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SR-03-18-2014-3ECity of City Santa Monica' City Council Meeting: March 18, 2014 Agenda Item: 36E To: Mayor and City Council From: Edward F. King, Director of Transit Services Subject: Purchase of Cummins Engine Replacement Parts Recommended Action Staff recommends that the City Council award Bid #4124 to Cummins Pacific, LLC, a California -based company, in an amount not to exceed $600,000 for the purchase and delivery of Original Equipment Manufacturer (OEM) Cummins Compressed Natural Gas (CNG) engine replacement parts, with two additional one -year renewal options in the amount of $1,200,000, for a total amount not to exceed $1,800,000 over a three -year period, with future year funding contingent on Council approval and budget adoption. Executive Summary Staff recommends award of bid to Cummins Pacific, LLC for the purchase and delivery of OEM Cummins CNG engine replacement parts used to maintain and repair the Big Blue Bus fleet at specified unit prices plus applicable sales tax. The award of the bid will enable the City to maintain the engines to OEM recommendations to ensure that emission standards are maintained as intended by the manufacturer and that expected engine lifecycle intervals are achieved. The total expenditure for the three -year term is $1,800,000. Background Cummins CNG gas engines are environmentally friendly engines that produce 95% less harmful exhaust gases than diesel operating engines. They are electronically controlled to optimize fuel usage and to generate the least amount of harmful pollutants. To maintain these engines in the manner intended, they must be serviced per manufacturer recommendations. The award of this bid to Cummins Pacific enables the Big Blue Bus to maintain the Cummins CNG engines to OEM standards, thereby ensuring reliability. Discussion The City's fleet of transit buses requires routine engine maintenance and repair. To ensure proper engine performance and compliance with state and federal emission rules and regulations, the Big Blue Bus purchases genuine Original Equipment 1 Manufacturer (OEM) parts. The Cummins natural gas engines have several hundred parts which make up the engine. Obtaining OEM engine parts will enable the Big Blue Bus to service and maintain the engine to manufacture specifications and ensure proper efficient and effective operation. Vendor Selection In January 2014, the City published Notices Inviting Bids to provide Cummins OEM parts 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. Seventeen vendors downloaded the bid. Three bids were received, including one "No Bid" response in which the vendor stated that they downloaded the specification to review everything listed and then realized that they could not provide any of the parts. The two completed bid proposals were evaluated on price; references, experience, and compliance with City specifications. Based on comparison of cost per part, percentage of discount off list price and positive history with vendor, Cummins Pacific, LLC is recommended as the best bidder to provide Cummins OEM parts in accordance with City specifications. 2 Financial Impacts & Budget Actions The purchase order amount to be awarded to Cummins Pacific, LLC, for the three -year term is $1,800,000. Funds in the amount of $150,000 are included in the FY 2013 -14 Capital Improvement Program budget at account C410106.589000. Future year funding is contingent upon Council approval. Prepared by: Getty Modica, Transit Maintenance Officer Approved: m Edward F. King Director of Transit Se Forwarded to Council: Rod Gould City Manager Attachments: Attachment A, Cummins OEM Parts Bid Results 3 Bid No.: 4124 Bid Description: Provide Cummins OEM parts as required by the Big Blue Bus Bid Closing Date: January 28, 2014 Cummins Pacific LLC Los Angeles Freightliner Irvine, California Whittier, California Item Part No. Description Estimated -. e Annual Usage New Cost Manufactured Cost Unit Price Extended Price 1 3289279 Belt- tensioner drive /WTR pump 10 $48.65 $50.47 2 4942430 Belt water pump 20 $34.11 $35.34 3 5271773 Clamp -air fuel control 5 $2.61 $2.70 4 391851 5 $8.13 $8.44 5 5310989 250 $113.41 $118.30 6 3975150 100 $113.41 $118.30 7 5286681 5 $2,598.75 $2,69231 8 15287082RX S 1 $1,040.00 $1,082.25 9 3926842 5 $63.88 $66.18 10 68138 5 $7.11 $7.37 11 3944525D 5 $130.00 $932.71 12 5284106 25 $496.23 $514.10 13 4089216 8 $1,350.00 $1,398.60 14 3932063 30 $17.28 $17.90 15 3934686 25 $46.97 $100.47 16 3968266 2 $1,174.18 $1,224.83 17 3916051 20 $59.67 $61.92 18 13973087 30 $1,221.76 $1,274.46 19 3937456 25 $389.03 $40.31 20 3934486 25 $61.98 $64.30 21 5296050 5 $1,263.01 $1,317.50 22 4955850 2000 $32.19 $51.95 23 3991240 25 $55.53 $57.62 24 3900976 20 $125.55 $117.18 25 3929159 50 $13.78 $14.28 26 3613547 10 $42,23 $43.75 27 4955125 10 $204.43 $213.24 28 13607945 10 $152.67 $159.25 29 3929935 8 $801.90 $836.49 30 4001675 40 $483.66 $504.52 31 4954893 30 $154.11 $160.76 32 4921485 25 $199.09 $206.58 33 4984929 5 $261.13 $272.39 34 4921479 5 $233.94 $244.03 35 3978022 20 $111.77 $115.97 36 3973819 5 $107.71 $111.76 37 3976834 3 $93.11 $68.64 38 4934537 3 $439.90 $458.87 39 4089445 3 $1,909.00 $1,991.34 40 3933846 5 $463.27 $479.94 41 4997684 30 $1,052.89 $1,098.30 42 3931710 8 $623.13 $650.01 43 3102928 4 $457.05 $476.76 44 Other Part (5310990 superseded p /n) for item N6(p /n 3975150) that is obsolete Part (5286677RX) for item number 11# (p /n 3944525D) that is obsolete' see additional page for exceptions Item Supplemental Questions ': Response -Response. 45 Vendor must have a minimum of five years' experience in supply and delivery of genuine OEM Cummins engine parts and supplies. Meets qualifications Meets qualifications 46 Vendor must have the ability to furnish and deliver genuine OEM Cummins engine parts and supplies. Meets qualifications Meets qualifications 47 Vendor must be a certified dealer /distributor of genuine OEM Cummins engine parts and supplies. Meets qualifications Meets qualifications 48 Percentage discount off manufacturers list price on items no listed. 28% approximately Manufacture list prices are not consistent. We will offer cost plus 15 %. 49 Warranty Terms 1year on NSW and 12 months 50 Do you come into City of Santa Monica Property to perform your service? Yes Yes 51 Do you deliver parts and /or products in your own company vehicle? Yes No 52 Will you be able to comply with the business license requirements for the City of Santa Monica? Can Comply Can Comply 53 Will you be able to complywith the insurance requirements for the City of Santa Monica? Can Comply Can Comply 54 Year 2 3.5% Increase of previous year's price Prices are subject to change 55 Renewal Options Year 3.5% Increase of previousyear'sprice Prices are subject to change