Board of Directors Regular Meeting Agenda


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Meeting Date: 10/17/2019  

SUBJECT MATTER:
Receive, consider and act upon an Award of Bid for 2020-2022 unleaded fuel bulk supply (C-2019-0392);
FISCAL IMPACT:
The adopted 2020 Budget allocates $97,000 in the Parks Administration Budget for fuel for Township vehicles and $291,200 in the Law Enforcement Department Budget for Montgomery County Sheriff's Office vehicles, per the terms of the Interlocal Agreement with Montgomery County. The recommended Award of Bid is to the lowest and sole bidder, Petroleum Traders, who submitted a markup over wholesale price of $0.0410 cents per gallon.
BACKGROUND:
Unleaded fuel for Township vehicles and equipment and fuel for the Montgomery County Sheriff's Office (MCSO) patrol vehicles assigned to the Township is provided through contracted bulk fuel supply services.  
 
The contract provides for unleaded fuel ("top tier" unleaded) and all costs associated with the delivery of the fuel to be delivered within 24 hours of the Township submitting an order. The price  paid to the vendor delivering the fuel is based on a per gallon markup over the daily published wholesale rack rate, including all applicable taxes, as wholesale fuel changes price on a daily basis. In 2018 (last full year), the total amount of fuel used was 122,061 gallons. The current contract with RLA Petroleum expires on December 31, 2019. 
  
An Invitation for Bids for bulk fuel supply for a three-year contract beginning January 1, 2020, was advertised in The Villager newspaper on September 4, 2019, and posted on The Woodlands Township website (Attachment A). Bids were due September 27, 2019, and one bid was received, a summary of which is provided below.
 
Vendor Mark Up Over Wholesale
Petroleum Traders  .01410 per gallon

Based upon the 2018 fuel consumption level of 122,061 gallons, the cost to the Township for the mark up over wholesale will total $5,004.50 ($.041 per gallon).  While there was only one bid, the current contract is at a mark-up of .0254 per gallon and the previous contract (2013-2016) which was awarded to Petroleum Traders was at  .0690 per gallon. 





 
RECOMMENDATION:
Award the bid for 2020 – 2022 Unleaded Fuel Bulk Supply (C-2019-0392) to Petroleum Traders and authorize the President/General Manager to execute any necessary agreements as approved to final form by the Township Attorney.
Attachments
Attachment A - Invitation for Bids Bulk Fuel
Attachment B - Bid Tabulation_Unleaded Bulk Fuel


    

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