HomeMy WebLinkAboutItem 18 - Contracts for Fuels MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER v�
MEETING DATE: APRIL 4, 2017
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.
FUNDING SOURCE:
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.
Approximately 23 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 agreement with
Tarrant County, Texas as allowed by Texas Local Government Code, Section 271 and
Texas Government Code, Chapter 791. The contract is for an initial one-year period with
three, one-year renewal options. If approved, this will be for the final renewal available.
Tarrant County, Texas 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 was awarded primary, secondary and ternary contracts.
Staff recommends approval.
PH/LW