SR 01-22-2019 3B
City Council
Report
City Council Meeting: January 22, 2019
Agenda Item: 3.B
1 of 4
To: Mayor and City Council
From: Edward King, Director, Big Blue Bus, Transit Maintenance
Subject: Award Bid No. 4363 for the purchase and delivery of lubricating oils for Big
Blue Bus and Fleet vehicles
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4363 to Southern Counties Lubricants LLC., a California-based
company, for the purchase and delivery of lubricants and motor oil (recycled and
new), for transit buses and city vehicles; and
2. Authorize the Procurement Manager to issue a purchase order with Southern
Counties Lubricants LLC for lubricants and motor oil in an amount not to exceed
$339,099 for one year, including a 10% contingency, with four additional one-
year renewal options with a 3% cost escalator, for a total amount not to exceed
$1,800,323 with future year funding contingent on Council budget approval.
Summary
The City solicited bids to provide motor oil, transmission fluid, and other lubricants used
by Big Blue Bus (BBB) and Public Works for City vehicle maintenance. Routine
maintenance is essential to operating the City’s fleet of transit buses, Fire apparatus,
and other vehicles and to ensure that the City’s vehicles are maintained in good
operating condition. Staff recommends the award of Bid #4363 to Southern Counties
Lubricants, LLC for the purchase and delivery of motor oil, recycled and new,
conventional automatic transmission fluid, and other lubricants for use in transit buses
and other City vehicles in an amount not to exceed $1,800,323 over a five-year period,
which includes a 10% contingency and all applicable taxes.
Discussion
To perform routine maintenance and repairs, Public Works and BBB purchase high
quality oils and lubricants that meet Original Equipment Manufacturer (OEM)
specifications and standards. The replacement of engine oils and other lubricants with
OEM-approved lubricants ensures reliability and efficiency and helps to extend the cost-
2 of 4
effective useful life of the City’s fleet. Some major components such as transmissions
on transit buses, Fire Department heavy apparatus, and refuse trucks require specific
fluids to achieve their expected lifecycles, and the specified fluids are required to meet
the manufacturer’s warranty terms.
The California Public Contract Code Section 10409 requires local agencies to purchase
“lubricating oil from the seller whose oil product contains the greater percentage of
recycled oil. . .” This code does not prohibit agencies from purchasing non-recycled oil
for use in vehicles “whose warranties expressly prohibit the use of products containing
recycled oil.” BBB and Public Works Fleet Management use re-refined motor oils where
possible and permissible by OEM specifications. These oils are derived from used
motor oil that is recycled and processed to an as-new condition. Some engine OEMs
require oils and lubricants that are only available as new. For this reason, this award
also includes new oils and lubricants for components that require new fluids to maintain
OEM warranties.
Vendor Selection
Bid Data
Bid
Posting
Date
Bid Posted
On
Bid Advertised in
(City Charter &
Municipal Code)
# of
Vendors
Downloaded
# of
Submittals
Received
Date
Publicly
Opened
9/20/2018
City's Online
Bidding Site
Santa Monica
Daily Press 21 4 10/8/2018
Submittals Received Vendor Selection Recommendation
Patten Energy $289,351
Municipal
Code SMMC 2.24.072
Southern
Counties $339,099
Evaluation
Criteria
Price, ability to deliver, quality of
product, and compliance with City
Specifications
The Jankovich
Company $504,578
Best
Bidder Southern Counties Lubricants, LLC.
Van De Pol
Enterprises $349,278
Best Bidder Justification
While not the lowest bidder, Southern Counties Lubricants, LLC. met all the City’s
requirements as outlined in bid 4363. The City has strict requirements that bidders
3 of 4
provide documentation that their products conform to OEM requirements for lubricants to
ensure proper operation of equipment components. Southern Counties Lubricants, LLC
was the lowest bidder that provided documentation that met all of the City’s strict
requirements. Quoted prices are for one year’s worth of supplies.
4 of 4
Financial Impacts and Budget Actions
Staff seeks authority to award a purchase order with Southern Counties Lubricants,
LLC. for the purchase and delivery of motor oil, recycled and new, conventional
automatic transmission fluid, and other lubricants not to exceed $1,800.323 over five
years.
Purchase Order Request
Request Amount
FY 2018-19 Budget
Department Account #
Total Purchase
Order Amount
$210,645 60600013.521812 $1,118,343
$128,454 70500001.521810 $681,980
Total $1,800,323
Future year funding is contingent on Council budget approval.
Prepared By: David Nanjo, Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Previous Staff Report 1329
B. Southern Counties Oaks
City Council
Report
City Council Regular Meeting: August 25, 2015
Agenda Item: 3.H
1 of 4
To: Mayor and City Council
From: Edward King, Director, Big Blue Bus, Transit Maintenance
Subject: Award Bid to Provide Motor Oil, Automatic Transmission Fluid and Other
Lubricants to BBB and Public Works Fleet Management
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4184 to:
a. Rosemead Oil Products, Inc., a California-based company, for the
purchase and delivery of motor oil (recycled and new), conventional
automatic transmission fluid and other lubricants for transit buses and City
vehicles; and
b. Dartco Transmission Sales and Services, Inc., a California-based
company, for the purchase and delivery of TranSynd synthetic automatic
transmission fluid for transit buses and City vehicles.
2. Authorize the Purchasing Services Manager to issue purchase orders totaling
$1,122,841 with:
a. Rosemead Oil Products, Inc. for purchase and delivery of motor oil
(recycled and new), conventional automatic transmission fluid and other
lubricants in the amount not to exceed $175,000 for one year, with two
additional one-year renewal option(s) with a 2% increase per year for a
total not to exceed $535,570; and
b. Dartco Transmission Sales and Services, Inc. for the purchase and
delivery of TranSynd synthetic automatic transmission fluid in the amount
not to exceed $190,000 for one year, with two additional one-year renewal
option(s) with a 3% increase per year for a total not to exceed $587,271 .
Executive Summary
Staff recommends a split award of Bid #4184 to:
Rosemead Oil Products, Inc. for purchase and delivery of motor oil (recycled and
new), conventional automatic transmission fluid and other lubricants; and
Dartco Transmission Sales and Services, Inc. for purchase and delivery of
genuine TranSynd synthetic automatic transmission fluid.
The award is for specified oils and lubricants plus applicable sales tax for a one-year
2 of 4
period with two additional one-year renewal options, subject to Council budget approval.
Motor oil, transmission fluid, and lubricants are used for BBB transit buses and City
vehicles maintained by BBB and Public Works. Funds are available in the Big Blue Bus
Department and Fleet Management budgets. The total estimated expenditure for the
three-year term is for an amount not to exceed $1,122,841.
Discussion
Routine maintenance is essential to operating transit buses, Fire apparatus and other
City vehicles maintained by BBB and Public Works Fleet Management. Today’s low
emission engines require high quality oils and lubricants that meet Original Equipment
Manufacturer (OEM) specifications and standards. Replacement of engine oils and
other lubricants with OEM approved lubricants ensures reliability, efficiency and helps to
extend the useful life of equipment.
Automatic transmissions on transit buses, Fire trucks and City fleet trucks require a
specific synthetic transmission fluid in order to achieve the expected lifecycle and to
honor the manufacturer warranty.
Based on the California Public Contract Code Section 10409, which states , “Every local
Agency, as defined in Section 17518 of the Government Code, shall purchase
lubricating oil from the seller whose oil product contains the greater percentage of
recycled oil.” BBB and Public Works Fleet Management use re-refined motor oils where
possible and permissible by OEM specifications. These oils are derived from used
motor oil that is recycled and processed to an as new condition. After recycling the used
motor oil, specific additives are blended that comprise the new chemical makeup.
Unfortunately, some engine OEMs require oils and lubricants that are only available as
new. For this reason, this award also includes new oils and lubricants for components
that require new fluids to maintain OEM warranties.
Vendor/Consultant Selection
In March 2015, the City published Notices Inviting Bids to provide motor oil and
automatic transmission fluid as required by Big Blue Bus and Public Works Fleet
Management responsible for maintenance of transit coaches and City fleet vehicles in
accordance with City specifications. The bid was posted on the City’s online bidding
3 of 4
site, and notices were advertised in the Santa Monica Daily Press in accordance with
City Charter and Municipal Code provisions. The City notified 401 vendors, of which 22
vendors downloaded the bid. Four bids were received and publicly opened on April 21,
2015. 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.
The bid response evaluation criteria included pricing, the ability to furnish and deliver
recycled (refined) motor oils that are certified by the American Petroleum Institute (API),
compliance with the California Public Contract Code Section 10409, and the ability to
furnish and deliver genuine TranSynd synthetic automatic transmission fluid.
Based on these criteria, two vendors are recommended as best bidders to provide the
following:
1. Rosemead Oil Products, Inc. is recommended as best bidder to provide re-
recycled (refined) motor oils, conventional transmission fluid and other lubricants.
2. Dartco Transmission Sales and Services, Inc. is recommended as best and only
bidder to provide genuine TranSynd synthetic automatic transmission fluid.
4 of 4
Financial Impacts and Budget Actions
The purchase order to be awarded to Rosemead Oil Products, Inc. is for an amount not
to exceed $535,570. Funds in the amount of $175,000 are included in the FY 2015 -16
budget in the following accounts:
41654.522912 - $115,000
54459.522910 - $60,000
The purchase order to be awarded to Dartco Transmission Sales and Services, Inc. is
for an amount not to exceed $587,271. Funds in the amount of $190,000 are included in
the FY 2015-16 budget in the following accounts:
41654.522912 - $175,000
54459.522910 - $15,000
Future year funding is contingent on Council budget approval.
Prepared By: Getty Modica, Transit Maintenance Officer
Approved
Forwarded to Council
Attachments:
A. 4184 Motor Oil - Transmission Fluid other Lubricants