HomeMy WebLinkAboutA030 - Resolution awarding contract to Gillig LLC, of Livermore, CA, for six 40' heavy-duty buses in the amount of $4,361,466ITEM #:32
DATE:03-24-26
DEPT:Transit
SUBJECT:PURCHASE OF SIX 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 six 40’ heavy-duty diesel buses that are 23
years old and operating well beyond their federally defined useful life. Funding for these
vehicles was approved in the FY 2025/2026 Capital Improvements Plan (CIP).
Due to rapid increases in bus prices, previously programmed Surface Transportation Block
Grant (STBG) funding was revised to support diesel bus purchases instead of upgrading two
diesel buses to battery electric. The Ames Area Metropolitan Planning Organization (AAMPO)
was notified and approved this modification. The 2026 STBG grant is currently pending award
through the Federal Transit Administration (FTA). However, CyRide has pre-grant authority to
proceed with award of the bus manufacturer contract prior to final grant obligation. CyRide
anticipates the 2026 STBG grant will be awarded this summer, before the buses are
scheduled for delivery.
The project budget based on available grant funding is shown below and was included in the
CIP:
Funding Source Federal Local Total
Bus & Bus Facilities (5339)$2,545,228 $499,825 $3,045,053
Carbon Reduction Program (CRP)$406,236 $101,559 $507,795
Surface Transportation Block Grant (STBG
2025)$269,844 $67,461 $337,305
Surface Transportation Block Grant (STBG
2026)$377,050 $94,263 $471,313
Total Project Budget $3,598,358 $763,108 $4,361,466
After reviewing procurement options, CyRide determined that the most cost-effective method
for purchasing new buses is through a cooperative purchasing schedule. Statewide
purchasing schedules allow CyRide to reduce administrative time and leverage the buying
power of multiple agencies, which would not be available if CyRide pursued an independent
procurement process. Through the State of Iowa, the Washington State cooperative
purchasing schedule was identified as the most favorable option for CyRide.
CyRide’s current fleet of 40’ heavy-duty diesel Gillig Low Floor buses has consistently proven
to be cost-effective and reliable. Maintaining a standardized fleet with a single manufacturer
results in operational efficiencies, including reduced spare parts inventory, lower training
costs, and faster repair times due to greater familiarity with the equipment. As a result, CyRide
has selected Gillig as the preferred manufacturer for this purchase with the best value.
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Pricing was requested from Gillig, resulting in a cost per bus of $726,911 for a total purchase
price of $4,361,466. Gillig anticipates delivery of the vehicles approximately 12 months after a
purchase order is issued. At its meeting on March 19, 2026, the Transit Board of Trustees
approved the award of contract to Gillig LLC of Livermore, California, for an amount of
$4,361,466. Final award of contract will be subject to approval by the Iowa Department of
Transportation Office of Public Transit.
ALTERNATIVES:
1. Approve award of contract for six 40’ heavy-duty diesel buses to Gillig LLC of Livermore,
California, in the amount of $4,361,466, contingent upon award of the 2026 STBG grant
with the Federal Transit Administration.
2. Do not approve the contract award for the purchase of six new 40' heavy-duty diesel
buses.
CITY MANAGER'S RECOMMENDED ACTION:
Award of this contract will allow CyRide to replace obsolete buses with new vehicles, improve
operating efficiency, and support progress toward federal Transit Asset Management (TAM)
plan goals, while reducing overall fleet emissions through the use of 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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