HomeMy WebLinkAbout6/19/2002 - STAFF REPORTS (16) DATE: June 19, 2002
TO: City Council
FROM: Director, Department of Facilities and Director of Procurement & Contracting
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 1, 2002 through June 30, 2003, 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 2003.
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 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 availablein Account 520-5641-48700.
T MIKESELL, Director HAROLD E. GOOD, CPPO, Director
epartment of Facilities of Procurement and Contracting
APPROVED mot/
City Manager
ATTACHMENT:
1. Minute Order
REVIEWED BY DEn OF FINANCE
1 irk
MINUTE ORDER NO.
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 19th day of June, 2002.
BY: PATRICIA A. SANDERS
City Clerk