procurement
Vehicle Procurement for FTA 5310 Grant Program (Elderly and Disabled)
States (in this case, Hawaii via its HDOT STPO) and their subrecipients must comply with the applicable FTA Circulars for the Section 5310, Section 5311, and Section 5339 programs. The following federal procurement requirements are highlighted:
- State procurement practices must, at a minimum, comply with the following:
Section 5310: For rolling stock, a five-year limitation on contract period of performance
- Subrecipients that are Governmental Authorities. Subrecipients of states that are governmental authorities such as local or Indian tribal governments must comply with the same federal requirements governing state procurements. States are responsible for ensuring that subrecipients are aware of and comply with federal requirements.
- Subrecipients that are Private Nonprofit Organizations. Subrecipients that are private nonprofit organizations must comply with FTA procurement requirements contained in the current FTA Circular 4220.1F, “Third Party Contracting Guidance,” March 18, 2013. States and designated recipients are responsible for ensuring that private nonprofit subrecipients are aware of and comply with these additional requirements.
- Designated Recipients that are Not States/Subrecipients that are Private, For-Profit Organizations.
Other recipients and their subrecipients must comply with FTA procurement requirements at 2 CFR Part 200[1] and guidance contained in the current FTA Circular 4220.1F “Third Party Contracting Guidance.”
Subrecipients that are private for-profit organizations must comply with FTA procurement requirements contained in the current FTA Circular for Third Party Contracting Guidance for procurements conducted with federal funds. States (e.g., HDOT STPO) are responsible for ensuring that private for-profit subrecipients are aware of and comply with these additional requirements.
If the State is procuring on behalf of the subrecipient, it must provide its share of the cost of the item to be procured prior to procurement. If the subrecipient is procuring on its own behalf, the subrecipient must pay 100 percent of the item before seeking reimbursement. Upon delivery of the procured item(s), the acceptance form, invoice, purchase order, cancelled check(s) and other paperwork (depending on the type of purchase) must be submitted to the HDOT STPO for reimbursement. The HDOT STPO will reimburse the subrecipient and then seek federal reimbursement.
The following is a timeline schema for the procurement of FTA-funded vehicles via Section 5310 funding:
HDOT/STP FTA Section 5310 Procurement Process
|
Steps |
Duration (Days) | Cumulative Timeframe (Days) |
Action |
| 1 | 30 | 30 | The HDOT STPO compiles vehicle specifications from the subrecipient fiscal year award 5310
grant applications. |
| 2 |
30 |
60 |
The HDOT STPO prepares the bid document to include special provisions, specifications, proposal and contract terms for furnishing and delivery of motor vehicles to various nonprofit
and county agencies statewide. |
| 3 | 5 | 65 | The HDOT STPO submits the bid document to CON for review and consent to move forward
with modifications, if any. |
| 4 | 30 | 95 | The HDOT STPO works w/ CON and AG Office as needed to revise and resubmit the bid
documents. |
| 5 | 5 | 100 | The HDOT Contracts Office advertises the Invitation For Bids (IFB) on HANDS. |
| 6 | 5 | 105 | Pre-bid meeting conducted by HDOT STOP (within a week after advertising). |
|
7 |
15 |
120 |
Deadline for bidders to submit RFIs (requests for clarification, substitution requests, etc.) to HDOT STPO. Addendum containing responses typically issued 10 days before bid opening to give all bidders sufficient time to consider the new information. |
| 8 | 15 | 135 | Deadline for bids to be received by CON. |
| 9 | 0 | 135 | The HDOT Contracts Office conducts a public hearing to open bids. |
| 10 | 5 | 140 | Deadline for bid protests to be submitted to DIR. |
|
11 |
55 |
195 |
Deadline for Award (60 days after bid opening). Aim to resolve protests as quickly as possible within this timeframe. STPO sends hold bid price letters for all bidders if the award is unlikely to be made within 60 days from bid opening. After CON receives the (signed) Recommendation for Contract Award, the award posting will be made in HANDS. |
| 12 | 5 | 200 | Deadline for Award protests to be submitted to DIR. |
| 13 |
30 |
230 |
Contract execution (as long as protests have been resolved contract execution can begin) Aim to complete within 30 days. STOP also coordinates w/ subrecipients and BUS to ensure the 20%
local match is collected by this time. |
| 14 | 5 | 235 | STPO issues Notice to Proceed (NTP) shortly after contract is executed as long as insurance is
verified, and contractor has valid HCE certificate. |
| 15 | 270 | 505 | Vehicle delivery. |
| 16 | 14 | 519 | STPO inspects vehicle at site to verify specifications. |
| 17 | 5 | 524 | STPO documents whether specifications are met. |
| 18 | 5 | 529 | STPO issues final acceptance of vehicle delivery. |
| 19 | 30 | 559 | STPO coordinates final payment for vehicles with contractor and BUS. |
Specific procurement processes for vehicles, other equipment and services, and real property are presented in the following subsections.
VEHICLES
Pre-Award Review/Request to Award
Prior to selecting a vendor, the procuring agency is responsible for completing an award packet with a request to the HDOT STPO for concurrence. The award packet must include:
- a copy of the procuring agency’s recommendation to award;
- plans/specifications for the requested items;
- bid tabulations;
- funding sources with federal share;
- results of the System for Award Management (SAM) search records (www.sam.gov);
- Buy America certification;
- Purchaser’s Requirements certification;
- Transit Vehicle Manufacturer Disadvantaged Business Enterprises (DBE) Program Requirement (confirm with TVM listing on FTA website or check with FTA’s Office of Civil Rights) in accordance with 49 CFR Part 26;
- Federal Motor Vehicle Safety Standards (FMVSS) certification; and
- Altoona testing report as required by FTA.
The HDOT STPO shall review the packet and submit a response. The following certifications must be kept in the subrecipient’s files for future FTA reviews: (1) Buy America certification, (2) Purchaser’s Requirements certification, (3) the FMVSS certification, and (4) Altoona testing report.
For DBE certification, the subrecipient must ensure that each transit vehicle manufacturer (TVM) certifies that it has complied with the requirements of 49 CFR Part 26, “Participation by Disadvantaged Business Enterprises in Department of Transportation Financial Assistance Program” by checking the TVM listing on FTA’s website or by checking with FTA’s Office of Civil Rights at the time of bid opening.
For the Purchaser’s Requirements certification, the subrecipient must verify that:
- the manufacturer’s bid specifications are in compliance with the subrecipient’s solicitation specifications, and
- the proposed manufacturer is responsible and capable of building the bus to the sub-recipient’s solicitation specifications.
For the FMVSS certification, the subrecipient must obtain either:
- a letter from the bus manufacturer stating the information that will be provided on the FMVSS vehicle sticker, or
- a letter from the bus manufacturer stating that the buses are not subject to FMVSS.
For the Altoona testing report, the subrecipient shall not proceed into manufacturing until a bus test report is submitted to HDOT STPO for review and concurrence. The make and model of the vehicle in the test report must clearly match the vehicle to be purchased. The report shall originate from the FTA-sponsored facility in Altoona, Pennsylvania. No FTA funds will be expended until this requirement is fulfilled. This requirement does not apply to unmodified vans with raised roofs or lifts installed in strict conformance with the original equipment manufacturer modifications guidelines. See 49 CFR Part 665 for further information.
Section 5310, Section 5311, and Section 5339 subrecipient’s usage of capital purchases is monitored through routine site visits and on-line reviews of purchases over $25,000.
Post-Delivery Review
A post-delivery review must be completed before a bus title is transferred to the organization, or before a bus is placed into revenue service, whichever occurs first. The review period begins when the organization signs a formal contract with the selected manufacturer and ends before title transfer or use in service.
Under the Section 5311 and Section 5339 programs, the organization shall notify the HDOT STPO a minimum of 20 working days prior to delivery of the vehicle to attend the on-site vehicle inspection. This visit shall be at the discretion of HDOT STPO. The organization shall provide the HDOT STPO with the Buy America certification, Purchaser’s Requirements certification, and FMVSS certification at that time or if not present, have the organization submit it for concurrence. Once submitted, the HDOT STPO shall have 10 working days (upon receipt) of providing a response. The organization shall not place the vehicle in service without HDOT STPO concurrence.
As with the Pre-Award Review, the organization must complete three certifications:
- the Buy America certification, (2) the Purchaser’s Requirements certification, and (3) the FMVSS certification. All three certifications must be kept in the subrecipient’s files for future FTA reviews.
The Buy America and FMVSS certification processes are similar to those completed during the Pre-Award Review, with the exception that the review now reflects information based on the actual buses versus the proposed buses. The post-delivery purchaser’s requirements certification process is different from the pre-award purchaser’s requirements certification process.
For the Purchaser’s Requirements certification, the organization must:
- Complete visual inspections and road tests to demonstrate that the buses meet the contract specifications, and
- If purchasing more than 10 buses or modified vans, send a resident inspector to the manufacturer’s production facility during the final assembly period to (1) monitor the final assembly process and (2) complete a final report describing the construction activities and explaining how the construction and operation of the buses fulfill the contract specifications. If the organization is purchasing 10 or fewer buses, 10 or fewer modified vans, or any number of primary manufacturer standard production unmodified vans, the resident inspector is not required.
In accordance with 49 U.S.C. § 5323(f) (formerly Section 3(g) of the Federal Transit Act, as amended), the use of FTA funds for exclusive school bus transportation for school students and school personnel is prohibited if it is in competition with a private school bus operator. The implementing regulation (49 CFR Part 605.11 “Exemptions”) does permit regular service to be modified to accommodate school students along with the general public.
Ownership Title, Lien, and Insurance
At the time the HDOT STPO pays the vendor for a vehicle, a Manufacturer’s Certificate of Origin (MSO) is sent upon receipt of the payment. An Odometer Mileage Statement and Application for Certificate of Title are provided at the time of vehicle delivery.
To facilitate the process of obtaining vehicle titles for the HDOT STPO subrecipients, the RFP will stipulate that the vendor will assist in obtaining an appropriate title to the vehicle. Vehicle titles are held by subrecipients and direct subrecipients.
The HDOT STPO requires that insurance be adequate to protect the federal and State interests in the vehicle until disposal. The insurance coverages in the following table are recommended by the FTA as minimum coverage amounts.
|
Type |
Vehicles carrying 15 or fewer people |
Vehicles carrying 16 to 39 people |
Vehicles carrying 40+ people |
| Bodily injury or all deaths | $1,000,000 | $2,000,000 | $3,500,000 |
| Property damage | $750,000 | $750,000 | $750,000 |
| Cargo damage | $10,000 | $10,000 | $10,000 |
Lease and Lease Restrictions
Under the Section 5310 and Section 5339 programs, equipment can be leased when it is more cost effective than to purchase. The lease of equipment or facilities must be treated as a capital expense and the recipient must establish criteria for determining cost effectiveness in accordance with FTA regulations as detailed in FTA Circular 5010.1E “Award Management Requirements”, and 2 CFR Part 200 “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards”, which provides the necessary discount factors and formulas for applying the same. At present, the HDOT STPO (recipient) has not yet identified these criteria. Should a subrecipient desire this option, this should be discussed with the HDOT STPO so that discussions can ensue with the FTA.
Vehicles acquired under the Section 5310 program may be leased to other entities such as local governmental authorities or agencies, other private nonprofit agencies, or private for-profit operators. Under such a lease, the lessee operates the vehicles on behalf of the Section 5310 subrecipient and provides transportation to the subrecipient’s clientele as described in the grant application.
The lease between the Section 5310 subrecipient and the lessee contains the terms and conditions that must be met in providing transportation service to seniors and people with disabilities. Because the purpose of the Section 5310 grant is to provide transportation service to seniors and people with disabilities, other uses of the vehicle are permitted only as long as such uses do not interfere with service to seniors and people with disabilities. See section 23.3, Incidental Use.
The HDOT STPO is responsible for ensuring that the terms and conditions of the original grant with the FTA are met and must agree in writing to each lease of Section 5310 funded property between the subrecipient and the lessee. Such an agreement should specify that the leased vehicle shall be used to provide transportation service to seniors and people with disabilities, that the vehicle may be used for incidental purposes only after the needs of these individuals have been met, and that the subrecipient, state, or designated recipient must retain title to the vehicle.
Under the Section 5311 and Section 5339 programs, a recipient may use capital funds to lease capital assets from another party in cases where it determines that leasing would be more cost effective than either purchasing or constructing the asset. Recipients with pre-award authority must conduct the cost comparison before entering into the lease. Recipients should refer to FTA regulations for further details on conducting the cost effectiveness comparison (2 CFR Part 200 and FTA Circular 5010.1E).
When a recipient intends to enter into a lease of considerable duration (rather than paying for the lease in a lump sum at the beginning of the lease period), the recipient must be able to complete the acquisition with local funds in the event FTA funds are not available in later years. Generally, it is not considered cost effective to lease real estate.
Lease restrictions are used by the HDOT STPO as a means to maintain control over vehicles and these include the following:
- The lessee shall be required to operate the project property to serve the best interest and welfare of the subrecipient and the public. The terms and conditions for operation of service imposed by the subrecipient shall be evidenced in the lease;
- The lessee shall be required to maintain project property at a high level of cleanliness, safety and mechanical soundness under maintenance procedures outlined in the lessee’s maintenance plan. The HDOT STPO and/or the FTA shall have the right to conduct periodic inspections for the purpose of confirming the existence, condition, and the proper maintenance of project equipment; and
- The lease shall contain a requirement that the leased property may not be subleased without subrecipient written approval and may not be otherwise encumbered without FTA written approval.
PROCUREMENT RESTRICTIONS
The subrecipient is fully required to comply with procurement rules and regulations set forth in the annual Master Agreement and the current FTA Circular 4220.1F, “Third Party Contracting Guidance,” March 18, 2013. The intent is to ensure full and open competition and equitable treatment of all potential sources in the procurement process including planning, solicitation, award, administration, and documentation of all federally funded contracts. The HDOT STPO has the right to review any or all procurement documentation prior to solicitation.
INVITATION FOR BIDS (IFB)
HIePRO Solicitation B23001311 (CLOSED at 2pm on January 26, 2023)
BID OPENING RESULTS
HIePRO Solicitation B23001311 (RELEASE DATE: December 30, 2022)
NOTICE OF AWARD
HIePRO Solicitation B23001311 (RELEASE DATE: May 15, 2023)
NOTICE TO PROCEED
HIePRO Solicitation B23001311 (RELEASE DATE: June 5, 2023)