SR-08-25-2015-3H
City Council
Report
City Council Regular Meeting: August 25, 2015
Agenda Item: 3.H
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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
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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
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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.
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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