SR-06-26-1979-6C-13Sa a Monica, California May 29, 1979
T0: Mayor and City Council
FROM; City Staff JUAN 2 6 1979
SUBJECT: Recommendation to award bid for bus and truck parts.
Bid No. 1452.
Introduction
This report concerns award of bid for Allison transmission and Detroit
Diesel engine parts for use by the Transportation and Mechanical Main
tenance Departments in the estimated amount of $88,000,00, Of this
amount $44,000.00 will be used for the initial transmission support
stock for the forty -two (42) new busses on order, During fiscal year
79 -80 it is anticipated that $30,000.00 will be used for other trans-
portation engine and transmission maintenance and repair parts, and
$14,000.00 will be for as- needed parts for the Mechanical Maintenance
Department. These parts initially will be charged to the respective
department inventory accounts and will be charged to specific accounts
when issued.
Background
In response to published Notice Inviting Bids to furnish and deliver
original equipment transmission and diesel engine parts, bids were
received and publicly opened and read May 1, 1979. Proposal packages
were mailed to twenty -three (23) prospective bidders and notices were
advertised in accordance with City Charter and Municipal Code provisions.
Five (5) bids were received as listed on the attached Summary of Bids.
The prices proposed were on the basis of discounts from the manufacturer's
published suggested price list. Although there is a variance in the
schedule, the average fleet price represents a fifteen per cent (15 %)
discount from list and the distributor price represents a forty per cent
(40 %) discount from list.
4d -/3
JUN 2 6 1979
TO: Mayor and City Co+ -il
I
Taking into consideration the price category and discount proposed and
the discount for prompt payment, if offered, the net cost to the City
for a $100.00 assortment of parts from each bidder would be:
Transmission Engine
Parts Parts
Grumman- Flxible
Distribution Center $ 44.98 $ 57.04
Muncie Reclamation
and Supply Company 66,00
S & J Chevrolet Co. 70.56 70.56
Alameda Ford Truck Sales 76.50 76.50
Graham. Brake and Diesel 78.20 85.00
The Gruuman - Flxible bid is limited to parts used in busses of their
manufacture hence an additional supplier is needed. Although Muncie
Reclamation & Supply is the second low bidder, their Indiana location
will delay return of vehicles to service. This is particularly applic-
able to Mechanical Maintenance since their parts are ordered only as
needed for specific repairs. It is considered that S & J Chevrolet,
the third lowest bidder, is best qualified to provide the timely
response required.
Recommendation
With the understanding that Grumman Flxible is to be the primary source,.
it is recommended that the award be made as follows:
Grumman- Flxible
Distribution Center
S & J Chevrolet Co,
Prepared By: R.N. Aronoff,
Purchasing Agent
$ 45,000.00 Initial Stock for
new bus support,
20,000,00 1979 -1980 Bus Parts
2,000,00 1979 -1980 Truck Parts
12,000.00 1979 -1980 Truck Parts
10,000,00 1979 -1980 Bus Parts
ITEM NO. 1
SUMMARY OF BIDS
BUS AND TRUCK PARTS
OPENIN DATE: MAY 1. 1979
Alameda Graham Grumman
Ford Truck Brake & Flxible
Sales Diesel Dist.Ctr.
Initial V -730 Allison Fleet less
transmission support 10%
stock.
ITEM NO. 2
Parts as ordered for Fleet less
Allison T,V,VH,VS and 8%
AT Transmissions.
ITEM NO. 3
Parts as ordered for Fleet less
Detroit Diesel Series 10%
6V71, 8V71,8V92 and
52 Engines.
Terms Net
Freight Prepaid
on Orders Over None
Obsolescence Allowance Limited
Fleet less
8%
*Fleet less
8 %
*'Fleet
Net
$100.00
15% Restock
Charge
Fleet less
45%
Fleet less
46%
Distributor
less 3%
2% 30 Days
$100.00
Negotiable
One Year Option Yes No
Two Year Option Yes No
Limited to parts only for series VH and VS transmissions.
** - Limited to parts only for series 6V71 and 8V71 engines.
Muncie Re-
clamation &
SUDD1V CO.
Distributor
plus 10%
Distributor
plus 10%
No Bid
Net
$250.00
Not Stated
Yes
Yes
BID NO. 1452
FILE NO. 2202
S & J
Chevrolet
Company
Distributor
plus 20%
Distributor
plus 20%
Distributor
plus 20%
2% 40 Days
All
47 of Yearly
Purchases
Yes
Yes
Reference:
Contract No. 3346 (CCS)