OPERATIONS COMMITTEE RECOMMENDATIONboardarchives.metro.net/Items/1995/04_April/items_g_0027.pdf · 2006. 6. 16. · Initiate procurement of seven (7) new Flender manufactured gearboxes

OPERATIONS COMMITTEE

RECOMMENDATION

The committee concurred with the staff recommendation to approve

a sole source contract for the Metro Blue Line to Flender

Corporation, Elgin, Illinois, covering:

E. purchase seven new gearbox assemblies, for a total cost

of $136,150; and.

F. repair 22 gearbox assemblies, for a total cost of

$173,646.

OPERATIONS COMMITTEE, APRIL 12, 1995

Los Angeles County

Metropolitan

Transportation

Authority

818 West Seventh Street

Suite 300

Los Angeles, CA 90017

213.623.1194

TO:

THROUGH:

FROM:

SUBJECT:

March 27, 1995

OPERATIONS COMMITTEE

FRANKLIL?yT~,~

t~E~TION 3-338GEARBOX ASSEMB0-LI9E2~RECOMMENDATION FORAWARD OF

RECOMMENDATION

Consider the Chief Executive Officer’s report containing the recommendation andauthorization to award a sole source contract to Flender Corporation, Elgin, Illinois,covering:

Purchase seven new gearbox assemblies, for a total cost of$136,150.00; and,

b. Repair of 22 gearbox assemblies, for a total cost of $173,646.00.

DBE PARTICIPATION

The DBE goal for this procurement .was established at 0 %.

IMPACT ON OPERATING BUDGET AND OBJECTIVES

None. This procurement is funded under Grant CA-98-9921.

Operations CommitteePage 2

BACKGROUND

A. Justification

The Light Rail Vehicle (LRV) propulsion system was designed with monomotor "truck." As such, there are four (4) gearboxes on each LRV fora total of 276 gearboxes in the Light Rail fleet. Additionally, there are eight(8) spare gearboxes in the storerooms, and eight (8) spare gearboxes on fullyassembled spare "trucks." LRV gearboxes transfer power from the tractionmotor to the wheels. Therefore, failed gearboxes require repair and/orreplacement.

Rail Operations has been tracking the gearbox failure rate. As of this report,there have been 62 known Blue Line gearbox failures, in addition to thecurrent reevaluation of all Green Line gearboxes. On the Metro Blue Line,the failures have primarily involved broken gears; while, the Green Line hasalready begun to show signs of metal shavings in the gear oil. Additionally,one Green Line gearbox has failed due to faulty bearings. There are warrantyissues currently under investigation. Furthermore, Operations is pursuingother potential remedies that may reduce the budget impacts of the rebuildrequirements.

The MTA has contracted with the OEM (Flender Corporation) to rebuildfailed gearboxes. In the past, Flender has been slow to complete the rebuiltunits; however, they have improved their production rate in recent months.Yet, projected production rates indicate that the contractor will be unable tomeet the MTA demand for rebuilt gearboxes. The graph below showsgearbox failures versus the vendor’s gearbox rebuild production rate:

GEARBOX FA I LURE v . RBBU I LD RATE


Based on projections, this procurement will equip Rail Operations withenough gearboxes to provide Light Rail service through mid-October, 1995.

Parallel with this procurement process, Rail Operations has been evaluatingalternative long-te~m strategies for the maintenance of failed gearboxes. Thisevaluation is necessary, given the inordinately high gearbox failure rates andthe apparent inability of Flender to fully supply the MTA’s gearbox demand.Rail Operations will return to the Board in the near future with the findingsof that strategic review.

B. Procurement Process

An analysis was performed in accordance with the Authority’s Policy andProcedures covering a non-competitive procurement. The following is a listof the detemdnations and findings:

Pursuant to FTA Guidelines and the Authority’s Rules andRegulations, a non-competitive procurement is authorized for goodsthat are only available from a single source.

A price analysis is being performed by the Intemal Audit Departmentto confirm that the pricing offered by Flender is fair and reasonable.

The gearbox assemblies are an integral part of the design of the LRV’sand are required to meet a specific perfom~ance criteria.

The gearbox was specially designed for the Light Rail Systems and isunique to the LACMTA.

The gearbox assemblies have specialized bearings which are availablefrom two sources worldwide. Both sources are located in Europe.

Each gearbox is custom made, matched and balanced to specificmanufactured dimensions, tolerances and materials.

Gearbox repair will be a continuing requirement through out the lifeof the rail systems.

Several gear repair manufacturers were contacted within the U.S. torepair and overhaul the Flender gearbox assemblies. Those companiescontacted were not capable or lacked proper equipment. There arecontinuing efforts to develop altemate sources.


The following companies were found to be technically capable butdeclined to participate for the following reasons:

Western Gear Corporation: - Declined because they were not willingto make the capital investment necessary to overhaul such a specializedgearbox.

Westinghouse Air Brake Corporation: - Declined because of aconflict of interest clause in one of their current licensing agreements.

Santa Clara County Transportation Agency: - Declined because ofthe legal restrictions, which does not allow repairing of other gearboxassemblies.

CONCLUSION

Based on staff’s evaluation, Flender Corporation is the only source that can providethe equipment and training necessary for the repair and maintenance of the Light RailGearboxes. Therefore, it is considered in the Authority’s best interest to proceedwith the recommendation.

Prepared by: Frank Barbagallo and Sherri Jackson

G. Ed VandeventerDirector,Rail Operations Department

Paul L. ~omoDirector, Procurement

INTEROFFICEMEMORANDUM

RAIL MAINTENANCE OPERATIONS

DATE: March 1, 1995

TO: Sherri Jackson, Procurement 5630

FROM: Bob Ogus, Rail Vehicle Maintenance 3623

SUBJECT: Requisition No. 3-3380-92

In regards to the above requisition we plan to do the following with the funds requested.

Initiate procurement of seven (7) new Flender manufactured gearboxes to act as "core" unitsfor our internal rebuild program.

Send out twenty-two (22) existing failed gearbox units at the Metro Blue Line MaintenanceShop to Flender repair facility for rebuild.

Balance of funds will be used to procure assembly and test stands/equipment as well asinitial inventory of materials for internal rebuild program.

Please contact me at 310-343-3804 if you require additional information or assistance.

cc:R. MortonC. Term

° REQUEST TO PURCHASE¯ /~ LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY

/7’ //2I OFFICE OF CONTRACTS, PROCUREMENT & MATERIEL

(~/,~/(213) 972-5028 ~.

"~¢J) ~_~-~-T~ ~---- ~~~--~ [~J/~./Order Placement Date

ACCOUNT NO. | A.F.E. NQ~. ~,~-J WORK ORDER/MODE | GRANT NO.

Supplier: Flender Corooration950 Tollqate Road

Elgin. IL 60123

PH(708) 931-1990FAX (708) 931-0711

BUYER/CA I )

ii~9 User Order Date 11-12-93

Please Ship To: ~CEr--]470 Bauchet Street .I I Los Angeles, CA 900~Z~V 2 9 I,~93

D 4350 S. 208thLong Beach, CA 90810

IPayment Terms ISHIP Via: F.O.B. User Required Date VendorCommitment DeliveryQuantity Description/PartNumber OnlyorderoneclassofMateriel on a Requisition PRICE

50 Gearbox (LRV) $15,000

Part No. A910700344

Estimated total cost$750.000.

(SEE WORK ORDER ATTACHED).

UNIT

ea.

EXTENSION

Placed By; [’7 Telephone [] Fax [] Mail With

STrA.~E SALES TAX APPLICABLE 17REMARKS: Fo~ Blue Line .Light Rail Vehicles i ~ ~ TECH]~ICA~,,I/NS~ECTION REQUIRED [-’]

-,/ . 2~ ’ uCr U-/ --.. , .... ,,

Originato/~~ Ext. -5806Date Depjt~/~e -a~d ~~ Date//__.~__~92

~. Morton Date

K~n ~./Miller

SOLE SOURCE JUSTIFICATION

Gearboxes P.N. A910700344 for Blue Line Light Rail Vehicles

Req. No. 3-3380-92

Estimated Cost: $750,000

The 54 light rail vehicles in revenue service on the Metro BlueLine were designed and built to meet specific performancecriteria as specified in LACTC Contract No. P865.

The gearbox designed and built by Flender Corporation is part ofthe integral design of these rail vehicles required to meet thatperformance criteria. There are four gearboxes on each railvehicle. The gearboxes are press mounted onto the axles andfastened with a unique flexible coupling to the electricaltraction motor. The torque of the gearbox is based on thehorsepower of the traction motor and designed solely for use onthe MBL light rail vehicles. Mounting arrangements and bearingsare also specifically designed for assembly to the axles.

Accordingly, it is recommended that a sole source procurement beauthorized for purchase of gearboxes from Flender Corporation.

If you need any additional information, please do not hesitate tocontact Mr. Paul Berkley at extension 2-5918.

LOS ANGELES COUNTY METROPOLITANTRANSPORTATION AUTHORITY

PURCHASE REQUISITION JUSTIFICATION FORM

A. Requestor Ken E. Miller

B. Requisition No. 3-3380-92

C.

Phone No. 213-972-5800

Date 11-12-93

Was item included in Department’s approved budget?Not projected, unforeseen problem.

D. Justification:

See attached SOLE SOURCE JUSTIFICATION

E. Basis of cost estimate:

Quote from OCPM research

F. Suggested sources of supply:

Flender Corporation950 Tollgate RoadElgin, IL 60123

Phone: (708) 931-1990 FAX: (708) 931-0711

G. Disposition of equipment being replaced. Recycled into spare pool after rebuilt orcondemned.

H. Documents attached which are applicable to this procurement.

Subcontracting form OCPM-19SOLE SOURCE JUSTIFIC[A~P4QN /

Requesto r’s Sign atu re /~"/~~.£~./-~

- Ken E. Mille~/ 11-12-93

LOS ANGELES COUNTY METROPOLITANTRANSPORTATION AUTHORITY

SUBCONTRACTING PLANNING FORM

SUMMARY OF GOODS OR SERVICES, SCOPE OF WORK, AND ESTIMATED VALUE.

Fifty each gearboxes for Blue Line Light Rail Vehicles at an estimated cost of $750,000.These gearboxes will replace those in service that are failing at an accelerated rate. Ifthese boxes are not procured, Blue Line service could be seriously impaired before theend of FY-94.

OPPORTUNITY FOR SUBCONTRACTING? YES NO XIF YES, LIST ELIGIBLE TASKS OR ELEMENTS AND ESTIMATED VALUE.

IF NO, EXPLAIN.

This is a SOLE SOURCE PROCUREMENT, SEE ADDITIONAL JUSTIFICATION ATTACHED.

LIST OF POTENTIAL SOURCES, IDENTIFY AS PRIME (P), SUB (S), OR SUPPLIER (SP), ADDITIONAL PAGES AS NECESSARY.

INTEROFFICEMEMORANDUM

Harch 7, 1994

TO:

~ROM:

SUBJECT:

DISTRIBUTION

DENNIS NEWJ~t@TM

REVISED AFE 228XX (CA-98-9921) BLUE LINE LOCALLY-FUNDEDCAPITAL PROJECTS ~Y 1994

AFE nnmher 228XX was revised to include the following:

o Add line -05 ($800,000) for the purchase of Blue Linerail vehicles parts (see attached PO# 3-3380-92).

Add line -98 ($345,000), funded with RCC Work OrderAuthorization CN-93-0004, for the construction of a noisebarrier at Bixby Knolls. This line item increases thebottom line by $345,000.

If you have any comments or questions please call me on extension46463.

Attachments

Distribution:Rene FeriaRich Morton"~Andi WangEd Walsh

LOS ANGELES CCU~IT/ NETROPOL]TAN TRANSP~:TATION AUTHORITY Origin~[ Oat:e: I0/01/9~AUTHORIZATION FO~ EXPENDI]URE Rev. Oaten: 12/13/73

NO. 228

PROJECT DE$CR |PT|(~

BLUE LINE LOCALLY-FURDED CAPITAL PROJECTS

APPROVED FY 199~ BUDGET

CA-98-9921

II~CLLOES RCC T~JO#CRo93-O00~ AFE 98

PROJECTCOST ESTIMATE AND ~I,I~L¥SIS

I I

ITEH I DESCR IPTIOI~ DEPT J ~T~CT ~ TOTAL

01 T~LS A~D E~PHE~T-EL 3300~ 2~.000 200~

O~ H]SCELL~E~S ]~R~E~TS-BL 9200 ~,000 ~00,000

...... I ...................................................................... I ........................................~ . . ~HICLE$ P~TS - BL ~00 ~ ~0~

~ . . BL-BIXBY ~ RO~ B~RIER RCC-~-93-~ 9200

J ~ . . ~T[NGENCY ~000

I II ...... I .................................................................................................................

I II ................................................................................................................

I II ...... I ...................................................... I ................................. I .......................I II ...... I .................. ~ .................................................................... l .................. ~---I II ...... I ........................................................................................ I .......................I II ...... I ........................................................................................ i .......................I I II ...... I ........................................................................................ I .......................

A~rov~ By:

(Pr~ By ~a~ge;o~tt~[ ~r=ts Prof,) (~ief F~ial Officer)

D~is N~j~r Terw Hats~to

(APPENDIX II)

July 141 1993

SOLE SOURCE JUSTIFICATION

FLENDER GEAR BOX ,, METRO BLUE LINE (MBL)VEHICLE FLEET OVERHAUL

Several gear repair/gear manufacturing companies were contacted within thecontinental U.S. to solicit proposals to repair and overhaul the Flender gear setspresently employed in the MBL vehicle. All companies contacted declined, as theyindicated they were not technically capable or lacked the proper equipment toadequately repair the entire fleet. Two companies that were technically capable alsodeclined and are summarized below.

WESTERN GEAR CORPORATION -- (Mr. T. Mathewson)

They would be capable to do this repair, but declined because they arenot willing to make the capital investment required to overhaul such aspecialized gear box. Therefore, they declined to submit a bid.

WABCO -- (Mr. J. Sodosky)

This company is capable to repair the gear boxe.s and has the trainedpersonnel and proper equipment. However, due to alicensing agreementwith BSI (who is Flender’s main competitor in this market worldwide),they declined to submit a proposal due to a conflict of interest clause intheir licensing agreement.

The OEM Flender gear box is a specialized gear application where each gear box ismanufactured to tight dimensional, material and heat treatment tolerances.Furthermore, each gear set is custom made, matched and balanced. Each gear boxis then tested at 100% of design load. This gear box also employs specializedbearings only available through one manufacturer worldwide.

An added advantage of using Flender to repair this gear box is that the LACMTA willreceive a "state-of-the-art" gear box replacing the OEM gear box from the mid-1980s.Since there have been significant improvements in gear box technology by Flender,this will come as a no-cost bonus to the LACMTA.

In summary, due to the complex nature of the OEM gear box presently used on theMBLvehicle fleet and lack of qualified alternate repair vendors, a sole source purchaserequisition is requested.

MINTEROFFICE

MEMO,

SURFACE AND SUBWAY OPERATIONS

DATE :

TO :

FROM :

November 12, 1993

Arthur T.

Ken E. Miller~

SUBJECT: Metro Blue Line Gearbox Program

8J8 Wes~ Seven~ StreezSuite

Los Angeles, CA 9oo[7

Since the beginning of revenue service on the Metro BlueLine, we have experienced 26 drive gearbox failures. Thefirst failure was identified on June 14, 1991 and themost recent on October 30, 1993. The major cause forthese failures is fatigue due to overloading forces onthe ring gear causing at least one of the gear teeth tofracture. Routinely, this problem is identified one oftwo ways: i) operator reports that a noise is noted inthe gearbox during line operation or 2) discovered duringa routine 5,000 mile inspection (visual inspection of themagnetic gearbox plug, broken teeth and metal attached tothe plug).

The gearbox used on the Blue Line Light Rail Vehicle(LRV) is manufactured in Ge~,any by the Fiender

Corporation and is one of a kind. This is compounded bythe fact that the MTA-LRVs are equipped with a mono-motortruck. This means that there is one electrical motordriving two gearboxes on what is referred to as the powertrucks. This design is not the most favorable for ourBlue Line application. Dual motors, such as we have onthe Red Line cars, each driving a single gearbox andaxle, appear to achieve the greatest longevity throughoutthe industry.

During the warranty period, the Blue Line LRVsexperienced three gearbox failures. These boxes wererepaired by the manufacturer at no cost to the MTA.Since the warranty period expired, we have experienced anadditional 23 failures at an approximate cost of$184,000, which will be a cost to the MTA. This is basedon the cost of a rebuilt gearbox ($8,000) and does notinclude labor or other associated costs required toreplace the boxes. The gearbox manufacturer (Flender),the truck builder (ABB), the car builder (Nippon-Sharyo),and the prime contractor (Sumitomo) will not acknowledgeany responsibility or liability for warranty/repaircosts.

All companies/corporations involved in the Blue Line LRVprocurement/manufacture have washed their hands of the~esponsibility for this serious and costly problem.

Arthur T. Leahy -2- November 12, 1993

MTA operation staff in concert with RCC have met with our Legaland Risk Management staff members in an attempt to mitigate theloss. These efforts are ongoing and nothing has been revolved.

A viable and timely repair program must be implemented and fundsmade available to mitigate this problem immediately or the BlueLine service will be seriously jeopardized. Given the currentrate of failure, we could start canceling service before the endof FY-94. In addition, adequate number of Blue Line LRVs willnot be available to test the Green Line.

Green Line cars are scheduled to begin arrival at the Hawthorneshop for assembly and testing in May of 1994. The Green Linecars, also under contract with Sumitomo will be driven with thesame Flender gearbox as the Blue Line cars. We are told,however, that these boxes will be more reliable and includeseveral product improvements made by the manufacturer. The RCCis managing this procurement with the assistance of LTK. Thisfirm (LTK) also was responsible for oversight of the Blue Lineprocurement contract.

The Operation’s staff has considered three approaches to addressthe gearbox failure repair/replacement program.

a. Turnkey Repair Proqr~

This approach will cost an estimated $4.2 million or$79 thousand per vehicle (off MTA property) turnaroundtime is estimated at 12 weeks per vehicle. This wouldrequire each truck assembly to be sent to Carnegie,Pennsylvania, repaired in concert with Flender andreturned to Long Beach yard and purchase of additionalspare trucks for "float."

Do Manaqe d Repair Proqr~ (Currently employed)The current program has been to remove the truck with abad order gearbox from the LRV at the Blue Line shop inLong Beach. The truck is then disassembled, the axlesremoved and the axle assemblies shipped to Riverside tohave the wheels and brake rotors pressed off. This isnecessary to remove the gearbox from the ax/es.Following this operation, all components are returnedto Long Beach. From Long Beach, the defective gearboxis shipped to Elgin, Illinois where it takes,routinely, 16 weeks for repair and return. Uponreceipt of the rebuilt gearbox, the above actions arereversed. This program is estimated to cost $3.1million or $58 thousand per vehicle to complete thefleet of 54 cars.

Arthur T. Leahy -3- November 12, 1993

The current program is very costly, time consuming andlabor intensive. The time these major components spendin transit to and from vendors obviously adverselyaffects the return to service time and increases thecost. However, at this point, it is necessary pendingdevelopment of option c.

Co On-sight Repair Proqram (Most effective andexpeditious)

While continuing option b above, initiate an in-houseprogram with the assistance of the gearbox manufacturerutilizing the facilities at the Blue and Red Line shopsand MTA labor. Estimated cost for this program is $3.3million or $62 thousand per car. Estimated turnaroundtime per vehicle with this program is three weeks.This option requires the least amount of float, otherstock and transportation.

A major consideration at this point is that the predicted failurerate of the remaining gearboxes (190) will far exceed the MTAsand vendors capability to repair under the current concept(Option B). Certain components within the gearbox, such as, the

bearing, is only manufactured one time per year in Germany.

Staff is recommending that we immediately begin procurement andreallocations of funds as necessary for an estimated $4 millionand proceed to contract with the Flender Corporation to establisha gearbox repair shop at our Red Line facility where adequatespace is available. This would require we and Flender to provideand install certain equipment necessary to accomplish the task.The Red Line shop would require an additional four full timemechanics, and the Blue Line three. We envision Flender and ourmechanics working side-by-side for at least one year. Flendertraining MTA personnel on the rebuild and test procedures and atthe end of one year, Flender would pull out and leave allequipment and tools. From that point, MTA would be selfsustaining. Negotiations have not been formalized with theFlender Corporation as of this date.

Gearbox repair will be a continuing requirement throughout thelife of all our rail systems. It would not be prudent or costeffective to be dependent on outside support for the entireperiod.

In addition, we should act at once to purchase at least 50 newgearboxes at an estimated cost of $750,000. These will be neededfor rapid change out of defective boxes and to replace boxes thatare sure to be found beyond repair once they are disassembled.The lead time for new gearboxes is nine months.

Please refer to Gearbox Overhaul Program and Cost Estimatesattached. We need to discuss this important issue with you atyour earl~st convenience.

cc: L. R. Davis, A. P. Chavira, Jr., File

November 3, 1993

METRO BLUE LINE

GEARBOX OVERHAUL PROGRAM

Prepared by Operations Department - Rail Engineering/MaintenanceContacts: L.R. Davis (Ext. 25700) or Ken Miller (Ext. 2-5800)

METRO BLUE LINE GEARBOX OVERHAUL

INTRODUCTION

An extremely urgent situation currently exists at the Metro Blue Line (MBL) which can,if no action is taken, severely jeopardize revenue service. Since the start of revenueservice to October 1993, over 10% of the MBL fleet gearboxes have failed.Furthermore, the frequency of failure is expected to increase, and continued revenueservice will be impossible unless a fleet overhaul campaign is launched immediately.The situation at the MBL may even impact Metro Green Line (MGL) start-up.

Equipment Maintenance has, to date, endeavored to rectify the situation with limitedmanpower and funds and, consequently, only short-term solutions have been applied.It is clear that a complete fleet overhaul is necessary, with associated approval offunds to continue revenue service operations on the MBL. The present failurefrequency, if extrapolated, leaves no doubt that the gearbox overhaul program mustbe implemented immediately.

A summary of three options is presented below, with details in the body of the report.

A)

B}

C)

Turnkey Program

This program would entail a total cost of $4,260,000 or $78,900 per vehicle,with a turnaround time estimated at 16 weeks per vehicle.

Managed Program

The managed program would have a total estimated cost of $3,130,000 or$58,000 per vehicle. Turnaround time is estimated at four weeks per vehicle.

On-site Repair Program

A repair campaign utilizing Metro Red Line (MRL) and MBL facilities would cost$3,330,000 or $61,700 per vehicle, with an estimated turnaround time ofthree weeks per vehicle.

Further details are available in the body of the report.

METRO BLUE LINE GEARBOX OVERHAUL PROGRAM

J----HISTORYSince the commencement of revenue service of the MBL light rail vehicle fleet, MTAMaintenance staff have had serious concerns with respect to the gearboxmanufactured by Flender, Inc. for ABB, the supplier of the propulsion system toNippon-Sharyo, the car builder on the P865 Contract.

Initial Problems consisting of leaking labyrinth seals were determined to be minorfailures and costs were covered by Flender. During the warranty period, three (3)gearbox failures consisting of broken teeth, high speed couplings and bearing retainingpins, unrelated to initial problems, were also covered by Flender. Presently, 26gearboxes have been removed from service mainly due to broken teeth on the ringgear. Failures first occurred on vehicles with mileage as low as 47,000. All teethfailures are due to fatigue with overload conditions a contributing factor. Two failureanalyses have been conducted by the manufacturer (Flender) and the root cause these failures has yet to be determined. However, it is clear from the frequency rateof these failures that more failures can be expected and it is predicted that the entirefleet will require gearbox replacement within the next 1 to 2 years.

Therefore, it is imperative that a rebuild program commence immediately; otherwise,revenue service will be severely impacted and it is conceivable that the entire linecould cease operations if action is not taken now. The obviously could severelyimpact the MGL start-up operations, as well as the excellent reputation that the MBLhas earned in the last three years of revenue service. This envious record is now injeopardy.

A secondary issue is that for consistency between the MGL and the MBL trackconfiguration and thus interchangeability of vehicles, the back-to-back dimension mustbe the same specification. Presently, this is not the case, as MBL vehicles are to "awide gauge" and MGL vehicles have been ordered to "a standard AAR gauge." It isalso prudent to "re-true" wheels at the time gearboxes are replaced so that essentiallywe are starting with a new mechanical drivetrain.

A) WORK TO DATE

Presently, Equipment Maintenance has in process on a repair campaign a total ofseven gearboxes for repair and an additional three which are to be repaired under thewarranty provisions of the P865 Contract. All gearbox repairs are being conductedat the Flender facility located in Elgin, Illinoiso To date, the ave.rage turnaround forgearbox repair has been 16 weeks. This is expected to improve significantly if andwhen Flender opens an additional repair facility located in Bakersfield, California.Additional work orders are in progress to continue this work to support revenueservice. Considerable effort in scheduling and manpower allocation has takan placeto ensure the integrity of the MBL fleet and to maintain revenue service.

MBL Gearbox Overhaul Program -2- November 3, 1993

In summary, an accelerated program for gearbox overhaul must be planned andimplemented immediately; otherwise, we face the consequence of seriously impactingrevenue service on the MBL as ear/y as the Spring of 1994.

B) RECOMMENDATION TO TRY ALTERNATE GEARBOX

Due to the poor performance of the Render gearbox and uncertainty of its longevityon the "new and improved" model, it is recommended that the MTA dialogue withother gearbox manufacturers such as Hurth and BSI for trial evaluation at the MBL.Procurement of 10 gearboxes is recommended for 2 trial vehicles and 2 sparegearboxes. Costs for this test would have to be worked out with Hurth and/or BSI.

A) REBUILD PROGRAM

Since this is an extensive overhaul program and expenditures are estimated at wellover $3 million mark, several options are available to the MTA to expedite thisprogram.

(a) Turnkey Program(b) Managed Program(c) On-site Repair

Turnkey Program -- This option, the most expensive, would basically consistof procuring a float of spare trucks and the entire trucks would be shipped andoverhaul performed on identified components and returned to the MTA forinstallation onto the vehicles. MTA involvement would consist of:

1)2)3}

Removal and replacement of trucks;Quality Assurance; andContract Administration.

The cost for this option is estimated at $78,900 per vehicle, with a programcost of $4,260,000. The turnaround time is estimated at 12 weeks. (Detailsare given in Appendix I.)

Managed Program -- The second option would be to manage the program withMTA staff and subcontract work at various locations as described later. Thisprogram would be expected to be less costly than the turnkey program butwould require more MTA resources and would be more difficult to schedule

MBL Gearbox Overf’.eul Program -3- November 3, 1993

since work would be conducted at multiple vendors at different locations.

The cost for this program is estimated at $58,000 per vehicle, with a programcost of $3,130,000. The turnaround time is estimated at 16 weeks. (Detailsare provided in Appendix

c) On-site Repair -- All work would be conducted on-site with outside and in-house labor and equipment as needed. Presently, the MTA does not have therequired labor and expertise to carry out this plan, but it is possible if budgetsand resources were allocated. Also, this approach will require the concurrenceof the Amalgamated Transit Union.

The cost for this option is estimated at $61,700 per vehicle, with a programcost of $3,330,000. The turnaround time is estimated at 3 weeks. (Detaits’are provided in Appendix I.)

Option A is recommended initially and within one year phase in Option Co Training togain the expertise necessary would be provided by the vendor chosen in Option A.

Option C is our long term goal for the following reasons:

Shorter turnaround timesBetter control of quality and project scheduling

¯ Gain valuable experience for future work¯ Major cost reduction

B) REBUILDING OF GEARBOXES

It is recommended that the present gearbox be rebuilt to the latest design that will beprovided on the MGL 15-car order (Contract P2020). A quote from Flender attached in Appendix II and sole source justification is shown in Appendix III.Additionally, due to the poor experience we have had with the original equipmentmanufacturer (OEM) gearbox, the MTA should consider purchasing an extendedwarranty.

MBL Gearbox Oved~aul Program -4- Novembe~ 3, 1993

An extremely urgent situation with gearbox failures presently exists at the MBL.Immediate planning and allocation of funds to overhaul and retrofit the MBL fleet mustbe ptaced in order to maintain revenue service.

A coordinated effort between Procurement, Maintenance and Engineering to plan,schedule and implement this overhaul is required to maintain revenue service on theMBL.

|GEARBOX.MBL] 10/20/93


1)

OPTION A: TURNKEY PROGRAM

Gearbox overhaul - sole source (seeAppendices II and III)

(APPENDIX I)

FLEET COST

$ 2,290,0OO

2) Purchase of spare trucks for float:

2 power trucks @ $320,000 each¯ 1 center truck @ $150,000 each

640,000150,000

3) Press work, including labor for dismantlingtrucks, R/R gearbox, back-to-back modifications,and re-machining of wheels (including spares):

222 drive axles @ $2000 each110 idler axles @ $1318 each

444,000144,980

4) Shipping charges:

¯ 166 trucks @ $1995 each 331,170

5) QA & Engineering Support ,~ 1 man-year

SUBTOTAL:

Contingency @ 5%

GRAND TOTAL for fleet (to the nearest $10,000)

Cost per vehicle (to the nearest $100}78,900

Turnaround time of 12 weeks

60,000

4,060,150

203,008

MBL Gearbox Overhaul Program Novemb~ 3, 1993

OPTION B: MANAGED PROGRAM

1) Gearbox overhaul - sole source (seeAppendices II and III)

2) Dismantling of trucks including remove/replace:

¯ 111 power trucks @ $1848 each¯ 55 center trucks @ $1386 each


¯ 332 axles @ $106 each

4) Quality Assurance and Engineering Support:

¯ 20 hrs./week each = 1 man-yeartimes 4 years to complete @ $60,000/yr.

SUBTOTAL:

Contingency @ 10%


Cost per vehicle (to the nearest $100)58,000

Turnaround time of 4 weeks

,FLEET COST

$ 2,290,000

205,12876,230

35,192

240,000

2,846,550

284,655

$ 3 130000


OPTION C: IN-HOUSE REPAIR PROGRAM

1) Gearbox overhaul - sole source (seeAppendices II and III)

Dismantling of trucks including remove/replace:

111 power trucks @ $1848 each¯ 55 center trucks @ $1386 each

3) Press Work @ MRL:

¯ 222 drive axles @ $924 each¯ 110 idler axles @ $481 each


¯ 166 trucks @ $60 each

5) Manpower @ MRL:

¯ 153 man-hours per vehicle x 54 vehiclesx $40/hour

SUBTOTAL:

Contingency @ 5%


Cost per vehicle (to the nearest $100)61,700

Turnaround time of 3 weeks per vehicle

FLEET COST

$ 2,290,000

205,12876,230

205,12852,910

9,960

330,480

3,169,836

158,492

$ 3 330 000