SR 04-26-2022 3F
City Council
Report
City Council Meeting: April 26, 2022
Agenda Item: 3.F
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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 3L Executive Services to provide
bus fuel system repairs for Department of Transportation
Recommended Action
Staff recommends that the City Council:
1. Award Bid # 4420 to 3L Executive Services for inspection and repairs of transit
bus compressed natural gas fuel systems and tanks for the Department of
Transportation and Fleet Management.
2. Authorize the City Manager to negotiate and execute an agreement with 3L
Executive Services, in an amount not to exceed $856,568 which includes a
$77,870 contingency over a five-year period with future year funding contingent
on Council budget approval.
Executive Summary
The City of Santa Monica’s Department of Transportation (DOT) operates 176 transit
buses fueled by renewable natural gas. These buses operate on compressed natural
gas (CNG) which is stored in high-pressure tanks at pressures up to 3,600 pounds per
square inch (PSI). Due to the inherent risk associated with high-pressure storage of
natural gas, CNG tanks must be inspected annually to ensure their safe operating
condition. In addition, CNG tanks and other fuel system components need periodic
repairs and replacement to address wear and damage that occur in the normal
operation of CNG buses and vehicles. Staff recommends awarding Bid #4420 to 3L
Executive Services (3L) to provide inspection and repair services to DOT and Public
Works Fleet Management natural gas-powered vehicles. The award to 3L would allow
these departments to maintain their CNG fleets’ safety sensitive fuel systems in a state
of good repair. The agreement for five years would be in an amount not to exceed
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$152,650 for the first year, with the total five-year contract amount not to exceed
$856,568, which includes a 10% contingency and a 3% cost escalator in year four and a
4% cost escalator in year five.
Discussion
DOT operates a fleet of 176 buses that operate using compressed natural gas fuel
stored in pressurized tanks on the buses’ roofs. Public Works’ fleet of CNG vehicles
include an additional 237 sedans, trucks, cargo vans, trash trucks, dump trucks, tool
trucks, water trucks, and sewer jetter vehicles. In addition to the CNG tanks, which store
fuel at pressures up to 3,600 PSI, the buses’ fuel systems include other components
and high-pressure lines that are subject to wear under normal operating conditions.
Regular inspections are necessary to ensure that all safety devices in the fuel systems
are working properly to prevent fuel leaks and to maintain the fuel system in a state of
good repair. The vendor would be responsible for annual inspections of CNG fuel tanks,
repairs and replacement of damaged fuel tanks, and inspections and repairs to the fuel
systems on transit buses.
DOT and Fleet Management have historically contracted fuel system repairs due to the
need for specialized technical skills and certifications for CNG tank inspections, space
required to remove and replace damaged or inoperable fuel tanks, and special capital
equipment needed to remove, refurbish, or replace fuel tanks in accordance with
guidance set forth in the “Contract and As-Needed Staffing Review Policy, Practice,
Recommendations” report approved by Council on January 13th, 2015. Bid #4420
requires the vendor to provide the facilities and equipment needed to remove and
replace CNG tanks saving the City costs associated with the purchase, storage, and
replacement of equipment. Based on the need for additional staff, training, space and
equipment, staff recommends award of Bid #4420 to 3L executive services.
Vendor Selection
Bidder Recommendation
Best Bidder 3L Executive Services
Evaluation Criteria Price, quality of services offered, ability to perform all
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services, bidder experience and history providing these
services to the Department of Transportation
Municipal Code SMMC 2.24.180
Submittals Received
3L Executive Services $ 856,568
Specialty Fleet Services $ 984,890
Bid Data
Date
Posted Posted On
Advertised in
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
1/12/2022 ProcureNow
Santa Monica Daily
Press 12 1/26/2022
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,
experience, reputation, and training of the bidder. 3L Executive services was the
lowest cost bidder. Additionally, they have a positive history providing this service
to the Department of Transportation with no complaints regarding their
workmanship.
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the DOT’s Big Blue Bus fund and the
Vehicle Management fund to award a contract with 3L Executive Services to provide
repairs to CNG fuel system on transit buses and other City vehicles at the DOT and
Fleet Management facilities. Funds in the amount of $60,000 are available in DOT’s
capital budget for the remainder of fiscal year 2021-2022, and funds in the amount of
$20,000 are available in Fleet Management’s budget. Future year funding is contingent
on Council budget approval.
Contract Request
FY 2021-22 Budget Department/CIP Account
#
Total 5-year Contract
Amount
Request Amount
$60,000 C6004750.689000 $656,568
$15,000 70500001.529001 $150,000
$5,000 70500001.529020 $50,000
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$80,000 Contract Total $856,568
Prepared By: David Nanjo, Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. 3L Oaks
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Packet Pg. 653
3.F.a
Packet Pg. 654 Attachment: 3L Oaks (5010 : Award bid for Bus Fuel system repairs)