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SR 07-24-2018 3P City Council Report City Council Meeting: July 24, 2018 Agenda Item: 3.P 1 of 3 To: Mayor and City Council From: Edward King, Director, Big Blue Bus, Transit Maintenance Subject: Award Bid for Purchase of Detroit Diesel and Allison Engine and Parts Recommended Action Staff recommends that the City Council: 1. Award Bid #4322 to Dartco Transmission Sales & Service Inc., a California- based company for the purchase of new Detroit Diesel and Allison engine and transmission parts; 2. Authorize the Purchasing Services Manager to issue a purchase order with Dartco Transmission Sales & Service Inc. for the purchase of Detroit Diesel and Allison Transmissions parts in the amount not to exceed $100,658 for one year, with three-additional one-year renewal options to extend on the same terms and conditions for a total amount not to exceed $421,117, which includes a 10% contingency and applicable taxes, with future year funding contingent on Council budget approval. Summary The City of Santa Monica’s fleet of transit buses and Fire Department (FD) heavy-duty vehicles require routine engine and transmission maintenance and repairs to ensure that the vehicles are maintained in good operating condition. Big Blue Bus (BBB) solicited bids to provide the engine and transmission parts needed to perform these repairs. Staff recommends awarding Bid #4322 to Dartco Transmission Sales & Service Inc. (Dartco) for the purchase and delivery of transmission parts from Allison Transmission (Allison) and engine parts from Detroit Diesel Corporation (Detroit Diesel), in an amount not to exceed $421,117 which includes a 10% contingency and all applicable taxes, over a four-year period. Discussion To perform routine maintenance and repairs the BBB purchases genuine Original Equipment Manufacturer (OEM) parts for Detroit Diesel Fire vehicle engines and Allison transmissions. BBB has historically solicited bids for Detroit Diesel and Allison 2 of 3 Transmissions repair parts so that adequate spare parts are in stock for the timely repair of these components. These engines and transmissions have several hundred parts, varying based on model year. Replacement parts are necessary to enable BBB to service these components to manufacturer specifications and to ensure proper operation of the components. Vendor Selection Financial Impacts and Budget Actions The purchase order to be awarded to Dartco Transmission Sales & Service Inc., is for an amount not to exceed $421,117, which includes a 3% annual cost escalator, a 10% contingency, and all applicable taxes. The award for FY 2018-19 is $100,658. Funds of $65,658 are available in BBB’s FY 2018-19 Adopted Budget and funds of $35,000 are available in the Fire Department’s budget. The contract will be charged to the accounts below: FY 2018-19 Account Amount 60.106602 15,658 60.106619 47,000 60600008.550012 1,000 60600008.529030 2,000 01190001.529470 35,000 Bid Data Bid Posting Date Bid Posted On Bid Advertised In (City Charter & Municipal Code) # of Vendors Downloaded # of Submittals Received Date Publicly Opened 3/12/2018 City's Online Bidding Site Santa Monica Daily Press 12 4 3/29/2018 Submittals Received Vendor Selection Recommendation Dartco $421,117 Municipal Code SMMC 2.24.072 LA Truck Centers $466,123 Evaluation Criteria Price, previous experience, ability to deliver, quality of product, and compliance with City specifications. Valley Power $448,056 Western States $538,615 Best and Lowest Bidder Dartco Best Bidder Justification Dartco is the lowest bidder and is able to meet all of the City’s requirements. Based on these criteria, Dartco Transmission Sales & Service Inc. is recommended as the best bidder. 3 of 3 Future year funding is contingent on Council budget approval. Prepared By: David Nanjo, Administrative Analyst Approved Forwarded to Council Attachments: A. 2015-7-28 - Staff Report Engine & Trans. parts B. Dartco Oaks