SR-062408-1D~® _r1T
City Of City ~®u~\/~~ ^\~p®, {.
Santa Monica
City Council Meeting: June 24, 2008
Agenda Item: ~ ~ ~
To: Mayor and City Council
From: Stephanie Negriff, Director of Transit Services
Subject: Award of Contracf for Engine Overhaul Services on Transit Buses
Recommended Action
Staff recommends that the City Council award Bid #2942 to Pedco to provide engine
overhaul services on transit coaches. The award shall be for- aone-year-period with
three additional one-year renewal options:
Executive Summary
Engine overhaul services are necessary as a normal, part of wear and tear throughout.
the useful life of a transit coach.. Pedco is recommended following a formal bid process.
The bid award is for aone-year period beginning July 1, 2008 with three additional one-
year renewal options at the same price, terms and conditions. Funds in the amount of
$450,780 for the current fiscal year are available in the approved budget for BBB.
Renewals will require Council approval annually. The total estimated expenditure for the
.four-year term is $1,803,120.
Discussion
Over the 12-year life of a transit coach, diesel and. Natural Gas (NG) engines
experience normal wear and tear that may require engine replacement, cylinder head
and/or cylinder. repair, turbocharger replacement and an assortment of other engine
parts to be rebuilt or replaced. This service allows for such work to be done
professionally, in a timely manner, and on an as-needed basis throughout the year. The
Big Blue Bus does not currently have the infrastructure or #echnicians on staff to
perform this function. Contracting of these services ensures that the City's equipment is
maintained to the highest standards. The flexibility of the vendor's schedules ensures
the completion of the repairs without delays.
1
Vendor Selection
The- City published Notices Inviting Bids to provide engine overhaul services oh transit
coaches in accordance with City specifications. Bid .forms were mailed to 17 vendors,
and notices .were advertised in accordance with City Charter and Municipal Code
provisions. Two bids were received and publicly opened per Attachment A.
Bids were. evaluated based on competitive pricing, turnaround time for repairs to be
made, vendor experience, and references. Based upon these criteria, Pedco is
recommended as the best bidder.
Financial Impacts & Budget Actions
The estimated expenditure for Fiscal Year 2008/2009 budget authority in the amount of
$450,780 is available in account 0410106.589000, ".Bus Component Replacement
Program." Budget authority for subsequent years will 6e included in each annual
proposed budget.
Prepared by:
Ralph Merced, Transit Maintenance Mahager
Approved:
t anie Negriff
Dir for of Transit Services
Forwarded to Council:
P. La r~ fit Ewell
City Manager
2
ATTACHMENT A
BID# 2942
TITLE: PROVIDE ENGINE OVERHAUL SERVICES ON TRANSIT COACHES.
i^onman Pedco
6V-92 $ 10,473.00 $ 16,920.00 $ 12,000.56 $ 16,500.00.
50 Series Diesel $ 12,500.00 $ 16,250.00 $ 14,104.34 $ 12,950.00
60 Series Diesel $ 14,060.00 $ 18,500.00 $ 13,412.03 $ 13,750.00
50 Series Methane (NG) NO BID $ 18,352.16 $ 23,500.00
Rebuild
6V-92 Exchange
New
Rebuild
50 Series
Diesel
Exchange
New
Rebuild
60 Series
Diesel
Exchange
$
4,000.00 ~ $ 16,920.00 1 $
2,000.00 ~ $ 16,500.00
50 Series
Methane ExcY
(NG)
New
ild
Camshaft
Camshaft Remanufactured
Cores
Balancer Shaft
Balancer Shaft Reman. Cores
6V-92
Cylinder Head
Cylinder Head Reman. Cores
Oil Cooler
Oil Cooler Remanufactured
5,000.00 $ 24,500.00 $
NOT AVAILABLE
7,000.00 $ 'F6,250.00 $
7,000.00 $ 19,750.00 $
NOT AVAILABLE $
5,000.00 $ 18,500.00 $
5;000.00 $ 20,500.00 $
NOT AVAILABLE $
NO BID $
NO BID $
NOT AVAILABLE
312.00 $
300.00 $
NOT AVAILABLE
NOT AVAILABLE
$ 600.00 $
$ 450.00 $
$ 500.00 $
N/A $
2,000.00 $ 16,500.00
NOT AVAILABLE
4,500.00 $ 14;104.00
4,500.00 $ 14,104.00
24,000.00
4,500.00 $ 13,750.00.
4,500.00 $ 13,750.00.
26,000.00
6,000.00 $ 16,870.00
6,000.00 $ 16,870.00
NOT AVAILABLE
395.00
150.00
N/A
N/A
395.00
200.00
493.69
Page 1 of 3
ATTACHMENT A
BID# 2942.
TITLE: PROVIDE ENGINE OVERHAUL SERVICES ON TRANSIT COACHES.
Vendor Ironman Pedco
Parts {COntmued} '
Camshaft $ 700.00 $ 421.47
Camshaft Remanufactured $ 200.00 $ 150.00
Cores
Balancer Shaft N/A $ 2,150.00
50 Series Balancer Shaft Reman. Cores N/A $ 1,000.00
Diesel
Cylinder Head $ 1,050.00 $ 895.00
Cylinder Head Reman. Cores $ 800.00 $ 500.00
Oil Cooler $ 330.00 $ 126.36
OiFCocler Remanufactured N/A $ -
Cores
Camshaft N/A $ 421.50
Camshaft Remanufactured N/A $ 150:00
Cores
Balancer Shaft N/A N/A
60 Series Balancer Shaft Reman. Cores N/A
Diesel
Cylinder Head $ 1,350.00. $ 995.00
Cylinder Head Reman. Cores $ 900.00 $ 800.00
Oil Cooler N/A $ 126.36
Oil Cooler Remanufactured N/A $ -
Cores
Camshaft N/A $ 421.47
Camshaft Remanufactured N/A $ 150.00
Cores
Balancer Shaft N/A $ 2,150.00
50 Series Balancer Shaft Reman. Cores N/A $ 1,000.00
Methane
(NG) Cylinder Head N/A $ 2,175.00
Cylinder Head. Reman. Cores N/A $ 900.00
Oil Cooler N/A $ 126.36
Oil Cooler Remanufactured N/A $ -
Cores
Page 2 of 3
ATTACHMENT A
BID# 2942
TITLE: PROVIDE ENGINE OVERHAUL SERVICES ON TRANSIT COACHES:
2 cycle engines (6V-92) 15% 18% 15% 53%
4 cycle engines (50 Series Diesel) 15% 18% 15% 53%
4 cycle engines (60 Series Diesel) 15% 18% 15% 53%
4 cycle engines (50 Series Methane (NG)) N/A 15% 53%
~.
Ta~r$Around Trme : ~
Irt €rame . - ,
Complete
fri frame
GompleYe ! .
Engine In-Frame 10-12 work days 12-15 work days 5-7 days 5 days
Engine Replacement 10-12 work days 12-15 work days 5-7 days 5-7 days
Recondition 10-12 work days 12-15 work days 5-7 days 5 days
Delivery withi 15 days 1-5 days, same day
Payment terms Net 30 2% 20 days, Net 30
Renewal options period 2 3% increase of previous year Same price, terms & conditions as
previous year
Renewal options period 3 3% increase of previous year Same price, terms & conditions as
previous year
Renewal options period 4 3% increase of previous year Same price, terms & conditions as
previous year
Page 3 of 3
Attachment B
Contract vs. In-House Services Cost Comparison
(Bitl #2942)
COST ANALYSIS-ENGINE OVERHAUL
Pedco
shall have trainatl technicians
be performetl at bidtlers facility
- ' E,i(o(prsentantlMaterlals
Number Per Unit Total Cost
Engine overhaul/replacements per year for
Diesel Series Buses 20 $14,104.00 $282,080.00
Engine overhaul/replacements per year for
Naturel Gas Series Buses 10 $16,870.00 $168,700.00
Total $450,78000
Pedco Year 1 Price: $450,780.00
Annual price for bid based on prior
history of averaging 10 engine overhauls
per year.
In-House
Personnel
~
~
NrAMt Weeks Pay Rate" Annual Cost
Transportation Mechanic 40 52 $74.96 $155,916.80
Transportation Mechanic q0 52 $74.96 $155,916.80
Transportation Mechanic 40 52 $74.96 $155,91680
Total: $467,750.40
"Pa rates reflect the full burtlen rates inclutlin salaries, benefits and overhead.
r fT2aining Mechanics '' .
Transponation Mechanic $2 500 00
Transportation Mechanic $2,500.00
Transportation Mechanic $2,500.00
Total', $7500.00
Work':Spacel0ftlce (~farKUPcosf)", ( :-
Month Contract Cost Annual Cost
Allocated one bay for this activity.
Cost basis is same as rental cost charged to
Fire Department $2,000.00 $96,000.00 $24,000.00
"Maintenanrs facility currently operating at full capacity. Rental of a remote location '
is not feasible. ARer constmction of new maintenance facility in 2010, staff will
study effectiveness antl upgrade cost of a dedicated engine repair bay.
Total: $24000,00
' - . ~ EijulP~entandr(yletedals ~ '~ ~ ' - "
Start Up Cost LRe Cycle qty Contract Cost Annual Cost
Engine Dynamometer ($60,000 Purchase Cost) 10 Veers 1 $60,000,00 $6,000.00
Special Engine Tools ($20,000 Purchase Cost) 5 Veers 1 $20,000.00 $4,000.00
Engine Stand ($3,000 Purchase Cost) 3 Veers 2
~ $6,000.00 $2,000.00
Engine Parts and Components($175,000 Stad Up) Start Up 1 $175,000.00 $43,750.00
$55,750.00
On-Going Cost
Engine Pans antl Components($125,000 Re-Stack) Annually 1 $125,00000 $125,000.00
Specializetl Hantl TOOls Annually $5,000.00
$130,000.00
Total: $185,750.00
In-House COSt (Estimated for Year l: $685,000.40
Pedco In-House• Difference % Difference
Yeari $450,780.00 $685,000.40 ($234,220.40) -52%
Year2 (optional) $450,780.00 $643,282.91 ($192,502.91) -43%
Yeari (optional) $450,780.00 $657,736.40 ($206,956.40) -46%
Year4 (optional) $450,780.00 $672,623.49 ($221,843.49) -qg%
Total $1,803,120.00 $2,658,643.20 ($855,523.20)
"3% Projected CPI Forecastetl
EnginegverhaulCOStCOmpAttB.xls ,