HomeMy WebLinkAboutItem 17 - Various FuelsMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
RUMBELOW,
MEETING DATE: APRIL 5, 2016
SUBJECT: APPROVAL TO RENEW ANNUAL CONTRACTS FOR VARIOUS
FUELS
RECOMMENDATION:
City Council to consider approval to renew annual contracts for various fuels to a primary
vendor Martin Eagle Oil Company, secondary vendor TAC Energy and an alternate
vendor Douglas Distributing through an Interlocal Cooperative Agreement with Tarrant
County, Texas.
Funds are budgeted in accounts 100-14110-000-0 (Inventory -Unleaded Fuel) 100-
14105-000-0 (Inventory -Diesel Fuel) and 100-14114-000-0 (Inventory E-85 Fuel) in an
annual estimated budgeted amount of $837,500.00.
BACKGROUND:
The purpose of this contract is to establish fixed annual pricing for various fuels to be
ordered on an as -needed basis. The Public Works Department and Purchasing reviewed
the contract for specification compliance and pricing and determined that the contract
would provide the best service and pricing for meeting the needs of the City. By
awarding primary, secondary and alternate contracts, it assures product availability.
Pricing for fuel will be based on the Oil Price Information Service net price on the date
the fuel is delivered.
Approximately twenty-three public entities will utilize this contract including Tarrant
County. In addition, in case of fuel shortages, the contract guarantees that the
cooperative agencies will continue to receive deliveries.
This Purchase will be made in accordance with an existing Interlocal Cooperative
Agreement with Tarrant County, Texas as allowed by Texas Local Government Code,
Section 271.101 and 271.102, Cooperative Purchasing Program. The contract is for an
initial one-year period with three, one-year renewal options. If approved, this will be for
the second renewal available.
Tarrant County solicited bids for fuel countywide. Five bids were submitted and based
on evaluations by the Transportation Services Department, Maintenance Precincts and
Purchasing, Martin Eagle Oil Company, TAC Energy and Douglas Distributing were
awarded primary, secondary and alternate contracts.
Staff recommends approval.
PH/LW