BOARD OF DIRECTORS REPORT
To:
Phillip A. Washington, General Manager
Date: November 12, 2014
From:
Austin Jenkins, Assistant General Manager
GM
Date:
November 6, 2014
Board Meeting Date: November 25, 2014
Subject:
Purchase twelve (12) Light Rail Vehicles
RECOMMENDED ACTION
It is recommended by the Operations and Customer Service Committee that the RTD Board of Directors
authorize the General Manager, or his designee, to enter into a negotiations with Siemens to purchase
twelve (12) Light Rail Vehicles at a total price not to exceed $48 million, and to enter into the resulting
contract with Siemens.
BACKGROUND
In support of the Board adopted strategic goal of Innovative and Fiscally Sustainable Service Delivery,
including Asset Management/State of Good Repair, Rail Operations needs to purchase twelve (12)
expansion Light Rail Vehicles in order to continue to provide the proper level of service. In addition,
adding these cars will provide a conservative number of spare cars needed to provide maintenance on
the existing fleet as it ages.
DISCUSSION
We need to begin negotiations with Siemens. It generally takes two (2) years from the time a notice to
proceed is issued before we see the first light rail car delivered. In addition, Siemens has historically
required thirty percent (30%) payment when the notice to proceed is issued, and an additional thirty
percent (30%) within the next ninety (90) days. Rail Operations staff has recently been in contact with
Siemens, and they have verbally agreed to delay the second thirty percent (30%) payment until 2016.
This will be a sole-source contract, and fits within RTD’s capital budget plan.
FINANCIAL IMPACT
This acquisition is part of the Strategic Budget Plan (SBP) that was recently approved by RTD Board of
Directors. Funds are included in the 2015, 2016 and 2017 Strategic Budget Plan and the requested
2015 RTD Budget. In recent correspondence with Siemens, RTD has obtained a $3.9 million price for
each vehicle; RTD will also need to assure that purchase-related expenses, including a “Buy-America”
audit and on-site factory inspection during the car construction are funded.
DBE PARTICIPATION
There is no DBE requirement for transit vehicle purchases. Each vehicle manufacturer is required by the
Federal Transit Administration (FTA) to submit a DBE plan for FTA approval. As part of the required
proposal submittal documents, Siemens has submitted a certificate attesting to FTA’s approval of its
DBE plan.
ALTERNATIVES
1. Authorize the General Manager, or his designee, to begin negotiations with Siemens, and if these
negotiations are successful, authorize the General Manager, or his designee, to execute a
contract to purchase twelve (12) Light Rail vehicles in an amount not to exceed amount
programmed in the SBP. This is the recommended alternative.
2. Do not allow us to begin negotiations with Siemens for the purchase of twelve (12) Light Rail
vehicles. This will delay the procurement process and is not in the best interest of RTD.
Prepared by:
John Davis, Senior Budget Analyst
Phil Eberl, Manager
Approved by: