AGENDA ITEM 11-B ACTION ITEM TO: CHAIRMAN BULOVA AND THE VRE OPERATIONS BOARD FROM: DALE ZEHNER DATE: FEBRUARY 18, 2011 RE: AUTHORIZATION TO PURCHASE THREE LOW VOLTAGE POWER SUPPLY & BATTERY CHARGER (LVPS/BC) UNITS FOR GALLERY IV CARS _____________________________________________________________________ RECOMMENDATION: The VRE Operations Board is being asked to authorize the Chief Executive Officer to purchase three Low Voltage Power Supply and Battery Charger (LVPS/BC) system units from Transtechnik Corporation USA for the new Gallery IV cars. This authorization is being requested in an amount not to exceed $150,000, plus a contingency of $15,000, for a total amount not to exceed $165,000. BACKGROUND: Since 2005, VRE has purchased and is operating 71 new Gallery IV cars as part of its general fleet. Each of the Gallery IV cars contains a Low Voltage Power Supply and Battery Charger unit that provides two separate and independent low voltage DC power modules. The LVPS module supplies auxiliary loads on the train’s low voltage network as a load management system and the battery charger module charges the 32 volt vehicle battery which is used to supply power to the car’s systems, including the emergency lighting in the cars. The warranty period has ended for the base and option order cars (50 cars) and by next year all 71 cars will be out of warranty. As such, VRE will be responsible for 100% of the repair and maintenance of the LVPS/BC system. VRE currently has one spare unit as part of its capital spare inventory. VRE needs to purchase three additional LVPS/BC units in order to ensure an adequate spare ratio and to maintain its maintenance and repair service schedule. If sufficient spares are not available, cars must be taken out of service until the LVPS/BC unit is repaired. The LVPS/BC system was designed and manufactured by Transtechnik specifically for use in the VRE Gallery IV cars manufactured for VRE by Sumitomo/Nippon Sharyo. There is no commercially available, off-the-shelf unit that could be purchased from another supplier as a direct replacement for the existing unit. Another supplier would have to reverse-engineer the existing LVPS/BC system in order to manufacture a comparable unit, the cost of which would be borne by VRE. Additionally, VRE would have to provide the supplier with the existing spare unit as part of the engineering process, which would leave VRE without a spare in its inventory. Should a LVPS/BC unit in one of the Gallery IV cars require repair or replacement while the spare parts are being manufactured, VRE would not have any replacement spares in its inventory and would have to take the car with the faulty LVPS/BS unit out of service. Therefore, VRE staff is recommending approval of a sole source contract with Transtechnik for the manufacture and purchase of the spare LVPS/BC units. The supplier is able to provide the LVPS/BC system and any necessary product support. FISCAL IMPACT: Funding is available in the FY 2011 Operating Budget. TO: FROM: DATE: RE: CHAIRMAN BULOVA AND THE VRE OPERATIONS BOARD DALE ZEHNER FEBRUARY 18, 2011 AUTHORIZATION TO PURCHASE THREE LOW VOLTAGE POWER SUPPLY & BATTERY CHARGER (LVPS/BC) UNITS FOR GALLERY CARS RESOLUTION 11b-02-2011 OF THE VIRGINIA RAILWAY EXPRESS OPERATIONS BOARD WHEREAS, VRE operates 71 new Gallery IV cars which have reached the end of their warranty period; and, WHEREAS, additional spare LVPS/BC units are needed to ensure an adequate spare ratio and to maintain the Gallery IV maintenance and repair service schedule; and, WHEREAS, the LVPS/BC was designed and manufactured specifically for use in the VRE Gallery IV cars and there is no commercially available, off-the-shelf unit that could be purchased from another supplier as a direct replacement for the existing unit; and, WHEREAS, another supplier would have to custom-engineer, at VRE expense, a comparable unit; and WHEREAS, the only existing spare LVPS/BC unit would need to be provided to the alternative supplier during the engineering and manufacturing process, which would leave VRE with no spare LVPS/BC units until the additional spares were received; and, WHEREAS, VRE staff is, therefore, recommending approval of a sole source purchase of the LVPS/BC system units from the Transtechnik Corporation USA. NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board authorizes the Chief Executive Officer to purchase three Low Voltage Power Supply and Battery Charger (LVPS/BC) units from Transtechnik Corporation USA in an amount not to exceed $150,000, plus a contingency of $15,000, for a total amount not to exceed $165,000.