To accomplish engine overhauls in a timely manner, MET Transit annually solicits bids from engine repair vendors to perform mechanical and electronic engine overhauls on three different types of Transit bus engines, an ISM Cummins Diesel Engine (Schedule 1), a Series 50 Detroit Diesel Engine (Schedule2), and a Series 40 Detroit Diesel Engine (Schedule 3).  An annual agreement is used due to the vendor's inability to forecast parts and labor cost increases for a period exceeding one year.  The annual agreement also enables the MET to make emission standards changes. 

Staff advertised for sealed bids on March 18 and 25, 2010.  Bid specifications were delivered to five (5) vendors:  Interstate Diesel, Northwest Peterbilt, TriState Equipment, Cummins Rocky Mountain and Motor Power Equipment.  Bids were opened on March 30, 2010.  Cummins Rocky Mountain submitted the only responsive bid.  Staff has reviewed the bid and finds it acceptable. 

VENDOR	BID
Cummins Rocky Mountain	31778.21

The City Council May:

• Approve the bid award from Cummins Rocky Mountain. 
• Not approve the bid award from Cummins Rocky Mountain. 

Cummins Rocky Mountain submitted a bid of $31,778.21 for the ISM Cummins Diesel Engines (Schedule 1).  No bids were received for the Series 50 Detroit Diesel Engines (Schedule 2) or the Series 40 Detroit Diesel Engines (Schedule 3).  The engine overhauls have been included and approved in the FY 10 operating budget, and will also be included in the FY 11 proposed budget.   At this time, staff is unaware of any bus engines in need of an overhaul.

Staff recommends that Council approve the bid submitted by Cummins Rocky Mountain and authorize the Mayor to execute the Agreement.