HomeMy WebLinkAbout7/19/2000 - STAFF REPORTS (19) DATE: July 19, 2000
TO* City Council
FROM: Director, Department of Facilities, and Procurement Manager
APPROVE SOLE-SOURCE PURCHASE OF CATERPILLAR ENGINE REPAIR PARTS
RECOMMENDATION:
That the City Council renew the existing sole-source purchase of Caterpillar
engine repair parts from Johnson Power Systems of Riverside, California,
for the period of one (1) year, July 19, 2000 through June 30, 2001, in an
amount not to exceed $100,000.
BACKGROUND:
The two Caterpillar generator systems were originally purchased from
Johnson Power Systems and have since been maintained by the City's
Cogeneration and HVAC Technicians. Johnson understands the nature of
our operation and the need for availability of repair parts. Each day of down
time costs the City in excess of $15,000 in lost capacity payments and
energy costs.
In order to keep our insurance in effect, we must purchase original
manufacturer-specified and approved parts. By building the good working
relationship with Johnson Power Systems, we have been able to meet our
power requirements and fulfill the contract agreement with Southern
California Edison.
Typically, a single engine overhaul runs in excess of $40,000. Because
Caterpillar controls the price structure of its parts, it is impossible to secure
discount pricing through competitive bidding,literally making Johnson Power
Systems a sole source for Caterpillar parts. Issuance of a blanket purchase
order to Johnson Power Systems will assure staffs ability to immediately
respond to repair problems,decreasing the frequency and duration of down
times. The dollar amount request is based on prior years' experience.
Funds are available in Account 520-5641-48700, Cogen Special Parts and
Repairs.
COTT MI<ESELL, Director HAROLD E. GOOD, CPPO
Department of Facilities Procurement Manager
APPROVED: er
ATTACHMENT:
1. Minute Order
4*4
MINUTE ORDER
APPROVING SOLE-SOURCE PURCHASE OF
CATERPILLAR ENGINE REPAIR PARTS FROM JOHNSON
POWER SYSTEMS OF RIVERSIDE, CALIFORNIA, FOR A
PERIOD OF ONE (1) YEAR IN AN AMOUNT NOT TO
EXCEED $100,000.
I HEREBY CERTIFY that this Minute Order,approving sole-source purchase of Caterpillar
engine repair parts from Johnson Power Systems of Riverside, California, for a period of
one(1)year in an amount not to exceed$100,000,was approved by the City Council of the
City of Palm Springs, California, in a meeting thereof held on the le day of July,2000.
BY:
PATRICIA A. SANDERS
City Clerk
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