Bus Procurement Washington State Transit Association

Bus Procurement Washington State Transit Association
The Easy Button for Bus Procurement Washington State Transit Association Fran Hooper Staff Advisor, APTA August 27, 2012

Regional Technical Assistance Conference
FTA REGION V Regional Technical Assistance Conference Fran Hooper Staff Advisor, APTA August 31, 2012

STANDARD BUS PROCUREMENT GUIDELINES
APTA STANDARD BUS PROCUREMENT GUIDELINES APTA started developing transit industry standards about 10 years ago in order to enhance safety, reliability and effectiveness in transit operations. Standards and recommended practices have been developed for bus, commuter rail, rail transit, IT, security, accessibility , procurement, sustainability and fare collection. I’m going to talk specifically about our standard bus procurement guidelines.

Why a New SBPG? Updated Terms and Conditions
Request for Proposal [insert date] [insert Proposal number] American Public Transportation Association 1666 K Street, NW, Washington, DC, published: May 3, 2010 Standard Bus Procurement Guidelines RFP Abstract: This document outlines a request for proposals for a negotiated bus procurement contract. A request for proposals is generally used when the scope of Work or specification is less well-defined. In addition, this type of procurement may be used in cases where the vehicle involves “emerging” technology or there is a requirement to discuss warranty provisions or design considerations. This document was developed using a cross-section of representatives from the public and private sectors of the public transit industry for use by transit agencies. Keywords:bus, request for proposals (RFP) Overview: Many industries have standard forms of contracts for the acquisition of goods and services. Buyers and sellers in those industries become familiar and comfortable with those forms. The goal of creating a common method of contracting enables participants to focus, when necessary, on negotiating only those issues for which a departure from the accepted norm is necessary or desirable. This approach will save considerable time and effort for the parties to a particular transaction. It also permits new provisions or evolving best practices to be incorporated into the standard Contract for that industry efficiently and in a manner designed to benefit the entire industry. Finally, standardization leads to a consistency of interpretation that presumably should reduce the number of Contract disputes and result in better prices for both the public and private sectors. Updated Terms and Conditions Addition of Technical Specifications Standardize the organization of industry contracts Move towards standard industry terms and conditions Flexibility for local requirements and agency-specific provisions Original APTA guidelines were created in mid-90’s – FTA was a partner – then only commercial terms – tech spec referred to as phase 2, limited use by the industry – not promoted. In 2008 FTA asked APTA to update them, drawing upon the technical standards work that had been done under the APTA standards program. The most important reason for new standards was technical specifications. But there have been a lot of changes in procurement practices that needed to be made to the old document D to 422.1F Part of APTA’s expanded standards program has been to bring more standardization to the procurement process. Every transit agency has its own unique way of packaging procurements, its own unique set of clauses. Standardizing the organization of the contracts and forms that get used as well as the contract clauses can simplify the process and potentially cut costs. But flexibility is still needed – to meet state and local legal requirements and to permit local preferences. The old guidelines made that difficult. Goal of the procurement standards effort was to draw upon the experience of large transit agencies and equip small and midsize transit agencies with the information they need to undertake more sophisticated procurements. This document has a lot more specific examples, notes and forms and advice than the old one – things that can help small agencies with a small procurement staff or limited vehicle procurement experience. Available to everyone.

Standard Bus Procurement Guidelines
GOAL: A SINGLE bus technical guideline specification document that includes language for: multiple fuel types (hybrid, CNG, diesel) Multiple lengths Transit coaches (30-foot through Articulated) Commuter coaches

“Man, I wish we would have used the industry's SBPG!”
Benefits of a New SBPG? “Man, I wish we would have used the industry's SBPG!” Reduced costs Uniformity of bid documents Streamlined procurement process Better RFPs and better proposals A healthier industry Highlight industry best practices Reduce RFA’s Reduced costs: OEM savings that get passed on and getting buses sooner. 1 – 2% of total contract price goes to proposal development If OEM has a better understanding of what the agency wants and expects, can find critical issues easily, cuts their costs to develop proposals. Better allocation of risk between buyers and sellers. Less agency time in developing and reviewing RFP. LA changed procurement process and saved $20,000 per bus. Streamlined process: Standard forms and clauses – OEMs and suppliers know what to expect and where to find what they need; common expectations, fewer claims and litigation. Better RFPs and better proposals: Clauses that are up to date with current industry practice – not just the last bus order with a new date and cover – out of date and needless clauses gone; clauses that you need are there. Better communications – Industry review/pre-proposal conference; evaluation criteria that are explained and prioritized. Fewer protests and litigation. Encourages OEMs to suggest alternatives that would save money and time and/or improve performance. Best Practice: Industry best practice of today - payment, warranty.

Document Layout Section 1 – Notice of Request for Proposers Section 2 – Instructions to Proposers Section 3 – General Conditions Section 4 – Special Provisions Section 5 – Federal Requirements Section 6 – Technical Specifications Section 7 – Warranty Requirements Section 8 – Quality Assurance Section 9 – Forms and Certifications Section 10 – Contract Section 11 – Appendixes The document is laid out in 11 sections…. Probably the most important thing that we would like you to take away today is the importance of having a standard outline for all bus procurements in our industry – a standard table of contents, if you will. In working on the new procurement guidelines the working group looked at RFPs from transit agencies all over the country and the thing that you couldn’t help noticing was how differently they all were organized and it quickly became apparent that there is reason that the bus manufactures have problems giving an agency what they want – its sometimes really hard to find what they want in their RFP document. Fundamental issue – we need a standard outline for industry procurements and this is a starting place Getting a standard outline and knowing where to look for specific clauses in all of the RFPs that come out alone can make a big difference – it will help the OEMs be more responsive and it will save them time and money in developing proposals – savings that can help cut costs to the agencies.

Notice of Request for Proposals (NR)
Section One (1) covers: Description of the work to be done Proposal due date and submittal requirements Validity of proposals Pre-Proposal meeting information [Optional] Section one is a summary of the critical pieces of information needed to respond to a proposal – the dates and names, addresses etc. For some agencies its also the advertisement that they publish to meet their legal requirements for a procurement. One of the new things that you’ll see in this section is the recommended reduction in paper and moving towards electronic submission in conjunction with industry sustainability programs. Also electronic pre-proposal meeting. The new guidelines call for one hard copy original, two additional printed copies and three CDs – numbers that an agency can change but obtaining proposal submissions on CDs is becoming an industry standard allows the use of electronic submissions. OEMs say that there is still resistance to going electronic.

Agency Customization Items noted in brackets, [example], are areas where the Agency needs to fill in information. Format of SBPGs -- agency inserts its info – brackets

Instructions to Proposers (IP)
Section Two (2) covers: Quantities Proposed schedule for the procurement Obtaining proposal documents Proposal security requirements (reserved) Pre-proposal meeting/information for proposers Questions, clarifications and omissions Addenda to RFP DBE Requirements for Transit Vehicle Manufacturers Conditions, exceptions, reservations or understandings Protest procedures Preparation of proposals Proposal evaluation, negotiation and selection Response to proposals Conflicts of interest and gratuities Agency-specific provisions The Instructions to Proposers are the usual boilerplate items that an agency has for all of its RFPs/negotiated procurements. It includes the detailed requirements that proposers need to follow in submitting their proposals – schedule, getting documents, questions, how protests will be handled. Talk about 2 - Preparation of proposals and Proposal Evaluation and selection

RFP Package Requirements
Four Standard Packages: Technology package Price package Qualifications package Proprietary/Confidential documents package IPs tell proposers how the agency wants proposals to be organized. Standard format objective applies here too – have OEMs submit info in same format helps agency staff review. Four specific packages of information from the proposers are called for in the guidelines. Having separate packages for different types of information permits the agency to give the staff evaluating the proposals just the information that they need to do their portion of the evaluation.

Technology Package – Package #1
Letter of Transmittal Technical Proposal Acknowledgement of Addenda Contractor Service and Parts Support Data Form for Proposal Deviation (without price data) Vehicle Questionnaire References and Non-Priced Information Engineering organization chart, engineering change control procedure, field modification process Package one is the technology package – but its more than just the technical proposal. 3 – 7 are standard forms that have been developed

Technology Package – Package #1
Manufacturing facilities plant layout, other contracts, staffing Production and delivery schedule and other Contract commitments for the duration of this Contract Management Plan [Optional: The Agency may want to specify the information required for any Management Plan that is to be included in the Proposal, consistent with any specific management requirements and any evaluation criteria detailed in “Proposal Selection Process.”] 8 – 12 is information to your evaluation team when they are looking at proposals Everything your technical evaluation folks need to do their work

Price Package – Package #2
Letter of Transmittal Pricing Schedule, (including but not limited to such pricing elements as option buses, spare parts package, manuals, training, special tools and test equipment) SBPGs recommend that all info related to price go into one package – a separate package so that it won’t get mixed up with the info that the technical evaluation team needs. The agency needs to specify the pricing data they want and have the appropriate forms for the proposers' price proposal. The RFP includes a sample price form Keep it separate from the technical team --

Qualifications Package – Package #3
Pre-Award Evaluation Data Form Copy of the 3 most recent audited financial statements/how financial information may be reviewed Letter for insurance, indicating the Contractor’s ability to obtain insurance coverage Letter from a surety for a Performance Guarantee, if required, indicating ability to obtain financial guarantees Form for Proposal Deviation, if applicable Proposal Form 7. All federal certifications Package 3 = Qualifications package – info you need to know about potential biz partners Instead of the surety’s performance guarantee – which is not recommended -- the proposer could include a letter from the parent company.

Proprietary/Confidential Package – Package #4
Include proprietary or confidential information Trade secrets Confidential commercial information Confidential financial information Last package contains all info the company deems to be proprietary or confidential such as trade secrets, confidential commercial or financial information. Not enough to label a page confidential – OEMs need to put it in a separate SEALED package. Importance of confidentiality: OEMs are asked for confidential info on prices, products, sources – info with significant commercial value. OEMs are concerned about it – agency needs to respect those concerns. Need to tell proposers if agency is subject to state/local public records acts – sunshine laws – and how they will handle such requests.

Proposal Evaluation and Selection
Evaluation Procedures: Selection Process: Qualification requirements Proposal evaluation criteria Responsibility and responsiveness Competitive range Discussion with Proposers Site visits Best and Final Offers (BAFOs) Debriefing Agency’ evaluation and selection process - how they will assess the qualifications of the competing firms is an important IP. What are some of the requirements for qualifying responsible proposers? Financial strength their ability to obtain needed financial guarantees; having needed human and physical resources needed to perform the work; meeting the quality assurance provisions of the RFP. What do you think is most important in selecting an OEM? (the technical proposal, qualifications, delivery, price, past performance? The IPs outline the criteria that will be used in evaluating proposals – ranking of relative degree of importance – the technical proposal, the qualifications of the company (resources, management, engineering), price, delivery, etc. Some agencies even specify the weights that they will assign to each of the evaluation criteria. Appendix C provides two examples of agency evaluation criteria are provided. IPs also specifies the steps in evaluation process: qualify responsive proposers, detailed eval of proposals, determination of competitive range, discussions with proposers in competitive range, site visits, BAFO, debrief.

Agency-Specific Provisions
At the end of: Instructions to Proposers General Conditions Special Provisions IP 15 Agency-Specific Provisions [To be inserted by Agency as required.] This is where an agency can add any state or local legally required clauses or other items that are important to the agency regarding the RFP. By putting these items at the end of each of the sections rather than inserting them in the middle of the document it will make it easier for the proposers to find them – and to meet the agency’s expectations --m and will maintain the organization of the document.

General Conditions (GC)
Section Three (3) covers: Definitions Materials and workmanship Conformance with specifications and drawings Inspection, testing and acceptance Legal clauses The GCs contains the standard terms and conditions that the agency uses. And also the legal clauses are where we get into the risk issues that are always an issue and can have financial impact. In the legal clauses the guidelines suggest new language in a couple of important areas….

Force Majeure GC 9.3 Excusable Delays/Force Majeure First risk area
GC If the Contractor is delayed at any time during the progress of the Work by the neglect or failure of the Agency or by a cause as described below, then the time for completion and/or affected delivery date(s) shall be extended by the Agency subject to the following cumulative conditions: The cause of the delay arises after the Notice of Award and neither was nor could have been anticipated by the Contractor by reasonable investigation before such award. Such cause may also include force majeure events such as any event or circumstance beyond the reasonable control of the Contractor, including but not limited to acts of God; earthquake, flood and any other natural disaster; civil disturbance, strikes and labor disputes; fires and explosions; war and other hostilities; embargo; or failure of third parties, including Suppliers or Subcontractors, to perform their obligations to the Contractor; The Contractor demonstrates that the completion of the Work and/or any affected deliveries will be actually and necessarily delayed; The Contractor has taken measures to avoid and/or mitigate the delay by the exercise of all reasonable precautions, efforts and measures, whether before or after the occurrence of the cause of delay; and The Contractor makes written request and provides other information to the Agency as described in GC below. A delay in meeting all of the conditions of this section shall be deemed an excusable delay. Any concurrent delay that does not constitute an excusable delay shall not be the sole basis for denying a request hereunder. First risk area How many have had delay issues – what was cause of delay? Controllable? In developing the new guidelines, a major issue that we worked on was excusable delays, and this section of the new guidelines calls out new causes for delays including strikes and labor disputes and failure of suppliers to perform. While the new guidelines recommend adding these new causes for delays, it also requires that the contractor to demonstrate that they took all reasonable measures both before and after the event to avoid and/or mitigate the delay – looked for multiple sources of supply.

Dispute Resolutions GC 9.8 Disputes
NOTE: The following section deals with disputes arising after Contract award and not during the procurement process. The latter are “protests” that should be dealt with under the Agency's procurement procedures as outlined in “Protest Procedures.” Outlined below are example provisions and recommendations for drafting a disputes resolution clause to be included in the Contract. Included are stepped negotiations, submission for Agency executive decision and alternatives dispute resolution. However, by mutual agreement the matter may be taken immediately to any higher step in the resolution process, or a mutually agreed-to alternative dispute resolution process (which may include structured negotiations, mediation or arbitration) or litigation. Except as otherwise provided in this Contract, any dispute concerning a question of fact arising under or related to this Contract that is not disposed of by agreement shall be decided in accordance with the following steps. However, by mutual agreement the matter may be taken immediately to any higher step in the dispute resolution process, or mutually agreed to alternative dispute resolution process (which may include structured negotiations, mediation or arbitration) or litigation. Pending final resolution of a dispute hereunder, the Contractor shall proceed diligently with the performance of the Contract and in accordance with the Contracting Officer's or Chief Executive Officer's decision, as the case may be. Goes on to describe the steps in the process Disputes arising after Contract award (not during the procurement process -- “protests” that should be dealt with under the Agency’s procurement procedures as outlined in “Protest Procedures”) is another place where you’ll see some changes. The new guidelines recommend adding a mutually agreed to alternative disputes resolution clause to the usual steps in dealing with disputes, which may include structured negotiations, mediation or arbitration. Litigation is, of course, available to both parties as a last resort. Types: Structured negotiations, Mediation, Arbitration

Special Provisions (SP)
Section Four (4) covers: Inspection, tests and repairs Deliveries Options and option pricing Assignability of options Payment Performance guarantee Liquidated damages for late delivery of the bus Service and parts Federal Motor Vehicle Safety Standards (FMVSS) Insurance Software escrow account Sustainability Agency-specific provisions The special provisions are clauses that are intended to amend and supplement the General Conditions to meet the requirements of the specific project. Several clauses in this section reflect new approaches that are considered to be best practice, and are highlighted in the following slides. I’ll talk about a few of the SPs

Options and Option Pricing
Use Producer Price index for pricing options Requires maximum of five years for option to be exercised for bus procurements Options pricing – the new guidelines call for using the Producer Price index for pricing options and requires a maximum of five years for the option to be exercised – per Some agencies already use the PPI – working group thought that it was good to standardize on PPI for bus and truck bodies. Length of options is another issue – 4220 says 5 years – but MAP – 21 changed it to 7 years for rail cars Size of options – 3 in base and 300 options – FTA has dealt with that one Price of options based on order unit price adjusted by multiplying fraction (latest published index price over published index on the date of contract.

Assignability of Options
Appendix F: Sample Assignment of an Option to Purchase Agreement [Insert Agency name], “Assignor”, hereby assigns to ________________________ of ___________________, “Assignee”, its option to purchase from of , “Seller”, ___________________________ floor transit Vehicles (“Option Vehicles”) at a price and under the terms and conditions contained in Assignor’s Contract No [Insert Contract number],dated with Seller (“Contract”). Such option commenced, per terms of Contract, on , and may be exercised at any time on or before . With respect to the Option Vehicles assigned hereunder and this Assignment, Assignee agrees to perform all covenants, conditions and obligations required of Assignor under said Contract and agrees to defend, indemnify and hold Assignor harmless from any liability or obligation under said Contract. Assignee further agrees to hold Assignor harmless from any deficiency or Defect in the legality or enforcement of the terms of said Contract or option to purchase thereunder. Assignee agrees and understands that Assignor is not acting as a broker or agent in this transaction and is not representing Seller or Assignee, but rather is acting as a principle in assigning its interest in the above-referenced option to purchase the Option Vehicles under the Contract to Assignee. Assignee hereby unconditionally releases and covenants not to sue Assignor upon any claims, liabilities, damages, obligations or judgments whatsoever, in law or in equity, whether known or unknown, or claimed, which they or either of them have or claim to have or which they or either of them may have or claim to have in the future against Assignor, with respect to the Option Vehicles or any rights whatsoever assigned hereunder. Dated this _____ day of _____________, 20___ _____________________________ ____________________________ Assignor Assignee I hereby accept and approve the terms of this agreement and agree to hold Assignor harmless from any further liability or obligation under our agreement. __________________________________ Seller With regard to the Assignability of Options the new guidelines provide a new form that is a formal written agreement the permits the OEM to agree to the assignment. One of the problems that OEMs have with options is that they don’t always know what agency they might end up doing business with. And they might not want to do business with some agencies – it can cost them more money to do business with some than with others. (difficult to work with: don’t pay on time, don’t respond timely, don’t know what they want, change orders). Working group thought that it was important for all parties to agree to the option assignment

Payment Three payment options are:
On delivery With retention Progress payments Security for progress payments may be required The new guidelines suggests three payment options for the agency to select from: on delivery, with retention and progress payments. How payment is make can affect price of bus. Progress payments can save $ per bus – OEMs don’t have to upfront money for 26 or more weeks. 2. For progress payments the agency will need to establish payment milestones and the % payment linked to the milestone. For example: at some specific event in the manufacturing process, with shipment of a bus from the plant, delivery and acceptance of the bus, delivery and acceptance of the spare parts and special equipment, final payment. Security for progress payments may be required. 3. Payment section also includes language that if the agency delays payment by more than 10 days the contractor can charge interest at a rate not to exceed prime interest rate for that day/

Performance Guarantee
5.2 Performance Guarantee (Optional) The bond shall cover all of the Contractor’s obligations under the Contract except for the warranty and shall remain in force until said obligations have been fulfilled. The bond amount may be reduced as follows: To sixty-five (65) percent of the original amount when fifty (50) percent of the required number of buses are delivered and accepted; To thirty (30) percent of the original amount when seventy-five (75) percent of the required number of buses are delivered and accepted; and To zero (0) percent of the original amount when one hundred (100) percent of the required number of buses are delivered and accepted. HOW MANY OF YOU USE PERFORMANCE BONDS???This clause is labeled Optional because requiring a performance guarantee is not viewed as best practice because there are other ways to achieve the same results. They just drive up the costs that the proposer passes on to the agency. What do you get if company fails -- vehicle shells? Can use holdbacks as an alternative $200,000 PERFORMANCE BOND COST GETS PASSED ON --- $500 A DAY FOR A YEAR If you absolutely have to have a performance bond, it should be one that reduces over time: Reduce bond to 65% when 50% of buses are delivered and to 30% when 70% of fleet is delivered. At least reduce bonds as deliveries continue If an agency does not use this clause, the number should be maintained but the clause should be labeled not used or reserved.

Liquidated Damages NOTE: In order to balance the risk in the Contract, which adds to the cost of the bus, the Agency may want to consider capping liquidated damages at an amount between 10 and 20 percent of the total Contract amount or to negotiate an amount with the Contractor. In that case, the following language should be inserted: “The total amount of such liquidated damages shall not exceed [insert number] percent of the total Contract amount.” The following may be considered for inclusion if early delivery will create a savings to the Agency. The Agency may wish to modify “Excusable Delays” to determine delivery date for purposes of this incentive option: “In the event that the Contractor completes the Work earlier than required in “Delivery Schedule,” the Contractor shall be paid an incentive of [insert amount] per calendar day per bus that is delivered and accepted early. The total amount of such incentive payments shall not exceed [insert number] percent of the total Contract amount. See Appendix B, “Guidelines for Calculating Early Delivery Incentives.” LDs are always a big issue. We worked to develop a recommended practice that benefits everyone. LDs are a cost per day for damage to the agency for late delivery. Some OEMs say LDs have a bigger cost impact that performance bond. Guidelines for calculating liquidated damages are provided in Appendix A and the new SBPG’s suggest that the Agency consider capping LD’s at between 10 and 20% of the total contract amount or to negotiate a “not to exceed” amount. Also suggests that incentive payments be considered and guidelines for calculating them are also included in the Appendix. Inclusion of these clauses could have an impact on the price that is proposed. LDs they should not be punitive but rather based upon the damages that the agency incurs. For example: the cost to retain the old fleet – extra maintenance costs for extra buses – the cost to obtain an alternative fleet, increased contract administration costs; court fines for noise/air quality standards/ADA requirements.

Sustainability NOTE: If the Agency has its own sustainability policy that includes the responsibility to make sure all of its contractors are informed of this policy, then the following language is recommended. The Agency recognizes that being sustainable (environmentally, economically and socially responsible) involves everyone, both internal and external to the Agency. The Agency expects its contractors to have their own sustainability policies and programs in place and to provide services in line with the principles established therein. Implementation of sustainable practices may include maximizing the use of environmentally and socially responsible materials and services, utilizing energy-efficient and non-polluting vehicles, equipment and processes, and ensuring that employee awareness of sustainability initiatives. The Agency has a sustainability policy that includes the responsibility to make sure all of its contractors are informed of this policy. The Contractor will provide the Agency with a statement indicating that responsible parties have read and understand the Agency’s sustainability policies and that it agrees to use reasonable efforts to conduct its work and operations in a manner which is consistent with them. In addition the Contractor will provide the Agency with a copy of its corporate sustainability policy. Final SP is something new to the industry – one that not many agencies have started using, but it we anticipate that it will get much more use in the future. The text just says that the agency has a sustainability policy and expects the contractor to have one and to abide by both documents. But more will probably be coming: Today agencies are starting to do new green procurements – suppliers are concerned about where this is headed and want best practice/guidance – work in progress. Issue is how do you evaluate sustainability – using green products, recycling, reducing water use, manufacturing process. How does it get reflected in evaluation of proposal? Proposer has done extensive work to deliver sustainable proposal but agency does not know how to score it and incorporate scores into evaluation. OEM has a clean technology plant, major changes in manufacturing process – can put power back into the grid with ISO compliant solar panels – the largest in Canada -- how do you score that?

Federal Requirements Section Five (5) covers: Access to Records
Federal Funding, Incorporation of FTA Terms and Federal Changes Federal Energy Conservation Requirements Civil Rights Requirements Americans with Disabilities Act (ADA) No Government Obligation to Third Parties Program Fraud and False or Fraudulent Statements or Related Acts Suspension and Debarment Disadvantaged Business Enterprise (DBE) Clean Water Requirements Clean Air Requirements Compliance with Federal Lobbying Policy Buy America Testing of New Bus Models Pre-Award and Post-Delivery Audits Cargo Preference Fly America Contract Hours and Safety Standards You are probably all familiar with the federal clauses – all standard – FTA brochure about federal certifications. Recently there has been considerable discussion about Buy America – in Congress and by US DOT. There is clearly a lot of pressure to make sure that tax dollars to go support US jobs. FTA has changed its policy with regard to rail cars and they no longer permit prototype vehicles to be produced outside of the United States and requests for waivers will be carefully reviewed and fewer approvals can be expected in the future. No waivers now. DOT working with DOC – NIST to find US suppliers who can increase domestic content. Right now FTA is asking for requests for comment on changing domestic content on vehicle overhauls and rebuilds. Continues to be new legislative proposals and FTA actions on Buy America: Overhaul vs. rebuild FTA questioning use of federal funds for costs associated with utility relocation costs needing to be BA compliant.

Technical Section – Document Layout
Section Six (6) covers: General technical Dimensions Vehicle performance Drivetrain/power plant Structure Chassis Electrical Driver provisions Windows HVAC Exterior panels and finishes Interior panels and finishes Passenger accommodations Signage and communications

Technical Section Performance-based specifications
Performance based vs. Design Spec Designed for multiple bus lengths and propulsion types 30-foot to 60+ foot articulated buses Diesel, Compressed Natural Gas (CNG), Hybrids Performance Based Specs vs. Design Specifications Performance based specifications focus on outcomes or results rather than process, and the required goods and services rather than how the goods and services are produced. Conversely, design specifications outline exactly how the contractor must perform the service or how the product is made. Performance based specifications allow respondents to bring their own expertise, creativity and resources to the procurement without restricting them to predetermined methods or detailed processes. This allows the OEM’s to provide the product or service at less cost and shifts some of the risk to the contractors. Performance based specifications are fashioned so that OEM’s are allowed maximum flexibility when satisfying the requirements of a solicitation whereas, design specifications limit flexibility.

Technical Section Agency specifies its needs and performance requirements – operating conditions, duty cycle, desired performance OEM designs bus to meet the agency’s needs and expectations If an agency utilizes a design specification for engine performance and it does not perform correctly, then the results may be the fault of the specification (agency). With a performance based specification, the engine must operate properly in order to meet the performance standards. Advantages: Engine performance/Interchangeability/Local conditions/Environment/Operating profile (e.g. urban, suburban, express, rural) Approach that was taken to open up specs and to minimize the request for approved equal. The document was not written for properties with the toughest or easiest operating conditions but for what was considered to cover most properties with the thought that some changes may need to be made for some properties.

Technical Section – How to Use It
TS 60.1 Materials Body materials shall be selected and the body fabricated to reduce maintenance, extend durability and provide consistency of appearance throughout the service life of the bus. Detailing shall be kept simple, and add-on devices and trim shall be minimized and integrated into the basic design. Default No requirement for protection against graffiti/vandalism for body material surfaces. Alternative Requirements for protection against graffiti/vandalism for body material surfaces. Technical specifications set up with a default and alternates.– defaults defined in consensus process – what most agencies want By selecting the default a, basic bus tech spec will be developed and you will be getting the latest industry standard for a new bus By choosing the alternative will insure you that you have the opportunity to select what your agency specifically needs. Propulsion types include CNG, Hybrid as well as diesel 35 and 40 foot buses, Artics and now suburban over-the-road coaches. Electric bus in next edition.

Passenger Accommodations – options and flexibility 76. Passenger Seating 76.1 Arrangements and Seat Style The passenger seating arrangement in the bus shall be such that seating capacity is maximized and in compliance to the following requirements. Note: The Agency recognizes that ramp location, foot room, hip-to-knee room, doorway type, width, seat construction, floor level type, seat spacing requirements, ramp or lift, number of wheelchair positions, etc. ultimately affect seating capacity and layout. Default No requirement for protection against graffiti/vandalism for body material surfaces. Alternative Requirements for protection against graffiti/vandalism for body material surfaces. q Technical specifications set up with a default and alternates. By selecting the default a basic bus tech spec will be developed

TS 25. Jacking It shall be possible to safely jack up the bus, at curb weight, with a common 10-ton floor jack with or without special adapter, when a tire or dual set is completely flat and the bus is on a level, hard surface, without crawling under any portion of the bus. Jacking from a single point shall permit raising the bus sufficiently high to remove and reinstall a wheel and tire assembly. Jacking pads located on the axle or suspension near the wheels shall permit easy and safe jacking with the flat tire or dual set on a 6 in. high run-up block not wider than a single tire…. Default Yellow Pads Jacking pads shall be painted safety yellow. Alternative Decals Apply decals to identify location of jacking pads. Alternate Color Pads [Jacking pad color to be specified by Agency.] Makes it clearer – only includes what you want

How to Use it TS 52 ALTERNATIVE No Requirements for Cooling All requirements relevant to the HVAC cooling mode contained in this section, as well as throughout this specification, need not apply. All other requirements for heating and ventilation still apply. DEFAULT Allow Either Roof- or Rear-Mounted HVAC Unit The HVAC unit may either be roof or rear-mounted. [Note that a rear-mounted unit will preclude a rear window and that the term “roof-mounted unit” includes units mounted on top of or beneath the roof surface.] Require Roof-Mounted HVAC Unit The HVAC unit shall be roof-mounted. [Note that this includes units mounted on top of or beneath the roof surface.] Require Rear-Mounted HVAC Unit The HVAC unit shall be rear-mounted. Require Under-Floor HVAC Unit The HVAC unit shall be mounted under the floor. Require roof- and rear-mounted HVAC unit (articulated buses) ALTERNATIVE (HYBRID BUSES) Fully AC high-voltage electric-driven A/C system with full hermetic AC compressor, condenser fan and evaporator blower motors. ALTERNATIVE (DIESEL OR CNG BUSES) Fully AC high-voltage electric-driven A/C system with full hermetic AC compressor, condenser fan, evaporator blower motors and brushless AC generators. AC Shore Power Connection Accessibility and serviceability of preventative maintenance components shall be provided, minimizing the maintenance personnel needed to work on the roof of the bus. This is part of a list of defaults and alternatives for Capacity and Performance in the HVAC section of the guidelines. You can see that the selection will requires more thought to best identify what works best for your agency, you can also see that we identify a distinction for different propulsion types hybrid or non-hybrid. Living document – tech spec alternates and defaults will change over time as industry changes and new technology is developed.

Warranty Section Seven (7) covers: Basic provisions Fleet defects
Pass-through warranties Repair procedures Separate working group worked on warranty – drawn from procurement folks and tech spec folks – OEMs, sub-suppliers, maintenance and procurement staff. Fair to all and makes it a healthier industry.

Warranty Complete Bus Body and Chassis
One year or 50,000 miles, whichever comes first Body and Chassis Body, body structure, structural elements of the suspension and engine cradle - three years or 150,000 miles, whichever comes first Primary load-carrying members of the bus structure are warranted against corrosion failure and/or fatigue failure sufficient to cause a Class 1 or Class 2 Failure - 12 years or 500,000 miles, whichever comes first The complete bus, propulsion system, components, major subsystems and body and chassis structure are warranted to be free from Defects and Related Defects for one year or 50,000 miles, whichever comes first, beginning on the date of revenue service but not longer than 15 days after acceptance. Body, body structure, structural elements of the suspension and engine cradle are warranted to be free from Defects and Related Defects for three years or 150,000 miles, whichever comes first. Primary load-carrying members of the bus structure, including structural elements of the suspension, are warranted against corrosion failure and/or Fatigue Failure sufficient to cause a Class 1 or Class 2 Failure for a period of 12 years or 500,000 miles, whichever comes first.

Warranty Propulsion System
Two years or 100,000 miles, whichever comes first Emission Control System Five years or 100,000 miles, whichever comes first Subsystems Extended warranties may be purchased at additional cost In the warranty area the new guidelines reflect a 2 year recommended warranty on the propulsion system compared to the 5 years/300,000 miles in the old guidelines. Cummins only does 2 yrs Similarly major subsystem warranties reflect a 2 year/100,000 mile warranty compared to 3 years/300,000 miles in the old guidelines. While agencies may want the OEM to give them the longer warranty, if the OEM can’t get a longer warranty from the engine manufacturer, the OEM is going to have to get paid for it. Have to guess how many failures will occur. Guidelines call out extended warranties in the pricing schedule. However the guidelines also require that the Contractor pass on to the Agency any warranty offered by supplier that is superior to those called out in the standards. Vehicle info system should give info about need for extended warranties. Look at exclusions on warranty parchments – does it warrant cost of extended warranty.

Warranty The guidelines provide a pricing schedule to be filled out if you want that priced in your proposal and to detail what extended warranties are desired. May want to design your own pricing form.

Warranty Fleet Defect Occurrence
Cumulative failures of twenty-five (25) percent of the same components in the same or similar application Minimum fleet size of twelve (12) or more buses where such items are covered by warranty Applies only to the base warranty period for complete bus, propulsion system and major subsystems This codifies what we have been doing for years. Remaining warranty on that item or component stops when declared. Starts again when all are fixed. Warranty period does not restart until the Fleet Defect is corrected Does not apply to agency supplied items, interior and exterior finishes, hoses, fittings and fabric Agency may immediately declare a fleet defect in design resulting from a safety hazard to be a fleet defect. 90 days to see if fix works Also specifies how warranty work gets done and how does is it and how agency gets paid for work it does. Now everyone knows what to expect Provision for options being a separate fleet for the purpose of fleet defects.

Quality Assurance Section Eight (8) covers:
Contractor's in-plant quality assurance requirements Inspection Acceptance tests Agency-specific requirements New bus manufacturing inspection guidelines What is in-plant person’s responsibility – what can they approve Role of pilot bus Acceptance testing: Pre-delivery Road testing

Forms and Certifications
Section Nine (9) covers: Proposer's checklist Request for pre-offer change or approved equal Acknowledgment of addenda Contractor service and parts support data Form for proposal deviation Pricing schedule Pre-award evaluation data form Federal/other certifications Buy America Certification Vehicle questionnaire

RFP [insert name of procurement] Package 1: Technical Proposal □ 1. Letter of Transmittal 2. Technical Proposal 3. Acknowledgement of Addenda 4. Form for Proposal Deviation 5. Vehicle Questionnaire 6. References and non-priced information (if provided by Proposer) 7. Engineering organization chart, engineering change control procedure, field modification process 8. Manufacturing facility plant layout, other contracts, staffing 9. Production schedule and other Contract commitments for the duration of this Contract. 10. Quality Assurance Program The proposer’s checklist is simply a reminder to the proposers about what goes into each of the four packages of their proposal. Also a form about contractor service and parts support will come from so that it can be considered in evaluation process Pre-award evaluation data form: info on current contracts to demonstrate available capacity, similar contracts to demonstrate technical proficiency, terminations or defaults, all the sub-contractors and the % of the work and nature of the work

The vehicle questionnaire is the longest one – 13 pages long!. This is a lengthy document but it pulls together in one place all the critical information on the proposer’s product. The size, capability and capacity of the vehicle and all of its subsystems, and the manufacturer for all systems as well as the model number. Not all agencies use a proposer checklist currently but the working group felt that for a bus procurement it was a useful summary of what each OEM is proposing which would be very helpful in the evaluation process. Another useful form is the extensive – 3 (pages) list of CDRLs in the SBPGs (contract date requirements list) can be adapted by an agency – draws upon experience of large agencies

Contract Section Ten (10) covers: The contract
Agency insertion of Form of Contract Sample contract (available in Appendix D) Sample Contract: There are a lot of ways that agencies approach the actual contract and whatever approach they use goes here in section 10. Some agencies do a simple contract – AC Transit gives the winning proposer an award offer and an acceptance form to sign (3pps) – the easy button approach perhaps. Others are much more detailed. LA puts together a conformed contract with all the changes, deviations and addenda from the negotiations process – a harder way to go but one that minimizes controversy. Because there are so many ways of doing this the new guidelines provide an example in appendix D that made sense to the working group and includes: 1) contract documents and order of precedence 2) compensation 3) contract terms and period of performance, 4) notices, 5) entire agreement and signatures.

Appendices Section Eleven (11) covers:
Guidelines for Calculating Liquidated Damages Guidelines for Calculating Early Delivery Incentives Examples of Evaluation Criteria Sample Contract Sample Performance Bond Form Sample Assignment of an Option to Purchase Agreement Example of a Software Escrow Agreement We’ve talked about a lot of these documents already and this is where small agencies that don’t buy a bus very often will really find the new guidelines helpful……… More help to small and mid-sized agencies

SBPG – Next Steps Continue outreach Continuously reviewing comments
Create an online spec building tool Review and update annually to stay current with new industry practices, updated regulations and policies and new technologies The new standard bus procurement guidelines are a living document and will be updated regularly. As they get used by the industry we want to revise them to make corrections or clarifications or to make them easier to use. They will also be updated as industry practices, technology and federal requirements change. The latest update can be found on the APTA website. Used by LA, TARC, Chicago on electric bus, SEPTA, DART, Phoenix On-line version asks questions, you fill in the blanks and it develops a draft document. By selecting propulsion type and bus length it eliminates non-relevant options. Over last year OEMs say its easier to understand what the agency wants and to find the critical things that are needed to develop a proposal

Where to get it! Go to www.apta.com
At the “Resource Library” tab, click on “Reports and Publications” Then, click on “Bus & Paratransit” Click on “Standard Bus Procurement Guidelines” and it will automatically download to your computer Pages/BusParatransit.aspx Keep the order Don’t cherry pick Does it make sense to you? Is it something you can use? Available to all Standard LRV RFP document done. T&Cs are the basis of FRA PRIIA bi-level railcars. Looking at trolley RFP to.

Contact Information Need help or have questions? Please get in touch! Fran Hooper – Jeff Hiott – How to implement – pull bus team together: lawyer, maintenance, operations, marketing, procurement Keep the order Don’t cherry pick – it will result in conflicting clauses Does it make sense to you? Is it something you can use? Available to all Another next step was the completion of a standard RFP for a light rail vehicle – a standard RFP not a standard vehicle. Used same organization/table of contents – used in developing and RFP for Detroit LRV project – if it gets approved. Also used T&Cs for PRIIA. Sound Transit staff helped on this effort.

Bus Procurement Washington State Transit Association

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Bus Procurement Washington State Transit Association

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