SR 02-12-2019 3B
City Council
Report
City Council Meeting: February 12, 2019
Agenda Item: 3.B
1 of 4
To: Mayor and City Council
From: Edward King, Director, Big Blue Bus, Transit Maintenance
Subject: Award Bid for Bus Differential Repairs
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4362 to Truck Gears, Inc. a California-based company, for the
removal, repair, and rebuild of heavy-duty front, mid, and rear axle differential
systems for Big Blue Bus and the Fire Department; and
2. Authorize the City Manager to negotiate and execute an agreement with Truck
Gears, Inc., for repair and rebuild of axle and differential system components in
an amount not to exceed $566,005 which includes a $51,455 contingency and a
4% annual cost escalator for a five-year period, with future year funding
contingent on Council budget approval.
Summary
The City solicited bids to provide repairs and rebuild services including removal,
replacement, and service of the front, mid, and rear axle differential systems and related
components as needed by the Big Blue Bus (BBB) fleet and Fire Department’s heavy-
duty vehicles to ensure that the vehicles are maintained in a safe operating condition.
The differential systems on the City’s fleet of heavy-duty transit buses and Fire
Department vehicles require services to repair damage that occurs through the normal
operation of these vehicles. Staff recommends the award of bid #4362 to Truck Gears
Inc. for the repair and rebuild of the differential systems on transit buses and Fire
Department heavy-duty vehicles in an amount not to exceed $566,005 over a five -year
period, which includes a 10% contingency and all applicable taxes.
Discussion
The City’s fleet of heavy-duty transit buses and Fire Department vehicles requires
services to repair damage to its axles and differential systems that occurs during the
normal operation of the vehicles. These systems are vulnerable to damage from road
debris and from wear and tear due to the high mileage demand placed on the vehicles.
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This contract would enable BBB to have the axle and differential system s repaired in a
timely manner ensuring that these vehicles are maintained in safe operating condition
with minimal downtime.
Method of Service
On August 26, 2014, staff was directed by Council to review contracted services
throughout the City and identify situations where contracted se rvices could be brought
in-house. Per Attachment A of the January 13, 2015 Staff Report titled “As -Needed and
Contract Staffing Review Report,” seven criteria were established to determine proper
use of contracted staff. Of these, “Specialized Expertise” a nd “Capital/Equipment
Requirement” are relevant to BBB’s decision to contract the axle and differential
repair/rebuild services.
The repair and rebuild of axle and differential system components requires specialized
expertise and capital equipment. Bringing this service in-house would require the
purchase and storage of additional capital equipment and in-depth training of staff on
the method and process of repairing and rebuilding the various axle and differential
models installed on City transit buses and Fire Department vehicles. Bid #4362 requires
the vendor to provide all necessary tooling and equipment needed to deliver the
contracted services, saving the City costs associated with the purchase and storage of
equipment as well as personnel and training.
Based on the criteria outlined in the January 13, 2015 staff report, and the costs
associated with bringing this service in-house, staff recommends that the Council award
bid #4362 to Truck Gears, Inc. for the repair and rebuild of axle and differenti al systems
on the City’s fleet of transit buses and Fire Department heavy-duty vehicles.
Vendor Selection
Bid Data
Bid Posting Date Bid Posted On
Bid Advertised
In (City Charter
& Municipal
Code)
# of
Vendors
Downloaded
# of
Submittals
Received
Date
publicly
Opened
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9/20/2018 City's Online
Bidding Site
Santa Monica
Daily Press 8 1 10/17/2018
Additional Vendor Outreach & Justification to Award
Procurement conducted additional outreach to vendors who downloaded the bid to see why
they did not submit a bid but did not receive any responses to the outreach. Truck Gears, Inc.
has a positive history of performing repairs to heavy-duty axle and differential systems and is
able to meet all of the City's specifications, in addition to being the only bidder. Staff found the
bid pricing to be reasonable after comparing it to the previous contract pricing. Based on
these criteria, Truck Gears, Inc. is recommended as the best bidder.
Past Council Actions
Meeting Date Description
01/13/2015 As-Needed and Contract Staffing staff report
Financial Impacts and Budget Actions
Staff seeks authority to award a contract with Truck Gears, Inc. for the repair/rebuild of
axle and differential systems not to exceed $566,005 which includes a 10%
contingency, a 4% yearly cost escalator, and all applicable taxes over five years.
Contract Request
Request Amount
FY 2019-20 Budget
Account #
Total Contract
Amount
$60,000 C6004750.689000 $357,477
$35,000 01190001.529470 $208,528
Total $566,005
Future year funding is contingent on Council budget approval.
Vendor Selection Recommendations
Municipal Code SMMC 2.24.072
Evaluation Criteria
Price, previous experience, ability to
deliver, and compliance with City
specifications
Best and Only Bidder Truck Gears, Inc.
Submittals Received
Truck
Gears, Inc. $ 566,005
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Prepared By: David Nanjo, Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Truck Gears Oaks
B. 1/13/2015 staff report (Web Link)
C. Written Comments
1
Thania Montoya
From:The SEO Doctors <theseodoctors@gmail.com>
Sent:Monday, February 11, 2019 8:35 PM
To:Clerk Mailbox
Subject:Council 2/12/19 - Item 3B
Follow Up Flag:Follow up
Flag Status:Flagged
BBB and FD differential repairs.
Yes.
Korie Schmidt
(310)600-2278
TheSEODoctors@gmail.com
Item 3-B
02/12/2019
1 of 1 Item 3-B
02/12/2019
REFERENCE:
Agreement No. 10804
(CCS)