Meeting Date: January 12, 2005

Subject: Purchase Order Amendment Authority #2 - Drive Train Engineering Services Contract C31PV02750


It is recommended that the Commission authorize purchase order amendment #2 to Motogear Canada (Motogear) on Contract C31PV02750 in the amount of $150,000, bringing the total authorized amount to $340,000 for continued engineering assistance on revenue and non-revenue subway vehicle drive train related issues.


Sufficient funds to accommodate this expenditure are included in the 2005 Operating Budget and in Capital Projects 4.22 Rail Non-Revenue Vehicle Overhaul and 4.23 Purchase of Rail Non-Revenue Vehicles, as set out on pages 1093-1119 in the “State of Good Repair” category of the 2005-2009 Capital Program, as approved by the Commission on November 17, 2004, and will be included in future operating budget submissions as required.


Over the last 30 years, TTC has procured diesel-powered workcars with transmission and axle gearboxes from a variety of manufacturers in the US, Austria, Japan, etc.  In some instances, the reliability and durability of these gearboxes was unacceptable.  Parts have to be replaced frequently, and the cost of parts has been unacceptable. When overhaul was required, components within these gearboxes had to be reverse engineered because of parts unavailability.

To reduce maintenance costs, ensure a future supply of replacement parts and provide high availability of non-revenue subway work vehicles, staff developed a design to standardize the truck and drive train.  This design is based on experience with the performance and endurance of drive trains currently in use on the workcar fleet and is being applied in capital programs for future overhaul and replacement of subway workcars. Significant effort was made to identify suitable off-the-shelf components and/or interested rail vehicle drive train manufacturers in the business.  However, it was found that off-the-shelf components were not available and applicable companies were either not interested or unwilling to invest their engineering resources in TTC specific designs (special track gauge) due to the low quantities required.

Motogear is a local company with over 40 years of proven experience in the design of rail car and mobile equipment transmissions and drive trains. Motogear has previously assisted staff to resolve drive train problems, reverse engineering gear components for subway work vehicles where replacement parts were not available from the original manufacturer. In addition, complete gearbox designs have been provided for non-revenue workcars.

On June 27, 2002, Contract C31PV02750 in the amount of $100,000 was awarded to Motogear  (for the period from July 1, 2002 to December 31, 2004) to provide engineering services for the design and development of a standard drive train for non-revenue workcars. Supported by staff, this was a single source order based on this being the only known local company with rail experience and with the specialized design skills required for this type of work. In addition, much of the work would involve modifying and adapting designs that had previously been developed by Motogear.
During design and development of the standard workcar drive train, staff was also investigating premature failure of the hypoid gear set in T1 axle gearboxes. The same gear set is used in both the T1 and H6 subway fleet with 498 vehicles totaling over 2000 gearboxes (including spares).  Replacement of the gear set combined with a required gearbox overhaul results in a high maintenance cost.  Because this gear set was similar in design to the one already being developed for use in non-revenue workcars, staff recognized an opportunity to utilize Motogear’s expertise to adapt their design to the hypoid gear set for the T1 and H6 revenue application. To cover the cost of this increase in the scope of work, on November 28, 2003,  Purchase Order Amendment #1 was issued, revising the upset limit amount to $190,000 and the contract completion date was extended to December 31, 2005.

Current Contract details are as follows:

Amount of Original Award / $100,000

Amount of previously approved Amendments / 90,000

Amount this Amendment / 150,000

Revised Contract Amount / $340,000

Work on this amendment is 0% complete.


At this point in time, the original authorized amount of $100,000, along with the amount of $90,000 (first amendment) has been utilized with the following results.
• Motogear developed the design, with drawings and specifications, of a standard drive train for non-revenue workcars (including axle gearboxes, axles, wheels, powershift transmissions and hydrostatic drive components).  Based on the results of competitive bidding, component orders totalling over $2,500,000 are in place with Atchinson Castings, Rockford Powertrain, General Gear, Grupos Diferenciales, Orx, Timken Bearing, etc.  These components are currently being manufactured and are destined for application in six non-revenue diesel workcars as currently approved in the 2005 –2009 capital program.

• Motogear also developed a design, with drawings and specifications, of a hypoid gear set for revenue H6 and T1 car axle gearboxes. This design, retrofittable into the current axle gearboxes, specifies improved materials, heat treatment and manufacturing process that will result in extended service life.   Thirty prototype gears were ordered and to date 15 sets have been delivered, installed, and are on test in revenue T1 and H6 cars.  Expecting successful test results, based on preliminary costing, it is anticipated that competitive bidding for a future supply of these gear sets will result in annual cost avoidance to the Commission in excess of $1,000,000 due to increasing the time between overhauls from 5 years to at least 15 years.

To complete the projects outlined above, further engineering involvement will be required. In some instances, there will be technical issues related to the drive train design for which in-house expertise is not existent and outside assistance will be required. Staff prefers to utilize their in-house engineering resources to focus on other operating and capital projects of an urgent nature.

A further amendment of $150,000 is being requested to allow completion of the projects outlined above as follows:

• To address manufacturing issues with component suppliers, participate in and validate test results and provide assistance in commissioning the drive trains on the vehicles (non-revenue workcar drive train projects)

• On revenue car axle gearboxes, continue providing support during the testing and make design changes and gear set improvements as necessary.   Further, during development of the hypoid gear set for the T1 and H6 axle gearboxes, other areas of the gearbox were identified where design improvements could be developed, specifically with respect to the input shaft bearing/lubrication configuration. Currently, it is anticipated that without changes to the gear sets and improvements to the gearbox, overhauls will be required every 5 years.  With the changes to better quality gear sets, design changes to the box to improve lubrication along with more appropriate lubricant, it is believed that it may be possible to extend the life of the box between overhauls to 15 years or more, resulting in estimated cost avoidance in excess of $1,000,000 annually.


The increased upset limit amount of $150,000 to Motogear will secure drive train engineering assistance to support implementation of Motogear drive systems in both revenue and non-revenue subway vehicles.  In addition to the benefits of improved vehicle reliability, these projects have the potential for the Commission to avoid costs in excess of $1,000,000 annually.

December 13, 2004