SR 07-27-2021 3B
City Council Report
City Council Meeting: July 27, 2021
Agenda Item: 3.B
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To: Mayor and City Council
From: Edward F King, Director, Department of Transportation, Transit Maintenance
Subject: Award Bid and enter into Agreement with Cummins Inc. for Overhaul and Re-
power of Cummins Engines
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4406-A to Cummins Inc. for engine repairs, repower, and overhaul for
transit buses for the Department of Transportation and Fire Department heavy-
duty apparatus; and
2. Authorize the City Manager to negotiate and execute an agreement with Cummins
Inc., in an amount not to exceed $6,639,464 which includes a $572,074
contingency over a five-year period, with future year funding contingent on
Council budget approval.
Summary
The City of Santa Monica’s Department of Transportation (DoT) currently operates 176
transit buses fueled by renewable natural gas. The Federal Transit Administration sets
the useful life of transit buses at 12 years or 500,000 miles and, based on these criteria,
65 of the City’s transit buses are approaching the midpoint of useful life. Over the useful
life of a compressed natural gas transit bus, their engines experience normal wear and
tear that may require engines to be rebuilt or replaced. Staff recommends awarding Bid
#4406-A to Cummins, Inc. to allow DoT to repower transit buses in the event that
severe damage occurs to an engine. The award to Cummins will also allow for engine
overhauls and replacement of Fire Department Heavy-Duty apparatus to ensure that
this critical life safety equipment is maintained in a state of good repair. The agreement
for five years would be in an amount not to exceed $1,077,529 for the first year, with the
total five-year contract amount not to exceed $6,639,464, which includes a 10%
contingency and a 3% annual cost escalator.
3.B
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Discussion
Normal wear occurs to engine components over the 12-year useful life of transit buses
that may result in the need to replace or repair engine cylinder heads and other
assorted engine parts. Engine in-chassis overhauls become necessary near the middle
of a transit bus’s useful life around six years of age or 250,000 miles, to prevent buses
from failing in route, which may result in costly repairs. In-chassis overhaul of engines
involves rebuilding existing engines that are approaching the middle of their useful life,
restoring the engine to a state similar to that of a new engine. By overhauling engines
as they approach mid-life, DoT is better able to control its maintenance costs and
reduce service interruptions. For comparison, the cost of a new natural gas transit bus
is roughly $630,275. A scheduled engine overhaul allows for the work to be done in a
timely manner on an as-needed basis throughout the year and reduces service
interruptions from engine failures when in operation.
The award of Bid #4406-A would also enable DoT to replace engines that cannot be
overhauled and require replacement. These would be replaced with Near-Zero 0.02
NOx engines to further reduce emissions of harmful pollutants for the remainder of the
bus’s service. DoT is committed to the City of Santa Monica’s sustainability goals
through the purchase of zero-emission transit buses and the purchase of the lowest
carbon intensity fuel available. This award would allow DoT to purchase the lowest
emission engines available for its CNG bus fleet in the event that an engine suffers
severe damage requiring its replacement. These low NOx engines produce 0.02 grams
of NOx emissions per brake horsepower hour which is approximately 90% lower than
the previous CNG engines. DoT has already repowered 45 of its transit buses with the
low NOx engine and currently, 71 of its 177 transit buses are equipped with this low
NOx engine.
As the DoT is committed to converting its fleet to zero-emission vehicles, these engine
overhauls or replacements will only be done on CNG buses that are not close to the end
of their useful life. All new buses are zero-emission battery-electric buses, with 18 new
buses being delivered in late 2021.
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This award would also allow for the continued use of Cummins’s services for engine
repairs for DoT’s bus fleet and for repair, overhaul, and engine replacement services for
Fire Department heavy-duty apparatus.
Vendor/Consultant Selection
Bidder Recommendation
Best Bidder Cummins Inc.
Evaluation Criteria
Price, quality of services offered; ability to perform
all services in accordance with City specifications;
bidder experience and history providing these
services to the City
Municipal Code SMMC 2.24.180
Submittals Received
Cummins Inc. $6,639,464
Gillig LLC No Bid
Graybar No Bid
Harbor Diesel and Equipment, Inc. No Bid
Bid Data
Date
Posted Posted On Advertised in
(City Charter & SMMC)
Vendors
Downloaded
Date
Publicly
Opened
3/18/2021 City’s online vendor
portal
Santa Monica Daily
Press 13 3/29/2021
Best Bidder Justification
Bids were evaluated based on the criteria in SMMC 2.24.180 including price, ability to
provide the services according to City specifications included in the bid. Cummins Inc. is
the original manufacturer of the natural gas engines powering DoT's transit buses and
provided a response that met the City's specifications. Three bidders submitted "No Bid"
responses with two stating that they could not provide the services bid, and the third
stating that their pricing would not be competitive compared to the Cummins Factory
Service. Based on price, history providing this service to the City, and ability to provide
services that meet the City’s specifications, Cummins Inc. is recommended as the best
bidder.
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the Department of Transportation fund
and General fund to award a contract with Cummins Inc. to provide engine repair,
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overhaul, and replacement services for the City’s fleet of Transit Buses and Fire
Department heavy-duty apparatus. Funds in the amount of $1,012,236 are available in
the Transportation Department capital fund, and $65,293 are available in the General
fund.
Contract/Agreement Request
FY 2021-22 Budget Department/CIP Account # Total Contract Amount
Request Amount
$65,293 01190001.529470 $346,647
$1,012,236 C6004750.689000 $6,292,817
Prepared By: David Nanjo, Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Oaks Form_Cummins
3.B
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3.B.a
Packet Pg. 25 Attachment: Oaks Form_Cummins (4364 : Award Engine Overhaul Bid)