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HomeMy WebLinkAboutPR 20411: REJECT BID FOR REPLACINT TEN (10) 2008 ORION ISL 280 CUMMINS ENGINES City of Port Arthur Transit Department Memorandum To: Harvey Robinson, Interim City Manager From: Ivan Mitchell, Transit Manager Cc: Craig Brown, Maintenance Supervisor Date: August 9, 2018 Subject: P.R. No 20411 - Reject bid for replacing ten(10) 2008 Orion ISL 280 Cummins engines Background: The City's Purchasing Department advertised for bids in the Port Arthur News on May 23th and May 30, 2018. The City received and opened one (1) bid on the replacing of ten (10) 2008 Orion ISL 280 Cummins engines with a certified rebuilt Cummins engine (see Bid Tabulation Attachment"A"). The one (1) bid received was from the following vendor: Bidder Bid Complete Coach Works(Riverside, CA) $67,670.59 Per Unit Port Arthur Transit's (PAT) management has unsuccessfully negotiated with the bidder to receive lower unit cost. A cost benefit review highlights the feasibility and fleet reliability of purchasing new vehicles versus extending vehicles that have exceeded their designed useful life based on Federal Transit Administration(FTA) guidelines. The chart below shows the average useful life of the Orion ISL fixed route vehicles. As you can see all the vehicles have either exceeded their useful life or will in the near future. If the bid was accepted, the Orion ISL's will have new engines, but we are cognizant other components are old such as transmissions, suspension systems and electrical components. There is a high probability some of those components will eventually need replacement resulting in additional cost to maintain the vehicles. Make Useful Life Years in Service Remaining Useful Life Orion 12 10.2 1.8 Recommendation: PAT is recommending the City of Port Arthur's, City Council approve Proposed Resolution No. 20411 to reject the bid received for the replacing of ten (10) 2008 Orion ISL 280 Cummins engines. In addition PAT will not rebid bid#P18-073. Budgetary/Fiscal Effect: Approval of this bid rejection will not affect PAT's budget. • Staffmg/Employee Effect: At this time no anticipated effect on staffing is expected with this action. Summary: PAT recommends that the City Council reject the bid received for the replacing of ten(10) 2008 Orion ISL 280 Cummins engines. • Ivan itchell Transit Manager P.R. 20411 08/10/2018 CB RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO REJECT THE BID FOR REPLACING TEN (10) 2008 ORION ISL 280 CUMMINS ENGINES, BID NO.P-18-073 FOR THE TRANSIT DEPARTMENT. WHEREAS, the Purchasing Department advertised in the Port Arthur News on the 23rd day of May 2018 and the 30th day of May 2018, for bids to the replace ten (10) 2008 Orion ISL 280 Cummins engines with a certified rebuilt Cummins engine; and WHEREAS, on the 13th day of June 2018, one (1) bid was received and opened, and has been evaluated by the Purchasing and Transit Department's, a copy of the bid tabulation is attached hereto as Exhibit"A"; and WHEREAS,the Transit Department requests the City Council authorize the rejection of the single bid submitted. The cost benefit review highlights the feasibility and fleet reliability of purchasing new vehicles versus extending vehicles that have exceeded their designed useful life based on Federal Transit Administration(FTA) guidelines. NOW,THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: THAT,the facts and opinions in the preamble are true and correct. THAT,the City Council authorizes the City Manager to reject the bid for replacing ten (10) 2008 Orion ISL 280 Cummins engines, Bid No. P-18-073. THAT, a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ,ADOPTED AND APPROVED this day of August, 2018 at a Regular Meeting of the City of Port Arthur, Texas by the following vote: AYES:. AYES: Mayor: Councilmembers: NOES: Derrick Ford Freeman Mayor P.R. 20411 08/10/2018 CB City Secretary APPROVED AS TO FORM:7Cit Attorney .1 1. 12.--51 ) APPROVED FOR ADMINISTRATION: City Manager Transit Manager APPROVE ! AS T VAILABILTY OF FUNDS: v.•Director •f Finance (Account No.401-1509-561.93-00) gitieJA,J,7lt Purchasing Manager P.R. 20411 08/10/2018 CB Exhibit "A" IMP ., _ 'SD •:"I . • vs ► n' cr a n r gz = D .„ [...._ -� .•• n R y re V) r or WIN C CAy n r n �7 A .. t O = O "4 y .. ^v rn �. ,^',• n y 7t, C .. ore , r-1 .c =• o a, » rn > CS ^ C - *s W O 1 C., %� or c C N = p c =CrC ;o .01� - ". = CO VS id ..: w y 9 C GO z G D • n C .. � r.i 0 CT t o3 C Lot ('1 y C T I I •