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SR-6-U (6) ,u PURCH PW jpr f \finance\purch\stfrpts\srdles CouncIl Meeting July 22, 1997 Santa MOnica, CA JUl 2 2 1997 TO Mayor and City Council FROM City Staff SUBJECT RecommendatIon to Purchase RebUIlt Detroit Diesel EngIne Parts and Allison Transmission Parts and Authonze the CIty Manager to Negotiate and Execute a Purchase Order with Valley Detroit Diesel Allison Inc Introduction This report concerns the purchase of rebuilt DetrOIt dIesel engIne parts and AllIson transmiSSion parts for the Maintenance DIvIsIon, Transportation Department, at specified percentage discounts, Includmg applicable sales tax Backaround Detroit diesel engine parts and Allison transmiSSion parts Will replace worn-out bus engine parts and Allison transmIssIon parts on City-owned buses Valley DetrOIt Diesel Allison, Inc IS the sole distributor of these parts for the Southern/Northern CalIfornia areas They are exclUSively assigned thIs territory/region The manufacturer Will not sell direct to the City Staff received a quote for the percentage discount off manufacturer's published list pnce as follows PARTS PERCENTAGE DISCOUNT OFF MANUFACTURER'S PRICE LIST DetrOit Diesel Engine Allison TransmiSSion 10% 39% bfA - 1 - JUl 2 2 1997 Ordinance Number 1743(CCS), Section 5, paragraph 224080 of the Santa MOnica MUnicipal Code allows exception to competitive bidding when Items are purchased from a sole source manufacturer/dlstnbutor Staff has evaluated the quote submrtted by Valley Detroit Diesel Allison Inc and finds that It meets CIty specifications BudaetlFlnanclallmoact - - Fiscal Year 1997-98 appropriation authOrity for thiS purchase IS In vanous maintenance accounts of the Maintenance DIVISIon, Transportation Department. As the matenals are drawn out of Inventory, they WIll be expensed against available FY 1997-98 appropriation authOrity The estimated annual expenditure is $75,00000 Recommend;;itJon It IS recommended that the award be made to Valley DetrOit Diesel Allison, Inc at speCified percentage discounts, Including applicable tax Prepared By Pam Wortham, Purchasmg Agent Marganta Lee, Buyer - 2 -