HomeMy WebLinkAboutA011 - Resolution awarding contract to Gillig LLC, of Livermore, CA, for two 40' Heavy-Duty Diesel Buses in the amount of $1,453,822ITEM #:14
DATE:11-25-25
DEPT:TRANSIT
SUBJECT:PURCHASE OF TWO 40' HEAVY-DUTY DIESEL BUSES
COUNCIL ACTION FORM
BACKGROUND:
CyRide has been awarded grant funding through the Iowa Department of Transportation’s
Carbon Reduction Program (CRP) to replace two 40’ heavy-duty diesel buses that are 22
years old and past their useful life. Funding for the new buses was approved in the FY
2025/26 Capital Improvements Plan. Due to rapid increases in bus prices, additional Surface
Transportation Block Grant (STBG) funds were reallocated to support this purchase. The
project budget, based on available grant funding, is shown below and was included in the
Capital Improvements Plan.
Funding Source Funding
Federal Local Total
Carbon Reduction Program (CRP)$946,786 $236,696 $1,183,482
Surface Transportation Block Grant
(STBG)$81,208 $20,302 $101,510
Total $1,027,994 $256,998 $1,284,992
After reviewing procurement options, CyRide determined that the most cost-effective method
for purchasing new buses is utilizing a state cooperative procurement schedule. Statewide
purchasing schedules allow CyRide to reduce administrative time and leverage the buying
power of many agencies, which would not be available if CyRide pursued an independent
procurement process. Through the State of Iowa, the most favorable option for CyRide is the
Washington State cooperative procurement schedule.
CyRide’s current fleet of 40’ heavy-duty diesel Gillig Low Floor buses has consistently proven
to be cost-effective and reliable. Keeping the bus fleet standardized to a single manufacturer
results in significant savings, including reduced spare parts inventory, lower training costs, and
faster repair times due to greater manufacturer familiarity. As a result, CyRide has selected
Gillig as the preferred manufacturer for this purchase.
Pricing was requested from Gillig, resulting in a cost per bus of $726,911, or a total purchase
price of $1,453,822. This cost is higher than the available funding. Following this result,
staff re-evaluated procurement options and determined that proceeding with the Washington
State contract remained the most cost-effective option available to CyRide. While higher than
expected, the price was found to be fair and reasonable in light of the national
purchasing environment and comparable buses from other manufacturers.
Based on the pricing received, an additional $168,830 in local funding would be
required to purchase both buses. The additional funding needed could come from the
40’ Bus Replacement Capital Reserve Fund. A revised budget has been calculated based
on the bus pricing provided, shown in the following table.
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Funding Source Funding
Federal Local Total
Carbon Reduction Program (CRP)$946,786 $236,696 $1,183,482
Surface Transportation Block Grant
(STBG)$81,208 $20,302 $101,510
Additional Local Funding (40' Bus
Reserve Fund) $168,830 $168,830
Revised Total Project Budget $1,027,994 $425,828 $1,453,822
Gillig anticipates delivery of the vehicles approximately nine months after a purchase order is
issued. Additional build options are being considered for these buses and will be maintained
within the overall project budget.
At its meeting on November 20, 2025, the Transit Board of Trustees approved the award of
contract to Gillig LLC of Livermore, California, for an amount of $1,453,822.
ALTERNATIVES:
1. Approve award of contract for two 40’ heavy-duty diesel buses to Gillig LLC of
Livermore, California, for an amount of $1,453,822.
2. Do not approve the contract award for the purchase of two new 40' heavy-duty diesel
buses.
CITY MANAGER'S RECOMMENDED ACTION:
Award of this contract will enable CyRide to replace obsolete buses with new vehicles,
improve efficiency, and move CyRide closer to meeting its federal Transit Asset
Management (TAM) plan goals, while reducing overall fleet emissions using newer,
cleaner-burning engines. Therefore, it is the recommendation of the City Manager that the
City Council adopt Alternative No. 1, as described above.
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