HomeMy WebLinkAbout15. 16-555
DECEMBER 13, 2016 16-555 RESOLUTION
(CARRIED 7-0 LOST________LAID OVER________WITHDRAWN________)
PURPOSE: APPROVE AGREEMENT WITH KOBUSSEN BUSES LTD FOR
INTERCITY BUS SERVICES FOR GO TRANSIT (2017: $152,000.00,
2018: $155,040.00, 2019: $158,141.00)
INITIATED BY: PURCHASING DIVISION
BE IT RESOLVED by the Common Council of the City of Oshkosh that the
appropriate City officials are hereby authorized directed to enter into an appropriate
agreement with Kobussen Buses LTD for Intercity Bus Services for GO Transit for 2017-2019
in accordance with the advertised Request for Proposals and proposal submitted by
Kobussen Buses LTD and that said City officials are authorized and directed to take those
steps necessary to implement the terms and conditions of the Agreement.
Acct. No. 511-1728-6449-00000 Utility Purchased Transportation
TO: Honorable Mayor and Members of the Common Council
FROM: Jon G. Urben, General Services Manager
DATE: November 30, 2016
RE: Approve Agreement with Kobussen Buses LTD for Intercity Bus Services for GO Transit
(2017: $152,000, 2018: $155,040, 2019: $158,141)
BACKGROUND
In partnership with Winnebago County, the City of Oshkosh contracts with a private vendor to provide
daily (Monday -Saturday) intercity bus service between the cities of Oshkosh and Neenah. The intercity
bus service is called Route 10 and has been running since 2002. The current 5 -year contract with
Kobussen Buses LTD expires on December 31, 2016.
In preparation for this procurement, Transportation and Purchasing developed a request for proposal
(RFP) to solicit contractors to provide intercity city bus services. The RFP included requirements for
drivers, vehicles, radio communication, service standards and federal regulatory compliance. 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 October 5, 2016. Only one proposal was received from Kobussen Buses LTD.
Kobussen's proposal met the minimum requirements necessary to move forward in the evaluation
process.
ANALYSIS
Transportation and Purchasing staff reviewed the single proposal received from Kobussen Buses LTD
and concluded that this vendor could effectively provide the service based on their written responses.
Additionally, Kobussen has satisfactorily performed the service under the current agreement.
The RFP cost proposal form requested rates per revenue hour and/or revenue mile and any escalator
clauses applicable for years 2-5 of the contract term. Kobussen's initial cost proposal included a
significant rate increase to perform the service. Since this was a single proposal, GO Transit staff
negotiated with Kobussen to agree on a reduced rate. The rate negotiated with Kobussen was $47 per
revenue hour. A price analysis was used to determine price reasonableness by comparing the
negotiated rate to other contract rates from similar bus services in the area. Staff reviewed rates for bus
service contracts with Valley Transit and UWO. Valley Transit contracted for an employment shuttle in
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 http://www.ci.oshkosh.wi.us
Neenah. The cost of this service was $49.74 per revenue hour. UWO contracts for evening and late
night bus services. The cost of this service is $25 per revenue hour and $1.76 per revenue mile. This
translates into just over $62 per revenue hour when applied to 2015 Route 10 data. The negotiated rate
was below both rates reviewed.
Years 2-5 of the cost proposal also included an annual consumer price index (CPI) adjustment
(minimum increase of 2%) and a monthly fuel adjustment set according to fuel cost changes. Each
adjustment will be based on data provided by the U.S. Bureau of Labor Statistics.
Winnebago County reviewed Kobussen's full proposal and negotiated rate. Winnebago County staff
was supportive of this recommendation and agreed to continue funding the entire local share.
FISCAL IMPACT
The Transit Utility budgeted $160,000 for this service in the purchased transportation account (511-
1728-6449-00000) of their 2017 operating budget. The estimated cost for this service for calendar year
2017 would be $152,000. Federal and state grant funding would cover approximately 53 percent of the
service cost ($83,000); passenger fares cover about 13 percent ($20,000); and Winnebago County aid
covers the remaining 34 percent ($49,000). There is no local share for this service. The estimated cost
for this service for calendar year 2018 would be $155,040 and for 2019 would be $158,141 with similar
federal and state grant funding to offset the costs.
RECOMMENDATION
Purchasing recommends that the Common Council award this three-year agreement to Kobussen
Buses, LTD, W914 County Road CE, Kaukauna, WI 54130 for $152,000 in 2017, $155,040 in 2018 and
$158,141 in 2019.
Respectfully Submitted,
Approved:
Jon G. Urben, General Services Manager Mark A. Rohloff, City Manager