,,75

Los Angeles County

Iqetropolitan

Transportation

Authority

818 West Seventh Street

Suite 300

Los Angeles, CA 90017

213.623.I194

November 10, 1995

TO:

THROUGH:

FROM:

BOARD OF DIRECTORS

SUBJECT: AWARD A CONTRACT FOR BRAKE OVERHAULFOR P865 LIGHT RAIL VEHICLES

RECOMMENDATION

Consider Chief Executive Officer’s report containing a recommendation to award asole source contract to Knott Brake Corporation, Union City, covering theprocurement of brake overhaul service for 54 light rail vehicles for a total amountof $1,972,326.

DBE PARTICIPATION

No DBE goal has been established for this procurement because it is a sole sourceprocurement with no subcontracting.

ALTERNATIVES CONSIDERED

There is no recommended alternative available. Purchase is necessary to ensurecontinued Original Equipment Manufacturer performance specifications for the LightRail Vehicle (LRV) friction brake system. This overhaul is required at this timebased on engineering analysis. If this overhaul is not performed, the consequencesof this action will be increased equipment repair costs, lengthy service delays, and apotential risk of friction brake failures.

Board of DirectorsNovember 10, 1995Page 2

IMPACT ON BUDGET AND OBJECTIVES

The funding for the contract is provided in FY 1996 Section 3 Rail ModificationGrant No. CA-03XXXX, Series 234XX.

BACKGROUND

The Metro Blue Line Light Rail System has a standard maintenance program to beperformed at various intervals. In order to ensure the continued performance andreliability of the friction brake system within specifications, it has become necessaryto perform a overhaul (rebuild) program. This is based upon empirical data obtainedfrom the original equipment manufacturer’s engineering, and MTA engineering staffanalysis of this equipment.

The systems involved include the following:

An Air Supply unit: This unit consists of an air compressor, electricmotor, air dryer, numerous valves and a steel frame assembly. Theunit provides compressed air to operate all pneumatic operatedequipment including friction brakes and LRV side doors.

Track Brake Assembly: This unit applies additional braking effort inan emergency brake application, There are six of these units on eachLRV.

Brake Caliper Assembly: This unit presses the brake pad against thefriction ring (disk) to create a friction condition and allowing thebraking action to commence. There are eight of these units on eachLRV.

The friction brakes blend in with the dynamic brakes and the magnetic track brakesduring normal operation. Blending is computer controlled, and is specificallydesigned to the performance criteria of the Blue Line Cars. Some of the lowest levelreplaceable units (not repairable or rebuildable in-house) are major mechanicalworking components with critical tolerances, and it is imperative that they areoverhauled to OEM specifications with OEM parts. It is also important that differentcomponents be functionally tested by the OEM.

Board of DirectorsNovember 10, 1995Page 3

CONCLUSION

The recommended items are Original Equipment Manufacturer (OEM) parts.the best interest of the Authority to proceed with the recommended action.

Prepared by:. Rick Owens, Contract Administrator

D~ePetRru}tY.loEn~ecutive 0 fflC’~le

Act’mg DirectorContract Administration

Arthur J ~ZgpdrnballDeputy ~ftief Administrative OfficerMaterial

It is in

REQUEST TO PURCHASELOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY ~ NOT DUPLICATE

OFFICE OF CONTRACTS, PROCUREMENT & MATERIEL

SEP 1 1 1995WORK ORDER/MODE GRANT NO. ~:) ~I~ER/CA

I ~A~C~OUNT NOLA.F.E. NO.

29360 UNION CITY BOULEVARD

UNION CITY, CA 94587

A’±’rN: PAUL A%](INS

F.O.B,

(510) 475-0770

Payment Terms SHIP Via:

Quantity

P.O. No.

Reqn. No. 5361.,.2-17

Order Placement Date

User Order Date 4/26/95

Please Ship To:D 470 Bauchet Street

Los Angeles, CA 90012

4350 208TH ~TREF~~ EXTENSION SOU~HLONG BEACH, CA 90810

User Required Date Vendor DeliveryCommitment

Description/Part Number only order one class ofMateriel on a Requisition

54 C~rerhau! LRV Air SUDDIy System per.MTA HeawRepair Manual SpeciE_cation 2-5.3.0. through 2-

5.2.1.14. Knorr kit No. S~JI2646/H and Knoxx kitNo. S~"~J 12646/H-A.

216 Overhaul LRV Power Truck Friction brake Caliper~4F7 and Parkinq Brake Ac~aator per MTA Heav~Repair Manual Specification 4-5.2.2 through 4-5.3.2. Knorr kit No. 801202 and Knott kit No.

Overhaul LRV Center Truck Caliper (right hand)and actuator UN8 per MTA Heavy Repair Manualspecification 4-5.2.3. Knorr kit No. 801204 anQKnorr kit No. 801207.

901203.

108

~zerhau! LRVCenter T_~uck Caliper (left .hand) andActuator UNSperMTA Hea~ Repair M~]nua! speci-fication 4-5.2.3. Knott kit No. 801205 and I<norrkit No. 801206.

108

PRICE UNIT EXTENSION

$ 5,819.00 v_ach ~S314,226.00

$ 3,325.00 Each $ 718,200.00

3,410.00 Each $ ~368,280.00

$ 3,410.00 Each $ 368,280.00

Placed By: [] Telephone [] Fax [] Mail With

REMARKS: S ~’~.. STATE SALES TAX APPLICABLE []

~~ j.f.: ~.,TECHNICAL INSPECTION REQUIRED []

Ori~oK Ext. 3-3804 Da~e ~’~epartment

_ \’x-.~’~/".v’~CbE£’t O::ps~, _,~,.~(:~ ;~T~

Head~ ..... Date~"

Supplier:

REQUEST TO PURCHASELOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY

OFFICE OF CONTRACTS, PROCUREMENT & MATERIEL(213) 972-5028

A.F.E. NO. WORK ORDER/MODEGRANT NO. )

IF.O.B.

I~NORR BR~KE CORPORATION

29360 UN!EkN CITY BOULEVARD

UNION CITY,, CA 94587

ATTN: PAUL ATK ~-~S

(510) 475-0770

IPayment Terms SHIP Via:

DO NOT DUPLICATE

Continued

BUYER/CA

P.O. No.

Reqn, No. 53612-17

Order Placement Date

User Order Date 4/26/95

Please Ship To:

--]470 Bauchet StreetLos Angeles, CA 900124350 208T~ "STR~=T~ EXTENSI(IN SOUTHLONG BEACH, CA 90810

IUser Required Date Vendor DeliveryComm tment

Quantity Description/Part Number only order one class ofMateriel on a Requisition PRICE UNIT

Overhaul LRV Track Brake Assembly per MTA Heaw $ 355.00 "324 Each,Repair Manual specificaiton 7-3.2. Knott kitNo.801200.

EXTENSION

$ ~ ~,--5,020.00

$ 77,7~0.C0

$ 10,560.00

648 Overhaul LRV Track Br~ce_ . ,qnrino, ~ Assembly per MTA S 120.00Heav~ Repair Manual specz{~car~on 7-5.3.2. ¯

i<norr kit No. 801201.

Shipping, containers for use to _rotate overhaulcc~one~ts between rebui!der and MTA vehicle S 1,320.00

Maintenance Shop ( reusable).

Each

Each

Total: $i, 972, 3~6

Placed By: r] Telephone [] Fax [] Mail WithSTATE SALES TAX APPLICABLE []

REMARKS: _(~ TECHNICAL INSPECTION REQUIRED []/*)~ HAZARDOUS MATERIAL []

Originator ~ (/~ Ext.~ Date..~.’)%ep.artment HeadRobert .Og~s / IPail Maintenance O~er6tions nanaqer .... ¯

..~ ~.~ ,,~ ,~/~ Date Date

SEND (3) COPIES DIRECT TO OCPM

LOS ANGELES COUNTYMETROPOLITAN TRANSPORTATION AUTHORITY

PURCHASE REQUISITION JUSTIFICATION FORM

A. Requestor’s Name [~.L ~ Phone No. (310) 6¢3-380~

B. Requisition No~ 53612-].7 Date ,z~]:i.]_ 27, 1995

C. Was item included in department’s approved budget? Yes (/9 ~,~ ,y~,

If not, please explain:

D. Justification (include impact on Authority and department objectives and why item is required):

V~ahf~_J_es.

Basis of cost estimate (if over $10,000, show how all costs were developed, including assumptionsand calculations):

F. Suggested sources of supply (attach separate sheet if necessary):

Company Name Address Contact

1. Knorr Brake Corp. Union City, CA Paul Atkins

2.

4.

5.

Go

Phone

(510) 475-0770

Disposition of equipment being replaced (if applicable)

Trade-in Salvage

Use by other department

Comments:

Sale

Attach any of the following documents which are applicable to this procurement. If they are notavailable at this time, please provide the availability date of each.

1. Scope of work

2. Specifications

3. Quotations

4.5.

Subcontract OtherPlanning Form /~"- ~’~ I--’l~[~

Requestor’s Signature ,/~" ~///

Check if attached or providedate of availability

Work scope B.O.M.

Date

Rail Operations DepartmentPurchase Requisition information Sheet

What is the purchase for?

¯ Rebuilding (Overhaul) of selected Knorr Brake Corp. Friction Brake components on fifty-four (54) Light Rail Vehicles at the Metro Blue Line Maintenance Shop in Long Beach Ca.

Who will be using item/service purchased?

¯ The purchase of equipment and services will be used by the Metro Blue Line Vehicle Maintenance Section(3612) of the Rail Operations Department.

When is the purchase required? What is the present status of existing supply? ~

¯ Procurement of this material and service are required immediately. Absence of this material and service hascreated increased maintenance costs resulting from equipment repairs, adjustments and testing.

¯ An existing supply is not presently available

Where will the purchase be used? Who will be responsible for the purchase?

¯ The material and service will be used at the Metro Blue Line Vehicle Maintenance Shop in Long Beach.Rail Activation and Tech Support Manager, Robert Ogus will be responsible for this purchase.

Why is this purchase necessary? What are the consequences of not approving this purchase? Whatalternatives are available?¯ Purchase is necessary to ensure continued Original Equipment Manufacturer performance specification for

the LRV friction brake system.

This overhaul is required at this time based on engineering analysis by the equipment manufacturer and MTAstaff.

If this overhaul is not performed the consequences of this action will be increased equipment repair costs,lengthy service delays, and a significantly higher risk of friction brake failures.

¯ There are no recommended alternatives available.

Note: Please s~ attacah~d Justification.

LOS ANGELES COUNTY METROPOLITANTRANSPORTATION AUTHORITY

SUBCONTRACTING PLANNING FORM

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

Friction Brake OverhaulComponent Kits and Rebuild

Total Estimate: $ 1,972,326

OPPORTUNITY FOR SUBCONTRACTING? YES ~X NO__IF YES, LIST ELIGIBLE TASKS OR ELEMENTS AND ESTIMATED VALUE.

IF NO, EXPLAIN.

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

Knorr Brake CorporationUnion City, CA

Qty

}216

108

Description/Part Number Price

Overhaul LRV Air Supply System per MTA HeavyRepair Manual Specification 2-5.3.6. through 2-5.2.1.14. Knorr kit No.STUI2646/H and Knorr kitNo. STU 12646/H-?~

Overhaul LRV Power Truck Friction brakeCaliper ~ and Parking Brake Actuator perMTA Hear7 Repair Manual Specification 4-5.2.2through 4-5.3.2. Knorr kit No. 801202 and Knorrkit No. 80120~.

Overhaul LRV Center Truck Caliper (Right Hand)and actuator UN8 per MTA Heavy Repair Manualspecification 4~5.203. Knorr kit No. 801204 andKnorr kit No. 801207.

$5819

$,:2410

Unit Extension

Ea $718,200

Ea $~68~80

108 Overhani LRV Center Truck Caliper (Left Hand)and Actuator UN8 per MTA Heavy Repair Manualspecification 4-5.2.3. Knorr kit No. 801205 andKnorr kit No. 801206.

$~410

324

648

8

Overbani LRV Track Brake Assembly per MTAHeavy Repair Manual specification 7-3.2. Knorrkit No.801200.

Overhaul LRV Track Brake Spring Assembly perMTA Heavy Repair Manual specification7-5.3.2. Knorr kit No.801201

Shipping containers for me to rotate overhanlcomponents between rebullder and MTA Vehiclemaintenance shop. (Reusable).

$355

$120

$1320

Ea $115,020

Ea $77,76O

$10~6O

TOTALS $1,972~26

INTEROFFICEMEMO

Los Angeles County

Metropolitan

Transportation

Authority

DATE: August 22, 1995

TO: A.R. de la Cruz

FROM: Rich M ortor~]

SUBJECT: FRICTION BRAKE OVERHAUL PROGRAM

As per Mr. Frank Barbagallo, the entire brake overhaul program can now befunded through capital funds, under Section 3 Rail monies, recently modified.

RM:jh

cc: E. Vandeventer

FRICT/ON BRAKE OVERHAUL PROJECT OVERVIEW

MTA Metro Blue Line RepairShop

Remove friction brakecomponents off of LRV

Move LRV within shop

MTA Metro Blue Line RepairShop

Install rebuilt friction brakecomponents

Function test system

Release LRV for sen/ice

KNORR AIR BRAKE CORP. REBUILD CENTER, UNION CITY, CA.

Dismantle, clean, rebuild and test Friction Brake Components in accordance with specification.

SUBMITTED APRIl_26, 1995 RAIL VEHICLE TECHNICAL SUPPORT GROUP

INTEROFFICEMEMORANDUM

RAIL MAINTENANCE OPERATIONS

TO:

FROM:

SUBJECT:

DATE:

Director of Procurement

~ b Ogus Mgr., Bali Activation & Technical Support

JUSTIFICATION OF FRICTION BRAKE OVERHAUL

April 5,1995

In order to ensure the continued performance and reliability of the friction brake systemwithin specification on Metro Blue Line LRV’s, it has become necessary to perform a rebuild(overhaul) program during the next several months. This is based upon empirical data obtained fromthe original equipment manufacturer’s engineering analysis of this equipment, and determinationsmade by MTA engineering staff. [See~ktlatehnlenL&]

The systems involved include:

An Air Supply Unit: consisting of an air compressor, electric motor, air dryer, numerousvalves and a steel frame assembly. This unit provides compressed air to operate allpneumatic operated equipment including friction brakes and LRV side doors.

Track Brake Assembly:This unit applies additional braking effort in an emergency brakeapplication. There are s/x of these units on each LRV.

Brake Caliper Assembly: This unit presses the brake pad against the friction ring (disk) create a friction condition and allowing the braking action to commence. There are eight ofthese units on each LRV.

Los Angeles County

Metropolitan

Transportation

Authority

9oo Lyon S~reet

Los An~elas. CA 9oou

OPERATIONSEQUIPMENT ENGINEERING DEPARTME~I’

DATE:

TO:

FROM:

SUBJECT:

April 7, 1995

Paul Como

Jeff Johnsonl

Overhaul of MMSystem - Solei

Lue Line Friction BrakeJustification

The friction brake system for the Metro Blue Line Cars isdue for overhaul. The friction brakes blend in with thedynamic brakes and the magnetic track brakes during normaloperation. Blending is computer controlled, and isspecifically designed to Zhe perfoxmance criteria of theBlue Line Cars. Some of the lowest level~replaceable units(not repairable or rebuildable in-house) are major

mechanical working components with critical tolerances, andic is imperative that they are rebuilt to OEMspecifications with OEM parts. It is also important thatdifferent components be functionally~tested by the OEM.

In view of the above, it is recommended that the overhaulcontract of the friction brake system be sole-sourced tothe OEM, Knorr Brake Corporation.

IIAM-MBL- 95007

LOS ANGELES METROPOLITANTRANSPORTATION AUTHORITY

RAIL MAINTENANCE OPERATIONSPROJECT REVIEW AND APPROVAL FORM

PROJECT NAME/NO. P 865 4 Year Overhaul Program

~~DOCUMENT NAME

T(

FI

¯ ° S

,~gPURPOSE OF REVIEW:,

Knorr Air Supply Unit Overhaul Bill of Materials

Sal Gatdula Rail[ Engineer DEPT. 3400

)M:Bob Ogus Raii Activation/Tech Suppt. DEPT. 3623

BMITTAL DATE:~ March 4, 1995

Accuracy of Bill of Materials

Please review enclosed document(s) which have been submitted for your approval and/orinformation.Indicate your comment~ and if disapproved,the reason(s) for same.

APPROVED[~~ NAME: _ __.~_.~. _.d=.._’~.._A~.. _.~_ __....(==. _____.~_..~-. _.~.. _.~_~. _~_.’_~_ ___._

SIGNATURE/TITLE: .......................................

DISAPPROVED [ ] DATE :

!COMMENTS :__:__~___~__L:__.._f___~_.c?2__~__~_.~_/’--~--~..-D--°-_-c~-----~---~: .... ~ .........___,,,,_,,.,--_’__,,..__’,_’,..,..."_’____-------,------’-’-’-’-"

.... ~..t.~ .....~Z-~----~A~z~-----/-.~--z.#-~-c----~.-C~--~---a~--~-~-~---~-~-~-~-£~-~.‘~.~*~:x~--‘

Please return to Bob Ogus at Location 3623

A~R SUPPLY UNIT

OVERHAUL KIT

STU12646

STUI2646/H

465505STUIlS61XUII861/1AUllB61/1STUII861UZIB611lSTUI1861/2UI1861/3UI1861/4U11861/52235506223611~STUllG62XUI1862/ISTUffS62UI1862/ISTU11862/2UI1862/3UIIS62/4UI1862/5223550222355062235512U11927/15.752235507STU12945/12241040’22410042241009STU12435UI1646/2UII647/IBU11647/ICUI1657/2UI1657/3UI1658UI1661UI1662UI1667UI1649UI1570223511722355202239709223~89022360242235520

Motmt, Rssil~ont

NutMount, Resillsnt

Housing

ConeBase SupportNut

Mount, Resilien~

Mo~, Resilien~

M~unt, Resili~~

Cone~ase suppor~Nu~Nu~

Air HoseS/PS, Nylon Ins~Flax HOSeFitting, HoseHose 3/4"

Repair Kit

Con~ac~ BarSp~ing

Sp~ngRelay, Coll

Plate Ass~lyPlun~a~SpringTu~ and corewa~er

T~e, Wire Cable

~U~

3l1-1111

1

.t1111;L1

o!l

11

1l

4II11l1

1424

AIR SUPPLLY UNIT

OVERHAUL KIT

STU126~6

STU12646/H(CONTINUED)

22396932239693801290801289STU12671/HSTUl1482STU12945/1801291801292A89166ST~13491UI1921801294

coupllng Upgrade

GW Twin Tower Kit

4I1i1

I

1iI1i

KNORR HARDWARE KITPART No. STU12646/H-A ****

PART NUMBI~R DESCRITION OUANTI~2235507 NUT 42235512 NUT 72236115 WASHER 132235506 NUT 172236117 WASHER 132235502 NUT 2465505 WASHER 32231024 SCREW 42231046 SCREW 3

U11102/0750 CLAMP 52275144 SCREW 132231007 SCREW 22231013 SCREW 14

MS 15795-214 WASHER 22MS35457-38 SCREW 2U11130/3 SCREW 2MS 15795-220 WASHER 2

4520259 SCREW 1U11131/2 SCREW 1

2236155 WASHER 122231014 SCREW 2

MS 15795-218 WASHER 8U 1102/0250 CLAMP 3

2231006 SCREW 13

This kit used in conjunction with Knorr Overhaul Kit.Part No. STU12646/Hfor rebuild of Air Supply Unit STU 12646.

,.,.,4 ,’t0.@07 ?

AIR SUPPLY UNIT

OVERHAUL KIT

465505STUII861XUII861/1AUllS51/I

Ul1861/ISTU11851/2U11S61/3

UII$51/522355062238117S~I1862XUI1852/1STUI1862UI1852/ISTUllS52/2UI1852/3UI1852/4U11862/5223550222355062235512UI1927/15.752235507STU12945/I224104022410042241009STU12435U11646/2Ul1647/1BU11647/ICUI1657/2UI1657/3UI1658UI1651UI1652UI1667UI1649UI1570223611722355202239709223989022360242235520

Mount,NUt

Mount, ResilientNutHousing

ConeBase SupportNutWasherMount, Resilien~NutMount, Resillen~NutMount, Resili=n~

Cons~ase Suppor~

~U~~u~Air HOSeS/PL, Nylon Inser=FI~ HOSeFittinq, HoseHose 3/4"

Repair Kit

Ba~ AssemblySp~in~Relay, coil

P~a~e Ass~lyPlunqa~

Tu~e and CoreWas~erNu~

T~e, WAre Cable

3I1.I11I1i

2

1111

.!!4

1i¢

44i1

1I1

41424

AIR SUPPLLY UNIT

OVERHAUL KIT(CONTINUED}

22396932239693801290801289STU12571/HSTUl1482STU12945/1801291801292A89166ST~13491UI1921801294

coupling Upgrade

GW Twin Tower Ki~

4I1i11I

11IiI

KNORR HARDWARE KITPART No. STU12646/H-A ****

PART NUMBER ~ ~2235507 NUT 4

2235512 NUT 7

2236115 WASHER 13

2235506 NUT 17

2236117 WASHER 13

2235502 NUT 2

465505 WASHER 3

2231024 SCREW 4

2231046 SCREW 3

U 11102/0750 CLAMP 5

2275144 SCREW "’ 13

2231007 SCREW 2

2231013 SCREW 14

MS 15795-214 WASHER 22

MS35457-38 SCREW 2

U11130/3 SCREW 2

MS15795-220 WASHER 2

4520259 SCREW 1

U11131/2 SCREW 1

2236155 WASHER 12

2231014 SCREW 2

MS 15795-218 WASHER 8

U 1102/0250 CLAMP 3

2231006 SCREW 13

This kit used in conjunction with Knorr Overhaul Kit.Part No. STU12646/Hfor rebuild of Air Supply Unit STU 12646.

CALIPER ASSEMBLY

OVERHAUL KIT

STU12654

801202

544893466506s79~65/6012891463521465666B89845/1U131884528394659442237538

Locking PlateNutWasherPinWasherPinPinPinWasherPinCap

224

42

44

14

CALIPER ASSEMBLY

OVERHAUL KIT

STU12655/01

801204

B44893B81869B79165/7463442~79169/54665061379169/5U12891463521465666B89845/1U128884528394659442237538 ~

Looking PlateWasherWasherNutWasherNutWaeherPinWasherPinPinPinWasherPinCap

10112

2

442244

14

ACTUATOR UNS

O~ERHAUL KIT

STU12820/706

801205

B53476B44240B43640B48679B43636462767534379B33793/2465121B78336538078B75404462591B33793/12502386

couplingcir cllpRingBellowsWasherClr CllpRingRingNutClampWasherRingPaoklngCapWashsrclampSeal

1i111

2211i1111II

CALIPER ASSEMBLY STU12655102

OVERHAUL KIT 801206

B44893B81869B79165/7463442B79165/6466506B79169/5U12891463521465666589845/1U128884528394659442237538

Locking PlataWasherWasherNutWasherNutWasherPinWasherPinPinPinWasherPinCap

21011

2.444

244

15

ACTUATOR UN8

OVERHAUL K~T

STU128201306

801207

B52367B36963B53476B44240B43640B48679B43636462767B34379533793/2465121B~833~B38078B75404462591B33793/12502386

CouplingCir ClipRingBellowsWasherCir ClApRingRingNutClampWasherRingPackingCapWasherClampSeal

i1111

22111111111

TRACK BRAKE ASSEMBLY

OVERHAUL KIT

STU12656

801200

393098393097393050393025U~OOZS/4U00685/1

WasherWasherWasherPlUg

Plug

410

410

TRACK BP~tKE SPRING SUSPENSION

OVER~UL KIT 801201

STU12557

STG05636B20637/1450598

DESCRIPTIQNBushingWasherPin

111

PARKING BRAKE STU12819

OVERHAUL KIT ~ 801203

463768551898A82902/32462767551785/2A60719/1559108533793933793/6577339/4581659578295463461565583/1A40125/12526669555501/1462434561092/I551905465920450684581935 ~463442556714/6A82902/41566043551479A82902/6567636/1574139/1751A82902/31454126560747526115/2531964/4576952579945464760A~3363462651B69597

HutWasherNutRingRingRingwasherBellowsHoseHoseO-RingRingRingRingPistonO-RingWasher

RingWasherRing

WasherSealNutWasherRingGasketGasketRing

SealRingWasherCupClampBandBushingWasherWasherO-RingRingBushing

4411i12

I11111i161111111111111

1141112122

2

PARKING BRAKE

OVERHAUL KIT

A64328/1B33O96107132463219B79617A52014/20

STU12819

801203(CONTINUED)

ElementBushingWasherCapBushing

11

1

PRESSURE SWITCHSTU12869, STU12871, STU12872, STU12870, AND STU12868

OVEP/4AUL }(IT 13491

U13448 SwitchU13449 O-RingU13451 Diaphragm

11i

LOS ANGELES COUNTYMETROPOLITAN TRANSPORTATION AUTHORITY

OFFICE OF INTERNAL AUDIT

MARCH 1994C94-054

Los Angeles County

Metropolitan

Transportation

Authority

818 West Seventh Street

Suite 300Los Angeles, CA

Mailing Address:

Box ~94Los Angeles, CA

90053

March 3, 1994

Mr. Paul Como, Director of ProcurementMTA Procurement Department470 Bauchet StreetLos Angeles, CA 90012

PRE-AWARD REVIEW OF SOLE SOURCE PROCUREMENT FOR BRAKESPARE PARTS AND OVERHAUL SERVICES BID NO. 11-9323SUBMITTED BY KNORR BRAKE CORPORATION IN THE AMOUNT OF$849,238.

The office of Internal Audit has completed a desk reviewof the proposed labor and overhead rates submitted byKnorr Brake Corporation Bid No. 11-9323 for Brake SpareParts and Overhead Services.

The auditor’s recommendations may assist you innegotiating a fair and reasonable contract. The resultsof the desk review are included in the attached auditreport.

If you have any questions regarding this audit, pleasecontact Clem Bellaflor of my staff at (213) 244-6715.

Director of Internal Audit

attachment

cc: S. JacksonFile

March 3, 1994 Audit No. C94-054

Paul ComoDirector of ProcurementProcurement Department

Pre-award Review of Sole Source Procurement for Brake~Spare Partsand Overhaul Services Bid No. 11-9323 submitted by Knott Brakecorporation.

Purpose and Scope

At the request of Metropolitan Transportation Authority ProcurementDepartment, we have performed a desk review of Knorr BrakeCorporation for Sole Source Procurement of Brake Spare Parts andOverhaul Services Bid 11-9323 in the amount of $371,337.03 and$477,900.95, respectively as shown in Schedule(s) I & II. Thepurpose of the pre-award review is to determine the reasonablenessof the proposed hourly labor rates, overhead rates, G&A rates undera Sole Source contract.

The review was performed in accordance with generally acceptedgovernment auditing standards and included such tests of thecontractor’s data and records and such other auditing procedures aswe considered necessary in the circumstances.

circ,,mstances Affecting the Review

Knorr Brake Corporation did not submit the detailed Cost andPricing Data as requested claiming that this data is confidentialand proprietary to Knorr. However, Knorr did certify that allprices on Brake Spare Parts (New) and those to be used under BrakeOverhaul Services were equal to or less than those offered to anyother Knorr customer for like material in like quantities. Knorralso certified that its labor rate is $65 per hour for BrakeOverhaul Services, its labor is 13% and materials is 87% of the carset price.

Therefore, the results of our desk review were based on thecertification and financial information published in Dun &Bradstreet (D&B) and evidently prepared by the Accounting Firm KPMG Peat Marwick. In addition, due to significant timeconstraints imposed by the requestor, we were unable to completeall audit tasks that would ordinarily be done for this type ofaudit. We are therefore qualifying the resmlts of our audit to theextent that further review of the cost or pricing data may disclosecertain questioned costs.

Audit No. C94-054(Page

Snmmary of Desk Review

Based on the data shown in the Dun & Bradstreet for the period ofJanuary I, 1992 to December 31, 1992, Knorr Brake Corporationreported cost of sales of 60.32%, a G&A rate of 35.23% and a netoperating profit rate of 4.39%. The G&A rate and net operatingprofit rate appear reasonable. These two factors may indicate thatthe set prices may have been fairly stated.

Other Comments

The information in this report relates to the subject proposal onlyand should not be used for other purposes without first discussingits applicability with the office of Internal Audit.

ERTO MARTINEZDirector of Internal Audit

Prepared by:

Reviewed by:

Helen H. GuestAuditor - Contracts

Clem BellaflorSr. Auditor - Contracts

~Knorr Brake CorporationBrake Parts & Overhaul ServicesBid No. 11-9323

Audit No. C94-054Schedule I

Part A: Brake Spare Parts

1. LRV Friction Brake PneumaticUnit Kit KB00930/Rconsist of the following:

Quantity

27 kits

UnitPrice Extension

$7,920.00 $213,840.00

STU12823/0690 Pressure Reducing Valve 4 eaSTU12861 Sand Ejector 8 eaSTU00412 Air Filter 14 ea. 14 eaSTU00425 Overflow Valve 6 eaSTU00413 Test Fitting T2 14 eaSTU12873 Test Fitting K11 2 ea1/79470/07 Test Fitting KIE 24 ea

2. Caliper, Brake Left Side, STU12655/02 1 ea $3,940.00 $3,940.00

3. Caliper, Brake Right Side, STU12655/01 2 ea $3,940.00 $7,880.00

4. Brake Control Unit, STU12649 4 ea $9,930.00 $39,720.00

5. Air Compressor, STU12646 3 ea $23,730.00 $71,190.00

Subtotal $336,570.00

Inovice Terms Net 30 Days

8.25% Tax $27,767.03

Freight $7,000.00

Total $371,337.03

Note:Knorr certifies that all prices are equal to or less than that offered to any other Knorr customerfor like material in like quantities for Brake Spare Parts (New) Items 1 through

Kr~orr Brake CorporationBrake Parts & Overhaul ServicesBid No. 11-9323

Part B: Brake Overhaul Services

1. LRV Friction Brake PneumaticUnit Overhaul KIT KB00930/Hconsist of the following:

STU 12649STU14791STU14793STU 14798

Brake Control UnitTrack Brake Connnector AssemblyDump ValveMagnet Valve

Audit No. C94-054Schedule II

Quantity

27 kits

UnitPrice Extension

$16,180.00 $436,860.00

6 ea6 ea6 ea12 ea

Subtotal

Inovice Terms

8.25% Tax

Freight

Total

$436,860.00

Net30 Days

$36,040.95

$5,000.00

~4771900.95

Note:Knorr certifies that all prices are equal to or less than that offered to any other Knorr customerfor like material in like quanUties.