Board of Directors Regular Meeting Agenda


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Meeting Date: 10/20/2016  

SUBJECT MATTER:
Receive, consider and act upon an award of bid for unleaded fuel bulk supply C-2016-0453;
FISCAL IMPACT:
The adopted 2017 Budget for fuel allocates $105,300 in the Parks Administration Department for Township vehicles and $322,000 in the Law Enforcement Department for Montgomery County Sheriff's Office vehicles. The budgeted amount was based upon the current contract price for bulk fuel that is a mark-up of $0.06980 cents per gallon over the wholesale price of gasoline. The recommended award of bid to the low bidder provides a markup over wholesale of $0.0254 cents per gallon.
BACKGROUND:
The 2017-2019 Unleaded Fuel Bulk Supply contract provides unleaded fuel for the Township's fleet of vehicles and equipment and fuel for the Montgomery County Sheriff's Office (MCSO) patrol vehicles assigned to the Township which is reimbursed through the Interlocal Agreement with Montgomery County. 
 
The contract provides for unleaded fuel ("top tier" unleaded) and all costs associated with the delivery within 24 hours of request. The cost paid to the vendor delivering the fuel is based on a per gallon markup over the established Motiva/Shell Wholesale Rate including all applicable taxes, as wholesale fuel changes price on a daily basis. In 2015 (last full year), the total amount of fuel used was 133,731 gallons. The current contract with Petroleum Traders expires on December 31, 2016. 
  
An Invitation for Bids was developed for bulk fuel supply for a period of 36 months beginning January 1, 2017 (Attachment A). The bid was advertised in The Villager (September 14, 2016) and posted on The Woodlands Township website. Bids were due September 30, 2016 and seven (7) bids were received (Attachment B). RKA Petroleum submitted the lowest bid and staff has contacted them to review the bid and service requirements and does not have concerns about their ability to perform the identified services. A Bid Tabulation Summary has been prepared (Attachment C) and indicates the following:





 
2016 Gallons  Markup Over Wholesale
(cents per gallon)
Total
Apache Oil Company 133731 $0.648 $8,665.77
Sun coast Resources 133731 $0.0599 $8,010.49
SC Fuels 133731 $0.0413 $5.523.09
Lynkins energy Solutions 133731 $0.0624 $8,346.15
Petroleum Traders 133731 $0.0475 $6,352.22
Gold Star Petroleum 133731 $0.0823 $11,006.06
RKA Petroleum 133731 $0.0254 $3,396.77
       
RECOMMENDATION:
Award the bid for the 2017-2019 Unleaded Fuel Bulk Supply to RKA Petroleum and authorize the President/General Manager to execute a contract for the services as approved to form by the Township Attorney. 

 
Attachments
Attachment A - 2017-2019 Bulk Fuel Supply Invitation for Bids
Attachment C Bulk Fuel Supply Bid Tabulation


    

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