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Agenda Item # 19

BOARD MEMORANDUM

RECOMMENDATION:

Authorize the General Manager to execute a contract with Sunnyvale Towing and Transportation, the lowest responsive and responsible bidder, for bus towing and recovery services.  The term of the contract is for one year with four one-year options at an estimated cost of $82,500 for the first year.  Options years two, three, four and five are estimated at $85,000, $87,500, $90,000 and $93,000 respectively. 

BACKGROUND: 

VTA currently operates and maintains a fleet of 524 buses of which 453 are in the active fleet and 71 buses are in the inactive fleet.  VTA requires towing services for buses (including 40 60-foot articulated buses) that become disabled on the roadways and cannot be driven back to a VTA maintenance facility.  Non-operational buses that breakdown may need to be towed to various VTA repair facilities.  On occasion, vehicles stall or are involved in an accident on VTAs light rail tracks.  If this occurs, vehicles may need to be towed immediately to restore light rail service.  VTAs current contract for towing and recovery services is with Sunnyvale Towing and Transportation and expires on August 31, 2003.

DISCUSSION: 

On May 14, 2003 Invitation for Bid (IFB) was advertised to solicit qualified firms to provide towing and recovery services.  Two bids were received on June 12, 2003 with the following results:

• Sunnyvale Towing and Transportation                       $  82,500
• Finish Line Towing, Inc.                                             $165,000

          Engineers Estimate (One year basis of award)          $123,750

The Engineers Estimate and bids were quoted based on VTAs towing and recovery service requirements (including the ability to tow an articulated bus) using an estimated number of labor hours required for towing services (825 hours).  The bid received from Finish Line Towing, Inc. bid is twice the amount of Sunnyvale Towing and Transportation.  Staff believes Sunnyvale Towing and Transportation is able to charge a substantially lower hourly rate than Finish Line Towing, Inc. because they have provided towing services to VTA for the past five years and have the experience, expertise and equipment to perform this service.  The estimated first year cost of this fixed hourly rate service type contract is $82,500 which includes an estimated 825 hours of labor at a rate of $100 per hour.  This hourly rate also includes the cost of equipment. 

In addition, VTA is currently procuring three low floor 40-foot fuel cell buses from Gillig Corporation with the first bus being delivered in May 2004.  These buses will operate using compressed hydrogen gas as the fuel and a fuel cell engine to power the bus.  Because of this configuration, the towing of these vehicles will be done in accordance with vendor specifications.  Should a fuel cell bus become disabled, Sunnyvale Towing and Transportation will provide towing services for these vehicles.

Towing services must be available seven days a week, 24 hours a day, including holidays.  Response time of 45 minutes or less is required for demand response tows and emergency tows require a response time of 20 minutes or less.  Convenience tows, which are tows arranged from one maintenance facility to another, are to be completed within 48 hours of VTAs request.

Sunnyvale Towing and Transportation is the lowest responsive and responsible bidder and has provided satisfactory towing and recovery services to VTA in the past.  Therefore, staff recommends award of contract to Sunnyvale Towing and Transportation. 

ALTERNATIVES:

There are no practical alternatives to the recommended action.

FISCAL IMPACT: 

Funds for towing and recovery services are included in the FY 2004 Adopted Budget.  Funds for future years will be proposed in the annual budget process.

SBE PARTICIPATION:

Based on the limited scope of work and no subcontracting opportunities, no specific goal was established for this contract.  The contractor is encouraged to make reasonable efforts to utilize SBEs in its procurement of ancillary services and products associated with the performance of this contract. 

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