SR 05-23-2017 3C
Ci ty Council
Report
City Council Meeting : May 23, 2017
Agenda Item: 3.C
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To: Mayor and City Council
From: Edward King, Director , Big Blue Bus, Transit Maintenance
Subject: Purchase of Cummins Engine Replacement Parts
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4262 to Cummins Pacific, LLC, a Cal ifornia -based company, for the
purchase and delivery of Original Equipment Manufacturer (OEM) Cummins
engine replacement parts for transit buses and fire apparatus;
2. Authorize the Purchasing Services Manager to issue a purchase order with
Cummins Pacifi c, LLC, for OEM Cummins engine replacement parts in the
amount not to exceed $764,302 for one year, including a 10% contingency , four
additional one -year renewal options to extend on the same terms and conditions ,
and a 2.5% increase per renewal year for a total amount not to exceed
$4,0 17,422 with future year funding contingent on Council budget approval.
Executive Summary
Staff recommends award of bid #4262 to Cummins Pacific, LLC , for the purchase and
delivery of O riginal E quipment M anufacturer (OEM) Cu mmins CNG engine replacement
parts used to maintain and repair Big Blue Bus transit buses and Fire apparatus at
specified unit prices plus applicable sales tax. The award of the bid will enable the City
to maintain Cummins engines to OEM recommendations , thereby ensuring that
emission s certification standards are maintained and that expected engine lifecycle
intervals are achieved. The total expenditur e for the five -year term is $4,0 17,422 .
Background
Cummins engines power Big Blue Bus ’ fleet of 200 CNG -p owered transit buses and
Fire ’s fleet of nine heavy -duty fire apparatus. The engines are electronically -controlled
to optimize fuel usage and to generate the least amount of harmful pollutants. In order
t o maintain these engines in the manner the original equipment manufacturer intended,
they must be serviced per OEM recommendations. The award of this bid to Cummins
Pacific enables Big Blue Bus to maintain the Cummins CNG engines to OEM standards,
thereby ensuring reliability and environmental compliance.
Discussion
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The City’s fleet of CNG transit buses and Fire apparatus require routine engine
maintenance and repair. Big Blue Bus purchases genuine Original Equipment
Manufacturer (OEM) parts t o ensure proper engine performance and compliance with
state and federal emission rules and regulations . The Cummins engines have several
hundred parts, which make up the engine. Obtaining OEM engine parts will enable Big
Blue Bus and Fire to service and maintain the engines to manufacture specifications
and ensure pro per efficient and effective operation.
Vendor/Consultant Selection
On February 27 2017, the City published Notices Inviting Bids to furnish and deliver
genuine Cummins engine replacement parts in accordance with City specifications. The
Notice 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. The City notified 746 vendors , of which 17 vendors downloaded the bid .
Five bids were received a nd publicly opened on March 13 , 20 17 per the table below:
Cost Estimate
CAMENITA
TRUCK
CENTER
COMPREHENSIVE
HEALTH CARE
SERVICES, LLC
CUMMINS
PACIFIC, LLC
HARBOR
DIESEL AND
EQUIPMENT,
INC.
WESTERN
TRUCK
EXCHANGE
Estimate - Based
average part
purchases $9 84,909 $1,414,062 $764,302 $838,572 $821,427
Contract 5yr.
Total $4,924,547 $7,507,445 $4,017,422 $4,633,637 $4,107,137
Bids were evaluated based on the criteria in SMMC 2.24.072, including price, previous
experience, ability to deliver, quality of prod uct, and compliance with City specifications.
Based on comparison of cost per part and positive history with the vendor, Cummins
Pacific, LLC is recommended as the lowest and best bidder to provide Cummins OEM
replacement parts in accordance with City spec ifications.
Staff recommends that the Purchasing Services Manager issue a purchase order with
Cummins Pacific, LLC , in the amount of $764,302 for one year, including a 10%
contingency, four additional one -year renewal options to extend on the same term s and
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conditions , and a 2.5% increase per renewal year for a total not to exceed $4,0 17,422 ,
with future year funding contingent on Council budget approval.
Financial Impacts and Budget Actions
The purchase orders to be awarded to Cummins Pacific, LLC, ar e for an amount not to
exceed $764,302. Funds are included in the proposed FY 2017 -18 budget in the Big
Blue Bus and Fire Departments. The purchases orders will be charged to the following
accounts :
Department Account Amount including
10% contingency
Big Blue Bus C410106.589000 $ 709,302
Fire 01312.56929 0 $ 55,000
Total $ 764,302
Future year funding is contingent on Council budget approval.
Prepared By: Getty Modica, Transit Maintenance Officer
Approved
Forwarded to Council
Attachme nts:
A. Cummins Pacific Oaks 5 -9 -17