Staff recommends Council approve the agreement for $210,750 with FAAC, Inc. to purchase a Bus Training Simulator.

The City of Billings MET Transit system was notified by the Federal Transit Administration on August 16, 2022, of its successful application and award of competitive Low-No Bus and Bus Facility funds to purchase four electric buses, related charging infrastructure, and staff development items. In accordance with 49 USC 5339(C)10, the Federal regulation authorizing the Low-No Program, MET Transit opted to utilize partnership provisions in the submitted application for competitive funds. The referenced regulation states, "A recipient of a grant under this subsection may submit an application in partnership with other entities, including a transit vehicle manufacturer, that intends to participate in the implementation of an eligible project under this subsection. Eligible projects awarded with partnerships under this subsection shall be considered to satisfy the requirement for a competitive procurement under [49 USC] section 5325 - [Contract Requirements]."  This provision allowed MET Transit to directly partner with a bus simulator manufacturer, FAAC, Inc., to leverage that company's experience and expertise in deploying simulator equipment.  A provision of the Low-No Bus and Bus Facility Program requires that the applying agency allocate at least 5% of the total grant request funds to staff development and training.  MET determined the purchase of a Bus Training Simulator in support of regular required safety training for City personnel would be a valuable addition to both training of existing staff and onboard training and development of new hires, especially those who do not possess a Commercial Driver's License.  Prior to partnering with FAAC, MET Transit assessed multiple simulator options from a wide range of manufacturers to determine the most appropriate partner. Due to the referenced partnership and governing regulation, a formal bid for purchase of this equipment was not required because the competitive grant process with partnership provisions fulfilled the competitive requirement of the utilized funds.  Since the grant was awarded not only on the basis of MET Transit's ability to execute the project, but also on the selected partner's ability to fulfill the requirements of implementation, City of Billings MET Transit staff are requesting to move forward with the purchase of the simulator from FAAC, Inc.  Pricing for the contract was determined to be fair and reasonable through independent quotes received from the various manufacturers prior to selection of a simulator partner for the grant application.

City Council may:

• Approve the purchase of a Bus Training Simulator from FAAC, Inc. for a total of $210,750; or
• Not Approve the purchase and advise staff on how to proceed.

Purchase of the Bus Training Simulator will be executed using a combination of Federal and local funding at 20% local and 80% Federal. MET Transit has adequate local capital reserves to execute this project and is utilizing Section 5339(c) competitive Federal funds awarded by the Federal Transit Administration. Pricing details follow below: 
 

Item	QTY	Local %	Total Local	Federal %	Total Federal	Total Price
FAAC, Inc. Bus Training Simulator	1	20.0%	$42,150	80.0%	$168,600	$210,750