Two paratransit vans are eligible for replacement under both Federal Transit Administration (FTA) Regulations and the City of Billings Equipment Replacement Program.  These replacements are for vehicles that are over seven years old, and/or have exceeded 100,000 miles.  Bids were received on Tuesday, January 12, 2010, from the following vendors:

VENDOR	PRICE PER VAN	TOTAL BID AMOUNT
Harlow's Bus Sales	$74,650	$149,300
Intermountain Coach Leasing	$69,333	$138,666

Upon review of the bid information, the low bid from Intermountain Coach Leasing was found to be non-responsive, due to a failure to meet a number of the bid specifications established for the vans. Specifically, Intermountain did not meet the 15 person seating requirement, the specified wheel base length, and the proper size for the window openings. Staff contacted Intermountain to ascertain if the required specifications could be met at the price that was bid, and they told staff that they would not be able to meet our required specifications. Subsequently, the bid award will go to the remaining responsive bidder, Harlow's Bus Sales.

The Council may: 

• Reject all bids; or 
• Award to the next lowest responsive bidder.

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 using 100% Federal funds ($74,650).  The other van will be purchased with the 2009 Omnibus Appropriations Act funds, administered through the FTA Section 5309 Grant funding program, and would be funded at 80% Federal ($59,720) and 20% local share ($14,930), which is budgeted in MET's Capital fund. 

Staff recommends that City Council accept the responsive bid from Harlow's Bus Sales in the amount of $149,300 for the two vans.