City Council Meeting: June 14, 2011
Agenda Item: 3-O
To: Mayor and City Council
From: Carol Swindell, Director of Finance
Subject: Purchase of OEM Cummins Engine Parts
Staff recommends that the City Council award Bid #3035 to Cummins Cal Pacific, LLC a California-based company, for the purchase and delivery of Original Equipment Manufacturer (OEM) Cummins engine parts for a three-year term, for a total amount of $900,000.
Staff recommends award of bid to Cummins Cal Pacific, LLC for the purchase and delivery of OEM Cummins engine parts used to maintain and repair transit fleet at specified unit prices plus applicable sales tax. The total expenditure for the three-year term is $900,000.
The City’s fleet of transit buses requires routine engine maintenance and repair. To ensure proper engine performance and compliance with state and federal emission rules and regulations, the Big Blue Bus purchases genuine Original Equipment Manufacturer (OEM) parts. The Cummins natural gas engines have several hundred parts that make up the engine component. The engine parts will enable the Big Blue Bus to service and maintain the engine to manufacture specifications and ensure proper operation.
In April 2011, the City published Notices Inviting Bids to OEM Cummins Engine Parts as required by the Big Blue Bus division in accordance with City specifications. The bid was posted on the City’s on-line bidding site and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. Four bids were received and publicly opened on April 18, 2011 per Attachment A. Bids were evaluated based on unit cost, discount off manufacturers’ list pricing and the City’s experience with the vendor. Cummins Cal Pacific offered the lowest overall pricing and greatest discounts. Based on these criteria, Cummins Cal Pacific LLC is recommended as the best bidder.
The purchase order amount to be awarded to Cummins Cal Pacific LLC., for the three-year term is $900,000. Funds are included in the FY 2011-13 proposed budget submitted for review and approval. Funding for subsequent years will be requested in each biannual budget cycle for Council approval.