Q. We have grant funds to purchase two (2) used commuter style buses to be used on a new subscription service route. Is it possible to bid on buses being sold by another transit agency or a private firm or individual? Will bidding on used buses satisfy the open competition and other federal procurement guidelines?
A. FTA advises you to look to your grant application. If your agency said it intends to buy used buses from X, then you are authorized to do so. If it was not in the grant application, then you have to satisfy the requirements of competition. This would mean advertising your needs and soliciting proposals from interested sources. Evaluating those proposals is another problem. For example, you will want to consider such issues as the following:
- Relative bus age/bus condition
- Parts inventory requirements
- Safety and reliability
- Warranties
- Cost benefit analysis relative to new buses
In the final analysis, the agency is allowed to buy used buses but must use competition and sound business judgment.
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Q. Are there any conditions for when FTA 5307 grant money can be utilized to purchase used vanpool vans? Boeing's layoffs may leave Seattle Metro with many surplus vanpool vans. We may need them for a short (4 year) construction project with Bechtel.
A. FTA Circular 9300.1A dated Nov. 1998, on page III-7, discusses the service life of vehicles purchased with FTA funds. It lists the service life of vans at four years or 100,000 miles. It does not address the service life of used vehicles. There used to be a service life requirement for buses in the law. But that was changed in an appropriations act when Congress began allowing maintenance costs to be an eligible capital cost. Now, when one rehabilitates or rebuilds vehicles, there is no extension of service life stated as required in the law.
Q. We would like to purchase a used bus from a distributor. We did not solicit bids/pricing nor do we have a contract for this vehicle. What are the requirements for purchasing this used vehicle?
A. The FTA requirements for purchasing used vehicles are the same as for new vehicles, i.e., you must follow the requirements of FTA Procurement Circular 4220.1E, which is available online: http://www.fta.dot.gov/documents/fta_c4220_1E.doc.
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