Bids for the replacement of two MET paratransit vans were received on Tuesday, January 12, 2010.  These vans are eligible for replacement under both Federal Transit Administration (FTA) Regulations and the City of Billings Equipment Replacement Program.  These vehicles will replace vehicles that are over seven years old and/or have exceeded 100,000 miles.  MET is replacing one 2002 Ford van and one 2003 Ford van.  This replacement will maintain the integrity of our fleet. Bids were received from Intermountain Coach in the amount of $138,666 ($69,333 per van) and from Harlow's Bus Sales in the amount of $149,300 ($74,650 per van). After reviewing both bids, staff found inconsistencies with Intermountain Coach's response to the City's product specifications and is requesting delay of the bid award to allow additional time to review the bids.

The Council may:

• Delay bid award;
• Reject all bids; or
• Accept one of the bids.

American Recovery and Reinvestment Act (ARRA) funds administered through the FTA Section 5307 Grant funding program will be used for the purchase of one of the vans.  The other van will be purchased with the 2009 Omnibus Appropriations Act funds administered through the FTA Section 5309 Grant funding program.  The ARRA grant is 100% Federal share and no local share.  The Omnibus grant is funded 80% Federal ($55,466.40) and 20% local share ($13,866.60) which is budgeted in our capital line item.  

Staff recommends that City Council delay the bid award until the meeting of February 8, 2010, to allow staff additional time to review the bids.