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
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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