SR-205-003 (618)
IF
JUt 1. .2 2005
F :\FI NANCIALOPERA TI ONS\PURCHASI NG\STFRPTS\SRBD2888. DOC
Council Meeting: July 12, 2005 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Award Bid to Provide Motor Oil and Transmission Fluid, Bid #2888
Introduction
This report recommends award of bid to provide motor oil and transmission fluid for the Big
Blue Bus Department and the Fleet Management Division at specified unit prices, plus
applicable sales tax, with two one-year renewal options. The estimated annual expenditure
is $160,000.
Backqround
The motor oil and transmission fluid will be used to perform routine maintenance on the
City's transit coaches and other fleet vehicles and are purchased on an as-needed basis
throughout the year.
Discussion
In April 2005, the City published Notices Inviting Bids to provide motor oil and transmission
fluid in accordance with City specifications. Bids were received and publicly opened and
read on May 26, 2005. Bid forms were mailed to twenty-four vendors and notices were
advertised in accordance with City Charter and Municipal Code provisions. Seven bids
were received as shown in Attachment A. The highlighted prices represent the best bid in
each category, taking into consideration pricing and the specification of re-refined oil
- 1 -
JU/12foo
.
versus virgin oil products.
Staff has evaluated the bids submitted by Rosemead Oil Products, Inc. and The Jankovich
Company and finds that they meet City specifications.
Budqet/Financiallmpact
Motor oil and transmission fluid purchased through this bid are recorded in inventory
accounts. As items are drawn out of inventory, they are expensed against the appropriate
line item account in the Big Blue Bus and Fleet Management funds. There is sufficient
budget authority in the Big Blue Bus and Fleet Management funds in this year's budget to
cover the cost of these items. Budget authority for the subsequent years will be included in
each annual proposed City budget.
Recommendation
It is recommended that City Council split the award of Bid #2888 as follows:
1. Award items 1, 3, 4, and 6 to Rosemead Oil Products, Inc.; and
2. Award items 2 and 5 to The Jankovich Company at specified unit prices, plus
applicable sales tax, with two-one-year renewal options, as the best bidders.
Prepared By:
Diane Howell, Purchasing Agent
Richard Chiu, Senior Buyer
Stephanie Negriff, Director of Transit Services
Ralph Merced, Transit Maintenance Manager
Craig Perkins, Director of Environmental & Public Works Management
Renee Cowhig, Maintenance Manager. EPWM
Rick Sikes, Fleet Maintenance Superintendent
Attachment A:
Vendor Pricing
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