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SR-205-003 (603) Purch:DH:RAH: F:\FINANCE\PURCH\STFRPTS\SRBD2865.DOC Council Meeting: March 23, 2004 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Award Bid to Furnish and Deliver Two Service Trucks, Bid #2865 Introduction This report recommends award of bid to furnish and deliver two service trucks for the Water Division, Environmental & Public Works Management Department, in the total amount of $313,253.86, including applicable sales tax, funded by contributions from the Water Fund to the Vehicle Replacement Program. Background The compressed natural gas (CNG) powered service trucks will be used by Water personnel to perform tasks ranging from routine water service installations to emergencies such as major water main breaks. Specifications for these trucks took three years to design. These service trucks could be considered “warehouses on wheels”. For example, they will carry welding and portable power equipment, one-ton cranes, saws and boring machines, pipe, valves, fittings, air compressors, and jack hammers. Essentially, anything needed to complete a job in a timely and efficient manner would be on-board these trucks. The design of these trucks makes them safe and efficient to operate in the City’s narrow alleys. Also, the design takes into consideration the heavy duty usage of the trucks and provides for service vehicles that 1 will last for years to come. They will replace one 1983 and one 1990 truck which are no longer cost effective to maintain and are part of the Vehicle Replacement Program. Discussion In response to published Notices Inviting Bids (published November 6 and 7, 2003) in accordance with City specifications, bids were received and publicly opened and read on December 4, 2003. Proposal forms were sent to twenty-six vendors and notices were advertised in accordance with City Charter and Municipal Code provisions. Two proposals were received as follows: VENDOR AMOUNT Reynolds Buick/GMC Trucks, Inc. $214,605.53 Los Angeles Freightliner $313,253.86 The bid submitted by Reynolds Buick/GMC Trucks, Inc does not meet City specifications in several critical areas as follows: ? Engine – Bid specifications required an engine of 8.3 liters minimum and Reynolds Buick/GMC Trucks, Inc. offered only 8.1 liters. Specifications also asked for a minimum of 660lbs/ft torque and Reynolds Buick/GMC Trucks, Inc. offered 440lbs/ft of torque. Maximum available torque is required due to the combined weight of the vehicle and the tools and equipment it carries. In addition, this vehicle will also be used to tow a portable compressor. An engine 2 with less than 660lbs/ft of torque would reduce the effectiveness of the operation and impact department operations. ? Fuel Tanks – Bid specifications required that the CNG fuel tanks be frame mounted underneath the left and right cab doors to keep the overall length to a minimum. The shortest possible length is needed to allow this vehicle access to City alleys and other confined areas. Reynolds Buick/GMC Trucks, Inc. offered a vehicle with frame mounted between cab and body, which increases the vehicle’s overall length. ? Transmission – Bid specifications required a 6-speed MD-3060 transmission and Reynolds Buick/GMC Trucks, Inc. offered a 2000 Series 5-speed transmission. The 6-speed MD-3060 is a heavier duty transmission and helps increase fuel economy. Reynolds Buick/GMC Trucks, Inc.’s bid also stated that its transmission is the “largest automatic available with gasoline engine” but the City’s specifications asked for a dedicated CNG engine. Staff has evaluated the bid submitted by Los Angeles Freightliner for two CNG powered service trucks and finds that they meet City specifications. The purchase of these CNG powered service trucks from Los Angeles Freightliner is consistent with the City’s reduced emissions fuel policy. Budget/Financial Impact Budget authority for this purchase is in the following Fleet Vehicles Replacement Program accounts: 3 C54016700.589000 - $ 13,418.82 C54016701.589000 - $156,626.93 C54016702.589000 - $143,208.11 Recommendation It is recommended that City Council: 1. Reject the bid submitted by Reynolds Buick/GMC Trucks, Inc.; and 2. Award Bid #2865 to Los Angeles Freightliner as the best bidder for two CNG powered service trucks, in the total amount of $313,253.86, including applicable sales tax. Prepared By: Dave Rodriguez, Fleet Maintenance Supervisor Diane Howell, Purchasing Agent Richard Chiu, Buyer 4