Subject
title
Award and Authorize the City Manager to Execute a Rider Agreement with HEF-P Rockville, LLC (a Limited Liability Company Formed by Highland Electric Fleets, Inc.) in the Amount Not-to-Exceed $1,194,169 with Pricing Consistent with Sourcewell Contract 051123-HEF, for Electric Senior Shuttle Buses and Direct Current Fast Charging (DCFC) Stations.
end
Department
PW - Environmental Management
Recommendation
Staff recommends that the Mayor and Council award and authorize the City Manager to execute a rider agreement for an amount not-to-exceed $1,194,169 and associated sub-agreements included in Attachment 1, with terms and pricing consistent with Sourcewell Contract 051123-HEF for the purchase of two (2) Electric Senior Shuttle Buses and Design, Engineering, Turnkey Installation, Maintenance and Repair of two (2) Direct Current Fast Charging (DCFC) Stations to HEF-P Rockville, LLC (a limited liability company formed by Highland Electric Fleets, Inc.), through June 30, 2036.
Discussion
Staff is requesting award and authorization for a multi-year cooperative contract through Sourcewell Contract 051123-HEF to purchase two electric senior shuttle buses and purchase, design and install two DCFC stations with a 10-year service agreement for station maintenance and a 97% station uptime guarantee. Together, these steps represent the next phase of Rockville’s fleet electrification strategy, beginning with electric shuttle buses serving local senior transit routes. This project advances several actions identified in Rockville’s Climate Action Plan (CAP, adopted January 10, 2022) and Electric Vehicle Readiness Plan (EVRP, adopted March 28, 2025) by:
• Supporting CAP Action M-06, transitioning the City fleet to cleaner and more efficient fuel sources.
• Advancing CAP Action M-07, expanding electric vehicle charging infrastructure on City property.
• Implementing EVRP Action 3.1.2, piloting clean technologies for medium- and heavy-duty fleet applications.
Background
In May 2025, the Maryland Energy Administration (MEA) awarded the City of Rockville a grant of up to $160,000 through the FY 2025 Medium-Duty and Heavy-Duty Zero-Emission Vehicle Grant Program for the purchase of two electric senior transit buses. The program helps Maryland organizations offset the cost of purchasing newly manufactured zero-emission medium- and heavy-duty fleet vehicles. On August 4, 2025, the Mayor and Council authorized the City Manager to execute the FY 2025 Medium-Duty and Heavy-Duty Zero-Emission Vehicle Grant Agreement (MEA Grant No. 2025-12-518S1). The grant requires the City to submit invoices for vehicle purchases by August 30, 2027.
Following execution of the grant agreement, staff evaluated vehicle and contract options that meet the Senior Center’s specifications and received pricing from 3 vendors for buses and charging stations. Highland Electric Fleets provides a package through a Sourcewell contract that includes a 123 kW Optimal EV Low-Floor Shuttle Bus equipped with DC fast-charging capability and configured for a maximum of 18 passengers, ADA bifold entry ramp and wheelchair seating. This is the only electric bus model with low-floor entry meeting the Senior Center’s low-entry requirements. The proposal also includes the design and installation of two direct current fast charging (DCFC) stations capable of recharging each shuttle bus in approximately 2.5 hours.
These DCFC stations will be the City’s first high-capacity charging infrastructure. In addition to providing standard charging service for the electric senior buses, the stations can also serve existing light-duty electric vehicles allowing recharging from 10% to 80% in under 40 minutes, compared to Level 2 stations that recharge 10% to 80% in 5.6 -7 hours. The selected distributed charging system design places the main power electronics in a separate Power Cabinet, reducing infrastructure costs, enabling dynamic power sharing between dispensers, improving scalability, and minimizing repair costs in the event of dispenser damage.
Initially, the 200 kW Power Cabinet will be outfitted with 100 kW of power modules (two 50 kW modules), providing simultaneous 50 kW charging capacity per dispenser or 100 kW when one vehicle is charging. The system can later be upgraded with two additional 50kW power modules to deliver 100 kW simultaneous charging per dispenser as future electric medium and heavy-duty fleet needs evolve.
HEF-P Rockville, LLC, under Sourcewell Contract 051123-HEF, will provide the turnkey procurement-including vehicle purchase, design engineering, DCFC installation, maintenance, and repair services. The package includes a 10-year performance-based service level agreement guaranteeing 97% charger uptime. HEF-P Rockville, LLC will provide the City with an Availability Payment or Credit for any lapses in meeting the Performance Guarantee throughout the term of the contract.
Mayor and Council History
This is the first time this item has been brought before the Mayor and Council.
Procurement
Sourcewell (formerly known as NJPA-National Joint Powers Alliance) is a national cooperative
with more than 50,000 member agencies throughout the United States. Sourcewell has over 40
years of service helping government, education and nonprofit agencies operate more efficiently, seeking quality products and services for the best possible price. National cooperatives, like Sourcewell, with its competitively solicited contract process, are considered to be fair and reasonable contracting vehicles, providing government agencies with quality goods and services at equitable cost. The City has been a member of Sourcewell since approximately 2010 and has previously utilized Sourcewell contracts for various products and services.
Sourcewell posted the Request for Proposal #051123, for the procurement of Fleet Electrification Transition Planning, Management, and Related Services on March 23, 2023. The RFP received 43 proposals and resulted in nine award contracts. Sourcewell Contract 051123-HEF provides participating agencies with competitively solicited access to a comprehensive suite of fleet electrification services, including electric buses. The contract includes consulting, procurement of electric vehicles and electric vehicle supply equipment (EVSE), project design and installation, financing options, and ongoing charging station support. Sourcewell Contract 051123-HEF initial term began on July 14, 2023, and expires on July 19, 2027, the contract allows up to three additional-one-year extensions.
City staff conducted a cost analysis comparing two procurement alternatives and determined that the pricing and scope available through this contract offer the best overall value and represent the most effective and efficient solution to meet the City’s operational and sustainability objectives.
In accordance with Section 17-71(b) of the Rockville City Code, Cooperative Procurement, the City may contract with any contractor who offers goods, services, insurance, or construction on the same terms as provided to other State or local governments or agencies thereof, who have arrived at those terms through a competitive procurement procedure similar to the procedures used by the City.
In accordance with Section 17-39 of the Rockville City Code, Awarding Authority, all contracts involving more than two hundred fifty thousand dollars ($250,000) shall be awarded by the Mayor and Council.
Highland Electric Fleets, Inc. is a non-Minority, Female, Disabled or Veteran (non-MFD-V) business.
The draft agreement and sub-agreements are included as Attachment 1.
To view all contact documents, please click the following links.
1. Highland Proposal <https://rockvillemd.legistar.com/View.ashx?M=AO&ID=177311&GUID=b0498f96-6744-49cf-bbe0-367271adbf4c&N=QWdlbmRhIDI2LTIxMjFfMQ%3d%3d>
2. Highland Sourcewell Quote <https://rockvillemd.legistar.com/View.ashx?M=AO&ID=177348&GUID=214b113b-8919-44dd-a018-4940964587ac&N=QWdlbmRhIDI2LTIxMjFfMl8%3d>
3. Highland Contract Agreement Approval <https://rockvillemd.legistar.com/View.ashx?M=AO&ID=177313&GUID=4d3826fc-5c53-4803-948e-b429c0ab31c0&N=QWdlbmRhIDI2LTIxMjFfMw%3d%3d>
4. Sourcewell Contract <https://rockvillemd.legistar.com/View.ashx?M=AO&ID=177314&GUID=98ca2567-3bd0-46a0-b0b6-f14dd2d6706f&N=QWdlbmRhIDI2LTIxMjFfNA%3d%3d>
5. Sourcewell Solicitation <https://rockvillemd.legistar.com/View.ashx?M=AO&ID=177315&GUID=9ab0b633-17c9-4fef-90f1-dd74cf0d475e&N=QWdlbmRhIDI2LTIxMjFfNQ%3d%3d>
Fiscal Impact
This is a multi-year initiative with funding from the Electric Vehicle Infrastructure Capital Improvement Program (GA23, Attachment 2) for the initial outlay for the design, purchase and installation for the EV charging infrastructure and the operating budget for vehicle purchases and 10-year service agreement, as summarized in Table 1.
• Charging Infrastructure: The total estimated cost for installation and a 10-year service agreement for two DCFC stations is approximately $439,719, with authorization requested for $492,969 to include contingency for Pepco interconnection, bonding, and CPI adjustments. Funding supporting installation and the first year of service of the associated DCFC infrastructure is available through the Electric Vehicle Infrastructure Capital Improvement Program (Project GA23) (Attachment 2).
• Vehicles: The adopted FY 2026 operating budget includes $360,590 for the purchase of one electric bus. The adopted FY 2027 operating budget includes $360,590 for the purchase of the second electric bus. Highland Electric Fleet priced the first Electric Shuttle bus at $350,600. The total estimated cost for the purchase of two electric shuttle buses is $701,200. Funding for the Years 2-10 of the service agreement is anticipated to be included as OCI for CIP GA23 in future operating budgets.
Table 1: Funding Schedule
|
Budget |
Vehicles |
DCFC Charging Infrastructure and Service |
|
FY 2026 Operating |
$350,600 (bus #1) |
|
|
FY 2027 Operating |
$350,600 (bus #2) |
|
|
CIP GA23 |
|
Operational Date Payment (~FY27): • Initial Payment = $160,000 (Purchase, Design, Installation) • Base Service fee for Contract Year 1 = ~$24,400.00 (prorated for first contract year if longer than 12 months) |
|
FY 2028 - 2036 Operating |
|
Annual Service Payments:* Contract Year 2 (FY28) = ~$25,132.00 Contract Year 3 (FY29) = ~$25,885.96 Contract Year 4 (FY30) = ~$26,662.54 Contract Year 5 (FY31) = ~$27,462.41 Contract Year 6 (FY32) = ~$28,286.29 Contract Year 7 (FY33) = ~$29,134.88 Contract Year 8 (FY34) = ~$30,008.92 Contract Year 9 (FY35) = ~$30,909.19 Contract Year 10 (FY36) = ~$31,836.47 *10-Year Service Agreement, with 3% annual escalation included. Subject to increase or decrease based on the annual Consumer Price Index (CPI) and City collection of Provider Performance Guarantee Availability Credits |
|
Total |
$701,200 |
$439,719 *Staff is requesting authorization up to $492,969 to include $53,250 contingency for potential PEPCO Interconnection costs, bonding, and CPI adjustments. |
Next Steps
If approved by the Mayor and Council, the City Manager will execute the Rider Agreement and associated sub-agreement with HEF-P Rockville, LLC (a limited liability company formed by Highland Electric Fleets, Inc.) in the amount not-to-exceed $1,194,169.