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SR-205-003 (624) F:\FINANCIALOPERATIONS\PURCHASING\STFRPTS\SRBD2892.DOC Council Meeting: December 13, 2005 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Award Bid to Provide Remanufacturing Service of Allison Transmissions, Bid #2892 Introduction This report recommends award of bid to provide remanufacturing service of Allison transmissions 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 $190,000. Background The Allison transmissions used in the Big Blue Bus fleet are usually overhauled at 300,000 miles and the remanufacturing must be performed by an authorized Allison dealer, using genuine Allison parts. Discussion In September 2005, the City published Notices Inviting Bids to provide remanufacturing service of Allison transmissions in accordance with City specifications. Bids were received and publicly opened and read on October 4, 2005. Bid forms were mailed to thirty-five vendors and notices were advertised in accordance with City Charter and Municipal Code - 1 - provisions. Three bids were received and evaluated based on competitive pricing, annual usage, responsiveness to bid requirements, and references. Based upon these criteria, S&J Chevrolet, Inc. is the most appropriate company to provide the required services. Staff has evaluated the bid submitted by S&J Chevrolet, Inc. and finds that it meets City specifications. S&J Chevrolet, Inc. will comply with the Living Wage Ordinance and has signed and submitted the Living Wage Certification. Budget/Financial Impact Funds in the amount of $190,000 are available in account C410106.589000, “Bus Component Replacement Program”. Budget authority for the subsequent years will be included in each annual proposed City budget. Recommendation It is recommended that the award of Bid #2892 be made to S&J Chevrolet, 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, Senior Buyer Stephanie Negriff, Director of Transit Services Joe Stitcher, Assistant Director of Transit Operations Ralph Merced, Transit Maintenance Manager - 2 -