City Council
Report
City Council Meeting: March 24, 2026
Agenda Item: 4.I
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To: Mayor and City Council
From: Anuj Gupta, Director of Transportation, Department of Transportation, Transit Maintenance
Subject: Award Bid #4508 to and Authorize the City Manager to enter into an Agreement with Cummins, Inc. for Overhaul, Replacement and Repair of Cummings Engines and Battery Electric Propulsion Systems for the Department of Transportation
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemption pursuant to Section 15301 (Existing Facilities) and a finding of no possibility of significant effects pursuant to Section 15061 (b)(3) of the California Environmental Quality Act (CEQA) Guidelines;
2. Award Bid # 4508 to Cummins Inc. for overhaul, replacement, and repair of Cummins engines and battery electric propulsion systems for the Transportation Department; and
3. Authorize the City Manager to negotiate and execute an agreement with Cummins Inc., in an amount not to exceed $6,148,984, including a 10% contingency, for a five-year period with future year funding contingent on Council budget approval.
Summary
Big Blue Bus (BBB), a division of the Santa Monica Department of Transportation (DOT), operates 195 transit buses across 69 square miles of greater Los Angeles providing an average of 820,000 rides each month. BBB currently operates 159 transit buses fueled by renewable natural gas and powered by Cummins Inc. (Cummins) compressed natural gas (CNG) engines and operates an additional 34 battery electric transit buses (BEBs) with Cummins electric propulsion systems. The Federal Transit Administration sets the useful life of transit buses at 12 years or 500,000 miles and, based on these criteria, 66 of the City’s transit buses are approaching the midpoint of 2 of 5
their useful life. Over the useful life of a CNG transit bus, their engines experience normal wear that may require engines to be rebuilt or replaced. Similarly, BEB propulsion system components such as batteries and high-voltage components may require replacement due to degradation.
This bid also includes overhauls and rebuild of diesel engines for Santa Monica Fire Department (SMFD) heavy-duty apparatus. SMFD has 19 heavy duty pumper trucks, ladder trucks, and utility vehicles with diesel engines that require regular repair and overhauls to support their continued operation. Staff recommends that Bid #4508 be awarded to Cummins to provide overhaul, replacement and repair services for transit buses and SMFD apparatus in an amount not to exceed $6,148,984 over a five-year period.
Discussion
Transit bus engine components experience regular wear over their 12-year useful life that may result in the need to replace or repair engine cylinder components and other assorted engine parts. Engine in-chassis overhauls become necessary near the middle of a transit bus’s useful life around six years of age or 250,000 miles to prevent buses from failing in-route, disrupting passenger service and resulting in costly repairs. Inchassis overhaul of engines involves rebuilding existing engines that are approaching the middle of their useful life, restoring the engine to a state similar to that of a new engine. By overhauling engines as they approach mid-life, DOT is better able to control its maintenance costs and reduce service interruptions. For comparison, the cost of a new bus in 2025 was $1,136,360 and the cost of overhauling a CNG engine under this bid is $21,195. Scheduling in-frame engine overhauls allows for work to be done in a timely manner on an as-needed basis throughout the year to reduce transit bus down time.
The award of Bid #4508 to Cummins would allow DOT to enter into an agreement for the replacement of engines that cannot be overhauled due to significant wear or damage. Any engines replaced under this agreement would be replaced by the lowest emission natural gas engines available, minimizing harmful Nitrogen Oxides (NOx) emissions. DOT is committed to the City of Santa Monica’s sustainability goals, currently operating 34 battery electric transit buses, and this agreement would also allow for the replacement of high-voltage powertrain equipment. Electric powertrain 3 of 5
components such as traction motors, inverters, and high-voltage batteries may experience failures or degradation in performance over the useful life of a BEB, thus requiring replacement. Additionally, DOT is responsible for the maintenance of SMFD’s 19 frontline heavy-duty fire apparatus with diesel engines. Cummins is able to overhaul, repair and replacement of these engines as needed to maintain the vehicles in good operating condition.
Awarding Bid #4508 to Cummins would enable DOT to enter into an agreement to overhaul, repair and replace its transit bus CNG engines and high-voltage propulsion system equipment, and diesel engines for its SMFD heavy-duty apparatus to ensure that these vehicles remain ready for service. Staff recommends that Bid #4508 be awarded to Cummins, Inc. for engine and high-voltage propulsion system overhaul, repair, and replacement services.
Vendor Selection
Bidder Recommendation
Best and Only Bidder Cummins Inc.
Evaluation Criteria Price, experience.
Municipal Code SMMC 2.24.180
Submittals Received
Cummins Inc. $6,148,984
McMaster Carr Supply No Bid
Bid Data
Date Posted Posted On
Advertised In (City
Charger & SMMC)
Vendors
Downloaded
Date Publicly
Opened
12/19/2025
City's Online
Bidding Site
Santa Monica Daily
Press 15 1/22/2026
Additional Vendor Outreach & Justification to Award
Bids were evaluated based on the criteria in SMMC 2.24.180 including price and experience. Cummins Inc. is the original manufacturer of natural gas engines and electric propulsion systems that power DOT’s fleet of transit buses and provided a response that met the City’s requirements. One bidder submitted a “No Bid” response stating that they could not provide the specified services. Based on price and experience, Cummins Inc. is recommended as the best and only bidder. 4 of 5
Environmental Review
The contract for engine and electric propulsion system overhaul, repair, and replacement services is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities) and Section 15061 (b)(3) of the CEQA Guidelines. Section 15301 exempts Class 1 (Existing Facilities) projects from CEQA, which includes the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. The overhaul, repair, and replacement of transit bus and Fire Department heavy-duty apparatus would not result in any modifications to existing maintenance facilities and would not expand or materially change existing maintenance operations or increase the City’s fleet of transit buses. Therefore, this is categorically exempt as set forth in Section 15301 of the CEQA Guidelines. Additionally, the contract is exempt from CEQA pursuant to Section 15061 (b)(3) of the CEQA Guidelines, which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The contract would provide for engine overhaul, repair, and replacements and would not have a physical impact on the environment.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Big Blue Bus fund and General Fund to award a contract with Cummins Inc. for overhaul, repair, and replacement of engines and electric propulsion systems.
Contract/Agreement Request
Funding
Source(s) FY 2026-27 Amount for
Future
Years
Department/CIP Account # Total Contract
Request Amount
Amount
General $79,147 $316,586 01190001.529470 $395,733
Big Blue Bus
(BBB) $1,150,650 $4,602,601 C6004750.689000 $5,753,251
Total $6,148,984
Future year funding is contingent on Council budget approval. 5 of 5
Prepared By: David Nanjo, Administrative Analyst
Approved Forwarded to Council
Attachments:
A. Cummins Oaks
B. Cummins Inc_Levine Act Disclosure