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SR-04-24-2012-3II City of City Council Report Santa monies City Council Meeting: April 24, 2012 Agenda Item: 3 -1 To: Mayor and City Council From: Edward F. King, Director of Transit Services Subject: P -Trap Replacement Parts & Service Recommended Action Staff recommends that City Council award Bid No. 3086 to Ironman, Inc., a California - based company, for P -trap replacement parts and service for a term of one year in the amount of $150,000, with two additional one -year renewal options in the amount of $150,000 each additional year, for a total amount not to exceed $450,000. Executive Summary Replacement parts and services are needed to maintain the particulate filters on diesel transit buses (a device designed to remove particulate matter or soot from the exhaust gas of an engine) to Original Equipment Manufacturer (OEM) standards and to maintain compliance with the California Air Resources Board (CARB) regulations on Particulate Matter (PM) and Nitrogen Oxide (NOx) emission levels. Staff recommends Ironman, Inc. for Particulate -Traps (P- traps) replacement parts and service in an amount not to exceed $450,000. Discussion In 2007, the Cleaire Longview particulate trap system was installed on Big Blue Bus New Flyer transit coaches to reduce PM emissions by 85% and NOx emissions by 25 %. For efficiency, the system requires routine maintenance and service. Part of the service includes cleaning the diesel - particulate filter before reaching 200 grams in weight. To preserve the integrity of the complete particulate trap system, filter cleaning must be performed using the manufacturer's cleaning methodology. Vendor Selection In February 2012, the City published Notices Inviting Bids to provide P -trap parts and service as required by the Big Blue Bus in accordance with City specifications. The bid 1 was posted on the City's on -line bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. Eighteen vendors requested online bid packages. Two bids were received and publicly opened on February 28, 2012 (Attachment A). Bids were evaluated based on pricing, compliance with City specifications, meeting minimum qualifications, and positive history with the vendor. Ironman, Inc. is the only bidder who met the bid specifications of having the ability to provide replacement parts and clean filters using the manufacturer's clean air methodology. Financial Impacts & Budget Actions The purchase order amount to be awarded to Ironman, Inc for the three -year term is $450,000. Funds in the amount of $300,000 are available in the FY2011 -13 budget at account number 0410106.589000. Budget authority for the subsequent years may be requested in the following budget cycle for Council approval depending on the quantity of diesel transit buses remaining in the BBB fleet. All funds used for this purchase order come from funding sources specifically dedicated for transit uses. Prepared by: Getty Modica, Transit Maintenance Vehicle Superintendent Approved: Edward F. King Director of Transit Attachments: Attachment A —Pricing ON Forwarded to Council: Rod Gould City Manager ATTACHMENT A BID DESCRIPTION: PROVIDE P -TRAP PARTS AND SERVICES AS REQUIRED BY THE BIG BLUE BUS. BID RESULTS FOR 3086 - P -TRAP PARTS AND SERVICES COMPLETE COACH WORKS IRONMAN PARTS & SERVICES PRICING RIVERSIDE, CA CORONA, CA DISCOUNT OFF OF MANUFACTURERS LIST PRICE FOR CLEAIRE PARTS: NO BID SEE COMMENTS DISCOUNT OFF MANUFACTURERS LIST PRICE FOR DONALDSON PARTS: 60% 38% LABOR COST PER HOUR: $85.00 $82 PER PERSON CLEAIRE CLEANING LEVEL 1, 2 & 3: $300.00 PER FILTER 5% OFF LIST PRICE FOR EACH LEVEL COMMENTS: NONE CLEAIRE DOES NOT CURRENTLY HAVE A LIST PRCE FOR IT'S PRODUCTS BUT ONLYA CONFIDENTIAL DEALER COST. IRONMAN WOULD AGREE TO PROVIDE PRODUCTS UNDER THIS CONTRACTAT MARGINS MOTTO EXCEED 24 %- RENEWAL OPTIONS 1. YEAR 2 AT 39/. INCREASE YEAR 2 AT 2 "/o INCREASE YEAR 3 AT 3% INCREASE I