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Committee backs SFO contract with Gillig LLC for up to 50 electric buses
Summary
The committee recommended Board approval of a contract to buy up to 50 Class 8 electric transit buses for San Francisco International Airport from Gillig LLC, NTE $68,772,334 over four years; the BLA recommended approval but flagged fewer contract protections than another recent procurement.
The Budget & Finance Committee advanced a resolution Oct. 23 to approve a contract between the city (Office of Contract Administration) and Gillig LLC for up to 50 Class 8, 40-foot electric transit buses for San Francisco International Airport, with a not-to-exceed (NTE) amount of $68,772,334 and a term from Dec. 1, 2024 through Nov. 30, 2028.
Maria Seo, principal administrative analyst at the Office of Contract Administration, said the contract (PeopleSoft ID 1000034037) resulted from an invitations-for-bid process and that Gillig was the lowest responsive bidder after one other bid was deemed nonresponsive. Seo described the pricing structure: an initial unit price of $1,136,799 per bus, annual price adjustments tied to the producer price index beginning June 17, 2025, and a 2% contingency for city-required changes; OCA estimated the per-unit cost over the contract term would range roughly $1.26M'$1.42M, accounting for PPI increases, contingency and taxes.
Nick Menard of the Budget and Legislative Analyst's Office recommended approval while noting the contract contains "fewer protections" than a recent MTA contract (no performance bond requirement and lighter insurance requirements), though liquidated damages provisions are similar. Menard said the estimated cost per bus is about 7.8% lower than the airport's independent estimate.
Committee members questioned the grant strategy to cover purchases; SFO staff (unidentified in the transcript) said a majority of first-year purchases were covered by grant funding and that the airport will apply annually for grant funding to support up to 75% of each additional bus. The committee advanced the item to the full Board with a positive recommendation.
Action: Committee moved the resolution to the full Board with recommendation; recorded committee votes: Vice Chair Mendelmann: Aye; Chair Chan: Aye; motion passed without objection (member Milgar excused).
