HomeMy WebLinkAbout7/18/2001 - STAFF REPORTS (11) DATE: July 18, 2001
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 18, 2001 through June 30, 2002, in an amount
not to exceed $100,000.
SUMMARY:
The City has purchased repair parts for it's Co-Generation facilities through a
sole-source purchase agreement with Johnson Power Systems of Riverside for
several years now. It is in the best interest and cost savings to the City that this
agreement be renewed for the fiscal year 2002.
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.
COTT-MIKESELL, Director HAROLD E. GOOD, CPPO, Director
d Department of Facilities Department of Purchasing and
Contracts
APPROVED. �/�� �
City Manager
ATTACHMENT: REVIEWED BY DEPT.Of RMNCE
1. Minute Order �> ��
MINUTE ORDER NO. 6888
APPROVING SOLE-SOURCE PURCHASE OF
CATERPILLAR ENGINE REPAIR PARTS FROM
JOHNSON POWER SYSTEMS, RIVERSIDE, CA,
FOR A PERIOD OF ONE (1) YEAR, IN AN AMOUNT
NOT TO EXCEED $100,000.
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I HEREBY CERTIFY that this Minute Order, approving sole-source purchase of
Caterpillar engine repair parts from Johnson Power Systems, Riverside, CA, for a
period of one (1) year, in an amount not to exceed $100,000, was adopted by the
City Council of the City of Palm Springs, California, in a meeting thereof held on
the 181h day of July, 2001.
PATRICIA A. SANDERS
City Clerk