HomeMy WebLinkAbout11. 12-180
APRIL 24, 2012 12-180 RESOLUTION
(CARRIED___7-0____ LOST _______ LAID OVER _______ WITHDRAWN _______)
PURPOSE: AWARD BID FOR INTERCITY BUS SERVICES FOR TRANSIT
DEPARTMENT TO KOBUSSEN BUSES, LTD (estimated $672,000.00
thru December 31, 2016)
INITIATED BY: PURCHASING DIVISION
WHEREAS, the City of Oshkosh has heretofore advertised for bids for intercity bus
services between the cities of Oshkosh and Neenah; and
WHEREAS, upon the opening and tabulation of bids, it appears that the following is
the most advantageous bid:
KOBUSSEN BUSES, LTD
W914 County Road CE
Kaukauna, WI 54130
Total Bid: $17.47 per Revenue Hour
$ .93 per Revenue Mile
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the said bid is hereby accepted and the proper City officials are hereby
authorized and directed to enter into an appropriate agreement for the purpose of same, all
according to plans, specifications, and bid on file. Money for this purpose is hereby
appropriated from:
Acct. No. 511-1728-6449-00000 Transit Utility -- Purchased Transportation
CITY HALL
215 Church Avenue
PO.Box 1130
Oshkosh,903 1130 City of Oshkosh
Of HKQIH
TO: Honorable Mayor and Members of the Common Council
FROM: Jon Urben, General Services Bureau Manager
DATE: April 16, 2012
RE: Intercity Bus Services- Transit Department
BACKGROUND
In partnership with Winnebago County, the Oshkosh Transit System (OTS) contracts
with a private vendor to provide daily (Monday-Saturday) intercity bus service between
the cities of Oshkosh and Neenah. The current 5-year contract with Kobussen Buses LTD
expires on May 5, 2012. In March of this year, Transportation and Purchasing staff
prepared a request for proposal (RFP) to solicit contractors to provide intercity city bus
services. The RFP included requirements for drivers, vehicles, communication, employee
standards and other areas. The RFP listed the length of the contract to be for 4 years and
8 months, which would help align the current contract cycle with the budget year. The
RFP cost proposal form requested rates per revenue hour and/or revenue mile with any
escalator clauses applicable for years 2-5 of the contract term. Proposal requests were
sent to vendors who were known bus service providers. In addition, the RFP document
was advertised in the local paper and posted online on the State of Wisconsin's
Vendornet. Proposals were received on April 4, 2012. The bid tabulation is attached.
ANALYSIS
Transportation and Purchasing staff reviewed the single proposal received from
Kobussen Buses LTD and concluded this vendor could effectively provide the service
based on their written responses. Kobussen's cost proposal included rates per revenue
mile and revenue hour. Based on OTS's analysis, the total cost proposed for the first 12
months of the service would be approximately $8,000 less than the CY 2011 cost. Years
2-5 of the cost proposal included an annual consumer price index (CPI) adjustment and a
monthly fuel adjustment. Each adjustment includes an escalator and de-escalator clause
that aligns with data provided by the U.S. Bureau of Labor Statistics. OTS reviewed a
few scenarios including fuel and CPI adjustments. Projected costs are within expected
estimates for this service.
FISCAL IMPACT
The fiscal impact of this contract for May-December 2012 service would be
approximately $88,000. Assuming the current route is maintained and using a 2% CPI
and $5.00/gallon diesel price, years 2-5 of the contract would cost approximately
$146,000 per year. The Transit Utility has $1,455,000 allocated in the purchased
transportation account (511-1728-6449-00000) of their 2012 operating budget. Annually
this account funds this intercity bus service with the balance of these funds budgeted for
paratransit programs.
RECOMMENDATION
Purchasing recommends the Common Council award this contract to Kobussen Buses
LTD with estimated cost/year as follows: 2012: $88,000, 2013-2016: $146,000.
Respectfully ubmitted, Approved:
/(_____
, K,_-___/.14 /(,,,e-e-- -
Jon Urben, General Services Bureau Manager Mark Rohloff, City Manager
BID OPENING
INTERCITY BUS SERVICES
BIDS OPENED APRIL 4, 2012
BID BID
VENDOR INFORMATION Cost per Revenue Hour Cost per Revenue Hour
Cost per Revenue Mile Cost per Revenue Mile
PERIOD PERIOD
5/7/2012 - 12/31/2016 5/7/2012 - 12/31/2016
Kobussen Buses LTD / Alternate#1 Alternate#2
W914 County Road CE -/ $17.47 $17.47
Kaukauna WI 54130 and 0.93 and 0.93