Announcing the

Mobile Source Air Pollution Reduction Review Committee’s

Alternative Fuel & Advanced Technology Transit Bus Program

Request for Proposals

P2004-13

November 7, 2003

1

FY03/04 MSRC AB 2766 Discretionary Fund

Alternative Fuel & Advanced Technology Transit Bus Program

INTRODUCTION

The Mobile Source Air Pollution Reduction Review Committee (MSRC) requests the submittal of proposals for the Alternative Fuel & Advanced Technology Transit Bus Program pursuant to the terms and conditions outlined below. This Request for Proposals (RFP) uses the words "Proposer”, “Bidder”, and "Contractor" interchangeably.

Proposers selected for either full or partial funding must enter into a contract with the South Coast Air Quality Management District (SCAQMD) in order to receive funds. The MSRC’s Transit Bus Program Contract is streamlined as compared to typical MSRC Discretionary Fund contracts, and contains only those terms and conditions deemed mandatory by the South Coast AQMD. As a result, the Contract is non-negotiable.

The following Sections are contained in this RFP:

Section ISolicitation Overview

Section IIProposal Requirements and Guidelines

Section IIIProposal Preparation and Submittal Instructions

Section IVProposal Evaluation and Approval Process

Section VBackground on the MSRC

Section VIAudit Procedures

Section VIISupplemental Reporting Requirements

Section VIIISample Contract

Attachment AProposal Templates

Attachment BMethodology for Calculating Cost-Effectiveness

Section I:Solicitation Overview

  1. INTRODUCTION

The Mobile Source Air Pollution Reduction Review Committee announces a clean air project funding opportunity for operators of transit and coach-style buses within the South Coast Air District. The Alternative Fuel & Advanced Technology Transit Bus Program offers to co-fund the purchase of new, certified low-emission buses to replace, or in lieu of, diesel-fueled buses.

In addition, the MSRC program offers co-funding for refueling infrastructure, facility modifications, and supplemental fleet mechanic training. These program elements, as well as their requirements and conditions, are discussed in subsequent Sections of this RFP.

  1. FUNDING AVAILABILITY

Total Available Funding - The MSRC has allocated $1.5 million ($1,500,000) of FY 2003-’04 Discretionary Funds for the Alternative Fuel & Advanced Technology Transit Bus Program.

Geographic Funding Minimum - In an effort to promote broad-based participation in the Alternative Fuel/Advanced Technology Transit Bus Program, and to foster adoption of clean fuel transit bus purchase policies, the MSRC has established a minimum funding level for each of the four county regions that comprise the South Coast Air District. This geographic minimum has been set at $200,000 per county. This minimum funding level is a goal. In the event the MSRC does not receive qualifying proposals that meet or exceed the minimum funding level from a given region, the balance of the $200,000 minimum funding will revert to the Alternative Fuel Transit Bus Program account for use by transit bus operators in the other regions.

In the event the MSRC does not receive meritorious proposals that meet the $1,500,000 funding target, the balance of available funds may be used to fund proposals submitted in other MSRC Work Program categories.

To maximize the effectiveness of MSRC and SCAQMD funds, and reduce the potential for exceeding the California Air Resources Board-recommended cost-effectiveness threshold, vehicles receiving funding under the MSRC Local Government Match Program, SCAQMD Carl Moyer Memorial Air Quality Standards Attainment Program, or any other MSRC Work Program are not eligible to receive additional funding under this solicitation.

  1. PROGRAM SCHEDULE

The MSRC Alternative Fuel & Advanced Technology Transit Bus Program will be conducted in accordance with the timeline illustrated below. As shown, project proposals will be accepted beginning on November 7, 2003. Proposals will be accepted for an approximately three-month period, closing on January 30, 2004. Proposals may be submitted at any time during this period.

DATEEVENT

November 7, 2003Release of RFP

December 3, 2003Bidders’ Conference, SCAQMD, Room CC6

1:00 p.m. – 2:00 p.m.

January 30, 2004All proposals Must be Received by 5:00 p.m.

Feb. 1 – March 4, 2004Proposal Evaluation Period

March 11, 2004Project Funding Recommendations to MSRC-TAC

March 25, 2004MSRC Meeting/Project Review & Approval

April 2, 2004SCAQMD Governing Board Approval of Work Program

April 2 – July 30, 2004Contract Preparation Period

  1. Bidders’ CONFERENCE & PROPOSER workshop

A Bidders’ Conference and Proposer Workshop for the Transit Bus Program will be held on December 3, 2003. Please note thatattendance at the Bidders’ Conference is voluntary. The purpose of the workshop is to provide new or updated solicitation information, provide clarification regarding this Request for Proposals, and answer general questions regarding proposal preparation. In addition, the Proposer Workshop will provide a forum to address individual proposal preparation issues and provide one-on-one guidance to potential bidders. The location and time for the applicant workshop is as follows:

Date:December 3, 2003

Time:1:00 p.m. – 2:00 p.m.

Location:SouthCoast AQMD Headquarters

Conference Room CC6

Address:21865 Copley Drive

Diamond Bar, California91765

In addition, MSRC staff members are available to answer questions and provide technical guidance as appropriate during the proposal preparation period.

  1. IF YOU NEED HELP

The staff members of the MSRC are available to answer questions during the preparation of Transit Bus proposals. In order to help expedite assistance please direct your inquiries to the applicable staff person, as follows:

  • For General, Administrative, and Contractual Assistance, please contact:

Cynthia Ravenstein

MSRC Contracts Administrator

Phone:(909) 396-3269

Fax:(909) 396-3682

E-mail:

  • For Technical Assistance, please contact:

Ray Gorski

MSRC Technical Advisor

Phone:(909) 396-2479

Fax:(909) 396-3682

E-mail:

Additional information on this RFP may be obtained by calling (909) 396-2777 or by visiting the MSRC website:

Section II: Proposal Requirements & Guidelines

  1. ELIGIBILITY REQUIREMENTS

The MSRC is seeking transit properties, municipal transit operators, motor coach service providers, etc. interested in the purchase of new alternative-fuel or advanced technology transit Buses to replace, or in lieu of, diesel-fueled buses. Respondents to this RFP are required to adhere to the following vehicle configuration and operations requirements.

Qualifying Vehicles -Proposers requesting MSRC funds for the purchase of transit buses must ensure the vehicles comply with the following eligibility requirements:

  • Vehicle must be a new, Original Equipment Manufacturer (OEM) transit bus equipped with either a) a factory installed alternative fuel engine or qualifying advanced technology drive system; or b) an alternative fuel engine or qualifying advanced technology drive system installed by a factory-authorized vendor;
  • The conversion, re-power, or retrofit of an existing bus is not eligible to receive funding.

Maximum Per Vehicle Funding Level – Proposers may request MSRC funds to offset the Incremental Cost of a qualifying alternative-fuel/advanced technology transit bus. For the purpose of this RFP, incremental cost is defined as the difference in cost between the alternative fuel/advanced technology bus and a similar, comparably equipped diesel-fueled bus. The maximum per vehicle MSRC funding shall not to exceed the vehicle’s actual incremental cost or an annualized cost-effectiveness value of $13,600 per ton of NOx emissions reduced. Please refer to Appendix B for a description of the Annualized Cost-Effectiveness Calculation Methodology.

Minimum Bus Size – The smallest bus eligible under this solicitation is thirty (30) feet in length.

Eligible Bus Configurations– The following vehicle configurations qualify under this Program:

  • Urban Transit Buses at least 30-feet in length;
  • Suburban Transit Buses greater than 30-feet in length;
  • Articulated Transit Buses;
  • Coach Style Buses greater than 30-feet in length.

Eligible Bus Fuels & Advanced Technology Drive Systems – The following fuels and drive systems qualify under this Program:

  • Compressed Natural Gas (CNG);
  • Liquefied Natural Gas (LNG);
  • Liquefied Petroleum Gas (LPG, i.e., propane);
  • Advanced Technology Hybrid-Electric Drive System using CNG, LNG, LPG, or Gasoline; Hybrid-Electric Drive Systems fueled with Diesel are not eligible under this solicitation;
  • Zero-Emission Transit Bus powered by Hydrogen Fuel Cell or Battery Electric.

In addition, the following fuel system eligibility requirements apply:

  • Bus engine must be dedicated alternative fuel; “flexible fuel” and “bi-fuel” engines, i.e., engines that are capable of operating on either alternative or conventional fuel, are not eligible under this solicitation, with the following exception;
  • Alternative fuel engines incorporating diesel pilot-ignition technologies are acceptable under the following conditions:
  • The engine is certified at the CARB Optional NOx + NMHC emission standard;
  • The engine management software is configured to limit the range and/or engine power available when operating solely on diesel fuel.
  • “Clean diesel” buses, including engines that operate on low sulfur diesel, water emulsified diesel, or other alternative diesel fuels are not eligible, as there are currently no buses operating on clean diesel fuels that are certified by the California Air Resources Board at the Optional low NOx + NMHC emission standard.

In-District Vehicle Operations Requirement – Buses must accrue at least 85% of their annual mileage within the geographical boundaries of the SCAQMD. If the proposed bus does not satisfy this requirement, the maximum incentive amount available from the MSRC will be discounted. The discounted value shall equal the percentage of annual bus miles accrued in the SCAQMD jurisdiction multiplied by the maximum award amount the bus would have been eligible for had 100% of operations accrued within the SCAQMD.

Emissions Certification Requirements - SCAQMD Rule 1192 requires that all transit agencies with more than 15 buses in their fleet purchase only alternative fuel or qualifying advanced technology buses. While the MSRC has historically adhered to the practice of not funding projects that are required by statute, regulation, or other government-imposed requirements, the MSRC has encouraged, through the availability of funding incentives, projects that go beyond mandated requirements.

As a result of SCAQMD Rule 1192 and the more stringent October 2002 diesel engine baseline emission standards, and in keeping with the MSRC’s practice of only funding projects that go above and beyond mandated requirements, only buses equipped with alterative fuel engines or advanced technology drive systems certified at or below the post October 2002 Optional Standard are eligible to receive incentive funds. This applies to all public and private bus operators regardless of the number of vehicles currently in their fleet.

Optional Engine Certification Standard
All Heavy-duty On-Road Vehicles / 1.8 g/bhp-hr NOx + NMHC
  1. Infrastructure Incentives

To help remove barriers associated with the implementation or expansion of alternative-fuel and advanced technology bus fleets, the MSRC will co-fund the acquisition of supporting infrastructure, including alternative fuel refueling stations, facility modifications necessary to accommodate alternative fuel vehicle maintenance, and fleet mechanic training. To be eligible for infrastructure incentives, the proposal submitted for MSRC funding consideration must propose a MINIMUM purchase of Eight (8) Transit Buses that satisfy the eligibility requirements outlined in the Section II.A.

For proposals that satisfy the eight qualifying vehicle purchase requirement, the MSRC will contribute, on a cost reimbursement basis:

Alternative-Fuel Refueling Infrastructure - Up to 50% of the infrastructure implementation or expansion capital costs, not to exceed $100,000 in total refueling infrastructure funding per project.

  • Refueling Infrastructure Funding Conditions & Restrictions:Use of MSRC funds for refueling infrastructure is conditioned as follows:

Refueling infrastructure must be CNG, LNG, L/CNG, or LPG. Gasoline storage and dispensing equipment does not qualify for MSRC infrastructure incentives;

Refueling infrastructure co-funded by the MSRC must be constructed within the jurisdiction of the SCAQMD and remain within the South Coast Air District for a minimum of five (5) years from the date fueling operations commence or station expansion is complete;

This refueling infrastructure incentive is available for either purchased or leased facilities. In the case of refueling facility lease, the lease term must be for a minimum period of five (5) years;

Upgrades to existing refueling infrastructure are not eligible for funding, unless the upgrades are necessary to increase the throughput capacity of an existing station to accommodate fleet expansion;

MSRC funds must be used for the purchase of capital equipment or applied to capital improvement costs. MSRC funds cannot be requested for station maintenance, operations costs (including utility costs), or fuel purchase costs;

MSRC funds cannot be applied towards the purchase of real property.

  • Compliance with Applicable Codes: Proposers must furnish documentation to show that the alternative-fuel refueling station conforms to all current industry standards, codes, and applicable regulations. In addition, the applicant must describe what quality control measures will be implemented to ensure that the fuel dispensed meets all applicable government and industry standards for fuel quality.

Facility Safety Modifications – Proposals that meet the above eligibility requirements may request MSRC funding to offset the cost of performing facility modifications necessary to accommodate storage and maintenance of alternative fuel vehicles. The MSRC will reimburse up to 100% of the actual costs associated with facility modifications other than refueling infrastructure, not to exceed a maximum of $10,000 per proposal. Facility modifications may include, but are not necessarily limited to, ventilation system improvements, ceiling heater element shielding, methane detection systems, and other alternative fuel-specific facility safety modifications.

Supplemental Mechanic Training – Proposers may also request MSRC funding to offset the cost of providing supplemental fleet mechanic training. The MSRC will contribute, on a cost reimbursement basis, up to 100% of the actual costs associated with supplemental mechanic training, not to exceed a maximum of $5,000 per proposal. The training must be specific to alternative fuel engines and fuel systems or advanced technology drive systems. Training may include, but is not limited to, engine/fuel system diagnostics, maintenance procedures, safety, etc. Eligible expenses for reimbursement under this category include:

  • Training materials, such as videos, training software (e.g., CD-ROM);
  • In-house instruction by qualified instructors or manufacturer representatives;
  • Attendance at training classes, continuing education, or applicable seminars that are conducted locally.

Please note that the following items are not eligible to receive MSRC funding under this subcategory:

  • Technical manuals
  • Diagnostic hardware
  • General business equipment
  • Employee salaries
  • Travel related costs
  1. ADDITIONAL PARTICIPATION REQUIREMENTS

Project Completion Deadlines – All projects should be 100% complete within 36 months of contract execution. This includes submission of the Final Report. If a project is expected to require an implementation period in excess of 36 months, the proposer must address implementation timeline requirements as an element of their proposal. Project extension requests made after contract execution are at the discretion of the MSRC and cannot be guaranteed.

Reporting Requirements – The reporting requirements established for the Transit Bus Program are intended to ensure adequate monitoring of the use of public funds, while avoiding the imposition of excessive reporting burdens on the funding recipients. Individual reporting requirements will be a function of the type of project proposed, bus will include, at a minimum, submission of quarterly reports during the contracted period of performance, and annual mileage reporting for a period of five (5) years beyond the contract end date.

Audit Requirements – In accordance with state law, all projects funded with MSRC Discretionary Funds are subject to audit. The provisions of the audit are discussed in Section VI of this document. It is highly recommended that proposers employ standard government accounting practices when administering their MSRC funded project.

Vehicle Purchase Must Not be Required by Law - The purchase of alternative fuel/advanced technology transit buses under this RFP must not be required by, or in fulfillment of, any local, state or federal law, rule, or regulation. However, entities that are parties to a Proposition 65 consent judgment are eligible to participate in this program.

Section III:Proposal Preparation & Submittal Instructions

A competitive proposal must be submitted in order to participate in the Alternative-Fuel/Advanced Technology Transit Bus Program. The following instructions are intended to assist the bidder in preparing a proposal for funding consideration.

  1. Proposal Preparation Instructions
  1. Cover Letter - Transmittal of the proposal must specify the subject of the proposal, the RFP number, and proposer’s name, address, and telephone/fax number. The letter shall specify contact person(s) for technical and contractual matters, and be signed by the person(s) authorized to contractually bind the bidding entity. For joint proposals (from more than one entity) the bidder must include a statement confirming authorization to act on behalf of other co-bidders. The bidder must include a letter of support or memorandum of understanding, including project contact name, telephone and fax number, from all proposing entities of a joint proposal.
  1. Proposal Attachments - In an effort to reduce the paperwork burden on proposers, a template based proposal format has been adopted by MSRC for Transit Bus proposals. The template forms are designed to be self-explanatory and should prove straightforward to complete. The Forms are included as Attachment A to this RFP. Should questions arise during proposal preparation, please contact the appropriate MSRC staff representative as shown in Section I.E.
  1. Conflict of Interest - Address possible conflicts of interest with other clients affected by actions performed by the firm on behalf of the MSRC. Although the bidder will not be automatically disqualified by reason of work performed for such firms, the MSRC reserves the right to consider the nature and extent of such work in evaluating the proposal. As part of your PROPOSAL, certify that you are a legal entity capable of entering into contracts within the State of California.
  1. Certificates of Insurance - Bidders are required to provide a statement that upon notification of award, a certificate(s) of insurance naming the SCAQMD as an additional insured will be provided within forty-five (45) days. Entities that are self-insured are required to provide a statement to that effect in their proposal.
  1. Proposal Submittal Instructions
  1. Signature - Proposal Cover Letters must be signed by an authorized representative of the bidder.
  1. Due Date - The proposer shall submit ten (10) complete copies of the proposal in a sealed envelope, plainly marked in the upper left-hand corner with the name and address of the proposer and the words “Transit Bus Program RFP P2004-13”. Please note that project proposals must be received no later than 5:00 p.m., January 30, 2004, to be considered for funding. All proposals should be directed to:

Leticia De La O, Purchasing Supervisor