TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Permission to Solicit O&M Services for D2 and D4 Hydrogen Stations
ACTION ITEM
AGENDA PLANNING REQUEST: ☐
RECOMMENDED ACTION(S):
Title
Consider authorizing a solicitation for proposals for Operations and Maintenance (O&M) services for the Emeryville (D2) and Oakland (D4) hydrogen stations to support the continued implementation of the Zero Emissions Bus (ZEB) Transition Plan.
Body
STRATEGIC IMPORTANCE:
Goal - Environmental Improvement
Initiative - Zero Emission Programs
Authorizing this solicitation will support the continued implementation of the ZEB Transition Plan by ensuring that the hydrogen fuel infrastructure at both Emeryville (D2) and Oakland (D4) are maintained in a state of good repair and continuously available for service.
BUDGETARY/FISCAL IMPACT:
The cost for O&M activities for District’s facilities are provided annually in the District’s operation budget. This competitive procurement will ensure that AC Transit’s operational and maintenance support for the hydrogen fuel infrastructure is contracted to a fully qualified firm at fair and reasonable pricing.
BACKGROUND/RATIONALE:
On June 1, 2020, AC Transit entered into an agreement providing for an operations, preventative maintenance, and corrective maintenance program for the District’s hydrogen fueling equipment in both Emeryville (D2) and Oakland (D4). This was a three-year agreement with two successive one-year options to extend. The initial three-year term will expire on May 31, 2023.
When the current contract was negotiated, each station had a slightly different O&M protocol. The Emeryville facility had just converted to cryogenic liquid pumping process where the Oakland facility was still utilizing an older IC-50 Ionic compression system. Upgrades planned for the Oakland facility will normalize the stations such that they will both use the cryogenic liquid pumping process. This will make the preventive and corrective maintenance protocols for both stations identical which means the District would likely benefit both financially and operationally from the station similarities at both facilities.
To take advantage of the infrastructure improvements, it would be in the District’s best interest to issue a new Request For Information and/or Request For Proposals to ensure that current competitive market conditions are applied to our hydrogen station O&M services and provide for the selection of a qualified firm at a fair and reasonable price.
ADVANTAGES/DISADVANTAGES:
Authorizing this solicitation will yield agreements to ensure the state of good repair for hydrogen fueling facilities owned by the District. It will also allow staff to continue moving forward with zero emission bus deployments as detailed in the Board approved ZEB Transition Plan. Staff are unable to identify any disadvantages to the issuance of this solicitation.
ALTERNATIVES ANALYSIS:
The only alternative to issuing this solicitation would be to execute the options for extension of the current Operations and Maintenance agreements. Staff does not recommend this option because the Oakland station is being upgraded to a cryogenic pumping process that will require renegotiations of the option terms with one supplier versus a new open and competitive solicitation.
PRIOR RELEVANT BOARD ACTION/POLICIES:
SR 22-158c Adoption of the FY 2022-23 Operating and Capital Budget
SR 22-319 AC Transit ZEB Transition Plan
BP 465 Procurement Policy
ATTACHMENTS:
None
Prepared by:
Joe Callaway, Director of Capital Projects
Approved/Reviewed by:
Cecil Blandon, Director of Maintenance
Fred Walls, Director of Procurement and Materials
Salvador Llamas, Chief Operating Officer
Ramakrishna Pochiraju, Executive Director of Planning & Engineering
Chris Andrichak, Chief Financial Officer
Jill A. Sprague, General Counsel