F:\FINANCIALOPERATIONS\PURCHASING\STFRPTS\SRBD2882.DOC

Council Meeting:  June 14, 2005                                                              Santa Monica, California

 

 

 

 

TO:                  Mayor and City Council

 

FROM:            City Staff

 

SUBJECT:     Award Bid to Provide Overhaul Service on Detroit Diesel Allison Engines, Bid #2882

 

 

Introduction

This report recommends award of bid to provide overhaul service on Detroit Diesel Allison diesel and liquefied natural gas (LNG) engines for the Big Blue Bus Department at specified labor rate plus required parts, with two one-year renewal options.  The estimated annual expenditure is $216,500.

 

Background

Over the lifetime of a transit coach (12 years), diesel and LNG engines experience normal wear and tear that may require engine replacement, head and/or cylinder repair, turbocharger replacement, and an assortment of other engine parts to be rebuilt or replaced.  This service allows for such work to be done professionally, in a timely manner, and on an as-needed basis throughout the year. 

 

Discussion

In December 2004, the City published Notices Inviting Bids to provide overhaul service on Detroit Diesel Allison diesel and LNG engines in accordance with City specifications.  Bids were received and publicly opened and read on February 1, 2005. Bid forms were mailed to sixteen vendors and notices were advertised in accordance with City Charter and Municipal Code provisions.  Two bids were received as follows: 

 

VENDOR

 

LABOR RATE

Harbor Diesel and Equipment Inc.

 

Valley Power Systems, Inc.

$80 per hour

 

$90 per hour

 

Staff has evaluated the bid submitted by Harbor Diesel and Equipment Inc. and finds that it meets City specifications.  Harbor Diesel and Equipment Inc. will comply with the Living Wage Ordinance and has signed and submitted the Living Wage Certification. 

 

Budget/Financial Impact

Budget authority for this purchase is in account number C410106.589000, “Bus Components”. 

 

Recommendation

It is recommended that the award of Bid #2882 be made to Harbor Diesel and Equipment Inc. as the best bidder, at specified labor rate plus required parts, with two one-year renewal options.

 

 

Prepared By:          Diane Howell, Purchasing Agent

Richard Chiu, Buyer

Stephanie Negriff, Director of Transit Services

Ralph Merced, Transit Maintenance Manager