SR 08-09-2016 3I
Ci ty Council
Report
City Council Meeting : August 9, 2016
Agen da Item: 3.I
1 of 6
To: Mayor and City Council
From: Edward King, Director , Big Blue Bus, Transit Maintenance
Subject: Purchase and Install Near -Zero Emissions Engines and In -Frame Overhaul
Services
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4247 to Cummins Pacific Corporation, a California -based company,
for the installation of new near -zero emission engines on existing Big Blue Bus
motor coaches, and for the overhaul of existing CNG engines on BBB motor
coaches and on Fire Department apparatus ; a nd
2. Authorize the City Manager to negotiate and execute an agreement with
Cummins Pacific Corporation, in an amount not to exceed $1,314,475 (including
a 10% contingency ) for one year, with four additional one -year option years with
a 3% annual increase, f or a total amount not to exceed $7,029,055 over a five -
year period, with future year funding contingent on Council budget approval.
Executive Summary
The City of Santa Monica is a nationally recognized leader for its sustainability policies
and actions, a nd Big Blue Bus has con sistently contributed to this through its use of
alternative fuels and phasing out diesel -fueled motor coaches. The City of Santa
Monica’s 15 X 15 Climate Action Plan identified 15 measures to reduce emissions by
15 percent by 2015, of which measure 13 included a goa l to c onvert the Big Blue Bus
fleet to 100 percent natural gas . This goal was achieved in 2013 . In addition, Big Blue
Bus ’ conversion to 100 percent alternative fuel ed vehicles met the City’s Sustainable
City Plan goal of 80% of the city fleet vehicles using alternative fuels seven years in
advance of the 2020 target year.
The City’s commitment to sustainability is a key part of BBB’s operational
decision -making matrix. Over the years, Big Blue Bus has maintained a fleet of buses
that represents the latest in bus technology and the cleanest fuel sources. As part of
this commitment, BBB reached a significant milestone in 2015 with 100 percent of its
buses powered by renewable natural gas (RNG). RNG consists of non -fracked m ethane
harvested from organic waste in landfills and is considered the cleanest transportation
fuel available. I n its long -term plan, Big Blue Bus is committed to mov e toward a zero
emissions standard for its bus fleet . I n the near -term , BBB continues to i dentify ways to
further reduce greenhouse gas emissions along a pathway to a zero emissions
standard. Big Blue Bus proposes to significantly reduce greenhouse gas emissions by
2 of 6
implement ing b est practices technologies on motor coaches that are near the midd le of
their useful lifecycle and on older coaches that are near the end of their useful lifecycle
to improve fleet performance and service reliability for customers .
New innovations in natural gas engine technology , combined with the timing of vehicles
r eaching the mid to end of their useful life cycle , have presented Big Blue Bus with the
opportunity to immediately reduce its emissions of harmful pollutants by replacing its
engines with cleaner burning n ear -z ero 0.02 Nitrogen Oxides (NOx) natural gas
engi ne s . I n addition to replacing engines on motor coaches near the middle of their
useful life cycle , BBB has the option to conduct an in -chassis overhaul of natural gas
engines on coaches near the end of their useful life cycle in an effort to maintain the se
v ehicles in a state of good repair .
Staff recommends the award of Bid #4247 with Cummins Pacific Corporation for the
purchase and installation of ISL G Near -Zero 0.02 NOx emission engines on 60 of
BBB’s current operating motor coaches and for the engine i n -chassis overhaul of 50
existing BBB engines and Fire Department’s a pparatus engines , as needed , in the
amount of $1,314,475 for a one -year period, with four additional one -year renewal
options, for an amount not to exceed $7,029,055 over a five -year peri od with the
anticipated completion of approximately 22 buses per fiscal year.
Background
BBB currently operates 200 natural gas -powered transit coaches , of which 60 are near
the middle of their useful life cycle and 50 are approaching the end of their usef ul
life cycle . The Federal Transit Administration sets the useful life cycle of a motor coach at
12 years of age or 500,000 miles. The current fleet engines are Cummins ISL G natural
gas engines using 100 percent domestically produced, Renewable Bio -Liquid N atural
G as (RNG) further reduc ing emissions of harmful pollutants than when using fuel
harvested from non -renewable sources . The se natural gas engines operate at 50%
below the EPA guidelines for greenhouse gas emissions . H owever , a new generation
of n ear -z ero 0.02 NOx natural gas engine reduce s emissions to 90% below EPA
guidelines. The near -zero engine is a direct replacement engine and the only engine
that further reduces NOx emissions by 90% over the existing engines that have reached
their useful life cycle.
Over the 12 -year useful life cycle of a transit coach , natural gas engines experience
normal wear and tear that may require engine replacement, cylinder head and/or
cylinder repair, and an assortment of other engine parts to be rebuil t or replaced.
Engine in -chassis overhauls are necessary around the middle of the useful lifecycle of a
3 of 6
motor coach, six years of age or 250,000 miles, to prevent buses from failing in route,
which would result in costly repairs. I n -chassis overhaul of engines involves rebuilding
of existing engines that are approaching the mid -lifecycle. An overhaul restore s the
engine to a state similar to that of a new engine. By overhauling engines as they
approach mid -lifecycle , BBB is better able to control its maintenance costs, and keep
buses operational. A scheduled engine overhaul allows for the work to be done in a
scheduled and timely manner and on an as -needed basis throughout the year as
opposed to doing so when the vehicle is unexpectedly inoperable or pulled off the road
for un anticipated repairs .
The award of Bid #4247 to Cummins Pacific Corporation (Cummins) would enable the
C ity to further decrease its emission of harmful pollutants by installing the Near -Zero
0.02 NOx engines in a portion of its bus fleet. The Califo rnia Air Resources Board ’s
(CARB) optional Near Zero NOx Emissions standards of 0.02 g/bhp -hr for heavy -duty
urban transit bus applications calls for exhaust emissions to be 9 0% lower than the
current NOx limit of 0.2 g/bhp -hr . The ISL G N ear -Z ero 0.02 NOx engine, first released
in 2016, meets C ARB ’s guidelines eight years in advance of the 2023 California n ear -
z ero NOx schedule . With the new near -zero emission engines installed on 60 buses in
the current fleet, BBB estimates that its emissions of NOx will be reduced by 51.10%,
annually. This translates into a total NOx reduction of 18,395 lbs per year.
The award would also allow for the continued use of Cummins ’ services for in -frame
overhauls on our existing fleet and Fire Apparatus. Cummins Pacific has provided this
service since 2009 with exceptional service meeting all C ity specifications.
Discussion
The Environmental Protection Agency (EPA) and the California Air Resources Board
(ARB) have both rated the new Cummins ISL G Near -Zero emission natural g as engine
at 0.02 g/bhp -hr (grams per brake horse power hour ) of NOx. NOx emissions are
harmful pollutants that significantly contribute to s mog. ARB has recognized that, even
with all the on -road heavy -duty vehicles operating at the previous 2010 NOx emi ssion
limit of 0.20 g/bhp -hr, further significant reductions will need to be made in order to meet
upcoming National Ambient Air Quality Standards (NAAQS) requirements for particulate
4 of 6
matter and ozone. With NOx emissions of 0.02 g/bhp -hr , the n ear -z ero nat ural gas
engine is set to meet 2023 proposed guidelines.
This new natural gas engine technology, combined with Big Blue Bus' use of
R enewable Bio -Liquid N atural G as, would provide a much greater reduction in the
emission of greenhouse gases. With the ne w n ear -z ero emission engines installed on
sixty buses in the current fleet, BBB estimate s that its emissions of NOx will be reduced
by 51.10%, annually. This translates into a total NOx reduction of 18,395 lbs per year.
The stated NOx emissions of 0.02 g/b hp -hr is a significant improvement over the current
0.13 g/bhp -hr achieved by BBB’s current fleet. The use of near -zero emission engines
on the bus fleet represents an opportunity to significantly reduce the City's emission of
harmful pollutants.
Staff re commends that the new n ea r -z ero emission engine be installed on 60 bus es in
the fleet , and that the engines on 50 buses approaching the middle of their useful
lifecycle, as well as engines in Fire apparatus, be overhauled .
Vendor/Consultant Selection
On April 19, 2016, the City published a Notice Inviting Bids to furnish and deliver near -
zero emission engines and provide in -chassis overhaul services in accordance with City
specifications. The bid was posted on the City's online bidding site, and notices w ere
advertised in the Santa Monica Daily Press in accordance with City Charter and
Municipal Code provisions. Seventeen vendors were notified; all vendors downloaded
the bid. Three bids were received and one bid opened publicly on May 11, 2016 per
Attachm ent A.
The other two bidders submitted a “no -bid” response. The bid was evaluated based on
the criteria in SMMC 2.24.072, including price, previous experience, capacity and skill,
ability to deliver, quality of product, and compliance with City specif ications and scope of
work.
5 of 6
City Procurement staff conducted additional outreach to vendors who downloaded the
bid to see why they did not submit a bid. Other qualified local dealers were contacted to
submit a bid response. By posting a Request for Propo sal to Planet Bids the bid was
opened up for competition. However, Cummins Pacific Corporation was the only bidder
to provide a complete bid response for both the in -frame overhaul service, as well as,
the installation of the new ISL G Near -Zero emission e ngines.
Cummins Pacific Corporation is the regional distributor in California and Hawaii for
Cummins Inc., the manufacturer of Cummins engines and replacement parts and
Cummins Westport Inc. the research and development wing of Cummins natural gas
engine s. The distributorship enables Cummins Pacific to have direct access to
Cummins Westport Inc. engineering for engine software updates and troubleshooting
and repair assistance.
In addition to the Cummins distributor, the region also has 19 Cummins author ized
dealers that have the capacity to provide the services. Three of the authorized dealers
are subscribers to the City’s online bidding website, Planet Bids and downloaded the
bid. Of the three one submitted a no -bid and two did not submit a bid.
Based on capacity and skill, ability to deliver, quality of product, pricing, and compliance
with City specifications and scope of work, Cummins Pacific Corporation is
recommended as the best bidder.
Staff decided on one procurement package to achieve better p ricing. Breaking up the
contract into two separate bids, parts and labor, would take away the bidders ability to
utilize the principles of Economy of Scale to compete and could result in a higher project
amount.
6 of 6
Fi nancial Impacts and Budget Actions
The agreement to be awarded to Cummins Pacific Corporation is for an amount not to
exceed $7,029,055 over a five -year period. Funds of $1,314,475 are available in the FY
2016 -17 budget in the Capital Improvement Program and the Fire Department . The
agreement will be charged to the following accounts:
C410106.589000 Bus Components $1,259,475
01312.569290 Fire Truck Maint enance Reimbursement $55,000
TOTAL $1,314,475
Future year funding is contingent on Council budget approval.
Prepared By: Getty Modica, Tr ansit Maintenance Officer
Approved
Forwarded to Council
Attachments:
A. Bid Response
IN FRAME OVERHAUL
(INCLUDES
REPLACEMENT PARTS
AND LABOR)
NEW SWING ENGINE
GENUINE CUMMINS
RECON
(RECONDITIONED)
SWING ENGINE
ENGINE REMOVAL
AND INSTALLATION
LABOR
GENUINE CUMMINS
WBT 5 YEAR 200,000
MILE EXTENDED
COVERAGE
RESPONSE RESPONSE
11,958.76 $ N/A $21,356.59 +
$2,750.00 CORE $ 6,800.00 N/A
13,064.39 $ N/A $22,544.32 +
$5,000.00 CORE $ 6,800.00 N/A
11,491.79 $ N/A $19,954.50 +
$5,000.00 CORE $ 6,256.00 $ 4,350.00
9,979.01 $ 47,806.00 $ $26,611.00 +
$5,625.00 CORE $ 10,200.00 $ 6,750.00
N/A 53,083.00 $ N/A $ 10,200.00 $ 6,750.00
N/A 56,815.00 $ N/A $ 10,200.00 $ 6,750.00
N/A 61,259.00 $ N/A $ 10,200.00 $ 6,750.00
IN FRAME OVERHAUL
(INCLUDES
REPLACEMENT PARTS
AND LABOR)
NEW SWING ENGINE
GENUINE CUMMINS
RECON
(RECONDITIONED)
SWING ENGINE
ENGINE REMOVAL
AND INSTALLATION
LABOR
GENUINE CUMMINS
WBT 5 YEAR 200,000
MILE EXTENDED
COVERAGE
N/A 53,083.00 $ N/A 10,200.00 $ 6,750.00 $
N/A
N/A
N/A
N/A
N/A
N/A
N/A
NO BID NO BID
Purchasing Section
1717 Fourth Street, Suite 250
Santa Monica, CA 90401
Telephone: 310-458-8281
Fax: 310-393-6142
BID DESCRIPTION: PROVIDE CUMMINS IN-FRAME OVERHAUL SERVICES AS REQUIRED BY THE BIG BLUE BUS
MUNCIE RELAMATION
AND SUPPLY DBA
MUNCIE TRANSIT
SUPPLY
HARBOR DIESEL AND
EQUIPMENT, INC
$455.00 PER TRIP
PLEASE DESCRIBE ANY ADDITIONAL FEES &
CHARGES NOT LISTED ABOVE
** CUSTOMER BILLABLE FIELD SERVICE TRIPS INLCUDE A TRAVEL/ MILAGE FEE. $2.95 PER MILE TRAVELED PLUS
THE APPLICABLE LABOR RATE PER HOUR FOR THE TIME SPENT DRIVING TO YOUR FACILITY. THIS FEE IS ADDED
TO YOUR INVOICE AS A MISC. CHAGE. **PARTS THAT MUST BE RUSHED FROM CUMMINS FACTORY AND
CANNOT WAIT UNTIL THE STORE ORDER ARRIVES RECEIVING A 10% "ENGINE DOWN" CHARGE. "ENGINE
DOWN" BASICALLY COVERS THE NEXT DAY AIR SHIPPING FEE.
FOURTH ANNUAL RENEWAL OPTION 3% INCREASE OF PREVIOUS YEAR'S PRICE FOR ALL AREAS OR OPTIONS.
ARIZONA COMPLETE- NO PRESENCE
LIVING WAGE THIS CONTRACT IS SUBJECT TO THE LIVING WAGE ORDINANCE
PERCENTAGE OF MARKUP ON REPLACEMENT
PARTS*
*DISCOUNT FROM LIST PRICE
$136.00 PER HOUR
$204.00 PER HOUR
$136.00 PER HOUR**
$204.00 PER HOUR**
28% APPROX.
$325.00 PER TRIP
ANNUAL LABOR RATE AND PART PRICE INCREASE
RESPONSE
DESCRIPTION
CUMMINS ISM 500 DIESSEL ENGINE
CUMMINS ISM 400 DIESSEL ENGINE
CUMMINS C GAS PLUS 8.3 NG ENGINE
CUMMINS ISL G 8.9 NG ENGINE
NEW ENGINE SWING- REMOVE EXISTING ISL
G AND INSTALL NEW CUMMINS ISL G 8.9 NG
NEAR ZERO EMISSION ENGINE ON 2009 EL
DORADO 30' BUS WITH 250 HP ENGINE
NEW ENGINE SWING- REMOVE EXISTING ISL
G AND INSTALL NEW CUMMINS ISL G 8.9 NG
NEAR ZERO EMISSION ENGINE ON 2011 NABI
40' BUS WITH 280 HP ENGINE
NEW ENGINE SWING- REMOVE EXISTING ISL
G AND INSTALL NEW CUMMINS ISL G 8.9 NG
NEAR ZERO EMISSION ENGINE ON 2011 NABI
60' BUS WITH 320 HP ENGINE
CITY OF SANTA MONICA BUSINESS LICENSE
NET 30
COMPLETE
3% INCREASE OF PREVIOUS YEAR'S PRICE FOR ALL AREAS OR OPTIONS.
3% INCREASE OF PREVIOUS YEAR'S PRICE FOR ALL AREAS OR OPTIONS.
3% INCREASE OF PREVIOUS YEAR'S PRICE FOR ALL AREAS OR OPTIONS.
BID # 4247
BID CLOSING DATE: 5/11/16
CUMMINS PACIFIC, LLC
IRVINE, CALIFORNIA
SECOND ANNUAL RENEWAL OPTION
NOTES
DESCRIPTION
BUS PICK-UP AND DELIVERY CHARGES (BUS
TOWED ONE WAY)
FIELD SERVICE LABOR RATE (OVERTIME
HOURS)
* DUPLICATE ROW IN BID. ** J8S ADDENDUM 2 FOR 40' GILLIG/ ISL G 280 PRICING
NEW ENGINE SWING- REMOVE EXISTING ISL
G AND INSTALL NEW CUMMINS ISL G 8.9 NG
NEAR ZERO EMISSION ENGINE ON 2016
GILLIG 30' BUS WITH 250 HP ENGINE
TROUBLE SHOOTING AND REPAIR LABOR
RATE (REGULAR HOURS)
TROUBLE SHOOTING AND REPAIR LABOR
RATE (OVERTIME HOURS)
FIELD SERVICE LABOR RATE (REGULAR
HOURS)
BUS PICK-UP AND DELIVERY CHARGES (BUS
DRIVEN ONE WAY)
NOTES
THIRD ANNUAL RENEWAL OPTION
SPECIFY ALTERNATE TERMS AND
CONDITIONS IF APPLICABLE
BUSINESS LICENSE
ADDITIONAL QUESTIONS
PAYMENT TERMS
OAKS
FIRST ANNUAL RENEWAL OPTION
Reference:
Agreement No. 10353
(CCS)