Board approves contract modifications to replace energy storage systems on hybrid bus fleets

The Board of Supervisors approved two contract modifications authorizing additional funds to DaimlerChrysler Commercial Buses North America Limited to replace the energy-storage systems in San Francisco’s hybrid bus fleets: roughly $1 million more for the 30-foot fleet (total not to exceed about $18.25 million) and about $2.5 million for the 40-foot fleet (total not to exceed about $32.2 million).

Why it matters: The contracts are capital expenditures intended to maintain existing hybrid buses. Supervisors raised questions about sole-source-like extensions and whether the city had sought competitive alternatives.

Agency explanation: MTA staff and fleet engineering told the board the propulsion system and original energy-storage design were developed in coordination with the manufacturer and that retrofitting a different company’s system would not be feasible for the fully federally funded capital replacement without significant redesign. The MTA said it would analyze future procurement options when major design changes are considered.

Board discussion: Supervisor Campos pressed the budget analyst and MTA staff for documentation showing that alternative suppliers could not provide compatible systems at lower cost. Budget staff said there was “virtually no competition” and that staff had verified the market review; MTA staff agreed to provide additional analysis for the Board’s files. The board voted unanimously (11–0) to adopt the resolutions modifying the contracts.

Next steps: MTA to submit the procurement analysis and documentation underlying the single-source decision to supervisors on request; the contract modifications proceed to allow replacement of lithium energy-storage systems in the existing propulsion systems.

Sources: May 12 Board of Supervisors meeting; statements by MTA staff, budget analyst and supervisors during items 10 and 11.