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SR-08-25-2015-3G City Council Report City Council Regular Meeting: August 25, 2015 Agenda Item: 3.G 1 of 3 To: Mayor and City Council From: Edward King, Director, Big Blue Bus, Transit Maintenance Subject: Award Bid to Provide Heavy-Duty Batteries Recommended Action Staff recommends that the City Council: 1. Award Bid #4190 to: a. Battery Power, a California-based company, for the purchase of DEKA brand heavy-duty batteries for transit coaches; and b. Advanced Battery Systems, Inc., a California-based company for the purchase of Odyssey brand heavy-duty batteries for transit coaches and Fire vehicles. 2. Authorize the Purchasing Services Manager to issue purchase orders totaling $308,488 with: a. Battery Power for DEKA brand heavy-duty 8D and Group 31 batteries in the amount not to exceed $60,000 for one year, with two additional one-year renewal options with 2% increase per year for a total amount not to exceed $183,624, with future year funding contingent on Council budget approval; b. Advanced Battery Systems, Inc. for Odyssey brand heavy -duty bus and Fire apparatus batteries in the amount not to exceed $40,000 for one year, with two additional one year renewal options with 4% increase per year for a total amount not to exceed $124,864, with future year funding contingent on Council budget approval. Executive Summary Changing batteries on transit coaches and fire vehicles is a necessary part of preventative maintenance schedule. Transit coaches use six different styles of heavy duty battery models; the Fire Department vehicles use two types. Following a formal bid process, staff recommends a split award in the following manner: Battery Power to provide DEKA brand heavy-duty 8D and Group 31 batteries, in an amount not to exceed $60,000 Advanced Battery Systems, Inc. to provide Odyssey brand heavy-duty Group 31 batteries, in an amount not to exceed $40,000 The bid award is for specified batteries plus applicable sales tax for a one -year period with two one-year renewal options at 2% increase per year with Battery Power and 4% increase per year with Advanced Power Systems, Inc., with the same terms and 2 of 3 conditions as the first year period. The total expenditure is $100,000 for the first year, and the total amount for three years is not to exceed $308,488. Discussion Transit and Fire Department vehicle electrical systems require heavy-duty batteries that can withstand long periods of amperage draw from electronic equipment that continues to operate after engines are shut off. The onboard surveillance, methane detection, head sign and farebox systems function on battery power once the engines are shut off . As a result, batteries must be able to withstand the constant amperage draw and must recharge quickly after the engines start. This service demand on the batteries requires use of high quality and durable batteries. After considerable research and experien ce, BBB has identified that the DEKA and Odyssey batteries can withstand the battery service cycles placed on transit and fire vehicles. Transit buses use six different styles of heavy duty battery models; the Fire Department vehicles use two types. The batteries to be purchased are heavy-duty Model 8D batteries and Group 31 batteries. Vendor/Consultant Selection In March 2015, the City published Notices Inviting Bids to provide DEKA and Odyssey Model 8D and Group 31 heavy-duty batteries as required by Big Blue Bus, which is responsible for maintenance of transit buses and Fire Department vehicles in accordance with City specifications. The bid was posted on the City’s online bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. Notifications were made to 401 vendors, of which 22 vendors downloaded the bid. Five bids were received and publicly opened on May 7, 2015. Bids were evaluated based on the criteria in SMMC 2.24.072, including price, product availability, selection, quality of material and compliance with City specifications. Battery Power was the lowest bidder to provide DEKA brand batteries and Advanced Battery Systems, Inc., was the lowest bidder to provide Odyssey brand batteries. Based on these criteria, Battery Power and Advanced Battery Systems, Inc. are recommended as the best bidders. Financial Impacts and Budget Actions The purchase order to be awarded to Battery Power is for an amount not to exceed 3 of 3 $183,624. Funds in the amount of $60,000 are included in the FY 2015-16 Capital Improvement Program budget at account C410106.589000. The purchase order to be awarded to Advanced Battery Systems, Inc. is for an amount not to exceed $124,864. Funds in the amount of $40,000 are included in the FY 2015- 16 Capital Improvement Program budget at account C41 0106.589000. Future year funding is contingent on Council budget approval. Prepared By: Getty Modica, Transit Maintenance Officer Approved Forwarded to Council Attachments: A. F4190 - Provide Heavy-Duty Batteries BID # 4190 BID CLOSE DATE:5/7/2015 Advanced Battery Systems, Inc.Battery Power Battery Systems Bid 1 of 2 Romaine Electric Valley Power Systems, Inc. Culver City, CA San Fernando, CA Garden Grove, CA Chula Vist, CA City of Industry, CA Response Response Response Response Response Item No.Brand Battery Part No.Type Cold Cranking Amperage Minimum Reserve Capacity Unit Price Unit Price Unit Price Unit Price Unit Price Unit Price Unit Price 1 DEKA 908DFT LEAD ACID 1425 440 $171.13 + 40 Core deposit $130.51 Exchange + $56.00 Core $ 185.00 $ 155.56 $ 174.15 2 DEKA 8A8D AGM 1450 517 $389.54 + $40 Core deposit $365.83 Exchange + $56.00 Core $ 440.00 Full River. FFD260- 12. AGM. 1150. 560 $ 380.00 $ 424.60 $ 398.04 3 DEKA 7T31 LEAD ACID 730 190 $99.68 +$18 for Core $81.14 Exchange + $21.00 Core $ 110.00 Full River. C-31- 10STMF. Lead Acid. 950.190. $ 95.00 $ 101.76 $ 90.73 4 DEKA 9A31 LEAD ACID 925 190 $167.83 +$18 for Core $156.30 Exchange + $21.00 Core $ 185.00 Full River. C-31- 10STMF. Lead Acid. 950.190. $ 95.00 $ 185.12 $ 136.45 5 DEKA 8A31 LEAD ACID 800 210 $170.90 +$18 for Core $159.09 Exchange + $21.00 Core $ 185.00 Full River. C-31- 10STMF. Lead Acid. 950.210. $ 95.00 $ 189.72 $ 135.69 6 ODYSSEY PC2150 AGM 2150 205 $243.95 + $18 for Core $275.00 Exchange + $21.00 Core $ 245.00 $ - 144.74 + $18.00 Core 7 ODYSSEY PC1200 AGM 540 78 $166.92 +$18 for Core $190.00 Exchange + $14.00 Core $ 155.00 $ - Response Response Response Response Response 1 No charge $ 65.00 $ - $ - $ 95.00 2 0.To be conducted by Odyssey engineer(s), maximum twice per year $ 65.00 $ - $ - $ 95.00 3 20%20%10%25% 4 $ - $ 65.00 $ - Free N/C $ 95.00 5 Please see the attached "Understanding Batteries and Battery Charging" guide we've included. We can also include the guides from manufacturers, if we're chosen as your supplier We recommend an associated 6080A charger, and a midtronics XP-800 tester along with an Autometer SB5/2 load tester Please see our attached Check & Charge Policy As per manufacturers specs. We believe no additional fees or charges will be necessary N/A None None USA Both Deka and Odyssey are made in the USA Deka + Odyssey USA DEKA/USA Net 30 2% 20 Days, Net 30 Net 30 Net 30 Net 30 Response Response Response Response Response 1-2 Days ARO 4% Increase of previous year's price for all areas or options. 2% Increase of previous year's price for all areas or options. 3% Increase of previous year's price for all areas or options.Increase or Decrease. None 4% Increase of previous year's price for all areas or options. 2% Increase of previous year's price for all areas or options. 3% Increase of previous year's price for all areas or options.Increase or Decrease. None The market is unpredictable. We would be open to negotiate and work with you when the time comes. Batteries to be sold to BBB at 25% gross profit margin over current manufacturer's price at time of renewal. Out-of City Business License Out-of City Business License Out-of City Business License Submitted Submitted Submitted Submitted Submitted No presence No presence No presence No presence No presence Subject to Living Wage Subject to Living Wage Subject to Living Wage Subject to Living Wage Subject to Living Wage Battery Parts 9A31 and 8A31 are AGM, not lead acid Oaks Initiative Living Wage Notes AZ based business No presence Subject to Living Wage Submitted Business License requirements 3% Increase of previous year's price for all areas or options.Renewal Option Year 3 Specify alternate terms and conditions if applicable Delivery Within 3% Increase of previous year's price for all areas or options.Renewal Option Year 2 Provide a description of recommended re-charging and re- testing criteria Please describe any additional fees and charges not listed above Please indicate origin of manufacturer Payment Terms Additional Questions $ - Hourly Labor Rate for Training Response Please see attached Check & Charge Policy None USA Net 30 Pricing Continued Battery and 12/24 Volt Charging System Training- per event 10% $ - Vehicle Data Logging Mark-Up on Related Parts and Diagnostic Tools and Equipment Response $ - $ 185.00 $ 245.00 $ 155.00 Response Garden Grove, CA Purchasing Section 1717 4th St, Suite 250 Santa Monica, CA 90401 Tel: 310-458-8281 Pricing At tachment - A BID DESCRIPTION:Furnish and deliver batteries and related service as required by the Big Blue Bus. Battery Systems Bid 2 of 2