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SR-121796-6K 6K- : PURCH PW aa f.\finance\purch\stfrpts\srrejec4 bid DEe 1 1996 Council Meeting December 17, 1996 Santa MOnica, California TO Mayor and City Council FROM City Staff SU BJ ECT RecommendatIon to Reject Bids to Provide Suspension (Bld# 2587) and Distributor (Bid #2486) Bus Parts, and Adopt a Resolution Authorizing City Manager to Negotiate and Execute Purchase Orders for the Purchase of Bus Parts Introduction This report concerns rejection of bids to provide suspension and distributor bus parts and requests that City CouncIl authorize the City Manager to negotiate and execute purchase orders for the purchase of bus parts on the open market In an estimated total amount not to exceed $500,000 for FY 1996-97 Background The Transportation Department operates 135 buses over 12 routes, traveling over 3 8 million miles and serving more than 18,000,000 riders annually In order to maintain these buses In dally service, the Department stocks over 3,500 different bus parts In Inventory DUring the year, approximately $500,000 IS spent to replenish certain bus parts Inventory Staff soliCited bids for distributor parts and suspension parts for the fiscal year After evaluating the bids and reviewing the overall bus parts purchaSing needs, It was determined that greater fleXibility was needed to purchase parts Staff req UI res th e D~Ji ability to purchase parts on the open market In order to ensure both the availabilIty of the part when needed and to take advantage of volume prlcmg and/or price breaks offered by one or more vendors dUring the year due to changing market conditions The market flexibility for purchasing bus parts IS extremely limited Unlike truck and automotive parts which are available from a large number of vendors, either locally, regionally or nationally, bus parts are available from a limited number of vendors Some parts are only avaIlable from one vendor, the original equipment manufacturer (OEM) or their authorized distributor (Universal Coach Parts) Non-OEM parts are available, atthls time, from four vendors natIOnwide (Universal Coach Parts, Mohawk Manufacturing, Muncie Reclamation and MIdwest Bus Corporation), though availability of the parts vary among the four vendors When parts are available from more than one vendor, purchase deCISIons depend not only on cost, but also on part availability and estimated delivery time Parts needed for routine repairs can be easily maintained In Inventory and purchases planned so that they can be made from the lowest cost vendor However, due to the large number of parts on any particular bus model, It IS often not practicable to stock all parts In Inventory, or stock In suffiCient quantities to mamtaln the buses In service when a unique problem occurs At these times, when emergency part purchases are required, part availabIlity and delivery time are conSidered crUCial to the purchasmg deCISions Under the open market program, after City CounCil authOrizatIon, annual purchase orders Will be Issued to known bus parts vendors When parts need to be restocked, staff Will - -- sohclt quotes from each vendor who can supply parts and award to the lowest responsive and responsible bidder who has the parts available Records will be kept to ensure that all vendors listing the part have been contacted The ability to continually purchase parts on the open market will ensure that inventories are kept moderate and that safe quality bus service IS maintained and available to the pubhc at the lowest pOSSible cost The Items covered by these agreements Will Include replacement bus parts for Motor Coach Industries (MCI), NOVA and General Motors Corporation (GMC) transit coaches which comprise the Big Blue Bus fleet BudgeUFmanclallmpact Fiscal Year 1996-97 appropriatIon authOrity for this purchase IS In the Maintenance DIvISion, Transportation Department, account number 41-600-651-00000-4422-25422 As Items are drawn from Inventory, they Will be expensed against this account Recommendation It IS recommended that 1 Bid #2586 and Bid #2587 be rejected 2 Resolution be adopted authOriZing the City Manager to negotiate and execute purchase orders for the purchase of bus parts on the open market Prepared By Pam Wortham, PurchaSing Agent Janet Shelton, Administrative Services Officer - --- o'p ( l PW DH aa f \finance\purch\stfrpts\res2587 wpd City Council Meeting December 17, 1996 Santa MOnica, California RESOLUTION NO 9111 (CCS) (City CounCil Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA TO AUTHORIZE THE CITY MANAGER TO NEGOTIATE AND EXECUTE PURCHASE ORDERS FOR THE PURCHASE OF BUS PARTS WHEREAS, the Santa Monica's Big Blue Bus operates 135 buses over 12 routes, traveling 3 8 million miles and serving more than 18,000,000 nders annually, WHEREAS, It ]S vital to the travel needs of the bus rrdlng public that the BIg Blue Buses be properly maintained to ensure the safe travel for Its nders, and WHEREAS, availability of bus parts IS necessary to the proper maintenance of the bus fleet, WHEREAS, the City sent out Notices Inviting Bids to furnish and deliver suspension and dlstnbutor bus parts and to guarantee prices for one year, WHEREAS, two responses were received for distributor parts and three responses were received for suspensIon parts, . , . ) WHEREAS, staff had determmed that the formal blddmg procedures are not conducive to the flexibility needed to guarantee availability of bus parts nor ensure that the lowest possible price IS received due to changing market conditions In bus parts, WHEREAS, Santa Momca MUniCipal Code Section 224 100(b) provides for the waiver of formal bidding procedures, after rejection of all bids, when necessary to address concerns such as those set forth above, WHEREAS, Santa MOnica MUniCipal Code SectIon 224 100(c) provides for the waIver of formal bidding procedures when deemed by City Council to be of urgent necessity or cause unnecessary expense and delay as set forth above, WHEREAS, Santa Momca MUniCipal Code Section 224080(1) provides for an exception to competitive blddmg on proprietary Items of ongmal equipment manufacturers and/or their authOrized exclUSive distributors, NOW THEREFORE, THE CITY COUNCil OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOllOWS SECTION 1 The City Council hereby rejects all bids for the suspension and distributor parts. SECTION 2 In accordance with Santa MOnica MUniCipal Code Section 2 24 1 OO(b) I the City CouncIl finds and declares that bus parts may be purchased under I ~ ( more favorable circumstances In the open market and the competltlve blddmg procedure should be waived for non-OEM bus parts SECTION 3 In accordance with Santa MOnica MUnicipal Code Section 224 100(c) the City Council finds and declares that certain bus part purchases are of urgent necessIty and the competItive bidding procedure should be waived for non-OEM bus parts SECTION 4 In accordance with Santa MOnica MUnicipal Code Section 2 24 080(1) the City Council finds and declares that certain bus part purchases are the proprietary Items of original equIpment manufacturers and/or their authorized exclUSive distributors and the competitive bIdding process should be waived for non-OEM bus parts SECTION 5 In accordance with the above listed Santa MOnica MUnicipal Code sections, the CIty Council authorizes the City Manager to negotiate and execute purchase orders for the purchase of bus parts SECTION 6 The City Clerk shall certl'fy to the adoption of this Resolution, and thenceforth and thereafter the same shall be In full force and effect APPROVED AS TO FORM r ~ \ J. i - ( ,'.,' } 1 . I '~J-_{ Li..--I.--I"..' J. L.c..t", ~ <" ; MARSHA JONES MOUTRIE City Attorney . I I ) Adopted and approved thIS 17th of December. 1996 ~o~~-- - Mayor 1 hereby cemfy that the foregomg ResolutIOn 9111(CCS) was duty adopted at a meetmg of the CIty Counctl held on the 17th of December, 1996 by the followlllg vote Ayes Councllmembers Ebner. Femstem. Genser, Greenberg, Holbrook, O'Connor, Rosenstem ::-.Ioes CounCllmembers None Abstalll CouncIlmembers None Absent Councllrnembers None ATTEST ~-~~.~ City Clerk