SR-10-28-2014-3ICity Council Meeting: October 28, 2014
Agenda Item: 3- 1
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Award Bid for Police Department Vehicle Up- fitting Services
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4158 to Airwave Communications Enterprises, a California -based
company, to provide labor and equipment associated with up- fitting Police
Department vehicles.
2. Authorize the City Manager to negotiate and execute a contractual services
agreement with Airwave Communications Enterprises, in an amount not to
exceed $792,000 for one year, with two additional one -year renewal options in
the amount of $792,000, on the same terms and conditions for a total amount not
to exceed $2,376,000 over a three -year period, with future year funding
contingent upon Council budget approval.
Executive Summary
The City replaces vehicles that have reached the end of their useful life through the
Equipment Replacement Program. Potentially, 176 Police Department vehicles would
be replaced during the next three years at approximately $13,500 per vehicle in up-
fitting costs based on the bids received. Each vehicle would be equipped with various
standardized and specialized equipment. In June 2014, the City solicited bids to provide
labor and equipment associated with up- fitting Police Department vehicles. After
reviewing the two bids received, staff recommends Airwave Communications
Enterprises as the best bidder to provide labor and equipment associated with up- fitting
Police Department vehicles for a total amount not to exceed $792,000 for FY 2014 -15.
Background
The City replaces vehicles that have reached the end of their useful life through the
vehicle replacement program. As a part of this program, the Police Department could
potentially replace 176 vehicles during the next three years. Each vehicle would be
equipped with emergency lighting and warning equipment and a police radio. Some
vehicles would be equipped with prisoner transport systems and additional equipment
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such as a mobile computer and camera system. The equipment installed in each
vehicle varies depending on the purpose of the vehicle. Equipment from existing
vehicles would be transferred to new vehicles when possible.
The process of equipping police vehicles is complex since there is significant equipment
that must be installed to manufacturer specifications in order to operate properly in a
rigorous mobile environment. Sensitive computer and camera equipment must be
installed in a highly specialized manner in order to properly operate and last throughout
its scheduled life cycle. Staff recommends contracting vehicle up- fitting services for the
following reasons:
• If this service were to be provided by in -house staff, three full -time mechanics
would need to be hired to complete the current level of up- fitting services
provided for Police Department vehicles per year. Up- fitting services are required
on a continuous basis, as older vehicles reach the end of their useful life. An
average of 59 new vehicles per year would be purchased which would require
up- fitting services. The life cycles for Police Department vehicles are between 4-
8 years.
• An additional 1,200 square feet of work space per mechanic would be required to
perform up- fitting services safely and efficiently, which includes 500 square feet
for lifts and vehicle service area and 700 square feet for service equipment and
storage of internal vehicle components during the up- fitting process.
• This service requires installation equipment that is not available within City
facilities and would cost approximately $61,780 to purchase and maintain.
• The warranty on all equipment is only valid if it has been installed to
manufacturer specifications by a certified technician. City staff does not have the
necessary certifications to install Motorola, Panasonic or LoJack equipment.
Five mechanics would need to complete a 16 -hour training course per
manufacturer to obtain certifications which would cost approximately $3,200 per
mechanic, per manufacturer for an estimated total of $48,000. As new
equipment models are released, additional training would be required to maintain
certification.
Over the last three fiscal years, $288,932 was spent on contractor labor (4,698 hours at
$61.50 per hour) to up -fit Police Department vehicles and $459,787 for parts (39% labor
and 61% parts) for a total of $748,719. The equivalent cost of labor to up -fit Police
Department vehicles in -house would have been $699,720 and the cost of parts would
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have been similar, approximately $459,787 for a total of $1,159,507. Contracted
services are 35% more cost effective than in -house labor.
Discussion
Vendor Selection
In June 2014, the City published Notices Inviting Bids to provide labor and equipment
associated with up- fitting Police Department vehicles, as required by the Police
Department and Fleet Management Division, 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. A total of 343 vendors were notified and 19 vendors downloaded the bid.
Two bids were received and publicly opened on June 18, 2014 per Attachment A.
Bids were evaluated on the criteria in SMMC 2.24.072, including price, ability to deliver,
completeness of bid response, past experience, and quality of product. Airwave
Communications Enterprises was the only bidder to provide a complete bid response
including pricing for both labor and equipment as requested in the bid. The other
bidder, Adamson Police Products, did not provide pricing for installation /labor. Based on
these criteria, Airwave Communications Enterprises is recommended as the best bidder
to provide labor and equipment associated with up- fitting Police Department vehicles.
Airwave Communications Enterprises provides the level of experience desired, received
positive references, and currently provides exemplary labor and equipment associated
with up- fitting Police Department vehicles.
The services would be contracted for one -year initial term with options for two - additional
one -year renewals that would be evaluated each year. The City would have the option
of terminating the agreement within 10 -days' written notice to the contractor.
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Financial Impacts & Budget Actions
The contractual services agreement to be awarded to Airwave Communications
Enterprises is for an amount not to exceed $792,000 for FY 2014 -15, with two additional
one -year renewal options at the same price, terms and conditions, for a total amount not
to exceed $2,376,000 over a three -year period. Funds in the amount of $792,000 for
the first year are available in the FY 2014 -15 Capital Improvement Program budget in
account C540167.589200. Budget authority for subsequent budget years will be
requested in each budget for Council approval. Future 'funding is contingent upon
Council approval and budget adoption.
Prepared by: Heidi Duran, Administrative Analyst
Approved:
Kkbou�_j
Martin Pastucha
Director of Public Works
Attachment: A — Bid Summary
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Forwarded to Council:
Rod Gould
City Manager
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Reference:
Contract No. 9989
(CCS)