SR-07-28-2015-3BCity Council Regular Meeting: July 28, 2015
Agenda Item: 3 ®8
To: Mayor and City Council
From: Edward King, Director, Big Blue Bus, Transit Maintenance
Subject: Provide Allison Transmission and Detroit Diesel Engine Parts
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4203 to Valley Power Systems, Inc., a California -based company, for
the purchase and delivery of Allison transmission and Detroit Diesel engine parts;
2. Authorize the Purchasing Services Manager to issue a purchase order to Valley
Power Systems, Inc., a California -based company for the purchase and delivery
of Allison transmission and Detroit Diesel engine parts in an amount not to
exceed $190,000 for one year, with two additional one -year renewal options to
extend with 4% increase on Allison and 6% increase on Detroit Diesel, under the
same terms and conditions for a total amount not to exceed $570,000 over a
three -year period with future year funding contingent on Council budget approval.
Executive Summary
Staff recommends awarding Bid #4203 to Valley Power System, for the purchase and
delivery of Allison Transmission (Allison) and Detroit Diesel Corporation (Detroit Diesel),
at specified unit prices plus applicable sales tax with two additional one -year renewal
options at a 4% increase for each year for Allison Transmission parts and 6% increase
each year for Detroit Diesel natural gas engine parts, subject to annual budget approval.
Funds are available in the Big Blue Bus Department budget. The total estimated
expenditure for the three -year term is for an amount not to exceed $570,000.
Discussion
The City's fleet of transit buses requires routine engine and transmission maintenance
and repair. To ensure proper engine performance and compliance with state and federal
emission rules and regulations, Big Blue Bus purchases genuine Original Equipment
Manufacturer (OEM) parts. Detroit Diesel natural gas engines and Allison transmissions
have several hundred parts in each that make up each engine and transmission
component, with parts varying based on model year emission package. The engine and
transmission parts will enable Big Blue Bus to service these components to
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manufacture specifications and ensure proper operation.
Vendor Selection
On April 22, 2015, the City published Notices Inviting Bids to furnish the desired parts to
Big Blue Bus in accordance with City specifications. The bid was posted on Planet Bids
and notices were advertised in accordance with City Charter and Municipal Code
provisions. The City provided vendors with a list of 60 most commonly purchased
products on which to provide pricing as a comparison tool. Five bids were received and
publically opened on May 08, 2015. Valley Power Systems, Inc., was the best bidder
per provided specifications. They are an OEM dealer for genuine Allison Transmission
and Detroit Diesel natural gas engine parts and service, have historically been a reliable
supplier, and are the only bid responder that is able to provide all parts requested on the
bid specification.
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Financial Impacts & Budget Actions
The purchase order to be awarded to Valley Power Systems, Inc. is for an amount not
to exceed $570,000. Funds in the amount of $190,000 are available in the FY 2015 -16
Capital Improvement Program budget in account 0410106.589000. Future year funding
is contingent on Council budget approval.
Prepared By: Getty Modica, Transit Maintenance Officer
Approved Forwarded to Council
a�
Edward F. King, Director 7/13/2015 Elaine M Polachek, Asst. City Ma?'9Qi2015
Attachments:
A. F4203 ALLISON DETROIT DIESEL BUS PARTS (XLSX)
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