SR-102296-6H
Cont..-act 1055/ b H
PURCH PW DH.aa f \finance\purch\stfrpts\srdlesel OCT 2 2 1998
Council Meetmg October 22, 1996 Santa Monica, CA
TO Mayor and City Council
FROM City Staff
SUBJECT Recommendation to Provide RepaIr and Services for Detroit Diesel Transit
Engines and Authorize the City Manager to Negotiate and Execute a
Contract wIth Valley DetroIt DIesel AllIson Inc
Introduction
ThIS report concerns award of a contract to prOVide repairs and service for DetroIt
Diesel Transit diesel engines for the MaIntenance DIVISion, Transportation Department
at a speCified umt pnce, plus apphcable sales tax, with two one-year renewal options
The estimated annual expenditure IS $135,00000
Background
The Mamtenance DIVIsion requires a servIce to repair onglnal equipment manufactured
(OEM) Detroit Diesel transit engmes Valley Detroit DIesel Allison Inc IS the sole
dlstnbutor and authOrized service center of these parts for the Southern California area
They are exclUSively assigned thiS territory region The Valley Detroit Diesel Allison Inc
labor rate quoted IS $65 00 per hour
Ordinance Number 1743 (CCS), Section 5, paragraph 224080 of the Santa Momca
MUnicIpal Code allows exceptIon to competItIve bIdding when Items are purchased from
a sole source manufacturer/distributor
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OCT 2 2 1996
Staff has evaluated the quote and finds that It meets City specifications
BudqetlFrnanclallmpact
Fiscal Year 1996-97 appropnatlon authonty for this purchase IS In the Capital
Improvement Budget, account number 41-750-657-20095-8900-99106, "Bus Component
Replacement Program"
Recommendation
It IS recommended that the CIty Manager be authorized to negotIate and execute a
contract with Valley Detroit Diesel Allison Inc at a speCified umt pnce, plus applicable
tax and two one-year renewal options
Prepared By Pam Wortham, Purchasing Agent
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