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SR 05-23-2017 3C Ci ty Council Report City Council Meeting : May 23, 2017 Agenda Item: 3.C 1 of 3 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 2 of 3 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 3 of 3 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