City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-01087 9/12/2023 Consent Item 13.
Contract: Cummins Original Equipment Manufacturer (OEM) Parts and Repair Services (Two- Thirds Vote Required)
File ID: 2023-01087
Location: Citywide
Recommendation: Approve a Motion: 1) suspending competitive bidding in the best interest of the City for Cummins Original Equipment Manufacturer (OEM) Heavy Duty Truck Parts and Repair Services; 2) awarding an initial one-year contract with four one-year renewal options to Dobbs Truck Group, Inc. for Cummins Original Equipment Manufacturer (OEM) Heavy Duty Truck Parts and Repair Services in an amount not to exceed $750,000 for the potential five-year term; and 3) authorizing the City Manager or the City Manager’s designee to execute the contract.
Contact: Bobbie Small, Program Specialist, (916) 808-6711, [email protected]; Alison Kerstetter, Fleet Manager, (916) 808-1163, [email protected]; Department of Public Works
Presenter: None
Attachments:
1 - Description/Analysis
2 - Contract
Description/Analysis
Issue Detail: The Department of Public Works, Fleet Management Division, has an ongoing need to purchase Cummins parts and repair services for the City’s fleet. Cummins engines are a common engine used in heavy-duty vehicles such as dump trucks, fire engines, and refuse trucks.
After issuing an invitation for bids (IFB), the City received four submissions, but they were all deemed non-responsive as none met the Local Business Enterprise (LBE) participation requirements. Rather than re-bid the project with an LBE waiver, staff recommends awarding the contract to the lowest bidder among the four companies that responded. While this is technically suspending competitive bidding according to City Code, in practice the process was publicly advertised, and the lowest bidder is recommended.
File ID: 2023-01087 9/12/2023 Consent Item 13.
Policy Considerations: The recommendations in the report are in accordance with City Code Chapter 3.56, which requires City Council approval of purchases of $250,000 or more. Under City Code section 3.60.270, when the City establishes a minimum participation level for Local Business Enterprise (LBE) on a contract, no contractor shall be considered responsive unless its bid or proposal meets the minimum LBE participation level required. The City may waive or reduce the LBE participation requirements on procurement opportunities prior to acceptance of bids or proposals upon authorization from the City Manager. LBE requirements cannot be waived by the City Manager after bids are received.
Economic Impacts: None
Environmental Considerations:
California Environmental Quality Act (CEQA): No environmental review is necessary because the recommendations in this report involve the purchase of vehicle services and are not considered to be a project in accordance with Section 15378(b)(2) of the California Environmental Quality Act guidelines.
Sustainability: Not Applicable.
Commission/Committee Action: None.
Rationale for Recommendation: On June 21, 2023, the Department of Public Works, Fleet Management Division, in accordance with City Code Chapter 3.56, issued Invitation for Bid (IFB) No.
B23153311012 for Cummins OEM Parts and Services. The IFB established a minimum LBE participation level. The four submissions that were received were not considered responsive as none of the vendors met LBE participation requirements.
Rather than issue another IFB that includes an LBE waiver, staff recommends that the City Council authorize the City to enter into a contract with the lowest bidder (See SCC 3.56.230.A.) City staff recommends awarding a contract to Dobbs Truck Group as they were the lowest priced bidder and met all other requirements other than LBE participation.
Financial Considerations: Sufficient funding exists in the Department of Public Works FY24 operating budget (Fleet Fund, Fund 6501) for Cummins Original Equipment Manufacturer (OEM) Parts and Repair Services through June 30, 2024. Purchase of services made after June 30, 2024, are subject to funding availability in the adopted budget of the applicable fiscal year.
Local Business Enterprise (LBE): Dobbs Truck Group is not an LBE.