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SR-08-25-2015-3H City Council Report City Council Regular Meeting: August 25, 2015 Agenda Item: 3.H 1 of 4 To: Mayor and City Council From: Edward King, Director, Big Blue Bus, Transit Maintenance Subject: Award Bid to Provide Motor Oil, Automatic Transmission Fluid and Other Lubricants to BBB and Public Works Fleet Management Recommended Action Staff recommends that the City Council: 1. Award Bid #4184 to: a. Rosemead Oil Products, Inc., a California-based company, for the purchase and delivery of motor oil (recycled and new), conventional automatic transmission fluid and other lubricants for transit buses and City vehicles; and b. Dartco Transmission Sales and Services, Inc., a California-based company, for the purchase and delivery of TranSynd synthetic automatic transmission fluid for transit buses and City vehicles. 2. Authorize the Purchasing Services Manager to issue purchase orders totaling $1,122,841 with: a. Rosemead Oil Products, Inc. for purchase and delivery of motor oil (recycled and new), conventional automatic transmission fluid and other lubricants in the amount not to exceed $175,000 for one year, with two additional one-year renewal option(s) with a 2% increase per year for a total not to exceed $535,570; and b. Dartco Transmission Sales and Services, Inc. for the purchase and delivery of TranSynd synthetic automatic transmission fluid in the amount not to exceed $190,000 for one year, with two additional one-year renewal option(s) with a 3% increase per year for a total not to exceed $587,271 . Executive Summary Staff recommends a split award of Bid #4184 to: Rosemead Oil Products, Inc. for purchase and delivery of motor oil (recycled and new), conventional automatic transmission fluid and other lubricants; and Dartco Transmission Sales and Services, Inc. for purchase and delivery of genuine TranSynd synthetic automatic transmission fluid. The award is for specified oils and lubricants plus applicable sales tax for a one-year 2 of 4 period with two additional one-year renewal options, subject to Council budget approval. Motor oil, transmission fluid, and lubricants are used for BBB transit buses and City vehicles maintained by BBB and Public Works. Funds are available in the Big Blue Bus Department and Fleet Management budgets. The total estimated expenditure for the three-year term is for an amount not to exceed $1,122,841. Discussion Routine maintenance is essential to operating transit buses, Fire apparatus and other City vehicles maintained by BBB and Public Works Fleet Management. Today’s low emission engines require high quality oils and lubricants that meet Original Equipment Manufacturer (OEM) specifications and standards. Replacement of engine oils and other lubricants with OEM approved lubricants ensures reliability, efficiency and helps to extend the useful life of equipment. Automatic transmissions on transit buses, Fire trucks and City fleet trucks require a specific synthetic transmission fluid in order to achieve the expected lifecycle and to honor the manufacturer warranty. Based on the California Public Contract Code Section 10409, which states , “Every local Agency, as defined in Section 17518 of the Government Code, shall purchase lubricating oil from the seller whose oil product contains the greater percentage of recycled oil.” BBB and Public Works Fleet Management use re-refined motor oils where possible and permissible by OEM specifications. These oils are derived from used motor oil that is recycled and processed to an as new condition. After recycling the used motor oil, specific additives are blended that comprise the new chemical makeup. Unfortunately, some engine OEMs require oils and lubricants that are only available as new. For this reason, this award also includes new oils and lubricants for components that require new fluids to maintain OEM warranties. Vendor/Consultant Selection In March 2015, the City published Notices Inviting Bids to provide motor oil and automatic transmission fluid as required by Big Blue Bus and Public Works Fleet Management responsible for maintenance of transit coaches and City fleet vehicles in accordance with City specifications. The bid was posted on the City’s online bidding 3 of 4 site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. The City notified 401 vendors, of which 22 vendors downloaded the bid. Four bids were received and publicly opened on April 21, 2015. Bids were evaluated based on the criteria in SMMC 2.24.072, including price, previous experience, capacity and skill, ability to deliver, quality of product, and compliance with City specifications and scope of work. The bid response evaluation criteria included pricing, the ability to furnish and deliver recycled (refined) motor oils that are certified by the American Petroleum Institute (API), compliance with the California Public Contract Code Section 10409, and the ability to furnish and deliver genuine TranSynd synthetic automatic transmission fluid. Based on these criteria, two vendors are recommended as best bidders to provide the following: 1. Rosemead Oil Products, Inc. is recommended as best bidder to provide re- recycled (refined) motor oils, conventional transmission fluid and other lubricants. 2. Dartco Transmission Sales and Services, Inc. is recommended as best and only bidder to provide genuine TranSynd synthetic automatic transmission fluid. 4 of 4 Financial Impacts and Budget Actions The purchase order to be awarded to Rosemead Oil Products, Inc. is for an amount not to exceed $535,570. Funds in the amount of $175,000 are included in the FY 2015 -16 budget in the following accounts: 41654.522912 - $115,000 54459.522910 - $60,000 The purchase order to be awarded to Dartco Transmission Sales and Services, Inc. is for an amount not to exceed $587,271. Funds in the amount of $190,000 are included in the FY 2015-16 budget in the following accounts: 41654.522912 - $175,000 54459.522910 - $15,000 Future year funding is contingent on Council budget approval. Prepared By: Getty Modica, Transit Maintenance Officer Approved Forwarded to Council Attachments: A. 4184 Motor Oil - Transmission Fluid other Lubricants SPECIFICATION TOTAL ESTIMATED ANNUAL QUANTITY Notes UNIT PRICE PER GALLON PRICE PER ESTIMATED QUANTITY SAE-40WT Diesel – CJ-4/SN Low Emission 200 gallons URSA 15W/40 600 gallons SAE-15W/40 Diesel 6,000 gallons SAE-15W/40 CNG/LNG – OEM approved by Cummins (must submit proof of approval) 6,500 gallons Dextron III / Mercon ATF 500 gallons 80W/140 Synthetic Diff Fluid 1,540 gallons AW68 Hydraulic Fluid 1,760 gallons Red I EP Super Premium Grease NLGI #2 220 gallons TranSynd (Synthetic) Automatic Transmission Fluid (Approved with Allison, Voith & ZF Transmission) 6,000 gallons $ 29.28 $ 175,680.00 6000.00 $175,680.00 BID #: 4184 BID TITLE: MOTOR OIL AND LUBRICANTS FOR BIG BLUE BUS AND FLEET SERVICES BID CLOSE DATE: 4/21/2015 Purchase order with Dartco TOTAL ESTIMATED PRICE $ 175,680.00 Dartco Transmission Sales and Service, Inc ANNUAL BBB QUANTITIES ARE Anaheim, CA SPECIFICATION TOTAL ESTIMATED ANNUAL QUANTITY Notes UNIT PRICE PER DELIVERY PRICE PER ESTIMATED QUANTITY 15W40 CNG MOTOR OIL 320 gallons / 480 gallon container on site 15W40 MOTOR OIL 220 gallons / 240 gallon container on site 5W30 MOTOR OIL 880 gallons / 240 gallon container on site AW225 HYD OIL 1100 gallons / 480 gallon container on site ATF TRANS FLUID 120 gallons / 120 gallon container TRACTOR HYD OIL 4 drums / drum delivery 80/90 GEAR OIL 1 drum / drum delivery 14 OZ. GREASE CARTRIDGE Super Premium Grease, NLGI-2, 80+lbs Timken ok load test. 1400 cartridges per year. Period 2 (First annual renewal option) Period 3 (Second annual renewal option) No Bid Form: AAA Oil Inc DBA Addendum # 1 not submitted Product specification sheet submitted not submitted Arizona Disclosure Complete; No presence Oaks Initiative Disclosure Incomplete Renewal Options: Specify alternate terms and conditions if applicable 3% Increase 3% Increase Business License: Do you deliver parts Yes Business License: Do you come into Yes Additional fees & charges not listed Payment Terms All oil must be re-refined Can comply Other original equipment manufacturer TOTAL ESTIMATED PRICE ANNUAL CITY FLEET SERVICES Dartco Transmission Sales and Service, Inc SPECIFICATION TOTAL ESTIMATED ANNUAL QUANTITY Notes UNIT PRICE PER GALLON PRICE PER ESTIMATED QUANTITY SAE-40WT Diesel – CJ-4/SN Low Emission 200 gallons $ 7.21 $ 1,442.00 API certified URSA 15W/40 600 gallons $ 10.80 $ 6,480.00 600.00 $6,480.00 Per Gillig, Steering gear box requires URSA oil SAE-15W/40 Diesel 6,000 gallons $ 7.05 $ 42,300.00 API certified - 100% base SAE-15W/40 CNG/LNG – OEM approved by Cummins (must submit proof of approval) 6,500 gallons * price per estimated quantity and total calculation corrected $ 7.46 $ 48,490.00 9200.00 $68,632.00 Lower price Dextron III / Mercon ATF 500 gallons $ 6.67 $ 3,335.00 100% re-refined base 80W/140 Synthetic Diff Fluid 1,540 gallons $ 18.72 $ 28,828.80 1540.00 $28,828.80 Lower price AW68 Hydraulic Fluid 1,760 gallons $ 6.10 $ 10,736.00 83% base oil- Red I EP Super Premium Grease NLGI #2 220 gallons 1600 lbs 4 drums $ 2.55 $ 4,080.00 2400.00 $6,120.00 Lower price TranSynd (Synthetic) Automatic Transmission Fluid (Approved with Allison, Voith & ZF Transmission) 6,000 gallons $ 29.87 $ 179,220.00 $110,060.80 Analysis Purchase order with Rosemead Oil TOTAL ESTIMATED PRICE $ 324,911.80 Rosemead Oil Products, Inc ANNUAL BBB QUANTITIES ARE Santa Fe Springs, CA SPECIFICATION TOTAL ESTIMATED ANNUAL QUANTITY Notes UNIT PRICE PER DELIVERY PRICE PER ESTIMATED QUANTITY 15W40 CNG MOTOR OIL 320 gallons / 480 gallon container on site $ 7.46 $ 2,387.20 15W40 MOTOR OIL 220 gallons / 240 gallon container on site $ 7.05 $ 1,551.00 5W30 MOTOR OIL 880 gallons / 240 gallon container on site $ 7.93 $ 6,978.40 AW225 HYD OIL 1100 gallons / 480 gallon container on site $ 5.99 $ 6,589.00 ATF TRANS FLUID 120 gallons / 120 gallon container $ 6.67 $ 800.40 TRACTOR HYD OIL 4 drums / drum delivery $ 6.95 $ 1,529.00 80/90 GEAR OIL 1 drum / drum delivery $ 9.88 $ 543.40 14 OZ. GREASE CARTRIDGE Super Premium Grease, NLGI-2, 80+lbs Timken ok load test. 1400 cartridges per year. $ 2.83 $ 3,962.00 Period 2 (First annual renewal option) Period 3 (Second annual renewal option) 100% re-refined base 100% re-refined base 55% re-refined No Bid Form: AAA Oil Inc DBA Lower price Addendum # 1 submitted; not signed Product specification sheet submitted not submitted Arizona Disclosure Complete; No presence Oaks Initiative Disclosure Complete Renewal Options: Specify alternate terms and conditions if applicable 2% Increase 2% Increase Business License: Do you deliver parts Yes Business License: Do you come into Yes Additional fees & charges not listed small delivery charge for > 25 gallons $15.00 Payment Terms All oil must be re-refined Can Comply Other original equipment manufacturer 0% TOTAL ESTIMATED PRICE $ 24,340.40 API certified - 100% re- refined base API certified 100% re-refined base ANNUAL CITY FLEET SERVICES Rosemead Oil Products, Inc Southern Counties Lubricants LLC Orange, CA SPECIFICATION TOTAL ESTIMATED ANNUAL QUANTITY Notes UNIT PRICE PER GALLON PRICE PER ESTIMATED QUANTITY Analysis SAE-40WT Diesel – CJ-4/SN Low Emission 200 gallons Olympus 2000 SAE 40 $ 5.00 $ 1,000.00 200.00 $5,000.00 Per API website - this product is not API certified URSA 15W/40 600 gallons Olympus Eco 15W40 CJ-4 $ 5.99 $ 3,594.00 Must be URSA oil, no substitutes accepted by bus manufacturer SAE-15W/40 Diesel 6,000 gallons Olympus Eco 15W40 CJ-4 $ 5.99 $ 35,940.00 200.00 $1,198.00 API certified - no mention of quantity of re-refined base stock SAE-15W/40 CNG/LNG – OEM approved by Cummins (must submit proof of approval) 6,500 gallons Olympus Eco 15W40 $ 7.68 $ 49,920.00 higher cost Dextron III / Mercon ATF 500 gallons Olympus ATF $ 4.60 $ 2,300.00 0.00 $0.00 no mention of quantity of re- refined base stock 80W/140 Synthetic Diff Fluid 1,540 gallons Olympus Synthetic Gear Oil 80W140 $ 19.21 $ 29,583.40 higher cost AW68 Hydraulic Fluid 1,760 gallons Olympus Hydraulic Oil AW68 $ 4.25 $ 7,480.00 10.00 $42.50 no mention of quantity of re- refined base stock Red I EP Super Premium Grease NLGI #2 220 gallons Red I Grease 2 $ 11.49 $ 18,384.00 Should be 1600 poundsTranSynd (Synthetic) Automatic Transmission Fluid (Approved with Allison, Voith & ZF Transmission) 6,000 gallons Shell Spirax S6 ATF A295 $ 23.85 $ 143,100.00 $6,240.50 Per specification, request TranSyn ATF BBB purchase order with Southern Counties LLC. TOTAL ESTIMATED PRICE $ 291,301.40 SPECIFICATION TOTAL ESTIMATED ANNUAL QUANTITY Notes UNIT PRICE PER DELIVERY PRICE PER ESTIMATED QUANTITY 15W40 CNG MOTOR OIL 320 gallons / 480 gallon container on site Olympus CNG/LNG 15W40 $ 7.68 $ 2,457.60 400.00 $3,072.00 higher cost 15W40 MOTOR OIL 220 gallons / 240 gallon container on site Olympus Eco 15W40 CJ-4 $ 5.99 $ 1,317.80 230.00 $1,377.70 API certified - no mention of quantity of re-refined base stock 5W30 MOTOR OIL 880 gallons / 240 gallon container on site Olympus 5W30 $ 5.85 $ 5,148.00 880.00 $5,148.00 Not API certified AW225 HYD OIL 1100 gallons / 480 gallon container on site Olympus Hydraulic Oil AW32 $ 4.25 $ 4,675.00 1100.00 $4,675.00 No mention of quantity of re- refined base stock ATF TRANS FLUID 120 gallons / 120 gallon container Olympus ATE $ 4.60 $ 552.00 120.00 $552.00 No mention of quantity of re- refined base stock TRACTOR HYD OIL 4 drums / drum delivery Olympus Tractor Fluid. ($308 per drum) $ 5.60 $ 1,232.00 220.00 $1,232.00 No mention of quantity of re- refined base stock 80/90 GEAR OIL 1 drum / drum delivery Olympus 80W90. ($456.50 per drum) $ 8.30 $ 456.50 55.00 $456.50 No mention of quantity of re- refined base stock 14 OZ. GREASE CARTRIDGE Super Premium Grease, NLGI-2, 80+lbs Timken ok load test. 1400 cartridges per year. Red I Grease 2 per tube $ 1.97 $ 2,758.00 1400.00 $2,758.00 Lower cost $19,271.20 Period 2 (First annual renewal option) Period 3 (Second annual renewal option) No Bid Form: AAA Oil Inc DBA Addendum # 1 submitted Product specification sheet submitted submitted Arizona Disclosure Complete; No presence Oaks Initiative Disclosure Incomplete Renewal Options: Specify alternate terms and conditions if applicable Same price, terms, and conditions offered Same price, terms, and conditions offered Business License: Do you deliver parts Yes Business License: Do you come into Yes Additional fees & charges not listed Drum deposits ($20 each) - refundable when Payment Terms Net 30 Days; no discount All oil must be re-refined Can Comply Other original equipment manufacturer 5% City Fleet purchase order with Southern Counties LLC. TOTAL ESTIMATED PRICE $ 18,596.90 ANNUAL CITY FLEET SERVICES Southern Counties Lubricants LLC