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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 - 1 - 6H 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 - 2 -