Title
Consider and take action on a resolution authorizing: 1) a one-year renewal agreement with Bay Oil Company for the purchase and delivery of fuel and petroleum products for an amount not to exceed $1,225,000 and 2) an amendment to the 2020 Agreement with Bay Oil Company to increase the total compensation by $200,000 (Director of Public Works)
Background:
Approval of this resolution will authorize: 1) a one-year renewal agreement with Bay Oil Company for the purchase and delivery of fuel and petroleum products for $1,225,000 to run through November 30, 2024 and 2) an amendment to the existing agreement with Bay Oil Company to increase funding by $200,000 for the remaining term which ends November 30, 2023.
On November 10, 2020, Council approved a three-year agreement with Bay Oil Company RFP #20-FLEET-016 for the period of December 1, 2020, through November 30, 2023, in a total not to exceed amount of $2,500,000, with two (2) additional one-year renewal options.
On, September 29, 2020, the City issued a Request for Proposal (RFP) #20-FLEET-016 for this item. Six (6) responses were received on October 19, 2020, from: Bay Oil Company, Colonial Oil, MidTex Oil, Pinnacle Petroleum, Suncoast Resources and Sundance Fuel. Five of the six submittals met the qualifications outlined in the RFP, with Colonial Oil being declared non-responsive due to an inability to provide fuel tanks in an emergency. A four-member evaluation team comprised of City Staff (Assistant City Manager, Director of Public Works, Fleet Manager, and Fleet Service and Parts Lead) evaluated all proposals.
Factoring in price, delivery history, and customer service, staff recommends the first amendment in the amount of $200,000 to the original contract value of $2,500,000 for a not to exceed amount of $2,700,000. Additionally, staff recommends the first renewal option of the current contract agreement with Bay Oil Company in an amount not to exceed $1,225,000 for a total four-year contra...
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