SR 06-26-2018 3C
City Council
Report
City Council Meeting: June 26, 2018
Agenda Item: 3.C
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To: Mayor and City Council
From: Edward King, Director, Big Blue Bus, Transit Maintenance
Subject: Award Bid to Provide Heavy-Duty Batteries
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4325 to:
a. Battery Power, Inc., a California-based company, for the purchase of
DEKA brand heavy-duty batteries for transit coaches; and
b. Battery Systems, Inc., a California-based company for the purchase of
Odyssey brand heavy-duty batteries for transit coaches and Fire Vehicles.
2. Authorize the Purchasing Services Manager to issue purchase orders with:
a. Battery Power for DEKA brand heavy-duty 8D and Group 31 batteries in
an amount not to exceed $49,170 for one year, with four (4) additional
one-year renewal options with the same terms and conditions for a total
not to exceed $245,850 over a five-year period with future year funding
contingent on Council budget approval;
b. Battery Systems, Inc. for Odyssey brand heavy-duty bus and Fire
apparatus batteries in an amount not to exceed $32,390 for a one-year
period, with four (4) additional one-year renewal options with a 5%
increase per year for a total not to exceed $178,972 over a five-year
period with future year funding contingent on Council budget approval.
Executive Summary
Because of the high demand placed on transit buses and fire vehicles, the heavy-duty
batteries that power these vehicles’ electrical systems lose their ability to hold a charge
over time, requiring their replacement. Staff recommends the award of Bid #4325 to
Battery Power, Inc. to provide DEKA brand heavy-duty batteries for Big Blue Bus transit
coaches at specified prices plus applicable sales tax; and Battery Systems Inc. to
provide Odyssey brand heavy-duty batteries for Fire Department apparatus and transit
coaches at specified prices plus applicable sales tax with successive years at a 5%
price increase. Changing batteries on transit coaches and fire vehicles is a necessary
part of preventative maintenance and ensures that service is provided uninterrupted.
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The expenditure for this bid is not to exceed $424,822, which includes a 10%
contingency, over a five-year period.
Background
Transit and Fire Department vehicle electrical systems require heavy-duty batteries that
can withstand long periods of amperage draw from electronic equipment that continues
to operate after engines are shut off. Due to the high demand placed on these batteries,
and the critical systems they support, it is necessary to replace the heavy-duty batteries
as they suffer from wear associated with normal vehicle operation. On August 25, 2015,
City Council awarded Bid #4190 to Battery Power Inc. and Advanced Battery Systems
Inc. for an amount not to exceed $308,488 over a three-year period. The existing
purchase order authority ends on June 30, 2018 requiring BBB to solicit bids for heavy-
duty batteries for its fleet of transit buses and Fire Department vehicles.
Discussion
The City’s fleet of transit buses use six different battery models, and Fire Department
apparatus use an additional two battery models. These batteries power critical
electronic systems that continue to operate after engines are shut off, and can continue
to operate during long periods of amperage draw. The onboard surveillance, methane
detection, head sign, and farebox systems, continue to function on battery power once
the engine has been shut off. As a result, batteries must be able to withstand the
constant amperage draw and must recharge quickly after engine start. This requires
the use of high quality and durable batteries. Historically, Big Blue Bus has identified
that the DEKA and Odyssey batteries have been able to operate successfully under the
service cycles placed on transit and Fire vehicles. The award of this bid would enable
BBB to replace worn out batteries in a timely manner allowing for the continued
operation of transit buses and Fire Department vehicles. The batteries to be purchased
are heavy-duty Model 8D batteries and Group 31 batteries.
Vendor/Consultant Selection
On April 6, 2018, the City published Notices Inviting Bids to provide heavy-duty batteries
for transit bus and fire vehicles in accordance with City specifications. The bid was
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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.
Thirteen (13) vendors downloaded the bid. Three (3) bids were received and publically
opened on April 23, 2018 per the table below:
Cost Estimate
Battery Power,
Inc.
Battery
Systems, Inc.
Romaine Electric
Corp.
Deka
Est - 5-year Period $223,500.00 $395,497.06 $281,655.00
10% Contingency $22,350.00 $39,549.71 $28,165.50
PO 5-year Total $245,850.00 $435,046.76 $309,820.50
Odyssey
Est - 5-year Period $171,925.00 $162,702.21 N/A
10% Contingency $17,192.50 $16,270.22 N/A
PO 5-year Total $189,117.50 $178,972.43 N/A
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. Battery Power, Inc. was the lowest bidder for
Deka brand batteries and has a positive history of providing these batteries for transit
buses and Fire vehicles. The bidder is able to meet all of the City’s requirements.
Battery Systems, Inc. was the lowest bidder for Odyssey brand batteries and is able to
meet all of the City’s requirements. Staff conducted a check of Battery Systems’
references and found the responses to be satisfactory. Based on these criteria, Battery
Power, Inc. and Battery Systems, Inc. are recommended as the best bidders.
Financial Impacts and Budget Actions
The purchase order to be awarded to Battery Power, Inc. is for an amount not to exceed
$245,850, which includes a 10% contingency. Funds of $49,170 are available in the
FY 2018-19 Capital Improvement Program budget. This purchase order will be charged
to account C410106.589000/C6004750.689000 with future year funding contingent on
Council budget approval.
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The purchase order to be awarded to Battery Systems, Inc. is for an amount not to
exceed $178,972 which includes a 5% annual cost escalator and a 10% contingency.
Funds of $32,390 are available in the FY 2018-19 Adopted Budget in the Fire
department and the FY 2018-19 Capital Improvement Program Budget. The purchase
order will be charged to accounts C410106.589000/C6004750.689000 ($14,689) and
01312.569290/01190001.529470 ($17,701). Future year funding is contingent on
Council budget approval.
Prepared By: David Nanjo, Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Battery Systems Oaks
B. Battery Power Oaks