City Council
Report
City Council Meeting: June 28, 2022
Agenda Item: 5.C
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To: Mayor and City Council
From: Edward F King, Director, Department of Transportation, Transit Maintenance Subject: Award Bid to Cummins Inc. for Engine Parts
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4425 to Cummins Inc. for the purchase of Cummins engine parts for transit buses and Fire Department heavy-duty apparatus for the Transportation and Fire Departments;
2. Authorize the Procurement Manager to issue a purchase order with Cummins Inc. to provide replacement parts for Cummins engines on transit buses and Fire Department apparatus in the amount not to exceed $3,863,762 which includes a 10% contingency over a five-year period, with future year funding contingent on Council budget approval.
Summary
Santa Monica’s Department of Transportation (DOT) and Fire Department both maintain vehicles that utilize Cummins equipment and parts that must be maintained to keep these vehicles in reliable and safe operating condition. These vehicles experience normal wear and tear over their useful life. DOT staff perform repairs and maintenance to keep these vehicles in good operating condition. The award to Cummins for engine and propulsion system parts would enable DOT staff to perform routine maintenance and repairs on DOT buses and Fire apparatus to ensure these vehicles are maintained in a state of good repair.
The first year’s purchase order for DOT would be in an amount not to exceed $600,018, and the Fire PO would be in an amount not to exceed $55,000. The cost for this bid 2 of 4
over its five-year term would be in an amount not to exceed $3,863,762 for both departments which includes a 10% contingency and a 3.5% annual cost escalator.
Discussion
The City of Santa Monica’s Department of Transportation (DOT), Big Blue Bus (BBB) division, currently operates 176 transit buses powered by Cummins natural gas engines as well as nineteen electric buses powered by Cummins electric propulsion systems. The City’s Fire Department’s fleet of heavy-duty apparatus include fifteen pumper and ladder trucks that are powered by Cummins diesel engines.
Cummins natural gas engines or electric propulsion systems power are made up of several hundred parts and are electronically controlled to optimize fuel usage and to generate the least harmful pollutants. Replacement parts are needed to maintain these engines in accordance with the original equipment manufacturer (OEM) recommendations to ensure their performance and emissions levels are preserved.
The DOT uses genuine OEM parts to ensure proper engine performance and compliance with state and federal emission rules and regulations and to ensure warranty claims can be made when engines prematurely fail. The award of Bid #4425 Cummins Inc. would allow DOT staff to perform routine maintenance and repairs needed to maintain transit buses and Fire apparatus in a good operating condition.
Vendor Selection
Best and Only Bidder Cummins Inc.
Submittals Received Selection Criteria
Cummins Inc. $ 3,863,762 Municipal Code SMMC 2.24.180
Evaluation Criteria
Price; quality of the materials offered; ability to
provide materials promptly, within the time
specified, and without delay; experience and
efficiency of the bidder
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Bid Data
Date Posted Posted On Advertised In
Vendors
Downloaded
Date Publicly
Opened
3/16/2022
City's Online
Bidding Site
Santa Monica
Daily Press 15 4/14/2022
Additional Vendor Outreach & Justification to Award
The City received No-Bid response from Gillig LLC, Global Diversified Voltage, John A. Martin & Associates, and Muncie Transit Supply. Reasons given for the nobid responses included (1) that Cummins OEM parts were requested and that the bidders would not be able to supply the parts at a competitive price compared to Cummins and (2) that the vendor could not supply the parts. Cummins is the manufacturer of the engine parts used on transit buses and Fire apparatus and has a positive history of providing these parts to the City. Additionally, the bid price received from Cummins across all parts listed is, on average, lower than our current purchase price under the existing bid. Based on these criteria, Cummins Inc. is recommended as the best bidder.
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the Big Blue Bus Fund and the General Fund to award a purchase order with Cummins Inc. for purchase of Cummins engine parts.
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Future year funding is contingent on Council budget approval.
Contract/Agreement/Purchase Order Request
FY 2022-23 Budget
Request Amount
Future Years’ Budget
Request Amount Department/CIP Account #
Total Contract
Amount
$55,000 $269,429 01190001.529470 $324,429
$150,004 $734,829 60600008.529300 $884,833
$450,014 $2,204,486 C6004750.689000 $2,654,500
$655,018 $3,208,744 Total $3,863,762
Prepared By: David Nanjo, Administrative Analyst
Approved Forwarded to Council
Attachments:
A. FY23 - Cummins Oaks