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SR-205-003 (602) Purch:PW:ML:RAH:F:\FINANCE\PURCH\STFRPTS\SRBD2871.DOC Council Meeting: January 27, 2004 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Award Bid to Furnish and Deliver Replacement Parts for NABI (North American Bus Industries) Transit Coaches, Bid #2871 Introduction This report recommends award of bid to furnish and deliver replacement parts for NABI (North American Bus Industries)transit coaches for the Big Blue Bus Department at specified unit prices, plus applicable sales tax, with two one-year renewal options. The estimated annual expenditure is $110,000. Background The replacement parts will be used to perform routine maintenance on the Fleet’s NABI transit coaches. Discussion In response to published Notices Inviting Bids (published November 15 and 20, 2003) in accordance with City specifications, bids were received and publicly opened and read on December 16, 2003. Proposal forms were mailed to fifteen vendors and notices were advertised in accordance with City Charter and Municipal Code provisions. Three proposals were received; however, proposals from Cinedyne Service & Parts Inc. and MCI - 1 - Service Parts, Inc. were non-responsive. Cinedyne Service & Parts Inc. submitted prices for only seven of the sixty-two items requested and MCI Service Parts, Inc. submitted prices for only five of the sixty-two items requested. NABI, Inc. submitted prices for all but one of the sixty-two items requested. Staff has evaluated the bid submitted by NABI, Inc. and finds that it meets City specifications. Budget/Financial Impact Replacement parts purchased through this bid are recorded in an inventory account. As parts are drawn out of inventory, they are expensed against the appropriate line item account, primarily 41651.544220. There is sufficient budget authority in the 41 Fund to cover the cost of these replacement parts. Recommendation It is recommended that City Council: 1. Reject the bids submitted by Cinedyne Service & Parts Inc. and MCI Service Parts, Inc.; and 2. The award of Bid #2871 be made to NABI, Inc. at specified unit prices, plus applicable sales tax, with two-one-year renewal options, as the best bidder. Prepared By: Diane Howell, Purchasing Agent Richard Chiu, Buyer Ralph Merced, Transit Maintenance Manager - 2 -