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Form Revised: September 1999
 
 TORONTO TRANSIT COMMISSION

 REPORT NO.

 

 

 

MEETING DATE: SEPTEMBER 21, 2005

 

 

SUBJECT:  PURCHASE OF ORION V BUS REBUILD KITS

 

 

 

 

RECOMMENDATION

 

It is recommended that the Commission authorize the purchase, for inventory, of 3 types of Orion V Bus Rebuild kits from Orion Bus Industries Limited in the amount of $1,202,076.42 including applicable taxes.

 

 

FUNDING

 

Sufficient funds for this expenditure have been included in Project 4.13 Bus Overhaul, under Mid-Life Bus Rebuild Program, as set out on pages 1021 to 1023 – category State of Good Repair/Safety of the TTC 2005-2009 Capital Program, as approved by the City Council on February 23, 2006.

 

 

BACKGROUND

 

At the conception of the bus rebuild program, staff decided to consolidate individual parts for the said program into kits and treat them as single source kits. The purpose of this was to ensure that all required parts were available at the same time so that the production schedule of the bus rebuilds would not be impacted. These kits would remain as single source kits as long as the individual components were priced reasonably with the OEM of the piece parts.

 

The subject Orion V Bus Rebuild kits are categorised by Conversion Kit, Pre-built Parts kit and Bus Kit.

 

The Conversion Kit is comprised of parts that will be used for converting the bus engines from CNG to diesel.

 

The Pre-built Parts Kit is comprised of sub kits for the wheelchair ramp, air conditioning and other pre-built parts.

 

The Bus Kit is comprised of sub kits for the Operator’s area/dash, heating system, steering/hydraulic, air rail, front and rear doors, kneeling system, front and rear axle.

 

It is estimated that over the next year that the entire fleet of 48 1997 Orion V CNG buses will be rebuilt using the said kits as part of the Commission’s on-going bus rebuild program.

 

DISCUSSION

 

Orion Bus Industries Limited was invited to submit a proposal on July 29, 2005, on the basis of single source as they are the original equipment manufacturer and only known supplier of these specified bus rebuild kits.

 

Orion Bus Industries Limited was requested to submit firm pricing on three types of bus rebuild kits, which are comprised of various pre-approved parts.

 

Orion Bus Industries Limited’s pricing for several parts manufactured by Emco-Wheaton in the conversion kit were considered too high priced as compared to our last buy price and were subsequently removed. It is estimated that removing these parts from the kit has the potential to save the Commission approximately $35,000 by purchasing these parts separately. Staff will solicit a separate tender for these parts which will also be supplied as a kit.

 

Further, their pricing for several parts manufactured by Lift-U in the pre-built kit were also considered too high priced as compared to the last buy price and were subsequently removed. These parts have the potential to save approximately $11,000 by purchasing these parts separately. Staff will solicit a separate tender for these parts which will also be supplied as a kit.

 

Staff also removed one further item which was in the bus kit as the pricing received was deemed as excessive. This part will be purchased direct from its manufacturer – Harper Detroit Diesel which has the potential to save the Commission $1,300.

 

Orion Bus Industries Limited initial offer received for the subject kits was $1,296,675.42, exclusive of the removed parts discussed above. Staff contacted Orion Bus Industries Limited to negotiate lower pricing and was successful in attaining a savings of $94,599 resulting in a revised total of $1,202,076.42.

 

As the make-up of the said kits are not the same as the previous purchase in 2004, direct pricing comparisons of the complete kits could not be made. Staff, however compared the pricing of parts within the three kits and note the following:

 

·                     Pricing for 6 of the 11 parts in the conversion kit is approximately 1% higher overall when compared to previous purchase prices in 2005.

 

·                     Pricing for 12 of the 43 parts in the pre-built kit is approximately 6% lower overall when compared to previous purchase prices in 2004.

 

·                     Pricing for 25 of the 60 parts in the bus kit is approximately the same overall when compared to previous purchase prices in 2004.

 

 

JUSTIFICATION

 

These rebuild kits are required in order to support the bus rebuild program for the 48 1997 Orion V CNG Bus fleet.

 

 

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September 6, 2005

9-118-55