Purchase Order Amendment - Preventive Maintenance And Repair Of Linear Induction Motors (LIM)
Meeting Date: April 14, 2004
Subject: Purchase Order Amendment - Preventive Maintenance And Repair Of Linear Induction Motors (LIM)
It is recommended that the Commission authorize a purchase order amendment to Sherwood Electromotion on Purchase Order #PC39026 in the amount of $190,000.00 to allow for the continued repair and scheduled preventive maintenance of SRT Linear Induction Motors, bringing the total upset limit from $625,000.00 to $815,000.00.
The purchase order amendment will result in an unbudgeted expenditure of $190,000 in 2004.
At its meeting of May 14, 2003, the Commission approved the award of a purchase order to Sherwood Electromotion for the repair and scheduled preventive maintenance of SRT Linear Induction Motors (LIMS). Sherwood Electromotion was the only qualified company to bid on the work. The contract was issued to cover the period from May 31, 2003 to May 30, 2005 in the amount of $625,000.00 and was based on a LIM failure rate of one per month. In the last eleven months, the actual failure rate has averaged two per month, and invoices have amounted to $538,573.47 as of March 1, 2004.
Advancing age, consistent use and exposure to winter conditions contribute to this increase in failure rate, which is expected to continue. This damage must be repaired on an "as required" basis. In addition, repair requirements have become more complex as the motors may be operating near their projected life expectancy, leading to more frequent and costly breakdowns. The TTC was one of the first properties to use LIM technology, and the only one to operate in a winter environment.
In February 2003, tenders were requested for preventive maintenance of up to 25 SRT LIM’s as well as damage repairs. The total upset limit was established based on historical failure rate data extracted from the vehicle maintenance history. The increase in failure rates has necessitated an increase in the upset limit of the contract to meet operational needs and maintain current SRT service levels.
Staff contacted the current vendor (Sherwood Electromotion) and attempted to negotiate a price reduction, however Sherwood was only able to offer a 2% discount. Based on this small discount and given the significant increase in the number of LIM motors that require repair (effectively doubling the value), staff intend to issue a new Request for Tender to attract additional competitive bidders. This amendment is anticipated to cover repair costs to July 31, 2004, allowing time to prepare a tender and award a new purchase order.
Though three bids were received in response to the previous tender, Sherwood Electromotion was the only approved company to submit a compliant tender. However, Ainsworth Inc. submitted a competitive bid, but were not technically qualified at the time. Maintenance Engineering staff are in the process of approving Ainsworth Inc., and are seeking other qualified vendors.
This amendment will enable repairs to damaged LIM’s and preventive maintenance of motors, which are necessary to maintain the current level of SRT service until July 31, 2004.
March 22, 2004