AGENDA ITEM 9-A
ACTION ITEM
TO:
CHAIRMAN BULOVA AND THE VRE OPERATIONS BOARD
FROM:
DALE ZEHNER
DATE:
MAY 20, 2011
RE:
AUTHORIZATION TO ISSUE A REQUEST FOR PROPOSALS
FOR NEW PASSENGER CARS
RECOMMENDATION:
The VRE Operations Board is being asked to authorize the Chief Executive
Officer to issue a Request for Proposal (RFP) for new passenger railcars.
BACKGROUND:
In April of 2004, the Operations Board authorized the issuance of an RFP for the
procurement of 11 bi-level cab cars with an option for an additional 50 bi-level
railcars. In October 2004, Sumitomo Corporation of North America was awarded
the contract and in March 2005, the Operations Board exercised the option for the
full 50 railcars. All 61 cars were delivered by September 2008.
In March 2008, the Operations Board authorized the issuance of an RFP for the
procurement of 10 additional bi-level railcars to replace the Kawasaki railcars
being sold to Maryland. Sumitomo Corporation of North America was the sole
bidder and was awarded the contract in October 2008. The 10 railcars were
delivered in February 2010.
Currently, VRE’s railcar fleet includes 71 bi-level Gallery railcars, as outlined
above, and 30 Pullman Gallery railcars. The Pullman railcars were previously
operated by Chicago-Metra and were built between 1956 and 1969. VRE
planned to operate the Pullman railcars through CY 2011 without performing a
major overhaul. However, through aggressive preventative maintenance, VRE
projects this timeline can be extended to no later than the end of CY 2013. As
such, with an expected delivery time of two years, procurement for new railcars
must be initiated at this time.
In September of 2010, the Operations Board discussed the need to address
future capacity requirements through the initiation of this procurement and the
associated funding challenges.
VRE staff was asked to return to the Operations Board in April 2011 with a
funding plan. As such, VRE, in cooperation with DRPT, developed a plan that
would permit the purchase of 15 replacement railcars during a five year period as
federal formula funds became available. While VRE currently owns 30 Pullman
railcars, ten have been sold to the Army and the much lower spare ratio of old
equipment compared to new allows 20 old Pullman railcars to be replaced with 15
new railcars. The funding plan approved by the Operations Board last month is
shown below.
TOTAL
COST
Federal
State
VRE
36.0M
15.4M
18.2M
2.5M
VRE will issue a RFP for a base order of 9 units, with options for up to 41
passenger cars. This approach will allow VRE to obtain the 15 passenger cars
needed to replace the existing legacy car fleet as well as allow for additional
capacity as service requirements dictate without having to issue another RFP.
The term of the contract will not exceed 5 years.
FISCAL IMPACT:
No funding is required to complete this action.
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TO:
FROM:
DATE:
RE:
CHAIRMAN BULOVA AND THE VRE OPERATIONS BOARD
DALE ZEHNER
MAY 20, 2011
AUTHORIZATION TO ISSUE A REQUEST FOR PROPOSALS
FOR NEW PASSENGER CARS
RESOLUTION
9A-05-2011
OF THE
VIRGINIA RAILWAY EXPRESS
OPERATIONS BOARD
WHEREAS, in April 2004, the VRE Operations Board authorized the issuance of
an RFP for the procurement of 11 bi-level cab cars with an option for an additional
50 bi-level railcars; and,
WHEREAS, in March 2008, the Operations Board authorized the issuance of an
RFP for the procurement of ten additional bi-level railcars; and,
WHEREAS, VRE is in need of replacing the remaining legacy passenger car fleet
by CY 2013; and,
WHEREAS, VRE has developed a financial plan to issue an RFP to replace the
remaining legacy passenger car fleet.
NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board
authorizes the Chief Executive Officer to issue a Request for Proposals (RFP) for
new passenger railcars.
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