Approve and Contract for the Purchase of Extended Five-Year Manufacturer's Warranty Plans for Buses with VT365 Engines from Rivers Bus Sales and Navistar Fleet Services (Sole Source Provider)(Business Division)

The Transportation Department currently operates 209IC (International Corporation) CE 200 school buses equipped with VT365 engines. These engines have been plagued with ongoing mechanical problems resulting in multiple repairs and extended down time on each bus. At issue is the motor, an 8-cylinder, 220-horsepower unit, that is underpowered for the rigors of the job.

Six complete engines were replaced during the 2009/2010 school year. The cost of a re-built engine, $13,997, was absorbed by the manufacturer's warranty. The current manufacturer's warranties for the buses with the VT365 engine will begin to expire on August 31, 2010. The cost of the extended manufacturer's warranties, good for 5 years or 200,000 miles, will cost $2,000 each. They will be purchased from Rivers Bus Sales, which is the assigned dealership.

* Demonstrate best financial practices

General fund dollars of $418,000 will be available in the Transportation Department budget.