A pre-proposal conference will be held on March 4, 2003 at 1:30 p.m. at PIERCE TRANSIT Headquarters, 3701 96th Street S.W., Lakewood, Washington 98499-0070. All prospective proposers are requested and strongly encouraged to attend. The pre-proposal conference will provide prospective proposers the best opportunities to review the requirements and intent of the Contract Documents and to observe PIERCE TRANSIT's operating conditions.

INTRODUCTION

Pierce Transit requests proposals for providing either heavy or medium duty 30-foot low floor compressed natural gas (CNG) powered buses over a five year period under an indefinite delivery/indefinite quantity contract. This type of contract provides for Pierce Transit ordering indefinite quantity of buses during a fixed period of time with deliveries to be scheduled by placing delivery orders with the Contractor. It requires Pierce Transit to order and Contractor to furnish a stated minimum quantity but not to exceed a stated maximum quantity. It does not bind Pierce Transit to order more than the guaranteed minimum. It binds the contractor to provide all quantities of buses Pierce Transit may order under the five (5) year contract term up to the maximum quantity stated in the contract. This Request for Proposals (RFP) sets forth all of Pierce Transit's requirements for this procurement.

The minimum quantity of buses Pierce Transit will order under this contract is 20. No less than this quantity will be ordered under the initial purchase unless there is a funding adjustment for the initial purchase. The maximum quantity of buses ordered under this contract is 50.

Pierce Transit grants to other transit districts authorization to purchase an equivalent vehicle as described in the specifications at the same submitted unit bid price, adjusted for options, for this purchase. This authorization applies only with the consent of the contractor. In addition the contractor shall inform Pierce Transit and obtain Pierce Transit's approval prior to accepting an order under this contract from another agency.

In no way shall Pierce Transit be responsible or liable for vehicles purchased by other agencies through this cooperative bidding process

Each agency will be responsible for completing individual contracts with the contractor independent of this contract.

PRICE ESCALATION

Pierce Transit reserves the right to order buses and other equipment over the five-year period beginning upon the date of contract award. The prices of such buses and equipment shall be the prices quoted in the initial contract. These prices shall remain firm/fixed for any orders issued by Pierce Transit within a period of ninety (90) days of contract award. The price(s) of any buses or equipment ordered by Pierce Transit after the initial ninety (90) day firm/fixed price period shall be that quoted (Base Order Prices) plus an escalation which will be calculated based on the following formula which utilized the US Department of Labor/Bureau of Labor Statistics Producer Price Index ("PPI") Category 1411-06, "Heavy Duty Trucks Over 10,000 lbs. GVW." The escalation in this index will be used to adjust the Base Order Prices. However, in no event will the price(s) for any purchase order release exceed, by more then 5% the price(s) that would have been in effect twelve (12) months prior to the date of the release.

ANTICIPATED PURCHASE

Pierce Transit anticipates purchase of the minimum guaranteed quantity of twenty (20) buses during the first year of the contract immediately after contract award. Additional quantities up to the maximum of fifty (50) coaches may be purchased at any time during the five year contract term. Pierce Transit may order any quantity of buses it wishes during each year of the contract. Pierce Transit may order no buses in a given year, or Pierce Transit may order as many buses as it wishes and as often as it wishes in a given year, but in no event will the quantity ordered by Pierce Transit at one time be less than 5. In any event, Pierce Transit's first order for buses will be not less than 20. (Other participating agencies may negotiate orders for less than 5.)

CONTRACT TERM

This procurement is to be a five-year indefinite quantity/indefinite delivery contract.