HomeMy WebLinkAbout7/7/1999 - STAFF REPORTS (29) DATE: July 7, 1999
TO: City Council
FROM: Director, Department of Facilities
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 7, 1999 through June 30,2000, 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 Co-Generation 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 staff's 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.
SCO t SEILL, Director HAROLD E. GOOD, Procurement Manager
De0artment of 4ya
es Procurement Division
APPROVED:
Fager
ATTACHMENT:
1. Minute Order
MINUTE ORDER NO. •i' r , ,t
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 71" day of July, 1999.
BY: PATRICIA A. SANDERS
Acting City Clerk
of