Board Agenda Item
To purchase 108 replacement school buses as outlined in the district capital replacement plan. The 108 replacement school buses consists of 20 buses with a 65 passenger capacity, Type C conventional bus with lift and 88 buses with a 77 passenger capacity Type C conventional bus without lift. There are three manufacturers (IC, Bluebird and Thomas) of buses available under the DOE contract. The buses manufactured by Freightliner/Thomas are estimated to have the lowest life cycle cost based on fuel consumption over a 10 year period (a school bus has a life cycle of 10 years). Based on this evaluation, Freightliner/Thomas Buses provide the best value to the District.Matthews Buses Inc. is the authorized distributor for the Central Florida region and is located in Orange County.
School Bus Purchase Q & A: Transportation
Question: Why do we need to replace buses when we have sent so many buses to surplus this past year?
Answer:The buses that were sent to surplus were either units that were beyond 10 years old or the units that were beyond repairing (or the cost to repair them would have been more that the current value of the bus purchase). Operational costs escalate as the buses age and reliability of the older equipment affects the delivery of service to students.
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Question: Why replace buses every 10 years and not a longer time period, such as 12 or 15 years.
Answer: We have established a plan that maximizes the residual value along with controlling operating costs for years 6 thru 10 of the bus ownership. Most of the components on the buses have a 5 year warranty which means the maintenance costs that are incurred for the first 5 years are primarily for routine maintenance such as oil changes, fuel system and cooling system service. Based on our historical analysis the cost for maintaining buses begins to escalate after the 5th year. The intent is to ensure that the residual value of the bus is as high as possible so as they are surplused, we are maximizing the dollars back to the District.
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Question: What is the status of current diesel technology and the benefits to the emission?
Answer: Currently there are two technologies in the industry that are being used to combat emission standards that are federally mandated to manufacturers. The first is an EGR system that feeds a certain amount of exhaust back into the induction system after treated through a cooler. The idea is that a portion of those emissions are re-ignited in the engine thus creating a reduction of emissions that exit the exhaust. The second, and the one we are proposing to incorporate, uses a selective catalyst reduction technology (SCR) which uses a liquid urea solution (referred to as DEF) to reduce the emissions. The current technology that the District has, EGR, has produced numerous problems due to the high heat the process creates. The EGR coolers have been extremely vulnerable in this technology and have escalated our operational costs.
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Question: How do Milesper Gallon (MPG) affect the purchase decision?
Answer: On a daily basis we consume 14.3 thousand gallons of diesel fuel (180 school days). Our approach was to look at the life cycle cost of this purchase and in fuel; the proposed units will save the District over $609,000 (based on fuel priced at $3.50/gallon)
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Question: Thomas was awarded the contract last year, how was their performance as a vendor to OCPS?
Answer:The state contract identifies responsibilities of vendors as to the service they will provide to the District who purchases buses from them. Last year’s vendor, who is located here in Orange County, exceeded the minimums outlined in the bid. For example, the bid requires at least 2 different trainings for District personnel at no charge to the District. This February we will have completed our 18th with the company at no additional charge to the District. There was also a recall on an engine pulley that was released this past September. The Vendor anticipated the release and changed the pulley prior to delivery of our units in order that any negative media would be eliminated.
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Question: How does the District select what manufacturer of bus to purchase?
Answer:Currently, there are 3 manufacturers on the State Department of Education menu bid who have met the State’s school bus specifications. Florida State Board rule 6A-3.006 (1) states in part, “The Department (DOE) may award bids as either low bid awards or as multiple supplier awards.” For school bus bids, the Department of Education awards multiple supplier, which gives each District the option of choosing the bus that they wish to purchase. Last school year, 2011-2012, OCPS began a process that identified the total life cycle cost of the equipment. Beyond the capital expenditure of the equipment, there are costs associated with the maintenance and fueling of the buses over their 10 year life expectancy. This school year, 2012-2013, werequested the manufacturers representatives to comply with a request for information titled School Bus Purchase, (RFI1212310). This RFI consisted of certain criteria, such as, location for warranty work, service requirement, training, references, fuel economy, tooling costs, parts, and emissions. Above mentioned manufacturers representatives submitted their RFI. Purchasing and Transportation reviewed the submittals for compliance. District staff accumulated information based on the information received from the current manufacturers’ customers.
The submittals and data received from the current customers assisted us in the determination of those associated costs above the cost of the bus. A large portion of that is fuel costs. Each vendor was required to provide us a list of their customers (other Florida School Districts) and we solicited them for their average fuel efficiency. The miles per gallon used in the computation came from their records of use. This year, we had some extended warranty for Air Conditioning as well as towing and training that was a value added benefit to the District. Each vendor was given credit for what was provided to us in the RFI. The RFI was not based on scoring; the intent of the RFI wasonly forinformational purpose to help us arrive at the best value that reduces our overall cost of doing business. The bus prices and option prices on the worksheet are taken directly from the State Contract, and the information provided in the individual manufacturers representatives RFI.