SR-070996-6F
6F
JUl 0 9 1996
PURCH:PW TB br-f:\flnance\purch\stfrpts\srparts
Council Meeting' July 9, 1996 Santa Monica, CA
TO Mayor and City Council
FROM: City Staff
SUBJECT Recommendation to Award Bid to Furmsh and Deliver New Rebuilt Detroit
Diesel Engine parts and Allison Transmission parts.
Introduction
ThiS report concerns an award of bId to furnish and deliver new rebUilt Detroit dIesel engine
parts and Allison transmisSion parts for the Maintenance Division, Transportation Department,
at specified percentage discounts, including applicable sales tax. The estImated annual
expenditure IS $75,000.
Backwound
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 dlstnbutor of these parts for the Southern/Northern California areas They are
exclUSIvely assigned thiS terntory/reglon 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
DetrOit Diesel Engine Parts - 10% (off dealer list)
Allison Transmission Parts - 39% (off manufacturer's Irst)
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Ordmance Number 1743(CCS), Section 5, paragraph 2 24080 of the Santa Monica MUnicipal
Code allows exception to competitIve bidding when Items are purchased from a sole source
manu factu re rid Istn butor
Staff has evaluated the bid submitted by Valley DetrOit DIesel, Inc and find that It meets City
specifications
BudRet/Fmanclal Impact
Fiscal Year 1996-97 appropriation authority for this purchase IS In various maintenance
accounts of the Maintenance DIvIsion, Transportation Department As the materials are
drawn out of Inventory, they Will be expensed agamst available FY 1996-97 appropriatIOn
authority,
Recommendation
It IS recommended that the award of the bid be made to Valley Detroit Diesel Allison, Inc. at
speCified percentage discounts, mcludlng applicable tax
Prepared By' Pam Wortham, Purchasmg Agent
Ted Baxter, Buyer
7/2/96
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