From
Bryce Davis, Purchasing Manager
Title
Price agreement for fuel with Martin Eagle Oil as primary and Douglass Distributors as the secondary vendor, at an estimated annual cost of $3,000,000 through a master inter-local agreement with Tarrant County for one year with the option to renew for three additional one year periods totaling $12,000,000 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
Bryce Davis, Purchasing 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.
Martin Eagle Oil and Douglass Distributors through their Tarrant County RFB no. 2018-057 offers the fuels the City requires and are recommended for award. RFB no. 2018-057 was effective April 7, 2018 and set to expire March 31, 2019 with three one year renewal options remaining.
Financial Consideration
The City spends an estimated $3,000,000.00 annually on fuel. Payments for these items will be made from various departmental accounts budgeted for these items