BOARD MEETING DATE: May 6, 2005
AGENDA NO. 10

Execute Contract to Purchase CNG School Bus and Provide Supporting Services for Purpose of Implementing School Bus Demonstration/Loaner Program

SYNOPSIS:

On June 4, 2004, the Board approved an award to purchase a Type D, transit style CNG school bus for the purpose of implementing a school bus demonstration/loaner program. Subsequent to the award, the awardee indicated that they could not meet the contractual terms. Due to this unforeseen development, staff recommends ending negotiations with the current awardee. As part of the original RFP released on March 5, 2004, three proposals were received and evaluated by a panel according to the criteria established in the RFP. Based on this evaluation, this action is to award a contract to A-Z Bus Sales, Inc. for an amount not to exceed $162,402 from the Lower-Emission School Bus Replacement and Retrofit Program Fund to conduct the demonstration/loaner program. Added to the original bid by A-Z Bus Sales, Inc. ($138,402) is $24,000 for the inclusion into the program of the AQMD’s Type A CNG school bus. The addition of the AQMD’s school bus will provide additional opportunities for school bus operators to experience the operation of natural gas powered vehicles

COMMITTEE:

Technology, March 25, 2005, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with A-Z Bus Sales, Inc. to purchase a Type D CNG school bus and provide supporting services for the purpose of implementing a school bus demonstration/loaner program that includes the Type D school bus and the AQMD’s Type A school bus in an amount not to exceed $162,402 from the Lower-Emission School Bus Replacement and Retrofit Program Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In an effort to reduce children’s exposure to air toxics and to minimize emissions from public and private diesel-powered school buses, the AQMD has provided substantial funding assistance to replace older high-emitting diesel school buses. Many public school districts have taken advantage of available AQMD incentive programs for the purchase of less polluting alternative fueled school buses. However, several school districts, as well as private school bus service providers, have no experience with alternative fuels such as CNG. By loaning a CNG school bus to entities with no previous experience using an alternative fuel, first-hand knowledge will be gained regarding the positive benefits of alternative-fueled school buses.

On March 5, 2004, the Board authorized an RFP to purchase a Type D, transit style CNG school bus for the purpose of establishing a demonstration/loaner program. The RFP closed on April 6, 2004 and a three-member review panel was convened to evaluate the proposals. On June 4, 2004, the Board awarded a contract to implement a CNG school bus demonstration/loaner program to the bidder with the highest overall score. Since then, the awardee has determined that they cannot comply with the terms of the contract. Therefore, staff recommends awarding a contract to the second highest qualified bidder.

Proposal

Staff proposes to make available to school bus fleet operators a Type D, transit style CNG school bus along with associated services necessary to implement a CNG school bus demonstration/loaner program from one school bus vendor. The demonstration program will introduce natural gas school buses to fleet operators that have not previously operated this bus type. Also, a Type A, special education CNG school bus currently owned by the AQMD will be included in the program. Such a demonstration program will provide school districts and school bus transportation providers with a "hands-on" exposure to fully equipped CNG school buses. This program will enable a school bus fleet operator to use one of the two CNG school buses on an assigned route during a normal school day in order to experience the operational and refueling characteristics of a natural gas vehicle prior to any purchase. Specifically, fleet operators will gain experience regarding the performance of CNG school buses in terms of drivability, range, fuel consumption and overall comfort as compared to corresponding diesel school buses. Each participant in the demonstration program will test drive the CNG school bus for a 30- to 45-day period. Staff estimates that seven to 13 school districts or school bus transportation providers would have use of the CNG school buses during a calendar year.

The selected school bus vendor will also provide supporting services as part of the school bus demonstration program. Some of these services will include promoting the demonstration program, inspecting and maintaining the buses, performing warranty repairs, detailing the buses prior to delivery to each user, and training for each user concerning the operation of the school buses. Each school district that participates in the demonstration/loaner program will provide insurance and pay for the fuel to operate the bus.

Three proposals were submitted in response to the RFP by school bus vendors that sell school buses within AQMD’s jurisdiction. The three vendors submitting proposals were: (1) A-Z Bus Sales, Inc.; (2) Bus West; and (3) California Bus Sales. The proposals were reviewed and scored by a three member panel. On June 4, 2004, the Board approved an award to Bus West based on the selection criteria outlined in the RFP. Subsequent to contractual negotiations, Bus West indicated that they cannot meet the terms of the contract. Therefore, staff now proposes that A-Z Bus Sales, Inc. be awarded a contract to conduct the demonstration program. The table below provides the scoring summary in rank order for the three proposals.

Table 1. Proposal Scoring Results (Points)
 

Staff believes that in addition to the RFP tasks, adding the AQMD’s CNG school bus, which is a Type A school bus used primarily for special education transportation, will provide added opportunities for school bus operators to experience the operations of natural gas school buses. As such, staff requested an estimate of the cost to provide supporting services for the AQMD school bus in addition to the Type D school bus. Both the original awardee and the current proposed awardee indicated that the additional cost would be about $24,000. Therefore, staff recommends that the Board approve a contract award with A-Z Bus Sales at a cost not to exceed $162,402, the original bid cost plus $24,000 to include the AQMD school bus. In addition, A-Z Bus Sales will purchase the Type D natural gas school bus and provide supporting services for the demonstration/loaner program. Sufficient funds are available from the Lower-Emission School Bus Replacement and Retrofit Program Fund.

Benefits to AQMD

This project will help demonstrate and introduce natural-gas engine technology to school districts. Staff believes that this demonstration program will positively address concerns regarding alternative-fuel school buses as school districts and school bus transportation providers gain first-hand experience with this advanced technology.

Resource Impacts

The total amount of AQMD funding for this program shall not exceed $162,402. Sufficient funds are available from the Lower-Emission School Bus Replacement and Retrofit Program. This fund has been established as a separate fund by the AQMD, to be used for the replacement and retrofit of school buses in the Basin. After the loaner/demonstration period is completed, the Type D CNG school bus will be donated to a school district via the award process for future Lower-Emission School Bus Replacement and Retrofit Programs.

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