City Council Meeting: June 14, 2011

Agenda Item: 3-S

To:               Mayor and City Council 

From:           Stephanie Negriff, Director of Transit Services

Subject:        Methane Fuel Systems Service & Repair



Recommended Action

Staff recommends that the City Council award Bid No. 3044 to FAB Diversified Services, Inc., a Tennessee-based company, to provide methane (natural gas) fuel systems service and repairs for a three-year term, for a total amount of $1,200,000.


Executive Summary

Recommendation to award of Bid #3044 to FAB Diversified Services, Inc., to provide methane fuel systems service and repairs on natural gas transit coaches at specified unit prices plus applicable sales tax, through June 30, 2014.  The total expenditure for the three-year term is $1,200,000. 



The City’s fleet of Liquefied Natural Gas (LNG) and Compressed Natural Gas (CNG) transit buses require routine fuel system refurbishment and repair. To ensure the safe operation of these alternative fueled vehicles, the Big Blue Bus performs routine LNG fuel system refurbishment and repair. In addition, the CNG fuel tanks require annual certification for compliance. The methane fuel systems service and repair will enable the Big Blue Bus to maintain the LNG and CNG fuel systems to Original Equipment Manufacturer (OEM) standards and keep compliant to regulatory agencies.


Vendor Selection

In April 2011, the City published Notices Inviting Bids to provide methane fuel systems service and repairs as required by the Big Blue Bus in accordance with City specifications.  The bid was posted on the City’s on-line bidding site, Planet Bids, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. Although ten vendors downloaded the bid packet, only one bid was received and publicly opened on April 26, 2011, per Attachment A. The bid was evaluated based on cost of service per specifications and the City’s history with the vendor. Based on these criteria FAB Diversified Services, Inc. is recommended as the best bidder.


Financial Impacts & Budget Actions

The purchase order amount to be awarded to FAB Diversified Services, Inc., for the three-year term is $1,200,000. Funds in the amounts of $400,000 for FY 2011-12 and $400,000 for FY 2012-13 have been included in the proposed budget in account C410106.589000 for FY 2011-13. Future funding for additional years will be requested in future years’ budgets and will be contingent upon Council’s approval.  All funds used for this purchase come from funding sources specifically dedicated for transit uses.


Prepared by:  Ralph Merced, Transit Maintenance Manager





Forwarded to Council:







Stephanie Negriff

Director of Transit Services


Rod Gould

City Manager



Attachments:    Attachment A – Pricing