From
Anda Upchurch
Title
Assignment of contract for motor fuels from Martin Eagle Oil Co. to U.S. Oil, a division of U.S. Venture, Inc. in the amount of $3,000,000 annually through a master interlocal agreement with Tarrant County for one year with the option to renew for one additional one-year period, totaling $6,000,000 if all renewal options are exercised; and authorize the City Manager to execute the renewal options with aggregate price fluctuations of the lesser of up to $50,000 or 25% of the original maximum price so long as sufficient funding is appropriated by the City Council to satisfy the City's obligation during the renewal terms
Presenter
Jayson R. Ramirez, Fleet Services Manager
Recommended Action
Approve
Analysis
This contract will be for departments to utilize for unleaded fuel, diesel, and red-dye diesel on an as needed basis. This fuel is not aviation grade.
Chapter 271.102 of the Local Government Code authorizes local governments to participate in a cooperative purchasing program with another local government or local cooperative organization. In lieu of competitive bidding, items and services may be purchased through such agreements as the agreements have already been bid by the sponsoring entity or agency. The City of Grand Prairie has master inter-local cooperative agreements with various entities including Tarrant County.
In February of 2020, the City received notice that Martin Eagle Oil Co. was being acquired by U.S. Oil, a division of U.S. Venture, Inc. The acquisition is planned to be complete on or around March 16, 2020 and Tarrant County anticipates receiving approval of the contract assignment on March 17 or 24, 2020. If approved, an assignment of contract will be executed for U.S. Oil to assume the contract at the same pricing, terms, and conditions, and all future renewals will be to U.S. Oil.
Financial Consideration
The City spends an estimated $3,000,000.00 annually on fuel. Payments for these items will be mad...
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