally approved 2025-2029 Five Year Capital Plan included $3,500,000 for FMA685 Wheel Truing Machine JRRSC project, but was temporarily reduced in a previous Technical Budget Adjustment (TBA). It will be adjusted to $3,350,000 following the approval of a TBA on May 14, 2025.
The total contract value is $5,282,074, with fiscal impact over the next two years as follows:
• 2025 Contract Total: $3,327,706.62 for Milestone Payments 1 through 6. The FMA685 project has an Approved 2025 Capital Budget of $3,350,000.
• 2026 Contract Total: $1,954,367.38 for Milestone Payments 7 through 10. The FMA685 project has a planned 2026 Capital Plan budget of $2,000,000.
ATTACHMENTS:
• Contract: Jordan River Rail Service Center Wheel Turning Machine (NSH USA Corporation)