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HomeMy WebLinkAboutItem 18 - FuelMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER MEETING DATE: APRIL 6, 2021 SUBJECT: RENEWAL OF ANNUAL CONTRACTS FOR VARIOUS FUELS RECOMMENDATION: City Council to consider the renewal of annual contracts for various fuels with primary vendor, US Oil Company and secondary vendor, Douglas Distributing for Public Works Fleet Services. FUNDING SOURCE: Funds are available in various funds based on fuel usage for an annual estimated amount of $800,000. 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 contracts would provide the best service and pricing for meeting the needs of the City. By awarding primary and secondary contracts, this assures product availability. Approximately 18 public entities will utilize this contract managed by Tarrant County. Purchases will be made in accordance with an existing Interlocal Cooperative Agreement with Tarrant County, Texas as allowed by Texas Local Government Code, Section 271 and Texas Government Code, Section 791. Tarrant County, Texas solicited bids for the annual contract for fuel. Based on evaluations by the Tarrant County Transportation Services Department, Maintenance Precincts and Purchasing, US Oil Company was awarded the primary contract and Douglas Distributing was awarded the secondary contract. The contracts were for an initial one-year period with three, one- year renewal options. If approved, this will be for the final renewal available. Staff recommends approval. N1001kyJI