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LIRR seeks board approval to award a non-competitive Inter-Governmental lease agreement with Maryland Transit
Administration ("Maryland-TA"), a modal division of the Maryland Department of Transportation, for the lease of
between 8-2 l passenger coach cars in the Not to Exceed amount of $ 4, 159, 700 covering a three year term (one year
base plus two one-year options). These cars will be put into service during the summer months, in order to increase
overall seating capacity on the Montauk branch.
Pursuant to an extensive direct outreach of regional commuter railroads, LIRR located this equipment , performed
inspection and testing, and determined it to be compliant with FRA 49 CFR, operational and in good condition, having
come off of lease to Southeastern Pennsylvania Transportation Authority ("SEPT A") earlier this year. Due to the
compatibility of this equipment with LIRR's infrastructure, only minor wiring adjustments (i.e. modifications to the
speed settings, boards and components) will be required in order to run with Diesel Electric ("DE")/Dual Mode ("OM")
locomotives. LIRR plans to modify cab cars to operate on the head end, adding 8 cars to service in the first year and
increasing the number of cars to be leased to a maximum of twenty one in option years 2018 and 2019. MTA will
provide training to LIRR train operators, maintenance personnel as well as to a LIRR Trainer in order to ensure proper
operation, maintenance and troubleshooting practices are followed and ordinary repairs are performed responsibly.
Under the agreement, LIRR is responsible for all routine repairs and maintenance, in accordance with the original
equipment manufacturer's standards, including normal running repairs. LIRR will order any required specialized parts
from Maryland-TA and MTA will transport and invoice LIRR for the cost of parts at the end of the term.
Leasing this equipment is cost effective as it enables LIRR to meet the demand of its seasonal customers, while avoiding
long term fleet investments under current budgetary constraints. Leasing also affords LIRR time to re-assess long term
fleet needs, deferring to such time that the diesel fleet is ready for replacement, and until such time that other initiatives
impacting future capacity (ESA, Main Line Second Track and Main Line Expansion and ) are implemented.
MT A's lease price of $15,570 per car per month, is fair and reasonable based on their certification that they are offering
their "Most Favored Customer" rate and the same rate charged to SEPTA and AMTRAK earlier this year. Option years
reflect a 0% escalation factor. Also included in this request is $1,000/month per car for spare parts, which will be
provided on an as-needed basis by Maryland-TA. Maryland-TA will invoice parts to LIRR at their cost plus shipping and
handling and no further mark-ups, which is also fair and reasonable.
This lease agreement is exempt from MBE/WBE goals as there are no opportunities to subcontract work out.
This work will be reimbursed from LIRR's Operating budget.
