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SR-205-003 (286) .# e e 2-P5-tP03 h-K MAR 8 1988 PURCH:EOB:RA Counc1l Meeting: March 8, 1988 Santa Monica, California TO: Mayor and city Council FROM: city staff SUBJECT: Recommendation to Award Bid for Ten Transit Coaches for the Santa Monica Municipal Bus Lines, Bid Number 2157 INTRODUCTION This report concerns award of bid for ten transit coaches in the total amount of $1,796,710.00 including applicable sales tax. These buses will replace 10 13-year old buses in the Municipal Bus Lines' fleet. BACKGROUND In response to published Notices Inviting Bids (published November 30, 1987 and December 1, 1987) to furnish and deliver ten transit coaches in accordance with City specifications, bids were received and publicly opened and read on February 16, 1988. Proposal forms were mailed to nine vendors and notices were advertised in accordance with city Charter and Municipal Code provisions. One proposal was received as follows: - 1 - h-K MAR B 1988 e e . Bid of Greyhound, Inc.: Ten (10) transit buses with tires and ten (10) spare wheels as follows: Item Unit Price Total Price Base Bus (without items and materials for handicapped) $148,780.00 $1,487,800.00 6-1/2% Sales Tax* 9,671.00 96,710.00 Items and Materials for Physically Handicapped 18,220.00 182,200.00 Delivery Charge 3,000.00 30,000.00 TOTAL PRICE $179,671. 00 $1,796,710.00 * Sales tax does not apply to items and materials for the physically handicapped. As part of the bid process, three potential bidders requested changes in specification provisions. Staff studied these requests based on Municipal Bus Lines' needs, including operating economy and maintenance reliability. The specifications were modified based on this analysis. One bid was received, the other two potential bidders apparently having chosen not to meet the city's specifications. The bid proposal includes a unilateral option on the City's part for 10 additional buses, which may be exercised within one year of bid award. It also includes a second option for 10 additional buses, which may be exercised by the City within two years of bid award. staff will return to Council at a future time, if the decision is made to recommend exercise of the options. - 2 - e e staff is recommending that the City Council accept the bid for 10 buses received from Greyhound, Inc. which recently purchased General Motors' transit bus division. BUDGETARY/FINANCIAL IMPACT Currently, Transportation Development Act (TDA) funds in the amount of $2,000 f 000 have been appropriated for the project in the FY1987-88 budget, account number 41-750-658-000-924. The balance of the funds, beyond those needed to complete the bus purchase, will be available for get ready costs, including installation of two-way radios and fareboxes, and any necessary inspection services. RECOMMENDATION It is recommended that the award of Bid #2157 be made to Greyhound, Inc. in the total amount of $1,796,710.00, including tax. Prepared By: E. o. Barnes, Purchasing Agent f2157cc 02/25/88 - 3 -