Title
Awarding bid for a one-year supply of gasoline and diesel fuel.
Body
Summary:
On Monday May 13, 2019, the City received eight (8) bids for a one-year supply of gasoline and diesel fuel. The bids were based on plus or minus the oil price index sheets (OPIS) supplied by the fuel distributors. Given current market trends and the fluctuating price of gasoline and diesel fuel, the City considers this the fairest way to evaluate and analyze comparable price data for a one-year period. Bid tabulations were based on the total annual estimated fuel requirements of the City. The attached summary provides a breakdown of these bids with one rate shown for each bidder representing the total plus or minus OPIS rate. Based on this analysis, there is a tie between the two lowest bidders - Sun Coast Resources, Inc. and Pinnacle Petroleum, Inc. - when all factors are considered.
Pursuant to State law, in the event of a tie, the Mayor shall conduct a “casting of lots” as the deciding factor to break the tie. This casting of lots shall be conducted during the City Council meeting to award the bid for a one-year supply of gasoline and diesel fuel to Sun Coast Resources, Inc. or Pinnacle Petroleum, Inc.
Current Vendor:
Lykins Energy Solutions
The current contract expires on June 30, 2019.
Fiscal/Budgetary Impact:
Gasoline and diesel fuel are budgeted within each respective department, as needed.
Recommended action:
Award the contract for a one-year supply of gasoline and diesel fuel to the low bidder selected by a “casting of lots” to break the tie between Sun Coast Resources, Inc. and Pinnacle Petroleum, Inc., the lowest bid based on the +/- OPIS rate being a tie.