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Title:
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Purchase Order to Nova Bus Incorporated
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Indexes:
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AGREEMENT, PURCHASE ORDER
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Title
Purchase Order to Nova Bus Incorporated
Explanation
The City received a grant from the Federal Transit Administration (FTA) for the purchase of two new advanced design, heavy duty, low-floor transit vehicles. The vehicles are intended for the widest possible spectrum of passengers including children, adults, the elderly, and the disabled. RTS is proposing to purchase the vehicles from the Memphis Area Transit Authority (MATA). MATA purchasing requirements are within the federally adopted Standard Vehicle Procurement Guidelines. Nova Vehicle Incorporated was selected through their competitive bid process. RTS determined that the purchase of these options from MATA would be beneficial to the City in production time and cost. Under the MATA, 39 vehicles were bid with the option for two additional vehicles. RTS can have production begin immediately with the exercise of the MATA option, thereby permitting delivery early in 1999 as opposed to the current 18 to 24 month procurement and production cycle. Additionally, MATA received a bid price, which is honored under the option, of $243,998 with an escalating cost for inflation. This is under our estimated cost of $250,000.
Fiscal Note
Funds are budgeted in account 450-680-U651-5440-6050 in the amount of $500,000. Funding is provided 100% by FTA.
Recommendation
The City Commission: 1) authorize the City Manager or his designee to execute an agreement with MATA for the assignment of options from MATA for transit vehicles from Nova Bus Incorporated, subject to approval by the City Attorney as to form and legality; 2) authorize the award of a purchase order to Nova Bus Incorporated in an amount not to exceed $500,000; and 3) authorize the City Manager or his designee to execute a contract with Nova Bus Incorporated for the purchase of two advanced design, heavy-duty, low-floor transit vehicles.