EVALUATION OF OPTIONS

IFB NO. 12-03

The purpose of this procurement is to establish a bid for standard floor and low floor heavy duty buses designed for rural service. The base order buses shall be available in a CNG configuration but the bid shall also contain option pricing for a diesel configuration. The Morongo Basin Transit Authority (“MBTA” or “Agency”) a member of the California Association for Coordinated Transportation (“CalACT”) is the lead agency for the solicitation. Following contract award, CalACT members shall be eligible to purchase from the resulting contract. The initial period of performance shall be two years. The MBTA shall have the right to extend the period of performance for three (3) one-year options under the provisions of SP 3.

The minimum and maximum quantities for all vehicle configurations established for the base period of this contract are:

Minimum the base period5

Maximum the base period100

The initial period of performance shall be two years. The MBTA has the right to extend the period of performance for three (3) one-year options under the provisions of SP 3, Period of Performance and during each option period, the option quantities shall be the same.

On December 5, 2012, bids were received from Creative Bus Sales and New Flyer of America. Creative Bus Sales submitted the lowest pricing for all of the vehicles. Based on a price analysis, the pricing is considered to be “fair and reasonable.” In order to be able to potentially exercise any of the option periods, MBTA must also evaluate the options as part of the bid evaluation process. Section SP-6.3, Vehicle and Optional Features Pricing for Option Period, establishes the use for the PPI to provide for future option period price adjustments. Rather than “estimate” what the PPI might be in the future, MBTA is using the assumption that all options will be exercised at the time of contract award. Thus, the pricing to evaluate the options is the same pricing as submitted with the bid. As noted above, the maximum quantity for all vehicle configurations for each option period is 100. There are seven (7) vehicle configurations and it is not known how many of each vehicle type may be purchased. To insure that the evaluation of options is properly documented, MBTA is assuming that all of the option quantity could be used to purchase a single vehicle type. Thus, the maximum quantity is being used to evaluate the options. Using these assumptions, exercising the options would result in the following:

Bus Type / Creative Bus Sales Bid / Max. Option Quantity per Option Period / Max. Vehicle Cost per Option Period / # of Option Periods / Total for all Option Periods
SF - 29' / $338,535.00 / 100 / $33,853,500.00 / 3 / $101,560,500.00
SF - 33' / $345,892.00 / 100 / $34,589,200.00 / 3 / $103,767,600.00
SF - 35' / $348,989.00 / 100 / $34,898,900.00 / 3 / $104,696,700.00
LF - 30' / $361,073.00 / 100 / $36,107,300.00 / 3 / $108,321,900.00
LF - 32' / $365,872.00 / 100 / $36,587,200.00 / 3 / $109,761,600.00
LF - 35' / $394,595.00 / 100 / $39,459,500.00 / 3 / $118,378,500.00
LF - 40' / $402,729.00 / 100 / $40,272,900.00 / 3 / $120,818,700.00

Pricing was also required for a standard list of optional features. Some items were “adds” and some were “deducts.” In order to be able to potentially include the optional features in the exercise any of the option periods, MBTA must also evaluate the optional features as part of the bid evaluation process. Section SP-6.3, Vehicle and Optional Features Pricing for Option Period, establishes the use for the PPI to provide for future option period price adjustments. Rather than “estimate” what the PPI might be in the future, MBTA is using the assumption that all options will be exercised at the time of contract award. Thus, the pricing to evaluate the optional features is the same pricing as submitted with the bid. As noted above, the maximum quantity for all vehicle configurations for each option period is 100. There are seven (7) vehicle configurations and it is not known how many of each vehicle type may be purchased. It is also not know which of the optional features might be ordered. To insure that the evaluation of optional features is properly documented, MBTA is assuming that all of the optional features will be ordered for a single vehicle type. Again, the maximum quantity of vehicles is being used to evaluate the optional features. Using these assumptions, exercising the options would result in the following:

Bus Type / Creative Bus Sales Bid / Max. Option Quantity per Option Period / Max. Optional Features Cost per Option Period / # of Option Periods / Total for Optional Features for all Option Periods
SF - 29' / $11,579.85 / 100 / $1,157,985.00 / 3 / $3,473,955.00
SF - 33' / $11,579.85 / 100 / $1,157,985.00 / 3 / $3,473,955.00
SF - 35' / $11,579.85 / 100 / $1,157,985.00 / 3 / $3,473,955.00
LF - 30' / $13,838.35 / 100 / $1,383,835.00 / 3 / $4,151,505.00
LF - 32' / $13,838.35 / 100 / $1,383,835.00 / 3 / $4,151,505.00
LF - 35' / $53,885.85 / 100 / $5,388,585.00 / 3 / $16,165,755.00
LF - 40' / $53,885.85 / 100 / $5,388,585.00 / 3 / $16,165,755.00

The purpose of this analysis is simply to document that the pricing of vehicles and optional features for the three future option periods was evaluated as a part of the evaluation of the bid. In the event that an option period is considered in the future, MBTA will also conduct the required market survey and other analysis to validate that the pricing is “fair and reasonable” prior to exercising an option period.