SR-08-25-2015-3U
City Council
Report
City Council Regular Meeting: August 25, 2015
Agenda Item: 3.U
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To: Mayor and City Council
From: Edward King, Director, Big Blue Bus, Transit Maintenance
Subject: Award Bid to Provide Remanufacturing of Allison Transmissions
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4191 to Western States Converters and Transmissions Inc., a California-
based company, for remanufacturing of Allison Transmission transmissions;
2. Authorize the City Manager to negotiate and execute a contractual service agreement
with Western States Converters and Transm issions Inc., in an amount not to exceed
$150,000 for one year, with two additional one-year renewal option(s) in the amount of
$300,000, on the same terms and conditions for a total amount not to exceed $450,000
over a three-year period, with future year funding contingent on Council budget
approval.
Executive Summary
Staff recommends award of Bid #4191 and to negotiate and execute a contractual
service agreement Western States Converters and Transmissions Inc. for a one year
period in the amount of $150,000 with two additional one-year renewal options, for an
amount not to exceed $450,000 over a 3 -year period with for the remanufacturing of
Allison Transmission transmissions at specified unit prices plus applicable sales tax set
forth in the agreement. This is a contractual service agreement as the sum of the
aggregate years exceed the threshold amount.
Background
Big Blue Bus currently operates 43 transit coaches with Allison Transmission (Allison)
transmissions and the Fire Department has 15 apparatus with Allison transmissions.
These are heavy duty transmissions with internal hydraulic brake retarders that
supplement the braking system and allow for a smooth down shift and bus stop
approach. Under normal wear and tear, the transmissions have a wear life of
approximately 250,000 miles. At that time, they should be removed and
remanufactured. It is anticipated that each transit coach and Fire apparatus would have
the transmission remanufactured once during its useful life cycle.
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The award of Bid #4191 would ensure that Allison transmissions that have reached their
useful life cycle or have prematurely failed would be remanufactured to Original
Equipment Manufacturer (OEM) specifications and that the vehicles would return to
service in an efficient and timely manner.
Discussion
BBB requires Allison transmission remanufacturing services for transit coaches and Fire
apparatus that are equipped with Allison transmissions. It is essential that the
transmissions be remanufactured approximately every 250,000 miles. Failure to do so
could cause catastrophic failure of major internal transmission parts a s well as impact
service reliability of the bus system as a whole. BBB staff performs troubleshooting and
repairs of the transmissions as well as the removal and replacement of the
transmissions. However, the requirements for remanufacturing of the transmissions
exceed current in-house capabilities. In addition, the purchase of a transmission
dynamometer test machine and additional work space for the remanufac turing process
and the transmission dynamometer would be required were BBB to do this work in-
house.
Method of Service
On August 26, 2014, staff was directed by Council to review contracted services
throughout the City and identify situations where cont racted services could be brought
in-house. On January 13, 2015, Council agreed with staff’s determination that this
service is best contracted out due to the specialized expertise needed to
remanufacturer Allison transmissions and the capital equipment re quired to test the
transmission after it was remanufactured. The total expenditure for the three -year term
is $450,000 and, as a formal bid, requires Council approval.
The alternative to awarding bid #4191 is to remanufacture Allison transmissions and
conduct dynamometer tests in-house. This would require one additional full-time
employee, in-depth training of staff on the method and process of remanufacturing an
Allison transmission, the purchase and installation of a heavy duty transmission
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dynamometer, and an increase of warehoused replacement parts. To bring this service
in-house, the total additional first year expenditure would be $531,633 and subsequent
annual expenditure would be $169,942, per the January 13, 2015 contractual services
staff report.
Based on anticipated first year and annual expenditures to bring this service in -house,
staff recommends that BBB would continue performing Allison transmission
troubleshooting and repair in-house and to award bid #4191 to Western States
Transmission and Converters, Inc., for remanufacturing of Allison transmissions.
Vendor/Consultant Selection
In April 2015, the City published Notices Inviting Bids to provide Allison transmission
remanufacturing services as required by the Big Blue Bus Transit Main tenance Division
responsible for the maintenance of transit coaches in accordance with City scope of
work. 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. A total of 450 vendors were notified, of which 12 vendors downloaded the
bid. Three bids were received and publicly opened on May 8, 2015. Bids were
evaluated based on the criteria in SMMC 2.24.072 , including price, previous experience,
capacity and skill, ability to deliver and provide future service, and compliance with City
scope of work. Based on these criteria, Western States Converters and Transmissions
Inc., the lowest bidder, is recommended as the best bidder for the remanufacturing of
Allison transmissions in accordance with City scope of work.
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Financial Impacts and Budget Actions
The agreement to be awarded to Western States Converters and Transmissions , Inc. is
for an amount not to exceed $450,000. The agreement will be charged to account
C410106.589000. Future year funding is contingent on Council budget approval.
Prepared By: Getty Modica, Transit Maintenance Officer
Approved
Forwarded to Council
Attachments:
A. F4191 ALLISON TRANSMISSION BID RESULTS
B. Contract and As-Needed and Staffing Review Report (web link)
ATTACHMENT A
4191 5/8/2015
Transmission
Model
Transmission
Serial No.Type of Vehicle Overhaul Pricing
Per Unit
Unit Exchange
Pricing
Remove and
Replace Pricing
Overhaul Pricing
Per Unit
Unit Exchange
Pricing
Remove and
Replace Pricing
Overhaul Pricing
Per Unit
Unit Exchange
Pricing
Remove and
Replace Pricing
B300 6511034498 2011 El Dorado 32’
CNG bus
$ 3,995.00 $ 3,995.00 $ 900.00 $ 4,585.00 $ 3,525.00 $ 900.00 $ 3,200.00 $ 3,200.00 $ 800.00
B400 6510994625 2011 NABI 40’ CNG
bus
$ 3,995.00 $ 3,995.00 $ 900.00 $ 4,585.00 $ 3,525.00 $ 900.00 $ 3,200.00 $ 3,200.00 $ 800.00
B400 6510355757 2002 NABI 40’ LNG bus $ 3,995.00 $ 3,995.00 $ 900.00 $ 4,585.00 $ 3,525.00 $ 900.00 $ 3,200.00 $ 3,200.00 $ 800.00
B500 6610302747 2011 NABI 60’
articulating CNG bus
$ 5,995.00 $ 5,995.00 $ 1,080.00 $ 7,965.00 $ 6,125.00 $ 1,000.00 $ 4,200.00 $ 4,200.00 $ 800.00
HTB741 1124130000 SMFD – Pierce / KME -
Pump / ladder trucks -
Fire apparatus
$ 4,150.00 $ 4,150.00 $ 1,260.00 $ 5,050.00 $ 3,885.00 $ 900.00 $ 3,695.00 $ 3,695.00 $ 800.00
Overtime Labor Rate
Bid:
BID DESCRIPTION:
Dartco Transmission Sales and Service, Inc.Valley Power Systems, Inc.
Anaheim, California City of Industry, California
Pricing Response Response
Pricing
In-House Labor Rate
Purchasing Section
1717 4th St, Suite 250
Santa Monica, CA 90401
Tel: 310-458-8281
Field Service Labor Rate
Field Service Overtime Labor Rate $ 90.00 $ 110.00
30-Foot, 40-Foot & 60-Foot transit bus pick-up and delivery
charge (per trip)
N/A $ 200.00
3% Increase of previous year's price for al areas or options
3% Increase of previous year's price for al areas or options
Submitted Submitted
No presence No presence
Subject to the Living W age Subject to the Living Wage
Oaks Initiative
AZ based business
Living Wage
Percentage of discount off list price on parts
Response
$ 90.00
$ 90.00
$ 90.00
Warranty (years from date of installation)2 Years Requires the use of Allison approved synthetic
transmission fluid.
Out-of City Business License
Renewal Option Year 2
Renewal Option Year 3
Additional Questions
Specify alternate terms and conditions if applicable
Business License Requirements
Please describe any additional fees and charges not listed
above
Response
$ 95.00
$ 95.00
$ 110.00
2 years
Payment terms Net 30 Days
Traveling Charge (portal to portal)$ - $1.00 per mile
28%
Response
Out-of City Business License
Western States Converters &
Transmissions, Inc.
Corona, California
Response
Response
$ 95.00
$ 125.00
$ 100.00
$ 125.00
$ 300.00
Response
Subject to the Living W age
Provide Allison Transmission remanufacturing troubleshooting and repair
services.
BID CLOSE DATE:Bid Results
Same price, terms, and conditions offered
Same price, terms, and conditions offered
No License Needed
Submitted
No presence
$1.00 per mile
20%-20%
2 years
Response
Net 30 Days