From
Jan Hill
Title
Price Agreement for aviation fuel from AvFuel Corporation up to $1,398,292 annually for one year with the option to renew for four additional one year periods totaling $6,991,460.00 if all extensions 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
Randy J. Byers, C.M., Airport Director
Recommended Action
Approve
Analysis
Fuel purchased under this agreement is sold to Airport customers and transient aircraft. The City receives either $0.20 or 20% of the cost of the fuel based on the highest of the last three invoices in addition to the pass thru of the cost of the fuel from the vendor. For the five years ended September 30, 2015, gross profit on fuel was approximately $977,049.
Notice of bid #16090 was advertised in the Fort Worth Star Telegram, the State's Electronic Business Daily, and Bid Sync; it was distributed to one hundred one (101) vendors. There were no Grand Prairie vendors available for this commodity. Six bids were received as shown on attachment A. Supplier's were asked to bid their mark-up price for jet and AvGas 100LL.
The low bid received from Arrow Energy was withdrawn by the bidder. The second low bid received from AvFuel Corporation meets specifications and is recommended for award.
Financial Consideration
Funds are available in FY 2015/2016 budget 371010-60420 Aviation Fuel 100LL and 371010-60430 Aviation Fuel Jet and will be charged accordingly on orders through the end of the current fiscal year. Funding for future fiscal years will be paid from that year’s approved budgets.