Standard Bus Procurement Guidelines - APTAStandards.com
Standard Bus Procurement Guidelines - APTAStandards.com Standard Bus Procurement Guidelines - APTAStandards.com
Standard Bus Procurement Guidelines APPENDIX A: GUIDELINES FOR CALCULATING LIQUIDATED DAMAGES AND ANY INCENTIVES CALCULATION OF LIQUIDATED DAMAGES: Prior to its solicitation, the Procuring Agency should document and file for the record its derivation of the amount of liquidated damage that is entered in Clause 2.13. The following identifies suggested areas for consideration, but not limited to, by which a Procuring Agency may be damaged if buses are not delivered as contracted. For determining amounts for liquidated damages the following guidance is provided. I. The liquidated damage amount must not be punitive but shall be based upon damages that the Procuring Agency would incur as a result of the delay. II. The liquidated damage amount must be calculated on the basis of damages that the Procuring Agency would incur and substantiated by experience data. III. A definition of days and any exempted days for delay should be included. A. Cost to Retain Old Fleet If the purpose of the procurement is to replace older buses that are being retired there can be two areas of damage which are additive: (1) extra cost of maintenance and (2) cost of purchasing or renting some additional buses to meet fleet availability requirements. 1. Extra Cost of Maintenance. The difference in maintenance costs, old buses minus new ones, is a realistic damage, assuming that older buses will be continued in service for the duration and not replaced with alternative leased buses. 2. Cost to Obtain Additional Buses to Meet Fleet Availability. Reliability of the older buses is not expected to be as good as for new ones and they can be expected to be out of service for maintenance/repair for longer periods than new ones. Therefore, additional buses may be needed to assure that required service on routes is met. B. Cost to Obtain Alternative Fleet The damage may be attributed to requirements to obtain alternative fleet for the duration of the delay. Such may be precipitated because a sales agreement on the old buses being replaced is expected to have been executed prior to the Contract delivery date for new buses or because the new buses are needed for new or expanded services. 1. Replace Old Buses Being Sold. This approach is an alternative to the cost of retaining the old fleet of (A) above. It is suggested that the liquidated damage be the lower of this alternative and that of (A). General Contractual Provisions 92 10/18/07
Standard Bus Procurement Guidelines 2. To Meet Requirements for New or Expanded Service . Under this approach the liquidated damage would simply be the daily costs of the alternative fleet as calculated above. C. Increased Contract Administrative Costs Delays in delivery will increase the period that the Contract must be administered and possibly increase the effort or waste effort of either in-house staff or consultants for inplant inspection and to assist taking delivery and acceptance. 1. Increased Contract Period. The amount of the damage can be calculated as the average daily cost of Contract administration, apart from any technical services. 2. Increased Technical Services. Technical services for in-plant inspection and to assist in taking delivery and acceptance will have been budgeted consistent with the Contract schedule. The extra budget for these services could be determined as a daily rate. D. Fines Damages may include fines for which a court has already imposed or can be expected to be imposed on the Procuring Authority not meeting required emission (noise or air quality) reductions or features mandated by Americans with Disabilities Act. Include this element only if the Procuring Agency can prove its vulnerability for such fines and a purpose of the procurement is to comply with such laws or ordinances. E. Fuel Consumption If the new buses are expected to consume less fuel per passenger capacity, then the difference in fuel consumption costs per day may be included. CALCULATION OF INCENTIVES FOR EARLY DELIVERY Any provision of incentive payments for early delivery should be made on the basis of savings which may be reasonably expected to accrue to the Procuring Agency. Prior to its solicitation, the Procuring Agency should document and file for the record its derivation of the amount of any incentive that would be entered in the Option provided in Clause 2.13. It is suggested that any savings be shared between the Contractor and the Procuring Agency, on some predetermined ratio basis, not exceeding an amount approximately that of the anticipated profit under the Contract. The following provides suggested areas in which a Procuring Agency may accrue savings for early delivery. A. Savings to Retire Old Fleet Early If the purpose of the procurement is to replace older buses that are being retired there can be savings in maintenance costs. The difference in maintenance costs, old buses minus new ones, could be a savings if the old fleet can be retired early. B. Decreased Contract Administrative Costs Early delivery can decrease the period that the Contract must be administered. The amount of savings can be calculated as the average daily cost of Contract administration, apart for any technical services. General Contractual Provisions 93 10/18/07
- Page 54 and 55: Standard Bus Procurement Guidelines
- Page 56 and 57: Standard Bus Procurement Guidelines
- Page 58 and 59: Standard Bus Procurement Guidelines
- Page 60 and 61: Standard Bus Procurement Guidelines
- Page 62 and 63: Standard Bus Procurement Guidelines
- Page 64 and 65: Standard Bus Procurement Guidelines
- Page 66 and 67: Standard Bus Procurement Guidelines
- Page 68 and 69: Standard Bus Procurement Guidelines
- Page 70 and 71: Standard Bus Procurement Guidelines
- Page 72 and 73: Standard Bus Procurement Guidelines
- Page 74 and 75: Standard Bus Procurement Guidelines
- Page 76 and 77: Standard Bus Procurement Guidelines
- Page 78 and 79: Standard Bus Procurement Guidelines
- Page 80 and 81: Standard Bus Procurement Guidelines
- Page 82 and 83: Standard Bus Procurement Guidelines
- Page 84 and 85: Standard Bus Procurement Guidelines
- Page 86 and 87: Standard Bus Procurement Guidelines
- Page 88 and 89: Standard Bus Procurement Guidelines
- Page 90 and 91: Standard Bus Procurement Guidelines
- Page 92 and 93: Standard Bus Procurement Guidelines
- Page 94 and 95: Standard Bus Procurement Guidelines
- Page 96 and 97: Standard Bus Procurement Guidelines
- Page 98 and 99: Standard Bus Procurement Guidelines
- Page 100 and 101: Standard Bus Procurement Guidelines
- Page 102 and 103: Standard Bus Procurement Guidelines
- Page 106 and 107: Standard Bus Procurement Guidelines
- Page 108 and 109: Standard Bus Procurement Guidelines
- Page 110 and 111: Standard Bus Procurement Guidelines
- Page 112 and 113: Standard Bus Procurement Guidelines
- Page 114 and 115: Standard Bus Procurement Guidelines
- Page 116 and 117: Standard Bus Procurement Guidelines
- Page 118 and 119: 1. 2. 3. 4. 5. 6. 7. 8. Standard Bu
- Page 120 and 121: 1. 2. Standard Bus Procurement Guid
- Page 122 and 123: Standard Bus Procurement Guidelines
- Page 124 and 125: Standard Bus Procurement Guidelines
- Page 126 and 127: Standard Bus Procurement Guidelines
- Page 129 and 130: Standard Bus Procurement Guidelines
- Page 131 and 132: Standard Bus Procurement Guidelines
- Page 133 and 134: Standard Bus Procurement Guidelines
- Page 135 and 136: Standard Bus Procurement Guidelines
- Page 137 and 138: Standard Bus Procurement Guidelines
- Page 139 and 140: Standard Bus Procurement Guidelines
- Page 141 and 142: Standard Bus Procurement Guidelines
- Page 143 and 144: Standard Bus Procurement Guidelines
- Page 145 and 146: Standard Bus Procurement Guidelines
- Page 147 and 148: Standard Bus Procurement Guidelines
- Page 149 and 150: Standard Bus Procurement Guidelines
- Page 151 and 152: Standard Bus Procurement Guidelines
- Page 153 and 154: Standard Bus Procurement Guidelines
<strong>Standard</strong> <strong>Bus</strong> <strong>Procurement</strong> <strong>Guidelines</strong><br />
2. To Meet Requirements for New or Expanded Service . Under this approach<br />
the liquidated damage would simply be the daily costs of the alternative fleet as<br />
calculated above.<br />
C. Increased Contract Administrative Costs<br />
Delays in delivery will increase the period that the Contract must be administered and<br />
possibly increase the effort or waste effort of either in-house staff or consultants for inplant<br />
inspection and to assist taking delivery and acceptance.<br />
1. Increased Contract Period. The amount of the damage can be calculated as<br />
the average daily cost of Contract administration, apart from any technical services.<br />
2. Increased Technical Services. Technical services for in-plant inspection and<br />
to assist in taking delivery and acceptance will have been budgeted consistent with<br />
the Contract schedule. The extra budget for these services could be determined as a<br />
daily rate.<br />
D. Fines<br />
Damages may include fines for which a court has already imposed or can be expected to<br />
be imposed on the Procuring Authority not meeting required emission (noise or air<br />
quality) reductions or features mandated by Americans with Disabilities Act. Include<br />
this element only if the Procuring Agency can prove its vulnerability for such fines and a<br />
purpose of the procurement is to <strong>com</strong>ply with such laws or ordinances.<br />
E. Fuel Consumption<br />
If the new buses are expected to consume less fuel per passenger capacity, then the<br />
difference in fuel consumption costs per day may be included.<br />
CALCULATION OF INCENTIVES FOR EARLY DELIVERY<br />
Any provision of incentive payments for early delivery should be made on the basis of savings which<br />
may be reasonably expected to accrue to the Procuring Agency. Prior to its solicitation, the<br />
Procuring Agency should document and file for the record its derivation of the amount of any<br />
incentive that would be entered in the Option provided in Clause 2.13. It is suggested that any<br />
savings be shared between the Contractor and the Procuring Agency, on some predetermined ratio<br />
basis, not exceeding an amount approximately that of the anticipated profit under the Contract. The<br />
following provides suggested areas in which a Procuring Agency may accrue savings for early<br />
delivery.<br />
A. Savings to Retire Old Fleet Early<br />
If the purpose of the procurement is to replace older buses that are being retired there<br />
can be savings in maintenance costs. The difference in maintenance costs, old buses<br />
minus new ones, could be a savings if the old fleet can be retired early.<br />
B. Decreased Contract Administrative Costs<br />
Early delivery can decrease the period that the Contract must be administered. The<br />
amount of savings can be calculated as the average daily cost of Contract<br />
administration, apart for any technical services.<br />
General Contractual Provisions 93 10/18/07
Change language