FTA Bus Procurement Requirements

1. FTA Bus Procurement Requirements April 22, 2013

2. FTA Requirements • Technical Capacity • Procurement • Buy America • Pre-award/post-delivery audits • Bus Testing • Disadvantaged Business Enterprise (DBE) • Debarment and Suspension • Lobbying 2

3. Technical Capacity • Determine type/size of bus • Develop specifications • Ensure quality • Maintain bus • Manage warranty provisions • Comply with FTA requirements 3

4. Procurement Public Entities Private Entities • Full and open competition • No geographic preferences • 5-year limit • Clauses • Full and open competition • No geographic preferences • 5-year limit • Clauses • Written code of conduct • Written procurement procedures • Written protest procedures • Independent cost estimate • Cost/price analysis • All of 4220 4

5. No Geographic Preferences • Cannot require in-state/local dealer • Can require local arrangements for warranty work • Can require licenses 5

6. Independent Cost Estimate Product Required__________________________________________________________ Basis for determining the estimated cost (a, b or c) a. Recent Past Purchases (attach documentation) Unit Price $____ x Producer Price Index ____ x Number of Units ____ = Total Estimated Price $_____ b. Catalog/Advertised Price (attach source documentation from catalogs, internet or media) Unit Price $______ x Number of Units ______ = Total Estimated Price $______ c. Fax/telephone information (attach documentation) Unit Price $______ x Number of Units ______ = Total Estimated Price $______ Date of Independent Cost Estimate ___/___/________ Signature of Person Preparing the Estimate _________________________________________ 6

7. Price Analysis Product required _______________________________________________________________ Basis for price analysis (a or b) a. Comparison to independent cost estimate and prices received Independent cost estimate $_________________ Low Bid Price $_________________ Other Bid Price $________________ Other Bid Price $_________________ Other Bid Price $_________________ b. Comparison to prices of recent purchases paid by others for similar vehicles Agency: __________________ Price $______________ Explanation of price differences: _________________________________________________________ Agency: __________________ Price $______________ Explanation of price differences: _________________________________________________________ Agency: __________________ Price $______________ Explanation of price differences: _________________________________________________________ Date of Price Analysis ___/___/________ Based on the above, the price of this procurement is determined to be fair and reasonable Signature _________________________________________ 7

8. Options • Evaluate at time of award • Conduct price analysis when exercise 8

9. Clauses • Triennial Review and State Management Review guides on FTA website for checklist • Appendix A of Best Practices Procurement Manual and Master Agreement for clause language • National RTAP ProcurementPRO to generate procurement document, including clauses 9

10. Triennial/State Review Checklists 10

11. Triennial/State Review Checklists 11

12. Triennial/State Review Checklists 12

13. Best Practices Procurement Manual 13

14. ProcurementPRO 14

15. Buy America • Applies to bus purchases >$100,000 • Applies to new and used items • Applies to total contract amount 15

16. Vendor Buy America Certification BUY AMERICA REQUIREMENTS 49 U.S.C. 5323(j) 49 CFR Part 661 Certification requirement for procurement of buses, other rolling stock and associated equipment. Certificate of Compliance with 49 U.S.C. 5323(j)(2)(C). The bidder or bidder hereby certifies that it will comply with the requirements of 49 U.S.C. 5323(j)(2)(C) and the regulations at 49 CFR Part 661. Date _________________________________________________________________ Signature ____________________________________________________________ Company Name ____________________________________________________________ Title _________________________________________________________________ Certificate of Non‑Compliance with 49 U.S.C. 5323(j)(2)(C) The bidder or bidder hereby certifies that it cannot comply with the requirements of 49 U.S.C. 5323(j)(2)(C), but may qualify for an exception pursuant to 49 U.S.C. 5323(j)(2)(B) or (j)(2)(D) and the regulations in 49 CFR 661.7. Date _______________________________________________________________ Signature ____________________________________________________________ Company Name ________________________________________________________ Title _______________________________________________________________ 16

17. Pre-award/Post-delivery Audits • Buy America (>$100,000) • Federal Motor Vehicle Safety Standards (FMVSS) • Purchaser’s requirements 17

18. Pre-award Buy America Audit • Domestic content data documenting at least 60 percent domestic content • Proposed final assembly activities • Proposed final assembly location 18

19. Vendor Domestic Content Data Domestic Content Example Total Cost Item of Components Percent Domestic One bus $100.00 at least 60% of total cost 60% Domestic Component Component Domestic Content 1. Engine $30.00 (30% of total component cost) 2. Transmission $20.00 (20% of total component cost) 3. Wheels $15.00 (15% of total component cost) Subtotal $65.00(65% of total component cost) (5% more than required, no further components need be identified) Breakdown of components for domestic sub-component content Sub-component Domestic Component 1. Engine (total cost $30.00) a. valves $12.00 (40% of cost of engine) b. block $10.50 (35% of cost of engine) Subtotal $22.50 (75% of cost of engine) (15% more than required, no further sub-components need to be identified) 2. Transmission (total cost $20.00 a. gears $4.00 (20% of cost of transmission) b. housing $8.00 (40% of cost of transmission) Subtotal $12.00 (60% cost of transmission) (minimum percent achieved, no further sub-components need to be identified) 3. Wheels (total cost $15.00) a. castings $10.00 (66.7% of cost of wheels) Subtotal $10.00 (66.7% more than required; no further sub-components need to be identified) 19

20. Purchaser Pre-Award Buy America Certification PRE-AWARD BUY AMERICA COMPLIANCE CERTIFICATION As required by Title 49 of the CFR, Part 663 – Subpart B, ________________________________________(the recipient) is satisfied that the buses to be purchased, ____________(number and description of buses) from ___________________________________________(the manufacturer), meet the requirements of Section 165(b)(3) of the Surface Transportation Assistance Act of 1982, as amended. The recipient o , or its appointed analyst ___________________________________(the analyst – not the manufacturer or its agent), has reviewed documentation provided by the manufacturer, which lists (1) the proposed component and subcomponent parts of the buses identified by manufacturer, country of origin, and cost; and (2) the proposed location of the final assembly point for the buses, including a description of the activities that will take place at the final assembly point and the cost of final assembly. Date: ____________________ Signature: _____________________Title: _____________________ 20

21. Bidder Pre-award FMVSS Certification CERTIFICATION OF COMPLIANCE WITH FEDERAL MOTOR VEHICLE SAFETY STANDARDS The bidder hereby certifies that the vehicle to be purchased complies with relevant Federal Motor Vehicle Safety Standards issued by the National Highway Traffic Safety Administration in part 571 of this title. Date: ______________________________________________________ Signature: __________________________________________________ Company Name: ____________________________________________ Title: _______________________________________________________ 21

22. Purchaser Pre-award FMVSS Certification PRE-AWARD FMVSS COMPLIANCE CERTIFICATION As required by Title 49 of the CFR, Part 663 – Subpart D, __________________(the recipient) certifies that it received, at the pre-award stage, a copy of______________’s (the manufacturer) self-certification information stating that the buses, _____________________(number and description of buses), will comply with the relevant Federal Motor Vehicle Safety Standards issued by the National Highway Traffic Safety Administration in Title 49 of the Code of Federal Regulations, Part 571. Date: _____________________ Signature: ___________________Title: _____________________ 22

23. Pre-award Purchaser’s Requirements Audit • Verify bid compliance with your specifications • Verify manufacturer’s qualifications to build to specifications 23

24. Purchaser’s Pre-award Purchaser Requirements Certification PRE-AWARD PURCHASER’S REQUIREMENTS CERTIFICATION As required by Title 49 of the CFR, Part 663 – Subpart B, _______________________(the recipient) certifies that the buses to be purchased, _____________________(number and description of buses) from ________________(the manufacturer), are the same product described in the recipient’s solicitation specification and that the proposed manufacturer is a responsible manufacturer with the capability to produce a bus that meets the specifications. Date: _____________________ Signature:_____________________ Title: _____________________ 24

25. In-plant Inspections • > 10 vehicles if large urbanized area • > 20 vehicles for small urban and rural areas 25

26. Post-delivery Buy America Audit • Actual domestic content calculation • Actual final assembly activities • Actual location of final assembly 26

27. Vendor Domestic Content Data Domestic Content Example Total Cost Item of Components Percent Domestic One bus $100.00 at least 60% of total cost 60% Domestic Component Component Domestic Content 1. Engine $30.00 (30% of total component cost) 2. Transmission $20.00 (20% of total component cost) 3. Wheels $15.00 (15% of total component cost) Subtotal $65.00(65% of total component cost) (5% more than required, no further components need be identified) Breakdown of components for domestic sub-component content Sub-component Domestic Component 1. Engine (total cost $30.00) a. valves $12.00 (40% of cost of engine) b. block $10.50 (35% of cost of engine) Subtotal $22.50 (75% of cost of engine) (15% more than required, no further sub-components need to be identified) 2. Transmission (total cost $20.00 a. gears $4.00 (20% of cost of transmission) b. housing $8.00 (40% of cost of transmission) Subtotal $12.00 (60% cost of transmission) (minimum percent achieved, no further sub-components need to be identified) 3. Wheels (total cost $15.00) a. castings $10.00 (66.7% of cost of wheels) Subtotal $10.00 (66.7% more than required; no further sub-components need to be identified) 27

28. Purchaser’s Post-delivery Buy America Certification POST-DELIVERY BUY AMERICA COMPLIANCE CERTIFICATION As required by Title 49 of the CFR, Part 663 – Subpart C, ___________________________(the recipient) certifies that it is satisfied that the buses received, _____________________(number and description of buses) from __________________________(the manufacturer), meet the requirements of Section 165(b)(3) of the Surface Transportation Assistance Act of 1982, as amended. The recipient o , or its appointed analyst_________________________________________(the analyst – not the manufacturer or its agent), has reviewed documentation provided by the manufacturer, which lists (1) the actual component and subcomponent parts of the buses identified by the manufacturer, country of origin, and cost; and (2) the actual location of the final assembly point for the buses, including a description of the activities that took place at the final assembly point and the cost of final assembly. Date: _____________________ Signature: _____________________Title: _____________________ 28

29. Post-delivery FMVSS Audit 29

30. Purchaser’s Post-delivery FMVSS Certification POST-DELIVERY FMVSS COMPLIANCE CERTIFICATION As required by Title 49 of the CFR, Part 663 – Subpart D, ____________________________________(the recipient) certifies that it received, at the post-delivery stage, a copy of _______________’s (the manufacturer) self-certification information stating that the buses, __________________________________________(number and description of buses), comply with the relevant Federal Motor Vehicle Safety Standards issued by the National Highway Traffic Safety Administration in Title 49 Code of Federal Regulations, Part 571. Date: _____________________ Signature:_____________________ Title: _____________________ 30

31. Post-delivery Purchaser’s Requirements Audit • Inspect bus with specifications checklist • Road test 31

32. Purchaser’s Post-delivery Purchaser’s Requirements Certification POST-DELIVERY PURCHASER’S REQUIREMENTS CERTIFICATION As required by Title 49 of the CFR, Part 663 – Subpart C, after visually inspecting and road testing the contract buses, _________(the recipient) certifies that the buses, ____________(number and description of buses) from __________________(the manufacturer), meet the contract specifications. Date: _____________________ Signature: _____________________Title: _____________________ 32

33. FTA Technical Assistance 33

34. Bus Testing • Applies to: • small buses • medium- and light-duty mid-size buses • heavy-duty small and large buses • Does not apply to unmodified mass-produced vans 34

35. Bus Testing • Include required clause in procurement document • Obtain a test report before the final acceptance of the first bus and the expenditure of FTA funds (required) • Obtain a test report with bid (best practice) • If partial test, obtain copy of all relevant reports (required) • Ensure that the report supports your conclusions regarding the service and maintenance fit 35

36. Bus Testing 36

37. DBE • Obtain DBE transit vehicle manufacturer (TVM) certification • Search FTA website • Document results of search to file • Contact vendor on status of DBE plan approval 37

38. Bidder TVM DBE Certification TRANSIT VEHICLE MANUFACTURERS DBE CERTIFICATION The bidder hereby certifies that it will comply with the requirements of 49 CFR Section 26.49 by submitting a current annual DBE goal to the Federal Transit Administration. The goals apply to current Federal Fiscal Year 2009 and have either been approved or not by FTA. The bidder, if a non-vehicle manufacturer supplier, hereby certifies that the manufacturer of the transit vehicle to be supplied has complied with the above-referenced requirements of 49 CFR Section 26.49. Date: ________________________________________________________ Signature: ___________________________________________________ Company Name: _____________________________________________ Title: ________________________________________________________ 38

39. FTA TVM Website 39

40. Debarment and Suspension • Include certification clause in procurements >$25,000 • Search System for Award Management (www.sam.gov) • Document results of search for procurement file 40

41. Bidder Debarment and Suspension Certification Clause GOVERNMENT-WIDE DEBARMENT AND SUSPENSION (NONPROCUREMENT) Suspension and Debarment - This contract is a covered transaction for purposes of 49 CFR Part 29. As such, the contractor is required to verify that none of the contractor, its principals, as defined at 49 CFR 29.995, or affiliates, as defined at 49 CFR 29.905, are excluded or disqualified as defined at 49 CFR 29.940 and 29.945. The contractor is required to comply with 49 CFR 29, Subpart C and must include the requirement to comply with 49 CFR 29, Subpart C in any lower tier covered transaction it enters into. By signing and submitting its bid or proposal, the bidder or proposer certifies as follows: The certification in this clause is a material representation of fact relied upon by {insert agency name}. If it is later determined that the bidder or proposer knowingly rendered an erroneous certification, in addition to remedies available to {insert agency name}, the Federal Government may pursue available remedies, including but not limited to suspension and/or debarment. The bidder or proposer agrees to comply with the requirements of 49 CFR 29, Subpart C while this offer is valid and throughout the period of any contract that may arise from this offer. The bidder or proposer further agrees to include a provision requiring such compliance in its lower tier covered transactions. 41

42. www.sam.gov 42

43. Lobbying • Applies to contracts >$100,000 • Obtain signed certification from bidder 43

44. Piggyback Procurements • FTA allows bus piggyback procurements • FTA prohibits tag-on procurements 44

45. Piggyback Procurements • State GSA-type contracts • Non-state contracts 45

46. Treat a piggyback as a bid • Maintain your own procurement record • Obtain the original procurement documents and contract • Evaluate or conduct due diligence on the original procurement • Ensure that all requirements are met before paying vendor 46

47. Piggybacking Checklist • Question 1: Original documents • Solicitation document • Contract • Bid of successful vendor • Bid tabulation and evaluation • Pre-award audits • Bus test report 47

48. Piggybacking Checklist • Question 2: Assignability clause • Allows purchaser to assign unexercised, evaluated options to others • Obtain assignment of rights in writing 48

49. Piggybacking Checklist • Question 3: Required certifications • Buy America • Lobbying • DBE Transit Vehicle Manufacturer • Federal Motor Vehicle Safety Standards 49

50. Piggybacking Checklist • Question 4: Required clauses • Use clause checklist from Triennial or State Management Review • Place completed checklist in procurement file 50