Title
Light Rail Vehicle Train Control and Signaling Systems Parts and Repairs
Action
Action:
A. Approve the purchase of light rail vehicle train control and signaling systems parts by the sole source exemption,
B. Approve a contract with Hitachi Rail STS USA Inc. for the purchase of light rail vehicle train control and signaling systems parts and repairs for a term of three years, and
C. Authorize the City Manager to renew the contract for up to two, one-year terms with possible price adjustments and to amend the contract consistent with the purpose for which the contract was approved.
Body
Staff Resource(s):
Brent Cagle, CATS
Victoria Johnson, CATS
Gary Lee, CATS
Sole Source Exemption
§ NC General Statute Section 143-129(e)(6) provides that formal bidding requirements do not apply when:
- Performance or price competition are not available,
- A needed product is available from only one source or supply, or
- Standardization or compatibility is the overriding consideration.
§ Sole sourcing is necessary for this contract because there is only one supply source and compatibility with existing equipment is required.
§ City Council approval is required for any purchases made under the sole source exception.
Explanation
§ Hitachi Rail STS USA Inc. is the original equipment manufacturer of LYNX light rail vehicle (LRV) train control and signaling systems.
§ The parts and services that are being purchased under this contract are for replacement parts and inventory stock spares required to maintain the LRVs, tracks signaling system, grade crossings, and train control.
§ At renewal, potential price adjustments may be considered based on legitimate and justified increases in the cost of doing business. The ability to consider price adjustments also allows the city to accept decreases, if warranted.
§ Annual expenditures are estimated to be $4,000,000.
Charlotte Business INClusion
Sole sourcing was required for this contract because there is only one supply source and compatibility with existing equipment is required. Sole source contracts are exempt from CBI Program goals, as these contracts do not involve a competitive bidding process and do not present opportunities for subcontracting. This aligns with what is required by NC General Statute Section 143-129(e)(3).
Fiscal Note
Funding: CATS Operating Budget