Item 6-F

City Council Meeting 12-08-98 Santa Monica, California

TO: Mayor and City Council

FROM: City Staff

SUBJECT: Recommendation to Waive the Competitive Bidding Requirement and Authorize the City Manager to Negotiate and Execute a Sole Source Purchase Order with Valley Detroit Diesel Allison for Original Equipment Manufactured (O.E.M.) Transmission and Engine Parts

Introduction

This report recommends that the City Council waive the competitive bidding requirement and authorize the City Manager to negotiate and execute a sole source purchase order with Valley Detroit Diesel Allison to furnish and deliver O.E.M. new and remanufactured Detroit Diesel Allison engine and transmission parts for the Transportation Department.

The buses purchased by the City are equipped with Detroit Diesel Allison transmissions and engines. Other manufacturers' parts are not compatible. The parts will be used to repair and replace worn out bus parts. Detroit Diesel Allison is the manufacturer and they sell their parts through distributors. Valley Detroit Diesel Allison is the sole distributor of these parts in the Southern California area.

Ordinance number 1743 (CCS) Section 5, paragraph 2.24.080 of the Santa Monica Municipal Code allows exceptions to competitive bidding when items are purchased from a sole provider.

Staff has evaluated the quotation from Valley Detroit Diesel Allison and finds that it meets City specifications.

Budget/Financial Impact

Fiscal Year 1998-99 appropriation authority for this purchase is in the various maintenance accounts of the Maintenance Division, Transportation Department. As the materials are drawn out of inventory, they will be expensed against available FY 1998-99 appropriation authority. The estimated annual expenditure is $75,000.

Recommendation

It is recommended that the award of a purchase order be made to Valley Detroit Diesel Allison at specified prices, including applicable sales tax.

Prepared By: Pam Wortham, Purchasing Agent

Margarita Lee, Buyer

Pat Butters, Maintenance Manager Item