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SR-01-08-2013-3F10 City of City Council Report Santa Monica City Council Meeting: January 8, 2013 Agenda Item: S — F To: Mayor and City Council From: Edward F. King, Director of Transit Services Subject: Vehicle Electronic Equipment & Service Recommended Action Staff recommends that the City Council award Bid No. 4038 for the purchase of vehicle electronic equipment and service to Intercon Technologies, Inc., a California -based company, for a term of one year in the amount of $100,000 with two additional one -year renewal options in the amount of $100,000 each year, for a total amount not to exceed $300,000 over a three -year period, with future year funding contingent on Council budget approval. Executive Summary The Big Blue Bus uses a repair and rebuild service to replace damaged electronic components on the revenue service fleet, reducing waste and cost. The recommended bid award is for a one -year period with two additional one -year renewal options. The total expenditure for the three -year term would be $300,000. Discussion The cost of purchasing Original Equipment Manufacturer (OEM) new mirrors, programmable logic controller panels, battery chargers and other equipment for the Big Blue Bus revenue service fleet would significantly exceed $100,000 per fiscal year. Therefore, rebuilt electronic components are used where feasible to reduce costs and reduce the waste associated with installing new components to replace damaged components. Damaged components are removed and replaced by BBB maintenance technicians and the component is sent off property to be rebuilt by a skilled electronic technician. This process is more efficient than sustaining an in -house electronics rebuild shop and ensures reliability and longevity of the component through vendor warranties. 1 Vendor Selection In October 2012, the City published Notices Inviting Bids to provide electronic equipment service and repair as required by the Big Blue Bus in accordance with City specifications. The bid 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. Of the 742 vendors that were notified, 32 downloaded the bid documents. One bid was received and publicly opened on November 12, 2012 per Attachment A. The bid was evaluated based on the price and the ability of the bidder to diagnose and repair electronic equipment to the electronic circuit board level and engineer electronic tools and components as needed. Based upon these criteria, staff recommends Intercon Technologies as qualified and sole bidder to repair and rebuild miscellaneous electronic components. Financial Impacts & Budget Actions The purchase order to be awarded to Intercon Technologies, Inc., is for an amount not to exceed $300,000 for a three -year period. Funds are available in the FY 2011 -13 Capital Improvement Program budget in account C410106.589000. Budget authority for the subsequent years will be requested in the following budget cycle for Council approval. All funds used for this purchase order come from funding sources specifically dedicated for transit uses. Future funding is contingent upon Council approval and budget adoption. Prepared by: Getty Modica, Transit Maintenance Superintendent Approved: Forwarded to Council: r Edward F. King Rod Gould Director of Transit Servi es City Manager Attachment A: Pricing ►: BID #4038 kAI /sCya��il #�Y /a� INTERCON TECHNOLOGIES Hawthorne, CA Description Unit Cost Delco regulators (replace all transistors, potentiometers) $ 164.82 Allen Bradley power supplies with rack assembly (repair or replace PW M & low power OP amp) $ - 281.58 Allen Bradley output & input modules (replace relays and clean up inside of units) $ 143.37 Allen Bradley Processor boards (change components) $ 128.78 Mirrors - rebuild Nab! and New Flyer (repair housing and paint; replace glass, motors and harnesses as needed. Rework the assembly) $ 187.50 Amerex Battery Packs (Build Units) $ 112.50 Midtronics Battery tester (repair connections or replace components) $ 125.00 TPI gas detector (repair) $ 139.25 Onan micro lite generator (rebuild) $ 633.31 Jumper cables (build 15 ft & 20 ft) $270.48 & $301.48 Output cables (build) $ 157.32 Service and Repair $85 /hr Discount off manufacturer's list price 10% 10% discount if paid before 303 days Renewal Options: 2 renewal options: same price, terms and conditions