SR 05-08-2018 3D
City Council
Report
City Council Meeting: May 8, 2018
Agenda Item: 3.D
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To: Mayor and City Council
From: Edward King, Director, Big Blue Bus, Transit Maintenance
Subject: Award Bid for Re-manufacturing, Overhaul, Troubleshooting, and Repair
Services for Allison Transmission
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4320 to Western States Converters & Transmission, a California-
based company, for remanufacturing, overhaul, troubleshooting, and repair of
Allison automatic transmissions;
2. Authorize the City Manager to negotiate and execute an agreement with Western
States Converters & Transmission, in an amount not to exceed $101,676, which
includes a $9,243 contingency, for one year, with four-additional contract years in
the amount of $406,703, on the same terms and conditions for a total amount not
to exceed $508,379 over a five-year period, with future year funding contingent
on Council budget approval.
Executive Summary
Staff recommends award of Bid #4320 to Western States Converters and Transmission
Inc., to provide remanufacture, overhaul, troubleshooting, and repair of transmissions
for transit buses and fire vehicles, at specified unit prices plus labor and applicable
sales taxes for a five-year period with successive years at the same price, terms and
conditions as the first contract year. Under normal operating conditions, these
transmissions need to be overhauled or replaced approximately ever y 250,000 miles, or
at least once during the life cycle of these vehicles. The expenditure for th is bid is not to
exceed $508,379, which includes a 10% contingency, over a five-year period.
Background
On August 25, 2015, City Council awarded Bid #4191 to Western States Converters
and Transmissions for an amount not to exceed $450,000 over a three -year period. This
contract ensured that transmission that have reached their useful life cycle or have
prematurely failed would be remanufactured to Original Equipment Manufacturer (OEM)
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specifications and returned to service in an efficient and timely manner. The existing
contract ends on June 30, 2018 requiring BBB to solicit bids for Allison transmission
remanufacture and overhaul services for its fleet of transit buses and Fire Department
vehicles.
Discussion
BBB requires Allison transmission remanufacturing services for transit coaches and Fire
Department apparatus that are equipped with Allison transmission s. These are heavy-
duty transmissions with internal hydraulic retarders that supplement the braking system
and allow for a smooth down shift and bus stop approach. Under normal operating
conditions, transmissions have a useful life of approximately 250,000 miles. It is
essential that a transmission be remanufactured approximately every 250,000 miles, as
failure to do so could cause catastrophic failure of major internal transmission parts as
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. The award of this bid would ensure
that Allison transmissions that have reached their useful life or have prematurely failed
would be remanufactured to OEM specifications and that the vehicles would return to
service in a timely manner.
Method of Service
On August 26, 2014, Council directed staff to review contracted services throughout the
City and identify situations where contracted services could be brought in-house. Per
Attachment A of the January 13, 2015 Staff Report ti tled “As-Needed and Contract
Staffing Review Report,” transmission repair services were identified as meeting criteria
for contractual services under the categories of specialized expertise, and capital
equipment requirements.
The remanufacture of transmissions requires specialized expertise as well as capital
equipment needed to conduct dynamometer tests in-house. Bringing this service in-
house would require the purchase and storage of additional capital equipment, one
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additional full-time employee, and in-depth training of staff on the method and process
of remanufacturing an Allison transmission. Bid #4320 requires the vendor to provide all
necessary tooling and equipment to deliver the contracted services, saving the City
costs associated with the purchase and storage of equipment as well as personnel and
training.
Based on the recommendations of the January 13, 2015 staff report, staff solicited bids
for outside contracting of Allison transmission remanufacture, overhaul, troubleshooting,
and repair services, for BBB transit buses and fire vehicles.
Vendor/Consultant Selection
On February 15, 2018, the City published Notices Inviting Bids to provide transit bus
and fire vehicle Allison transmission remanufacture, overhaul, troubleshooting, and
repair services 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 Press in
accordance with City Charter and Municipal Code provisions. Fourteen (14) vendors
downloaded the bid. Two bids were received and publically opened on March 6 , 2018,
per the table below:
Cost Estimate
Performance Truck &
Trailer
Western States Converters &
Transmission
Estimate 5-year Period $571,226 $462,163
10% Contingency $57,123 $46,216
Contract 5-year Total $628,348 $508,379
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. Western States Converters & Transmission has
had a positive history of performing Allison transmission remanufacture services for
BBB and Fire Department during the course of its previous contract with the City and is
able to meet all of the City’s requirements in addition to being the lowest bidder. Based
on these criteria, Western States Converters & Transmission is recommended as the
best bidder and staff recommends that Council award Bid #4320 to Western States
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Converters & Transmission for Allison transmission remanufacture, overhaul,
troubleshooting and repair services. The total expenditure for the five-year period is not
to exceed $508,379.
Financial Impacts and Budget Actions
The contract to be awarded to Western States Converters & Transmissio n is for an
amount not to exceed $508,379, which includes a 10% contingency. Funds of $70,201
are included in in BBB’s proposed FY 2018-19 Budget Plan and funds of $31,474 are
included in the Fire Department’s proposed budget. The contract will be charged to
accounts C6004750.689000 and 01190001.529470, respectively. FY 2018-19 and
future year funding is contingent on Council budget approval.
Prepared By: David Nanjo, Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Western States Oaks
B. 8-25-2015 - western states staff report
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)
REFERENCE:
Agreement No. 10672
(CCS)