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SR 07-25-2017 3D Ci ty Council Report City Council Meeting : July 25, 2017 Agenda Item: 3.D 1 of 4 To: Mayor and City Council From: Edward King, Director , Big Blue Bus, Transit Maintenance Subject: Purchase and Delivery of Brake Reline Kits Recommended Action Staff recommends that the City Council: 1. Award Bid #4291 to American Moving Parts, LLC, a California -based company, for the purchase and delivery of transit bus brake reline kits; 2. Authorize the City Manager to negotiate and execute an agreement with American Moving Parts, LLC, in an amount not to exceed $110,000 for one year, with four ad ditional one year renewal options with costs increasing by three percent in the first two renewal periods and five percent for the final two, for a total amount not to exceed $59 1 ,194 for a five year period. Future year funding is contingent on Council app roval. Executive Summary Staff recommends award of bid #4291 to American Moving Parts, LLC for the purchase and delivery of brake reline kits at specified unit prices plus applicable sales tax. The award of the bid would enable the City to purchase brake reline kits that contain brake drums, brake lining, brake pads , and all associated hardware needed to refurbish completely the braking systems on transit coaches. The award would also ensure that the braking systems are maintained to Original Equipment Ma nufacturer (OEM) recommendations and that the braking systems conform to all Federal, State and local laws, rules and regulations governing air brake system functions and components. The annual expenditure for this bid is not to exceed $110,000 with four o ne -year renewal options with a three percent increase in years one and two, and a five percent increase in years four and five. The total expenditure for the five -year term is $591,194. Background Big Blue Bus (BBB) uses reline kits containing a set li st of parts needed to reline the 2 of 4 drum brakes on its transit buses. The bundling of parts needed to perform the work of relining the brakes on transit buses improves workflow in the performance of the work and simplifies the purchase of brake parts. BBB pur chases t hese kits and other brake parts through its contract with American Moving Parts. This service was approved by City Council on August 12, 2014 and a contract with American Moving Parts was signed and executed on January 7, 2015. A modification of th is contract was signed and executed on November 17, 2016 to exercise the second option to extend the original contract for a one -year period ending December 15, 2017. The vendor’s service quality has been satisfactory for the duration of its contract with BBB. Discussion The City’s fleet of transit buses requires routine brake pad and drum/rotor replacement. The brake reline kits would provide all necessary parts and hardware to facilitate the complete refurbishment of the brake assembly. The kits would ensure that the braking systems are maintained to OEM specifications in order to operate at optimum efficiency and perform at “as new condition.” The award of the bid would enable the City to purchase brake reline kits that contain brake drums, brake lin ing, brake pads , and all associated hardware needed to refurbish the braking systems on transit coaches. The award would also ensure that the braking systems are maintained to OEM specifications and that the braking systems conform to all Federal, State an d local laws, rules and regulations governing air brake system functions and components. Staff recommends that bid #4291 be awarded to American Moving Parts to provide brake reline kits to BBB, based on the bid price submitted by this vendor and their previous work history with the City. Vendor/Consultant Selection On May 11, 2017, the City published Notices Inviting Bids to provide brake reline kits and parts for transit buses in accordance with City specifications. The bid was posted on the City’s on line bidding site, and notices were advertised in the Santa Monica Daily 3 of 4 Press in accordance with the City Charter and Municipal Code provisions. Eight - hundred and forty -two vendors were notified, of which 15 downloaded the bid. One bid was received and op ened in public on May 25, 2017 , per the table below: Cost Estimate American Moving Parts Estimate - Based on historical purchases over previous contract period $ 1 10,000 Contract – Five -Yea r Total $ 591,1 9 4 The bid was evaluated based on the criteria in SMMC 2.24.072, including price, previous experience, ability to deliver, quality of product, and compliance with City specifications. American Moving Parts has a positive history providing brake reline k its and parts to Big Blue Bus and is able to meet all of the City requirements. This type of service is specialized. There are few vendors that provide these services. Other vendors include bus manufacturers; however, their product line is limited to the types of buses they produce. BBB’s fleet includes buses from four different manufactures, so no one bus manufacturer would be able to provide all of the services requested. AMP, an independent corporation, can provide all of the requested services. To our knowledge, they are the only Los Angeles based business of this type and they provide the same type of service to most of the local transit operators. The bid price for brake reline kits has been compared to the previous bid pricing and the new bid pricing was found to be lower than the previous bid . Based on these criteria, American Moving Parts is recommended as the best bidder. Financial Impacts and Budget Actions The contract to be awarded to American Moving Parts, LLC is for an amount not to exceed $591,194 over a five -year period . Funds in the amount of $110,000 are available in the FY 2017 -18 adopted Budget in the Big Blue Bus department. The contract will be charged to account 41651.544220 . Future year funding is contingent on Council budget appro val. 4 of 4 Prepared By: Getty Modica, Transit Maintenance Officer Approved Forwarded to Council Attachments: A. American Moving Parts - Oaks REFERENCE:    Agreement  No. 10508   (CCS)