South Coast Air Quality Management District

Execute Contract for Development and Demonstration of Two CNG-Powered Midsize School Buses

SYNOPSIS:

In May 2001, the AQMD issued an RFP to Develop and Demonstrate Alternative Fuel and/or Hybrid-Electric Midsize (30-foot) School Buses. This action is to request approval to award the contract for the development of two alternative fuel school buses. Total amount of funding requested will not exceed $600,000.

COMMITTEE:

Technology, October 26, 2001. Reviewed by consent. Since less than a quorum was present during this meeting; the Chair and Vice Chair communicated their concurrence and recommendation that this item be forwarded for Board consideration with no approval or disapproval recommendation from the Committee.

RECOMMENDED ACTION:

1. Authorize the Chairman to execute a contract with Ford Motor Company for the development and demonstration of two midsize CNG school buses in an amount not to exceed $600,000 from the Clean Fuels Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Over 60% of the Basin’s NOx emissions inventory can be attributed to mobile sources; heavy-duty trucks and buses account for approximately 20% of the NOx inventory. Low emission, alternative fuel heavy-duty engines have one-half or less the NOx emissions of their diesel counterparts and a fraction of the particulate emissions, without particulate traps.

Over the past year, the AQMD adopted a series of fleet vehicle rules that require the purchase of lower-emitting vehicles upon replacement or addition to the fleet. School bus fleets are a part of those rules. The AQMD has supported a number of development and demonstration projects for lower-emitting heavy-duty vehicles, and specifically school buses. Additionally, the AQMD is actively involved with the State's Lower Emission School Bus Program for replacement and retrofit of existing diesel buses. Major bus Original Equipment Manufacturers (OEMs) commercially offer 40-foot school buses with alternative fuel engines, specifically CNG, but none of these OEMs currently offer any alternative fuel midsize (approximately 30-foot) school buses. School districts have a growing need for the midsize buses to meet mandated Special Education Program transportation requirements.

At the May 11, 2001 meeting, the Governing Board approved RFP #P2001-40 for manufacture and service support of up to four midsize (approximately 30 feet in length) school buses, two equipped with an alternative fuel and/or two equipped with a HE powered with a microturbine drivetrain. The RFP solicited proposals from a team of OEMs in microturbine, electric and HE chassis, alternative fuels, bus, and technology integration experts. Additionally, the RFP called for bidders with knowledge and experience with school district and California Highway Patrol specifications and requirements as they pertain to school buses, including all safety requirements. Lastly, the RFP called for teams to be able to provide on-site service support for the completed school buses after deployment.

Outreach

In accordance with the AQMD’s consulting and contracting policies, a public notice advertising the RFP and inviting applications was published in the following publications on two separate days:
 

1.	Angeles Mesa Wave, The	11.	Inland Valley Daily Bulletin	21.	Palm Springs Desert Sun
2.	Antelope Valley Press	12.	Korea Central Daily	22.	Philippine News
3.	Black Voice News	13.	La Opinion	23.	Precinct Reporter
4.	Central News Wave	14	La Prensa	24.	Rafu Shimpo
5.	Chinese Daily News	15.	La Voz	25.	Press Enterprise
6.	Eastern Group Publications	16.	Los Angeles Daily News	26.	San Bernardino Sun
7.	El Chicano	17.	Los Angeles Sentinel	27.	Santa Clarita Signal
8	El Informador	18.	Los Angeles Times	28.	The Wave
9.	Excelsior, The	19.	M/W/DVBE Source	29.	State of California Contracts
10.	Inland Empire Hispanic News	20.	Orange County Register		Register

Additionally, potential vendors were notified utilizing the Los Angeles County MTA and Cal Trans Directories of Certified Minority, Women, Disadvantaged and Disabled Veterans Business Enterprises; the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; AQMD’s own electronic listing of certified minority vendors; AQMD Purchasing’s mailing list; and various consultants from Technology Advancement's database. Notice of the RFP was mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations; and placed on the Internet at AQMD’s Web site [http://www.aqmd.gov, "Business and Job Opportunities" icon] and AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Selection Process

Five proposals were received in response to the RFP, of which one was deemed not responsive to the RFP requirements of a CNG bus or a HE bus powered with a microturbine, but included the use of a Continuously Variable Transmission with a gasoline internal combustion engine and electric motors. The AQMD staff will evaluate this proposal, submitted by U.C. Davis, independently of this project.

Of the four remaining proposals, two applied for the development of alternative fuel buses using CNG as the fuel, and two applied for the development of the HE buses using a microturbine. Pursuant to AQMD’s Procurement Policy and Procedure, the proposal evaluation criteria called for 70 points for technical and 30 points for cost effectiveness. Within the 30 points for cost effectiveness, 15 points were for the lowest cost, with additional points assigned based on the level of cost share. Under this system, 5 points were assigned for a 20% cost share, 10 points for a 50% cost-share, and a maximum of 15 points for 100% cost share. An evaluation panel with strong expertise in alternative fuel and HE buses was assembled. Comprising the panelists were one TAO senior staff on alternative fuel engine development, ARB's Branch Chief for On-Road Control Regulations, a technical staff member from the LAUSD, a lead staff for HE bus development from the City of Los Angeles - Department of Transportation, the electric and hybrid bus manager from LADWP, and a California Energy Commission technical expert in school buses. The panel was composed of six males; including five Caucasians and one Hispanic.

The results of the panel evaluation for the CNG midsize buses are listed in Attachment A.

As for the development and demonstration of the HE buses with a microturbine drivetrain, staff is awaiting additional information from the Bus OEM prior to making a recommendation. If this information is not made available, then staff will not proceed with the current proposals and will consider re-issuing the RFP for the HE midsize school buses.

Proposal

Ford Motor Company and its subcontractors ARBOC, Ltd., and Pickens Fuel Corporation, have extensive experience in alternative fuel engine development, full line bus manufacturing, alternate fuel suppliers, and technology experts. Ford Motor Company is one of the leading manufacturers of alternative fuel vehicles and has already commercialized several models of CNG light-duty vehicles and will commercialize a CNG heavy-duty shuttle, hotel, and school bus. Ford Motor Company is fully committed to commercializing technology developed under this proposed project. One of its subcontractors qualifies as a small business. Staff recommends awarding a contract to the Ford Motor Company in an amount not to exceed $600,000. Total cost of the proposed project is $1,255,000. The project duration is 18 months.

Benefits to AQMD

The AQMP relies on the expedited implementation of advanced technologies and clean-burning fuels in Southern California to achieve air quality standards. This project will further develop technology for heavy-duty alternative fuel vehicles, and is expected to reduce NOx and PM emissions well beyond those required under existing regulations from on-road heavy-duty engines. The project will also assist the school districts by providing an opportunity to purchase cleaner-burning, midsize school buses.

Based on an extensive survey of current school buses in the Basin, there are over 2,500 midsize buses in use by school districts or private contractors. Success of this project could result in the replacement of these buses with less-polluting alternatives.

Resource Impacts

The 2001 Update of the Technology Advancement Plan for the Clean Fuels Program includes Proposed Project 2001CFM2-2 - Development and Demonstration of Low Emission, Alternative Fuel Engine Technologies for On-Road Applications, which calls for significant emission reductions through the use of HE technology with performance comparable to conventional, diesel-fueled vehicles. The total cost to the District for the development of two midsize CNG school buses is $600,000.

Sufficient funds are available from the Clean Fuels Fund, established as a special revenue fund resulting from the state-mandated Clean Fuels Program. The Clean Fuels Program, under Health and Safety Code Sections 40448.5 and 40512 and Vehicle Code Section 9250.11, establishes mechanisms to collect revenues from mobile sources and stationary sources to support projects to increase the utilization of clean fuels, including the development of the necessary advanced enabling technologies. Funds collected from motor vehicles are restricted, by statute, to be used for projects and program activities related to mobile sources that support the objectives of the Clean Fuels Program.

Attachment

Evaluation Scores

Attachment A
Evaluation of Proposals Received in Response to RFP #2001-40

Two proposals were received for the development and demonstration of midsize CNG school buses and are presented here.
 

The two alternative fuel bus proposals received average technical scores that were very close. The following table summarizes the individual technical scoring by each of the review panelists.
 

* - LADWP did not review alternative fuel proposals, only HE bus proposals

Additionally, the Ford Motor Company received 15 points for their cost-share of greater than 100%, and 14.3 points for the low-cost on a prorated basis. Additionally, Ford Motor Company received 7 additional points for use of a sub-contractor that qualifies as a small business.

Adrianus Resources, Inc., received the maximum 15 points for the lowest cost, but did not receive any additional points for lack of any cost sharing for the proposed project. Adrianus Resources, Inc. also received 15 additional points for being a small and local business, since 100% of the work in the proposed project will be conducted within the District.

/ / /