Title
Sole Source Agreement for Warranty and Non-Warranty Cummins Engine Services
Overview
The Orange County Transportation Authority operates a fleet of fixed-route compressed natural gas buses equipped with the Cummins 8.9 Liter ISL-G engine. With the purchase of new buses and the repowering of buses with new engines, approximately 94 percent of the engines in the fleet will be under warranty over the next five years. As a result, an agreement is needed for expenses associated with warranty and non-warranty repairs that are not to be covered such as travel time, mileage, parts, and labor. Since there is only one manufacturer with engines certified by the State of California for use in transit buses, a sole source agreement is required.
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Recommendation(s)
Authorize the Chief Executive Officer to negotiate and execute Purchase Order No. C-6-1605 between the Orange County Transportation Authority and Cummins Pacific, LLC, in the amount of $750,000, for warranty and non-warranty engine services, effective May 1, 2017 through April 30, 2022.