City Council Meeting: November
13, 2007
Agenda Item: 1-D
To: Mayor and City Council
From:
Subject: Award
of Bid to Bus Systems Unlimited to Provide On-Site Repair Services to Transit
Bus Air Conditioning Systems
Recommended
Action
Staff recommends that the City Council award Bid No. 2934 to Bus Systems Unlimited in the amount of $425,000, to provide on-site repair services to transit bus air conditioning systems. The award shall be for a one-year period with two additional one-year renewal options.
Executive
Summary
The Big Blue Bus has
all of its bus air conditioning systems repaired on-site by an outside
firm. A cost analysis has been completed
to compare the benefits of moving the repair service in-house per Attachment B. The analysis shows that continuing to
outsource this service is the most cost effective measure. The service requires additional
infrastructure and specialized technicians trained and certified to work on bus
air conditioning systems. The Big Blue
Bus does not currently have the infrastructure or technicians on staff to
perform this function. The estimated
expenditure for the balance of this fiscal year is $124,800. The total estimated expenditure for the
three-year term is $425,000. Budget
authority for subsequent years will be included in each annual proposed City
budget.
Discussion
Background
Continuous maintenance and repair of the bus
air conditioning systems is one component of maintaining a clean, reliable, and
comfortable environment for our passengers. Air conditioning system repair and
maintenance requires specialized technicians trained and certified to work on
bus air conditioning systems and the equipment to support this function. Contracting for these services ensures that
the City’s equipment is maintained to the highest standards and that our
customers are treated to a comfortable ride even during the warmest weather
months. The ability to have a dedicated
work force on-site on-demand ensures that repairs are made in a timely manner. The flexibility of the vendor’s schedule
ensures the completion of the repairs without delaying work on other mechanical
systems or components.
Staff will oversee the work performed by Bus Systems Unlimited
and warranty coverage shall be provided per the bid specifications. Measures of
accountability will be in place to ensure proper performance and adherence to
the standards of the Big Blue Bus. In
addition, Bus Systems Unlimited
will train Big Blue Bus staff to diagnose minor problems that can be repaired
by non-certified technicians.
Vendor Selection
In June 2007, the City published Notices Inviting Bids to provide on-site repair services to transit bus air conditioning systems services in accordance with City specifications. Bid forms were mailed to 44 vendors and notices were advertised in accordance with City Charter and Municipal Code provisions. Three bids were received and publicly opened on August 7, 2007. Bids were evaluated based upon competitive pricing, cost-effectiveness, and vendor experience. Based upon these criteria, Bus Systems Unlimited is recommended as the best bidder.
The Bus Systems Unlimited Bid states that all work will be performed
by two trained full-time technicians who will be managed by one Big Blue Bus transit
maintenance supervisor. No additional
assistance from City staff is required.
The cost for providing these services by Bus Systems Unlimited is $124,800 for the first contract
year. The cost for providing the same
services (staffing, overhead and supervision in-house) would be $202,700 for
the first year, a 62.4% increase over
the Bus Systems Unlimited bid
(see Attachment B). In addition, $26,000
in capital funds would be needed to purchase the required equipment. An annual equipment cost (depreciation) of
$8,200 would be needed to replace all of the equipment at the end of its useful
life. The review concluded that the
utilization of the contracted service allows for more effective and efficient
use of resources since repairs and maintenance can be provided on a flexible
schedule to meet our demands and ensures consistent staffing by trained and
certified technicians. This service is
consistent with a policy of supplementing, rather than supplanting, permanent
City positions.
Budget/Financial Impact
Funds for the on-site air conditioning services are available in account
number 41651.555011.60W. Since Fiscal Year 2007-2008 has begun, the estimated
expenditure for the remainder of the fiscal year under this contract will be
$124,800. Budget authority for
subsequent years will be included in each annual proposed City budget.
Prepared by:
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Approved: |
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Forwarded to Council: |
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Director
of Transit Services |
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P. City Manager |