SR-111307-1D~~
~;LYo, City Council Report
Santa Monica
City Council Meeting: November 73, 2007
Agenda Item: I "~
To: Mayor and City Council
From: Stephanie Negriff, Director of Transit Services
Subject: Award of Bid to Bus Systems Unlimited to Provide On-Site Repair
Services to Transit Bus Air Conditioning Systems
Recommended Action
Staff recommends that the City Council award Bid No. 2934 to Bus Systems Unlimited
in the amount of $425,000, to provide on-site repair services to transit bus air
conditioning systems. The award shall be for aone-year period with two additional one-
year renewal options.
Executive Summary
The Big Blue Bus has all of its bus air conditioning systems repaired on-site by an
outside-firm. A cost analysis has been completed to compare the benefits of moving the
repair service in-house per Attachment B. The analysis shows that continuing to
outsource this service is the most cost effective measure. The service requires
additional infrastructure and specialized technicians, trained and certified to work on bus
air conditioning systems. The Big Blue Bus does not currently have the infrastructure or
technicians on staff to perform this function. The estimated expenditure for the balance
of this fiscal year is $124,800. The total estimated expenditure for the three-year term is
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$425,000. Budget authority for subsequent years will be included in each annual
proposed City budget.
Discussion
Background
Continuous maintenance and repair of the bus air conditioning systems is one
component of maintaining a clean, reliable, and comfortable environment for our
passengers. Air conditioning system repair and maintenance requires specialized
technicians trained and certified to work on bus air conditioning systems and the
equipment to support this function. Contracting for these services ensures that the
City's equipment is maintained to the highest standards and that our customers are
treated to a comfortable ride even during the warmest weather months. The ability to
have a dedicated work force on-site on-demand ensures that repairs are made in a
timely manner. The flexibility of the vendor's schedule ensures the completion of the
repairs without delaying work on other mechanical systems or components.
Staff will oversee the work performed by Bus Systems Unlimited and warranty coverage
shall be provided per the bid specifications. Measures of accountability will be in place
to ensure proper performance and adherence to the standards of the Big Blue Bus. In
addition, Bus Systems Unlimited shall train Big Blue Bus staff to diagnose minor
problems that can be repaired by non-certified technicians.
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Vendor Selection
In June 2007, the City published Notices Inviting Bids to provide on-site repair services
to transit bus air conditioning systems services in accordance with City specifications.
Bid forms were mailed to 44 vendors and notices were advertised in accordance with
City Charter and Municipal Code provisions. Three bids were received and publicly
opened on August 7, 2007. Bids were evaluated based upon competitive pricing, cost-
effectiveness, and vendor experience. Based upon these criteria, Bus Systems
Unlimited is recommended as the best bidder.
The Bus Systems Unlimited Bid states that all work will be performed by two trained full-
time technicians who will be managed by one Big Blue Bus transit maintenance
supervisor. No additional assistance from City staff is required. The cost for providing
these services by Bus Systems Unlimited is $124,800 for the first contract year. The
cost for providing the same services (staffing, overhead and supervision in-house)
would be $202,700 for the first year, a 62.4 percent increase over the Bus Systems
Unlimited bid (see Attachment B). In addition, $26,000 in capital funds would be
needed to purchase the required equipment. An annual equipment cost (depreciation)
of $8,200 would be needed to replace all of the equipment at the end of its useful life.
The review concluded that the utilization of the contracted service allows for more
effective and efficient use of resources since repairs and maintenance can be provided
on a flexible schedule to meet our demands and ensures consistent staffing by trained
and certified technicians. This service is consistent with a policy of supplementing,
rather than supplanting, permanent City positions.
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Budget/Financial Imaact
Funds .for the on-site air conditioning services are available in account number
41651.555011.60W. Since Fiscal Year 2007-2008 has begun, the estimated
expenditure for the remainder of the fiscal year under this contract will be $124,800.
Budget authority for subsequent years will be included in each annual proposed City
budget:
Prepared by:
Ralph Merced, Transit Maintenance Manager
Approved:
Attachments:
Attachment A -Pricing
Attachment B -Cost Analysis
Forwarded to Council:
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ATTACHMENT A
BID # 2934
__ - --
_
BID OPENING DATE -
8/7/2007 -_
__
.TITLE PROVIDE O NSITE REPAIR SERVICES TO TRANS IT BUS AIR CONDITIONING
SYSTEMS A S REQUIRED BY THE BIG BLUE BUS .
-- - -- _ --
Bid Item/Vendor Bus Systems Unlimited Complete Coach Works TK Services, Inc.
A/C REPAIRS & TRAINING Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 Year 1 Year 2 Year 3
Hourl~Labor Rate $ _ 30.00- $ 35.00 ! $ _35.00 _$ 87.50- 4% 4% $ 85.00 $ 90.00
_- $ 95.00
- ----
Emergency (After Hours Rate $ 40.00 $ 40.00 $ 40.00_ $ 1,31.2 4%i 4% $ 170.00 $ 180.00 $ 190.00
Traini~ __ _ - _$ 2.5.00 $ .____25.00... . $ _25;00 $ 4,200.00 ~ __ 4% _ 4% $.. _ - $ - $
If applicable: per tri or
p
minimum no char a no char a no char e $ 350.00 4% 4% $ - $ - $ -
PREVENTATIVE
MAINTENANCE Year 1 Near 2 Year 3 Year 1 Year 2 Year 3 Year 1 Year 2 Year 3
Flat Rate (per coach) _
Hourly Rate (for repairs as a $ 120.00_ $ 140.00 $ 140.00_ _$ _785.00 4% _ 4% $ 360.00 $ 360.00 $ 360.00
result of the PMI)
Emergency (after hours rate) $_ 30;00 $ 35.00_ $ 35.00 $ _87.50 4% 4% $ 85.00 $ 90.00 $ 95.00
as a result of the PMI $ 40.00_ $ 40.00 $ 40.00 $ 131.25 ~ 4%__ 4% $ 170.00 $ 180.00 $ 190.00
Pa ment Terms 30 Da s Net 30 30 Da s
-- _ _
j _ _ - __ ___ _ -T-- - - _ _ ~_ _
Attachment B
Contract vs. In-House Services Cost Comparison
(Bid #2934)
BUS SYSTEMS UNLIMITED
Hr/Wk Weeks Pay Rate' Value Value Value
TECHNICIAN 40 52 $30.00 $fi2,400.00 $72,800.00 $77,300.00
TECHNICIAN 40 52 $30.00 $62,400.00 $72,800.00 $77,300.00
Overhead -Includes hiring, training, payroll, personnel administration, health benefits,
uniforms, tools, safety equipment, and vacation/sick holiday leaves.
B'd Prices' $124 800 00 $145 600 00 $154 600 00
. $f0inS, . ,-. r. "Ygar1 ~ ,year2 ~ ,:. ~. Y,$!AOS , ^.
Bid requires vendor to provitle tminetl technicians
$0.00 $0.00 $0.00
In-House
Hr/Wk Weeks Pay Rate"
Mechanic 40 52 $37.00
Mechanic 40 52 $37.00
Mechanic 20 52 $37.00
Transit Mechanics would be neetl to complete scope of work
Total:
ry rate includes fringe benefits. 5 % rate increase year 2 antl 3.
Value Value Value
$76,980.00 $80,808.00 $84,848.40
$78,960.00 $80,808.00 $84,848.40
$36,480.00 $40,404.00 $42,424.20
$192,400.00 $202,020.00 $212,121.00
)0/person testing and licensing;
$300/person annual training
$2,
recovery machine 2 $10,000.00 $20,000.00 4 $5,000.00 $500000 $5,00000
Manifoltl gauge 4 $400.00 $1,800.00 1 $1,600.00 $1,600.00 $1,600.00
vacuum pump 2 $600.00 $1,200,00 2 $600.00 $000.00 $600.00
leak detector 2 $800.00 $1,200.00 2 $600.00 $600.00 $600.00
Misc. hand tools 1 $2,000.00 $2,000.00 5 $400.00 $400.00 $400.00
Totals $26,000.00 $8 200 00 $8 200 00 $8 200 00
Bus S stems Unlimited Price: S1za,eao.oa glas,eao.oo S1sa,sao.oo In-House Cost Estimated b Year: g2oz,~oo.4o Sz1 t,lzo.oo Szzr,zzl.oa
BUS S stems In•HOUSe` Difference % Diff.
Year1 $124,800.00 $202,700.00 ($77,900.00) -62.42%
Year2 $145,600.00 $211,120.00 ($65,520.00) -45.00%
Year3 $154,600.00 $221,221.00 ($66,621.00) -43.09%
Capital Cost . $0.00 $26,000.00
Total $425,000.00 $661,041.00 $270,049.00 -55.54%
In-house cost for Years 2 and 3 are hosed on estimated inflation factors.