sr-090809-1dCity Council Meeting: September 8, 2009
Agenda Item: ~=~
To: Mayor and City Council
From: Stephanie Negriff, Director of Transit Services
Subject: Detroit Diesel Engine Overhaul Services on Transit Buses
Recommended Action
Staff recommends that the City Council award Bid No. 2977 to Ironman Renewal .and
Harbor Diesel and Equipment in an annual amount of $400;000 to provide engine
overhaul services on transit coaches powered by Detroit Diesel Series 50 engines. The
proposed award is 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. Following a formal bid process it is recommended to
split the bid between Ironman Renewal and Harbor Diesel and Equipment. Ironman
Renewal will be used to overhaul diesel engines and Harbor Diesel and Equipment will
be used to overhaul natural gas engines. Funds in the amount of $400,000 for the
current fiscal year are available in the approved budget. Contract renewals will be
subject to Council approval in future year's capital budgets. The total estimated
expenditure for the four-year term is $1,600,000.
Background
Over the lifetime of a transit coach (12 years), diesel and natural gas 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.
Engine overhauls are currently not performed by Big Blue Bus staff. However, the Big
Blue Bus is considering bringing this service in house after moving to its new facility.
1
Discussion
Vendor Selection
On May 7 and 8, -2009, the City published Notices Inviting Bids to provide engine
overhaul services on transit buses in accordance with City specifications. Bid forms
were posted on Planet Bids, and notices were advertised in accordance with City
Charter and Municipal Code provisions. Four bids were received and publicly opened
on May 27, 2009 per Attachment A. In order to reduce the number of days damaged
buses are out of service, award of this bid will be allocated among the two best bidders
in the proportions listed in the "Budget/Financial Impact" section below. Bids were
evaluated based on competitive pricing, turnaround time for repairs to be made, vendor
experience, vendor performance history with Big Blue Bus and references. Based upon
these criteria, Ironman Renewal LLC is recommended as the best bidder for rebuilding
Detroit Diesel 50 Series diesel engines and Harbor Diesel and .Equipment is
recommended as the best bidder for rebuilding Detroit Diesel 50 Series natural gas
engines.
Budget/Financial Impact
The estimated expenditure for each fiscal year will be $400,000 and funds are available
in account 0410106.589000, "Bus Component Replacement Program." Budget
authority for subsequent years will be included in each annual proposed capital budget
and is contingent upon Council approval. It is recommended that City Council split the
award of bid #2977 as follows:
• Award 60% of anticipated work to Ironman Renewal LLC.
• Award 40% of anticipated work to Harbor Diesel and Equipment.
Prepared by:
Ralph Merced, Transit Maintenance Manager
2
Attachment A
Approved: Forwarded to Council:
Page 1 of 4
Purchasing Section
1717 Fourth Street, Suite 250 BID#:
Santa Monica, CA 90401 TITLE:
Telephone: 310-458-8281
'°°°' '~"°°"' Fax: 310-393-6142
Bid Results
2977 BID CLOSE DATE: 5/27/2009 BID#:
Provide in-frame/complete engine overhaul TITLE:
services to OEM specifications on Detroit
Diesel bus engines includino troubleshooting
Bid Results
2977 D CLOSE DATE: 5/27/2009
Provide in-frame/complete engine
overhaul services to OEM specifcations
nn Detroit Diesel hus enninac inrlurlinn
Vendor Harbor Diesel and - Ironman PEDCO Valley Power Systems
Long Beach Corona, CA Santa Fe Springs, CA City of Industry, CA
Pricing Pricing Notes
~ Pricing Notes Pricing Notes Pricing ; Notes
_ 6V 92
" $ 18 500.00 $ 9,815.00 '', $ 7,500.00 , $ 13,550.00 '~,
50 senes diesel $ 19 500 00 $ 14 191 00 I $
14,OOD 00' $
21 092 76
In-frame overhaul ~ -- .. ~
60 series diesel __, _"
--
$ 19 500 00
.
... _,.,,
$ 18,950.00
...
....
.
. _
a ~--
$ 9,500.00 "
, . .._.
$ 22,505.60
50 series methane (ng) $ 21.358.00
, .
.
.
No bid..,..._...__ . ...._..,........ f _.._ ...... .....
$ 18,350.00 ' ..._.. . _ .. .._ _. , .............
$ 36 137 35 ',
6V-92 $ 24,500.00 ~ $ 15,900.00 ~ includes R&R $ 12,000.00 ! No bid
$ 2[,891.00 Nova Class, mcl
Complete overhaul 50 series diesel $ 25 500 00 ~ ___,__ , R&R $ 16,950 00 =; includes No bid
$ 19,891.00 New Flyer incl Allison
~. R&R - exchange
60 series diesel $ 25 000 00 ~
$ 22,480.00 includes R&R -with 2 year
$ 14,000.00
No bid
........_... _...._ _. .__..._ __.. _..,___ __,._, warranty
50 series methane (ng) $ 26,358.00 No bid $ 23,500 00 ~ No bid
Rebwld
......_... _._.._..... $ 29 000 00 ~
_,. _..,_. .__.__._. $ 12 000.00 engine only $ 12,000 00 I
~ $ 8 800 00 '
Rebuild cores
$ 5,000.00'
....._ y
$ 5,000.00 ~
._......... , .........
$ 2,500 00 "
$ 3 155 02'
6V-92 Exchange
__ ._ _.. N/A , ~
... _.. $ 12 900 00 ' engme~only $ 12 000 00 ~ $~22 214 67 ;
Exchange cores _
N/A ... .. _.r _.
$ 5 000 00 _._ r
$ 2,500 00 i
$ 3 500 00 I
New engine N/A N/A N/A '. N/A I
Rebuild
..._.__.. $ 30,000.00. $16,391.00 ~! engine only $ 16,950.00!. $ 21,092.76 '',
__...,. .. ...~
Rebuild cores
_`.... -.... _.._.. ......_ ....... ........_.._..
$ 9,000 00 ........,.. _............_
$ 7 000.00 - ..__..._..._ includes
$
4,500 00 ~ ~
Allison .... __.. :.._ ......._.........
$ ~ 5,430 00
50 series
.
diesel Exchange
..___. , _. , .... ..._
$ 26 383 00 ~
_... ..... ._..
$ 16,391 00 engine only "
$ 76 950 00 i exchange .._._. ..._. , , ._...._...
$ 30 107.63
Exchange cores
$ 9 000 00 ~
$ 7,000 00 ~ "" ' with 2
$ 4 500 00 ! Year __... __.
N/A "'
...,, .. ..... _t...... _ .. ...... .. ......... ...... ___ ..., ...__.. .
....~ warranty ..,..... ,....... ~_ .. ..
New engine N/A N/A ,
N/A N/A
Rebuild
....__ .., , $ 29,500.00 ;. $ 19,980.00 engine only $ 14,000.00 $ 24 395 97 i
'
..
Rebwld cores
$ 10 000 00 j ~ ... .. ...,...
$ 7 000.00 ...... - includes
$ 4
500 00 ~ _...
.... _..._.
$ 5 305 61
60 senes ......_..,... .._.,. ...
diesel ,,..,.__ Exchange
... _. _.. _,. .... ._.... .. .....
$ 24 741.00 (
..._.._.._.„ . ...~ .
$ 19,980.00 ~ engine only. ,
. Allison
$ 14,000.00 I, exchange ._ ._ ..... .......
$ 22 505.60 ~.'
Exchange cores ....._._..
$ 10,000.00 . ...._ ._
$ 7 000
00 . _... with 2 year
$ 4,500 00 ~ ""'""" `""
$ 10 000 00 ;
. .. .......... ...... ... ... :
,
..._.., ....._ y
_ warrant ....... .. .Y.......,, ..._.
New engine
E
i N/A Cost+ 15% N/A N/A i
ng
ne Rebwld
replacement "~" ~ - $ 32 358 00
- No bid $ 23,500 00 ", $ 36,137 39 ~~
Rebuild cores
(including
N/A
.
,
..
No bid
$ 6 500 00 includes _
$ 3 408 00 ~
50 senes ~
labor) Exchange
methane (n9) _._... ...... _. ...
-.
N/A
.. ...
_... _
No bid
....._ ...... , , Allison
$ 23 500 00 j exchange
_....... _..,.. ... ~._.
$"23 904.10
Exchange cores
-- N/A
~.._ No bid $ 6 500 00 !, with 2 year $ 6,954 00 -:
New engine
N/A
No bid -~. warranty
N/A _._. :...... _........
N/A '~;
Date 8/27/2009
Page 2 of 4
Purchasing Section Bid Results Bid Results
-- 1717 Fourth Street, Suite 250 BID#: 2977 BI D CLOSE DATE: 5/27/2009 BID#: 2977 D CLOSE DATE: 5/27/2009
Santa Monica, CA 90401
Telephone: 310-458-8281 TITLE: Provide in -frame/complete engine overhaul TITLE: Provide in-frame/complete engine
°°~° ""°`°"~ Fax: 310-393-6142 services to OEM specifications on Detroit overhaul servi ces to OEM specifications
Diesel bus engines including troubleshooting on Detroit Diesel bus engines including
Vendor Harbor Diesel and Ironman PEDCO Valley Power Systems
Long Beach Corona, CA Santa Fe Springs, CA City of Industry, CA
Pricing Pricing Notes Pricing Notes Pricing I Notes Pricing Notes
$ 245 62 ~ left ~. ~ '
Camshaft _
~ ... $ 218.69 ~ $ 250 00 $ 4,650 00 '
__., $ 229 34
right ; ~ ~.'
Camshaft reman cores $ 128 75 ,,
.
, .
...
. $ 318.00 ~ $ 125.00 , N/A ~.'
Balancer shaft N/A
. _ . N/A .. ~ ................ N/A .. _ .. .. ...... _ N/A '..
6V-92 Balancer shaft reman cores N/A ',~~ ~ ~~~~ N/A ~ NIA N/A
Cylinder head $ 666 29': $ 734.90 ; $ 950 00 $ 3 241 00
Cylinder head reman cores $ 657.26 ~. $ 424.00 $ 50 00 $ 3 241 00
Oil cooler $ 220 79 $ 481.24 $ 125.00 ~ $ 1 171.77 .
.........
Oil cooler reman cores $ 192.51 L N/A $ 25.00 i $ 1,175.01
Camshaft $ 441 35 I $ 440.92: $ 425 00 ~ $ 1 358 60
50 series Camshak reman mores $ 150 70 $ 150:00 ~ $ 150 OO $ 106 61
diesel Balancer shaft $ 2,539.03 $ 2 872 40 ~ oil pump & baL $ ,. ,_
2,150.00 $ 2
635 75
F _ { shaft assmbly ,. ,
Balancer shaft reman cores $ 600 60I $ 627.00 ~ $ 500.00', ~$ 545 00 .
Cylinder head $ 1,73519' $ 1,113.00 $ 2,17500; ~$ 350652
50 series Cylinder head reman cores $ 1,125 30 '. $ 736.00 $ 900.00 `: $ 1 023.00
diesel -cont . ...._.. ,... . _........ ..._. .. :..... . ........._ __. ... .. ..._...__ .....____..... ...., _-.. .-.... _ _~......__. ......_... ..._.. . .......... .-...............
Oil Goole $ 125 80 :. $ 134.04 $ 130 00 : $ 876 13 i
Oil cooler reman cores N/A ~~ N/A ~ - I ~~~ N/A
Camshaft $ 586 87 C N/A ~ $ 425 00 $ 1 168 61
Camshaft reman cores $ 150 70 ~ $ 575 72 $ .
150 00~ $ 137 00
Balancer shaft N/A i N!A , N/A NIA
60 series Balancer shaft reman cores N/A N/A ; N/A j N/A
diesel. Cylinder head $ 1,648.84 ; $ 2,492.35 $ 1,800 OO I $ 3,806 57 ~-.
Engine Cylinder head reman cores $ 1,657 10 $ 1 650 00 $ 500 00 $ 1
501 00
replacement --~ -~-~- -...._ __. ,
(including ,Oil Goole $ 125 80 $ 142 69 $ 125 00 i $ 870 13 -
labor) -cont.
Otl cooler reman cores ___
N/A i _ .... ....._.
~N/A y......._.
- .
~~ ~ ~ :...... ........_.._
N/A
Camshaft $ 441.35 ~
$
525.18.
$
425 00 $ 2 400 10
Camshaft reman cores
....
$
150 70
j__. .._...
$
150 00
,
~ . $ .....150 00 . .. $ 137 00 .,.., . .._..
Balancer shaft $ 2,539.03 ~ $ 2,872.40 I oil pump& bal. $ 2,150.00 ~
1 $ 2 729 96
_.._.. ..... .. ..._.. ._ shaft assmbly
50 series Balancer shaft reman cores $ 600 60 ~ $ , , .
627.00 $ 1,000 00 I $ 546 00
methane (ng ) ~~ Cylinder head
.. ..:.._,.. .... -~~$
.._.... 3 035.37 }- -_~~~~ ~ _~~ $ 1 613.00 a ~ ~ ~..._._.... ~ ~ ~y$ ~ 2,175 00 ~~~-~~~ ~ ~~~~ ~ ~
$ ° ~ ~ ~ ~ ..... .........._.__
5,090.28
Cylinder head reman cores $. 1 125 30 ~ $ 998.00 $ 900 00 ; $ 1,004 00
Date 8/27/2009
Page 3 of 4
Purchasing Section
- - 1717 Fourth Street, Suite 250 gID#:
Santa Monica, CA 90401 TITLE:
Telephone: 310-458-8281
"`°` '°`°" Fax: 310-393-6142
Bid Results
2977 BID CLOSE DATE: 5/27/2009 BID#:
Provide in-frame/complete engine overhaul TITLE:
services to OEM specifications on Detroit
Diesel bus engines including troubleshooting
Bid Results
2977 D CLOSE DATE: 5/27/2009
Provide in-frame/complete engine
overhaul services to OEM specifications
nn I~efrnif rlir.cal huc anninae inrl,,.ilnn
Vendor
Harbor Diesel and _
Ironman _..____-_._
PEDCO __. ____..~...__........_...n
Valley Power Systems
Long Beach Corona, CA Santa Fe Springs, CA City of Industry, CA
Pricing
........_ ......._ ~ Prang i Notes
...._, .._.. _.,. Pacing y ,Notes
.. Pricm Notes
.. ...... g i .._..... Pnan ~ Notes
9
Oil cooler
$ 170 74 ;
$ 134 04
$ 125 00 ~ ._..._
......
$ 1 171 77
Oil cooler reman cores N/A ~ N/A $ WA
Hourly labor rate in-shop troubleshooting & repair $ 100.00 $ 88.00''.. $ 95.00' $ 95.00 ''~.
Overtime rate in-shop troubleshooting & repair $ 150.00 $ 132.00 ! $ 125.00 $ 142.50 i
Hourly labor rate on-site field service troubleshooting & i
plus $1.75/mi
repair
$ 100 00 : area charge $ 100.00 ~ $ 125.001
i
i $ 110 00 '_
Overtime rate on-site field service troubleshooting & 00'Plus $1.75/mi
$ 150
repair .
area charge $ 150.00
$ 125 00 $ 165 00
2 cycle engines (6V-92) Cost + 18% 10% to 15% 10% to 50% List less 25
Percentage markup from 4 cycle engines (50 series
' Cost + 18% 10% to 15 % ~ 10 % to 50% List less 31
s price list for ,. ....._ .. ... ............ .. .. ~„
manufacturer .... ,._......~~_ ..._,.._~..... ... .... ..... .. ......_ -_,. ~..._.. ..~~_.... .
parts & materials 4 cycle engines (50 series
~
Cost+ 18%
10%to 15%
10%to 50% .
.._. ...,,.. ._,.... _ .....
List less 31%~
4
cycie engines (60 series Cost+ 1g% 10%to 15% 10%to 50% List less 31%
In frame 7 - 10 working days 10 - 15 work days 3 - 5 days 65 hrs
.......
In frame ..____..._ .... .,...~.... ....... ... ............. .. ..__..._...~ .,... ,.........., .,.....,_ ............. ................. ..... _. ...,.... _..._._........_. .. .._............
P
overhaul _.,._.-. _. Re lacement N/A 10 - 15 work days 5 - 7 days 80 hrs
Turn around Recondition N/A 10 - 15 work days 5 - 7 days N/A
time In frame 15 - 18 working days 12 - 15 work days 5 - 7 days No bid
Complete ......... ...... _......., ......
overhaul ___ Replacement
_._. ._.._ ......._... .._.. _........._
N/A
__ . .............., .............
12 - 15 work days .......... ...._........_ _.~.,.._..
5 - 7 days ...... . _....,.....~_... ....-........
No bid
Recondition N/A 12 - 15 work days 5 - 7 days No bid
Payment Terms Net 30 days Net 30 2% 20 day Net 30
Payment terms discount N/A N/A 2% - N/A
Renewal Option Period 2 5 % increase of previous 0% increase of previous year's Same price, terms and
(7/1/10 - 6/30/11) year's prices prices conditions as previous year
Parts increase subject to
Renewal Option Period 3 5% increase of previous 3% increase of previous year's Same price, terms and manufacturer's price
(7/1/11 -6/30/12) years prices prices conditions as revious ear
P Y
change each year, labor
Renewal Option Period 4 °
5 /o increase of previous °
3 /° increase of previous year's
Same price, terms and 5% per year
(7/1/12 - 6/30/13) year's prices prices conditions as previous year
1yr-reliabilt exchange
1 Year unlimited miles on Reman parts, one
Warrant
Y en fines. 1 r-reliabilt arts.
9 Y P
parts/labor As required per bid year/unlimited miles
6mo-new detroit diesel labor, six months on date of
Date 8/27/2009
Page 4 of 4
Purchasing Section
-- 1717 Founh Street, Suite 250 BID#:
Santa Monica, CA 90401 TITLE:
Telephone: 310-458-8281
'°°`° '~°"°°"~= Fax: 310-393-6142
Bid Results
2977 BID CLOSE DATE: 5/27/2009 BID#:
Provide in-frame/complete engine overhaul TITLE:
services to OEM specifications on Detroit
Diesel bus engines includino troubleshooting
Bid Results
2977 D CLOSE DATE: 5/27/2009
Provide in-frame/complete engine
overhaul services to OEM specifications
nn Deirnit fliesel hus cnnincc inrludinn
Vendor
Pricing Harbor Diesel and
Long Beach
Pricing ~ Notes Ironman
Corona, CA
Pricing ; Notes PEDCO
Santa Fe Springs, CA
Pricing Notes Valley Power Systems
City of Industry, CA
Pricing Notes
Statement of non-collusion Complete Complete Complete Complete
Affidavit Complete Complete Complete Complete
Business License /Insurance req's Can comply Can comply Can comply Can comply
Oaks Initiative Complete Complete I Iltcpmplete Incomplete
Living wage Complete Complete Complete Complete
References Provided Provided Provided Provided
Addendumt Complete Complete Notsubmltted No#submittetl
Addendumt Complete Complete ':~ Not submitfed Not submitted
Addendum3 Complete Complete ~'=:i<Nptsubmitted = Nofsubmftted
Date 8/27/2009