AUTHORIZED_ALLISION_TRANSMISSION_SERVICE_AND_PARTS_BOND_WAIVER-_SIGNED.pdf
PDF 373 KB Posted
- Solicitation number
- 2026-IFB-LM-0437
- Issued by
- Los Angeles County, California
About this file
This is a bond waiver memorandum issued by the City of Pasadena Department of Public Works, Building Systems and Fleet Management Division (BSFMD), requesting approval to waive labor, materials, and performance bond requirements for an authorized Allison Transmission service contract. The solicitation will be released through OpenGov to establish a vendor for diagnostic, maintenance, repair, rebuild, software calibration, and OEM parts supply services for city-owned fleet vehicles equipped with Allison automatic transmissions. Services will be provided on an as-needed basis with no guaranteed quantities, and the contract is intended to commence in Fiscal Year 2027 with a five-year term. The scope includes preventative maintenance, diagnostics, repairs, transmission rebuilds, software programming and calibration, removal and replacement of transmission components, and OEM parts supply. No bidders' conference, site visits, or specific response dates are referenced in this waiver document.
The bond waiver request is justified based on the service-oriented nature of the work, which does not involve construction or capital improvements. The memorandum notes that parts are furnished as incidental to service delivery rather than as standalone materials, and that minimal risk exposure exists since payment is issued only upon satisfactory completion of work and the city retains the ability to suspend or terminate services for non-performance. Risk mitigation is further achieved through required insurance coverage and the use of manufacturer-authorized service providers, which ensures compliance with Allison standards and supports reliable operation of city equipment. The Finance Director approved the bond waiver on May 27, 2026, supporting the determination that bond requirements would not provide significant practical benefit to the city given the contract structure and inherent safeguards.
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Text version
DEPARTMENT OF PUBLIC WORKS
MEMORANDUM
TO: Karin Schnaider, Finance Director
FROM: Greg de Vinck, P.E., Director of Public Works
DATE: May 26, 2026
SUBJECT: Request Bond Waiver for Authorized Allision Transmission Service, Repair, Maintenance and Original Equipment Manufacturer Parts
The purpose of this memorandum is to request a waiver of the labor and materials bond and the performance bond requirements for the Authorized Allision Transmission Service, Repair, Maintenance and Original Equipment Manufacturer (OEM) parts contracted by the Public Works Department, Building Systems and Fleet Management Division (BSFMD).
Background
BSFMD is responsible for maintaining and repairing City-owned fleet vehicles and equipment to ensure safe and reliable operation. Various medium-duty and heavy-duty City vehicles are equipped with Allison automatic transmissions that require manufacturer-authorized diagnostics, repairs, rebuilds, software updates, and OEM parts support. Due to the proprietary diagnostic software, calibration requirements, and specialized technical expertise associated with Allison transmission systems, certain repairs and services must be performed by manufacturer-authorized service providers. These services support the continued operation, reliability, and safety of City fleet assets used for daily municipal operations and emergency response activities.
Procurement Summary
BSFMD intends to release a formal solicitation through OpenGov for Authorized Allison Transmission Service and OEM Parts for City-owned fleet vehicles and equipment. The solicitation will establish a contract for as-needed diagnostic, maintenance, repair, rebuild, software calibration and OEM parts supply services necessary to maintain the safe and reliable operation of City fleet assets equipped with Allision transmissions. Due to the service-based nature of the work and the absence of construction installation activities, BSFMD is requesting approval of the labor and materials bond and performance bond waiver prior to solicitation publication.
Gregory De Vinck https://cityofpasadena.na2.adobesign.com/verifier?tx=CBJCHBCAABAAn4pDqKOPsa5L-sby771xxuBfs_Yu4F8j
Request Bond Waiver for Authorized Allision Transmission Service, Repair, Maintenance, and OEM Parts May 26, 2026
Current Work Practices and Risk Assessment
The proposed contract is primarily service-based and does not involve construction or fabrication.
The scope consists of diagnostics, transmission repairs, rebuilds, software programming, calibration services, removal and replacement of transmission components, and OEM parts supply. Parts are purchased as-needed in connection with repairs, however, the primary purpose of the contract is to provide service and maintenance rather than a standalone materials contract.
Services will be performed on an as-needed basis, and payment will only be issued upon satisfactory completion of services rendered. The City retains the ability to suspend or terminate services if contractor performance standards are not met. Risk exposure is minimal as no physical infrastructure or capital improvements are involved. Risk is further mitigated through the City’s insurance requirements, as well as the use of authorized Allision service providers, which ensures adherence to manufacturer requirements and reduces the risk of improper repairs or incompatible parts.
Justification for Bond Waiver
Section 4.08.140 of the Pasadena Municipal Code (PMC) requires adequate security for the faithful performance of contracts and further requires a contractor’s bond when a contractor furnishes both labor and materials. The PMC also provides that the Director of Finance may waive these requirements when such waiver will not be detrimental to the City. For this contract, the requirement for labor and materials bonds and performance bonds is not applicable due to the nature of the services. For this contract, the work consists primarily of maintenance, diagnostics, repair, rebuild, and OEM parts support services for existing fleet equipment. While parts are furnished in the course of performing repairs, they are provided as part of service delivery and are not associated with a capital improvement or standalone materials contract. Therefore, the labor and materials bond and performance bond requirements would not provide a significant practical benefit or additional protection to the City.
The City’s risk exposure is minimal because services are performed on an as-needed basis with no guaranteed quantities, and payment is only issued after satisfactory completion of work. In the event of non-performance, the City retains the ability to discontinue services and reassign the work to another qualified vendor without operational impact. Risk is further mitigated through required insurance coverage, and by requiring authorized Allision service providers, which ensures compliance with manufacturer standards and supports reliable operation of City equipment.
Request Bond Waiver for Authorized Allision Transmission Service, Repair, Maintenance, and OEM Parts May 26, 2026
Recommendation
Public Works respectfully requests that the Director of Finance approve the waiver of both the labor and materials bond and performance bond requirements for the Authorized Allision Transmission Service, Repair, Maintenance, and OEM Parts contract.
APPROVED BY:
KARIN SCHNAIDER
Finance Director cc: Elena Olimpio, Management Analyst I Gabriel Silva, BSFMD Administrator Phyllis Hallowell, ASD Administrator Erika Alvarez, Purchasing Administrator
Erika Alvarez
AUTHORIZED ALLISION TRANSMISSION
SERVICE AND PARTS BOND WAIVER
Final Audit Report 2026-05-27
Created: 2026-05-26
By: Elena Olimpio (eolimpio@cityofpasadena.net)
Status: Signed
Transaction ID: CBJCHBCAABAAn4pDqKOPsa5L-sby771xxuBfs_Yu4F8j
"AUTHORIZED ALLISION TRANSMISSION SERVICE AND PA
RTS BOND WAIVER" History
Document created by Elena Olimpio (eolimpio@cityofpasadena.net) 2026-05-26 - 5:16:08 PM GMT- IP address: 204.89.11.201
Document emailed to Gregory De Vinck (gdevinck@cityofpasadena.net) for approval
2026-05-26 - 5:16:53 PM GMT
Email viewed by Gregory De Vinck (gdevinck@cityofpasadena.net) 2026-05-26 - 5:20:02 PM GMT- IP address: 104.47.64.254
Document approved by Gregory De Vinck (gdevinck@cityofpasadena.net) Approval Date: 2026-05-26 - 5:21:06 PM GMT - Time Source: server- IP address: 204.89.11.110 - Signature Appearance Selected: TYPE
Document approval automatically delegated to Antonio Watson (awatson@cityofpasadena.net) by Erika Alvarez (ealvarez@cityofpasadena.net)
2026-05-26 - 5:21:08 PM GMT
Document emailed to Antonio Watson (awatson@cityofpasadena.net) for approval
2026-05-26 - 5:21:08 PM GMT
Document emailed to Erika Alvarez (ealvarez@cityofpasadena.net) for approval
2026-05-26 - 5:21:08 PM GMT
Email viewed by Antonio Watson (awatson@cityofpasadena.net) 2026-05-26 - 7:07:46 PM GMT- IP address: 104.28.48.215
Document approved by Erika Alvarez (ealvarez@cityofpasadena.net) Approval Date: 2026-05-26 - 10:23:37 PM GMT - Time Source: server- IP address: 204.89.11.123 - Signature Appearance Selected: TYPE
Document signing automatically delegated to Antonio Watson (awatson@cityofpasadena.net) by Erika Alvarez (ealvarez@cityofpasadena.net)
2026-05-26 - 10:23:38 PM GMT
Document emailed to Antonio Watson (awatson@cityofpasadena.net) for signature
2026-05-26 - 10:23:39 PM GMT
Email viewed by Antonio Watson (awatson@cityofpasadena.net) 2026-05-26 - 10:49:05 PM GMT- IP address: 104.28.48.219
Document signing delegated to Karin Schnaider (kschnaider@cityofpasadena.net) by Antonio Watson (awatson@cityofpasadena.net) 2026-05-27 - 9:59:59 PM GMT- IP address: 204.89.11.123
Document emailed to Erika Alvarez (ealvarez@cityofpasadena.net) for delegation
2026-05-27 - 9:59:59 PM GMT
Document emailed to Karin Schnaider (kschnaider@cityofpasadena.net) for signature
2026-05-27 - 9:59:59 PM GMT
Email viewed by Karin Schnaider (kschnaider@cityofpasadena.net) 2026-05-27 - 10:01:13 PM GMT- IP address: 104.47.64.254
Document e-signed by Karin Schnaider (kschnaider@cityofpasadena.net) Signature Date: 2026-05-27 - 10:02:35 PM GMT - Time Source: server- IP address: 204.89.11.120 - Signature Appearance Selected:
IMAGE
Agreement completed.
2026-05-27 - 10:02:35 PM GMT
| 2026-07-06T16:34:40+0000 | |
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