Authorized_Caterpillar_Services_&_Parts_Bid_Bond_Waiver_Memo_-_SIGNED.pdf
PDF 199 KB Posted
- Solicitation number
- 2026-IFB-LM-0409
- Issued by
- Los Angeles County, California
About this file
This is a bond waiver memorandum from the City of Pasadena Department of Public Works requesting approval to waive labor and materials bond and performance bond requirements for an Authorized Caterpillar Equipment Service, Repair, Maintenance, and Original Equipment Manufacturer (OEM) Parts contract. The Building Systems and Fleet Management Division (BSFMD) intends to release a formal solicitation through OpenGov to establish an as-needed vendor contract for service, diagnostics, repairs, and OEM parts for the City's Caterpillar equipment fleet, including skid steer loaders, forklifts, wheel loaders, and loader backhoes. The contract will be structured on an as-needed basis with no guaranteed quantities, and services will commence in Fiscal Year 2027 with a term of five years. No specific response dates, bidder meetings, or site visits are mentioned in this waiver document.
The memorandum justifies the bond waiver by characterizing the work as service-based rather than construction-related, with minimal risk exposure due to the as-needed nature of the contract and payment issued only upon satisfactory completion of services. The City retains the ability to suspend or terminate services and reassign work if performance standards are not met. Risk mitigation is further supported through required insurance coverage and the mandatory use of authorized Caterpillar service providers to ensure compliance with manufacturer specifications and OEM parts compatibility. The Finance Director approved the bond waiver on July 3, 2026, following approvals from the Public Works Administrator, Director of Public Works, and Purchasing Administrator. No pricing terms, funding amounts, or budget information are specified in this memorandum, as it serves solely to authorize the waiver prior to formal solicitation publication.
View the file
Other files
Show all 14
On GovTribe
Work with this file
- Download the original file
- Contacts named in this file
- Similar government files
- Ask GovTribe AI about this file
Text version
DEPARTMENT OF PUBLIC WORKS
MEMORANDUM
TO: Karin Schnaider, Finance Director
FROM: Greg de Vinck, P.E., Director of Public Works
DATE: June 30, 2026
SUBJECT: Request Bond Waiver for Authorized Caterpillar Equipment 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 Authorized Caterpillar Equipment Service, Repair, Maintenance, including Original Equipment Manufacturer (OEM) Parts contracted by the Public Works Department, Building Systems and Fleet Management Division (BSFMD).
Background
BSFMD is responsible for maintaining the City’s various Caterpillar equipment, which includes skid steer loaders, forklifts, wheel loaders, and loader backhoes that utilize Caterpillar components. This Caterpillar equipment supports daily vehicle operations for City fleet vehicles and is critical to maintaining operational readiness. Due to the complexity of Caterpillar equipment, including proprietary electronic control systems, diagnostic software, hydraulic systems, and manufacturer specific components, service, maintenance, diagnostics, and repairs must be performed by authorized Caterpillar service providers. The use of authorized vendors ensures compatibility with OEM parts, proper system integration, and continued functionality of equipment and safety compliance.
Procurement Summary
BSFMD intends to release a formal solicitation through OpenGov for Authorized Caterpillar Equipment Service, Repair, Maintenance, and OEM Parts services for City-owned Caterpillar equipment to perform service and repairs using manufacturer-approved procedures and OEM parts. The solicitation will establish a contract for as-needed Caterpillar parts, service, repair and replacement of specialized components in accordance with manufacturer standards and regulatory inspection services necessary to maintain compliance with safety regulations. Due to the service-based nature of the work and the absence of construction 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=CBJCHBCAABAAnYh-XlUBycfYlo3OJXg0VVaoZZn2BN8a
Request Bond Waiver for Authorized Caterpillar Equipment Service, Repair, Maintenance, and OEM Parts June 30, 2026
Current Work Practices and Risk Assessment
The contract is service-based and does not involve construction or fabrication. The scope consists of maintenance, diagnostics, repair services, and system support for Caterpillar equipment in accordance with manufacturer and authorized service standards. Parts are purchased as needed in connection with repairs; however, the primary purpose of the contract is to provide service and system support rather than a standalone materials contract. Services are performed on an as-needed basis and payment is provided only upon satisfactory completion of services. The City retains the ability to suspend or terminate services if performance standards are not met. Risk exposure is minimal as no capital improvement or large-scale infrastructure work is involved. Risk is mitigated through the City’s insurance requirements, as well as the use of Authorized Caterpillar equipment service providers, which ensures proper OEM parts, manufacturer-approved service and procedures to maintain longevity of the equipment to perform daily fleet vehicle operations.
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 (not less than 50% of the contract value) 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 work consists of routine maintenance, diagnostics, repair services, and system support and does not involve construction-related activities. 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 requirements for labor and materials bonds and performance bonds do not provide a practical benefit or protection.
The City’s risk exposure is minimal because services are performed on an as-needed basis with no guaranteed quantities, and payment is issued only after satisfactory completion of services. 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 Caterpillar service providers, which ensures compliance with manufacturer specifications and supports reliable operation of the City’s Caterpillar equipment.
Request Bond Waiver for Authorized Caterpillar Equipment Service, Repair, Maintenance, and OEM Parts June 30, 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 Caterpillar Equipment Service, Repair, Maintenance, and OEM Parts contract.
APPROVED BY:
KARIN SCHNAIDER
Finance Director cc: Liseth Gonzalez, Management Analyst I Gabriel Silva, BSFMD Administrator Phyllis Hallowell, Public Works Administrator Erika Alvarez, Purchasing Administrator
Phyllis Hallowell
Erika Alvarez https://cityofpasadena.na2.adobesign.com/verifier?tx=CBJCHBCAABAAnYh-XlUBycfYlo3OJXg0VVaoZZn2BN8a
Authorized Caterpillar Services & Parts Bid Waiver Memo Final Audit Report 2026-07-03
Created: 2026-06-30
By: Liseth Gonzalez (lgonzalez@cityofpasadena.net)
Status: Signed
Transaction ID: CBJCHBCAABAAnYh-XlUBycfYlo3OJXg0VVaoZZn2BN8a
"Authorized Caterpillar Services & Parts Bid Waiver Memo" Hist ory
Document created by Liseth Gonzalez (lgonzalez@cityofpasadena.net) 2026-06-30 - 4:04:45 PM GMT- IP address: 204.89.11.113
Document emailed to Phyllis Hallowell (phallowell@cityofpasadena.net) for approval
2026-06-30 - 4:06:28 PM GMT
Email viewed by Phyllis Hallowell (phallowell@cityofpasadena.net) 2026-06-30 - 7:27:05 PM GMT- IP address: 104.47.65.254
Document approved by Phyllis Hallowell (phallowell@cityofpasadena.net) Approval Date: 2026-06-30 - 7:27:31 PM GMT - Time Source: server- IP address: 204.89.11.113 - Signature Appearance Selected: TYPE
Document emailed to Gregory De Vinck (gdevinck@cityofpasadena.net) for approval
2026-06-30 - 7:27:32 PM GMT
Email viewed by Gregory De Vinck (gdevinck@cityofpasadena.net) 2026-06-30 - 9:39:34 PM GMT- IP address: 104.47.64.254
Document approved by Gregory De Vinck (gdevinck@cityofpasadena.net) Approval Date: 2026-06-30 - 9:39:59 PM GMT - Time Source: server- IP address: 204.89.11.110 - Signature Appearance Selected: TYPE
Document emailed to Erika Alvarez (ealvarez@cityofpasadena.net) for approval
2026-06-30 - 9:40:01 PM GMT
Document approved by Erika Alvarez (ealvarez@cityofpasadena.net) Approval Date: 2026-07-02 - 0:15:45 AM GMT - Time Source: server- IP address: 204.89.11.254 - Signature Appearance Selected: TYPE
Document emailed to Erika Alvarez (ealvarez@cityofpasadena.net) for delegation
2026-07-02 - 0:15:46 AM GMT
Document signing delegated to Karin Schnaider (kschnaider@cityofpasadena.net) by Erika Alvarez (ealvarez@cityofpasadena.net) 2026-07-02 - 0:16:02 AM GMT- IP address: 204.89.11.254
Document emailed to Karin Schnaider (kschnaider@cityofpasadena.net) for signature
2026-07-02 - 0:16:02 AM GMT
Email viewed by Karin Schnaider (kschnaider@cityofpasadena.net) 2026-07-02 - 0:59:42 AM GMT- IP address: 104.28.85.131
Document e-signed by Karin Schnaider (kschnaider@cityofpasadena.net) Signature Date: 2026-07-03 - 0:09:27 AM GMT - Time Source: server- IP address: 204.89.11.120 - Signature Appearance Selected: IMAGE
Agreement completed.
2026-07-03 - 0:09:27 AM GMT
| 2026-07-03T00:11:39+0000 | |
| Certified by Adobe Acrobat Sign |
File details come from the government source that posted it. Updated .