R2012-04 ACCEPTING BID CUMMINS CROSSPOINT, LLC.

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Mass Transit Memorandum No. 011112-1 January 11,2012 TO: Honorable Mayor McElroy and City Council Members FROM: Ryan P. McCrady, City Manager Paul McChancy, Mass Transit Administrator SUBJECT: Purchase Order for a Transit Bus Engine Overhaul SUMMARY Staff recommends that Council adopt a Resolution awarding a RECOMMENDATION: Purchase Order for a Transit bus engine overhaul to Cummins Crosspoint, LLC (Normal, IL). BACKGROUND: Transit's Maintenance Department is not qualified to do overhauls of bus engines and their major components. That work is assigned to private firms that specialize in these repairs. From years of exper- ience staff has found that Cummins Crosspoint, LLC (Normal, IL) provides the best service in central Illinois for the Cummins engines that power all of Transit's buses and trolleys. Cummins Crosspoint distributes and services Cummins engines in a five state area. Mechanics from their service center in Normal travel to Decatur to provide on-site maintenance, evaluation and repairs. This eliminates the cost of removing and shipping the engine to a service center for repairs. Cummins Crosspoint has done many engine repairs for the Transit System in the past and Maintenance staff is confident that the firm is qualified and capable of doing this work. Cummins Crosspoint recently evaluated the engine failure on bus #9112 and determined that it requires a complete engine overhaul. That engine has logged over 455,000 miles. The attached price quote lists all of the parts that might need to be replaced; the actual list of replacement parts will be determined when the engine has been taken apart. The price quote lists $14,986.78 for parts, $5,940.00 for labor, and $225.00 for shop supplies and"environmental compliance". The total cost for the overhaul is shown as $21,151.78. (Note that the last complete engine overhaul was done in October, 2011, at a cost of $19,965.) Staff recommends that a Purchase Order be awarded to Cummins Crosspoint, LLC. in the not-to-exceed amount of $21,151.78. POTENTIAL No objections are expected. OBJECTION: INPUT FROM Mark Gordon, Maintenance Superintendent OTHER SOURCES: Decatur Public Transit System STAFF REFERENCE: Paul McChancy, Mass Transit Administrator BUDGET/TIME The cost of the work is a normal operating expense that is part of the IMPLICATIONS: current budget. No additional staff time is required.