SR-205-003 (634)
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Santa Moniea@
City Council Report
City Council Meeting: January 23, 2007
Agenda Item: 1:-6
To:
From:
Subject:
Mayor and City Council
Carol Swindell, Chief Financial Officer
Engine Overhaul Services on Transit Buses
Recommended Action
Staff recommends that the City Council award Bid #2915 to Valley Power Systems, Inc
and Service Motor Parts/lronman Renewal to provide engine overhaul services on
transit buses as required by the Big Blue Bus.
Executive Summary
Award of bid to provide engine overhaul services on transit buses as required by the Big
Blue Bus to:
. Valley Power Systems, Inc. without any renewal options.
. Service Motor Parts/lronman Renewal with two additional one-year renewal
options at rates subject to a 5% increase on the previous year's price.
The total estimated expenditure for the three-year term is $1,500,000.
Discussion
Backqround
Over the lifetime of a transit coach (12 years), diesel and LNG engines experience
normal wear and tear that may require engine replacement, head and/or cylinder repair,
1
turbocharger replacement, and an assortment of other engine parts to be rebuilt or
replaced. This service allows for such work to be done professionally, in a timely
manner, and on an as-needed basis throughout the year. Engine overhauls are not
performed by Big Blue Bus staff due to insufficient garage space, lack of warehouse
space to accommodate necessary parts, the need for specialized equipment required to
test engines after repairs are made, and current staffing levels.
Vendor Selection
In October 2006, the City published Notices Inviting Bids to provide engine overhaul
services on transit buses in accordance with City specifications. Bid forms were mailed
to twenty-four vendors and notices were advertised in accordance with City Charter and
Municipal Code provisions. Three bids were received and publicly opened on
November 30, 2006, per Attachment A. In order to reduce the number of days
damaged buses are out of service, award of this bid will be allocated among the two
best bidders in the proportions listed in the "BudgeUFinancial Impact" section below.
Bids were evaluated based on competitive pricing, turnaround time for repairs to be
made, vendor experience, and references. Based upon these criteria, both Valley
Power Systems, Inc. and Service Motor Parts are recommended as the best bidders.
Although HD Industries offered lower pricing for some of the requested services, their
turnaround time is the longest of the three vendors. Each day that a transit coach is out
of service results in approximately $550 of lost revenue per day. Therefore, it is
important to have transit coaches repaired as soon as possible in order to have them
back in service.
2
Budget/Financial Impact
The estimated expenditure for the remainder of the fiscal year will be $250,000 and
funds are available in account C410106.589000, "Bus Component Replacement
Program". Budget authority for subsequent years will be included in each annual
proposed City budget.
It is recommended that City Council split the award of Bid #2915 as follows:
. Award 60% of anticipated work to Valley Power Systems, Inc. and
. Award 40% of anticipated work to Service Motor Parts/lronman Renewal.
Prepared by:
Diane Howell, Purchasing Agent
Approved:
Forwarded to Council:
~lL
Swindell
Chief Financial Officer
Attachments:
Attachment A - Pricing
3
ATTACHMENT A
BID# 2915 __~__ __ ___m~_ _~_ ___
TITLE: PROVIDE ENGINE OVERHAUL SERVICES ON TRANSIT BUSES AS REQUIRED
B'(THE BIGBLUEBUSr-----~--
_______ .______._ u__~-.-. _u_~_ '
BID CLOSING DATE: 11/30/06 i
Pri(;E1on engine c()mplet~o"erhaul_
6V-92
50 Series Diesel
------- ---------
50 Series Methane
E:rlgil1e ReplacemenJ~nclu-ding lab_or
$
$
------
$
_ __~1il,800.00
18,000.00
20,350.00
6V-92
Rebuild
Rebuild Cores
-- - ----
Exchan..ge
Ex(;hangeCo.~_n_
New EnginEl
50 Series Diesel
Rebuild
----- -
Rebuild Cores
Exchang_e_
I::xchange(;c)r.Els
New EngiflE:_
50 Series Methane -.-------- --------f- ----
Rebuild_~-_~~_~-___ _~_ 48,578.QjJ '~~... No bid .______----=-=--____~-~-___I $------:-29:350.QO
Rebuild Cores $ 7,200.00 No bid $ 2,14400
Exc.h.ange __u----- $~8,578....00 .', No b!d l~ _ -~ -- I ~ _____-- 40,28900
EOxchan_9El_Cores __ nu_____ .L__---.Zd()O.QQI No bid ~ $ __ 7,200.00
N,w E~,i",,- . ~~ ~~::~:'bl' from D,trolt L=-=,,~.: I . _ Not ''''''bI,
g:~:::~ R'm""''"'t"rn-;:-(;~". .. ~ :19D:,,~,hi"-;:i~, It- ==. _ ;:;:~=.~ .-- --- !: ;~:;;
Balan<:E)r_Shaft _ . _~____ _ $190. 1 IJc::am sft rt bank _____ N/A ~ NIA
E3alancer Shaft Rern.<1nufactur.Eld Cores- $367.51 (camsft remnfc. __ N/A_1:__ . . N/A
Cylinder _Head ______ _ Jl$ ~4~3789.~...Q0*H-50 '$$ ___.. 484050..0000,- _~~u- ~.:.n$$-. '_--. .-...-_-...-_-_ 515.73
CylincJ.Elr Head Reman~factured Cores ~t.. _____ 597.51
Qil Cool~_ ----r $ _____299.96 ,$ . ....... 454.06~~_ --------- 1$______ 533.95
~~~f~::::~:;~~~:: ; -=-- ;;;~~ =- -----;I:N~~-=-== ~'J =-- --f,-;
Balancer Shaft _____ $ 2,199.19 j List + 10% I ________Ul'-9..29.11
Balancer Shaft Remanljfactured Cores $ 500.00, _ _===---=.-Net '---._~__ ...1 546.00
gylinder-H.iad__ . - $--1,352.55-1$ 1,050.00 I ~ 1 , 18~~
Cylln_der Head Remanufa.ctu-red Cor.e~ ---=- J_- . 855,QoIl___ 600.00 . $ 1 ,0~3.:..00.
Oil g.,()()I.Eli... ______ $1 'lE3:?6 (new only) $ 330.00 '-T~== 95.43
Oil Cooler Remanufactured.f.0~___:-~___ ..___~___.._ N/A ______.. I N/A
I
Page 1 of 2
Service Motor Service Motor
Parts/lronman Parts/lronman Renewal Valley Power Systems,
.__\lendor: HD Industries Renewal ALTERNATE) Inc.
~~~:~:; rv1e~hane_ u~---_ .' $. -_~493,51r==-List +-1 O%j~__---=--=-~-=-=_ _LL
~:I~~~:~S~~~anufactLJred Cores -----~- ~2, ~~;:~~t--- ~::~: ~~~ 1-- -----i}-
B.al.<3Il~erSha.ftBemanufactured Cores . .1_,.. ___. 500.g0 1.....___ List,":" 10%r'-...--.-. _'_. ...1..$
C;y1ir1.clel! H~ClcJ. . . $_ _ __l,~Z.o:~__~t + 10% ___ __ __!I__
f.ylin~J::ie..Cl.cl...R~ll1anufClctured Cor~ ~____.1,023.QO+---__List + 10% t-' --.- --1,'~-
Oil Coole'"---.. _ ___ .. $116.5il (new only) __ i..... _ . List + 10% . __. __ __,$__
Oil Cooler Remanufactured Cores $ - ~ List + 10% I I
I
ATTACHMENT A
BID# 2915 .
___ .._, _---.1.____.__.----'-.___._. _.__
TITLE: gROVIDE ENGINE OVERHAUL SERVICES ON TRANSIT BUSES AS REQUIRED
--=-1 BY TriE_BIG_E3LU-E BU$~_==_~=-----'--~~=____=r=--=-=_=
BID CLOSING DATE: 11/30/06 I
----.---. -(-- -..-....--
Hourly labor Rate for in.shop troubleshooting and
repair (for repairs outside of the itemized scope of
work)
I
100.00 i $
88.00 I
I
110.00 I
$
Overtime Rate (after hours) for in,shop
troubleshooting and repair (for repairs outside of
the itemized scope of work)
$
150.00 1$
Hourly labor Rate for on,site field service
troubleshooting and repair (for repairs outside of
the itemized scope of work) at the BBB facility $
I
I
N/A I
100.00
Overtime Rate (after hours) for on,site field service
troubleshooting and repair (for repairs outside of
the itemized scope of work) at the BBB facility
I
N/A I
I
---.J --.--
10%-15%,
1 0%-150/01- .u__
10%-15~
$
150.00
Percentage Markup from the Manufacturer's Price
List for Parts & Materials
2 cy~~~ngin_e~6\j=~_
!c:ycle_ engine~ (50 Ser:~s Diese'L_
4 c cle en ines 50 Series Methane
Turnaround Time: In-Frame Engine
Overhaul
Cost + 18%
~.,._---
Cost + 18%
----_.~
Cost + 18%
---+-----1---
En.gine i,!=frarTl~lJ!I1<3round tir'l1~___ Approx.1Q w.o. rking.d~ "_. 1 0.::15 w~-4--. "_.
Enginer:.eplacement turn around tim~ N/A __ _.___ 10-15 w~_ ___.
Recondition turn around time N/A 10-15 wk da si
Turnaround Time: Complete Engine I
Overhaul -+-.
--- - - -- AdaPyPSrox. 20-25 working_ 1_'" 1?--1'-5 wk .cl_'a-~sl
En.gine turrl. around time _._ _ _ _ +--
EQS1.iI1e repla_c~_l11ent turn~oundJime__ N/A. _ .._ _~1.~ wk days _
Recondition turn around time N/A '12-15 wk da s
PaYlllent Ter:.ms --- _.=~iN.et30 Days=-- - ~ __,_ -- NeDot-
B~new.alQfJtionsYear2 ___ _ k_ _____----tI'_.--1l@~i~::i~~~~':s;r~~~~j
5% increase from
Renewal 0 tionsYear 3 No i revious ear's rices.1
._-~-
Page 2 of 2
404.09
125.00
--------..----
1,92911
546.00
--------.-..--
1, 728.8~
1 ,023:QCl.
95.43
N/A
i
1$
I
110.00
165.00
120.00
180.00
15%-18%
----.-- --
15%-18%
-------
15%-18%
5 working_days
.. 5 workil1g days
5 workin da s
Net 30
No
No