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(3-17) Professional Services Agreement

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THIS PRINT COVERS CALENDAR ITEM NO.: 15 SAN FRANCISCO MUNICIPAL TRANSPORTATION AGENCY DIVISION: Transit BRIEF DESCRIPTION: Authorizing the Director of Transportation to execute Contract No. SFMTA-2021-06 with Nova Bus, a Division of Prevost Car (US) Inc., to procure three 40-foot low floor battery electric buses, along with associated spare parts, training, manuals, and special tools, in an amount not to exceed $4,772,266, and for a term not to exceed five years. SUMMARY: The SFMTA is launching a battery electric bus pilot program to evaluate the performance, reliability, maintainability, and operability of these buses in San Francisco’s unique operating environment, to develop relationships with a large pool of bus manufacturers, and to increase competition for future mass bus procurements. After a Request for Proposals (RFP) process in late 2018, the SFMTA entered into three contracts in December 2019, each for three low-floor, 40-foot battery electric buses, with New Flyer of America, Inc., BYD Coach & Bus LLC, and Proterra Inc. The successful operation of this pilot program is instrumental to the SFMTA’s Zero Emission Bus Rollout Plan which was adopted by the Board on March 16, 2021. Nova Bus did not participate in the SFMTA’s RFP for the battery electric bus pilot program as they did not have a long-range battery electric bus available at that time. Nova Bus represents a key opportunity to expand the SFMTA’s pilot to include a large bus manufacturer that does not typically bid on San Francisco procurements. The SFMTA wishes to acquire three 40-foot, low-floor, battery electric buses, and associated spare parts, training, manuals, and special tools, as amended by the provisions of this Agreement. ENCLOSURES: 1. SFMTA Board Resolution 2. Contract with Nova Bus 3. Zero Emission Bus Rollout Plan – https://www.sfmta.com/sites/default/files/reports-and- documents/2021/03/3-16-21_item_12_zero-emission_bus_rollout_plan.pdf APPROVALS: DATE DIRECTOR _____________________________________ ____________April 13, 2021 SECRETARY _____________________________________ ____________April 13, 2021 ASSIGNED SFMTAB CALENDAR DATE: April 20, 2021 PAGE 2. PURPOSE Authorizing the Director of Transportation to execute Contract No. SFMTA-2021-06 with Nova Bus, to procure three 40-foot low-floor battery electric buses, along with associated spare parts, training, manuals, and special tools, in an amount not to exceed $4,772,266, and for a term not to exceed five years. STRATEGIC PLAN GOALS AND TRANSIT FIRST POLICY PRINCIPLES The item will support the following goals and objectives of the SFMTA Strategic Plan: Goal 1: Create a safer transportation experience for everyone. Objective No. 1.2: Improve the safety of the transit system. Goal 2: Make transit and other sustainable modes of transportation the most attractive and preferred means of travel. Objective No. 2.1: Improve transit service. Goal 3: Improve the quality of life and environment in San Francisco and the region. Objective No. 3.4: Provide environmental stewardship to improve air quality, enhance resource efficiency, and address climate change. This item will support the following SFMTA Transit First Policy Principle: 2. Public transit, including taxis and vanpools, is an economically and environmentally sound alternative to transportation by individual automobiles. Within San Francisco, travel by public transit, by bicycle and on foot must be an attractive alternative to travel by private automobile. BACKGROUND The transportation sector is San Francisco’s largest source of greenhouse gas (GHG) emissions and criteria air pollutants. As of 2018, transportation related GHG emissions accounted for nearly half of citywide emissions, over 70% of which are attributable to private auto use. Public transportation accounts for less than 2% of citywide emissions, and less than .01% of citywide emissions are attributable to the SFMTA’s transit fleet. The SFMTA has been a global leader in supporting sustainable, reduced or zero emission revenue transit vehicles. It currently operates the largest fleet of zero emission electric trolley vehicles in North America, running on 100% greenhouse gas-free (GHG) electricity. The Innovative Clean Transit (ICT) regulation was adopted by the California Air Resources Board (CARB) in December of 2018 and became effective October 1, 2019. The ICT regulation requires all public transit agencies in California to gradually transition their bus fleets to zero-emission PAGE 3. technologies with the goal of full transition to zero-emission buses by 2040.1 The ICT regulation requires that each agency prepare a Zero Emission Bus (ZEB) Rollout Plan (Enclosure 3). The purpose of the Rollout Plan is to ensure each agency has a strategy to comply with the 2040 requirement of a fully zero emission fleet. Introducing battery electric buses into our fleet builds on our commitment to zero emission transit vehicles and is outlined in the SFMTA’s Zero Emission Bus Rollout Plan, which was adopted by the SFMTA Board of Directors in March 2021. As outlined in the ZEB Rollout Plan, electric buses are an emerging technology that are yet to be tested in San Francisco’s challenging operating environment, which includes steep hills and high passenger loads. The adoption of battery electric buses also requires significant investment in infrastructure, including retrofitting (and in some cases rebuilding) of our bus facilities. The SFMTA is launching a battery electric bus pilot program to evaluate the performance, reliability, maintainability, and operability of these buses in San Francisco’s unique operating environment, to develop relationships with a large pool of bus manufacturers, and to increase competition for future mass bus procurements. The SFMTA issued an RFP in November 2018 for a pilot program to test low-floor 40-foot battery electric buses. The RFP process concluded in 2019 with the SFMTA entering into three contracts, each for three battery electric buses, with the following manufacturers: New Flyer of America, Inc., BYD Coach & Bus LLC, and Proterra Inc. The SFMTA issued notices to proceed to the three manufacturers on December 12, 2019. In this pilot program, the SFMTA will compare the battery buses from each original equipment manufacturer (OEM) to one another, as well as to our existing electric hybrid buses and trolley buses. The battery technology used in electric vehicles is rapidly evolving, and the SFMTA would like to test the best available battery technology offered by the leading electric bus manufacturers in North America. The pilot will be used to evaluate the bus-building ability of each OEM to ensure they can provide safe and reliable buses for our riding public. The delivery of the battery electric buses for the pilot program has been delayed to Summer 2021 due to COVID-19, but the SFMTA has continued to make progress and has completed installation of a Battery Electric Bus charging unit at 1399 Marin and initiated construction of scalable charging infrastructure at Woods Division. Nova Bus is a leading manufacturer of transit vehicles in North America. Nova Bus has delivered more than 12,000 buses to transit operators in North America over the last 20 years. Nova Bus did not respond to the SFMTA’s RFP in 2018 as its proposed long-range battery electric bus was not available for sale at the time, but it is now available. Staff highly recommends that the SFMTA evaluate Nova Bus’s battery electric bus offering as part of the Agency’s pilot program for these key reasons: 1 The Regulation does not apply to trolley buses. PAGE 4. For its zero-emission propulsion system, Nova Bus has partnered with BAE Systems. The SFMTA currently operates over 300 hybrid electric buses powered by the BAE System. The familiarity with BAE System’s propulsion system provides significant advantages for the Agency’s maintenance crew. Nova Bus’s experience as a leading bus OEM with a reliable bus platform and local support network. A further opportunity to increase competition and qualify another manufacturer who has the capacity and capabilities to produce at a large scale. DESCRIPTION Under Section 21.16 of the San Francisco Administrative Code, the SFMTA may utilize the competitive procurement process of any other public agency to make purchases of commodities under the terms established in that agency's procurement process and as agreed upon by the City and the procuring agency, upon making a determination that the other agency's procurement process was competitive and the use of the other agency's procurement process would be in the City's best interests. The SFMTA would like to expedite the procurement of battery electric buses from Nova Bus in order to evaluate them concurrently with the other battery electric buses in the pilot program. Staff has determined that by purchasing battery electric buses through the Virginia Procurement, it is possible to achieve this objective. Often, cooperative purchasing arrangements result in cost and time savings to the purchasers. The Federal Transit Administration (FTA) encourages such arrangements provided that all FTA requirements are followed. In March 2019, Virginia issued an Invitation for Bids (IFB) for 12-year-type,2 low-floor battery- powered electric transit buses in different lengths (35’, 45’, 60’). The Virginia Procurement is available for interstate purchases from public entities and complies with the third-party procurement requirements of the FTA. Nova Bus submitted a proposal for 40-foot battery-powered electric buses in response to the Virginia Procurement on April 15, 2019. Virginia accepted the proposal and issued Notification of Contract Award to CBS on or about July 1, 2019. The Virginia contract states that no assignment or other contractual arrangement with Virginia is required on the part of either Nova or the agency acquiring the buses. Nova Bus builds battery electric buses for the United States in their plant in New York and is a fully 12B compliant vendor. The specifications of the buses in the Virginia Procurement are broad enough to allow the SFMTA to customize the vehicles to meet the needs of the SFMTA so long as the SFMTA's requirements do not require substantive changes to the design of the vehicles.
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