SUBJECT/RECOMMENDATION:
Title
Award a Purchase order to Jet Age Fuel, Inc. of Clearwater, FL, for the purchase of unleaded and diesel fuel and Palmdale Oil Company LLC for the purchase of Ultra Low Sulfur Diesel, Red Dye in the cumulative annual amount of $3,200,000.00 for one year with three, one-year renewal options pursuant to Invitation to Bid (ITB) 50-23 and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
Invitation to Bid (ITB) No. 50-23, Fuel - Gasoline and Diesel, was issued in July 2023 and the City received three responsive responses on September 1, 2023. The pricing structure was based on specific dates' rack rates, and the respective Fixed Fee Markup (+ or -) from the bidders. Fuel prices change daily based on the rack rate market index (OPIS), markups, and applicable taxes/fees. For general reference, on September 04, 2023, fuel prices per gallon were $3.36 for unleaded and $ 4.17 for diesel.
This award is for the purchase of unleaded and un-dyed diesel fuel for delivery to the city's fuel facility located at 1701 N. Hercules Avenue and for the purchase of red dyed diesel for delivery to the City’s fixed and mobile generators at various locations within the city. The fuel purchased from this contract is utilized in the majority of city equipment, including police and fire.
Jet Age and Palmdale Oil Company were the lowest bidders in accordance with the bid specifications for the Solid Waste and Recycling Facility. Port Consolidated could not meet the 24-hour delivery requirement needed for the Ultra-Low Sulfur Red Dye used in City’s generators and imposed a $250 fee for orders received inside 48 hours. Additionally, the bid required a written commitment from the supplier of their ability to be responsive to Clearwater in emergency situations. Both Jet Age and Palmdale Oil Company provided a written confirmation of their ability to supply fuel during a natural disaster.
In 2023 to date, per the US Energy Information Administration, the average retail price for unleaded is $3.24 per gallon and the average retail price for diesel is $3.88 per gallon (projections of cost for the period of this award were averaged to estimate the price per gallon and includes taxes for which the City is reimbursed). The City does not pay Federal taxes, but does pay state taxes at time of payment and submits for reimbursement on a monthly basis.
APPROPRIATION CODE AND AMOUNT:
Budgeted funds for FY are available in cost code 5666611-550500 (Fuel)
• FY24 $3,2000,000
Future fiscal year budgets will include requests for funding:
• FY25 $3,200,000
• FY26 $3,200,000
• FY27 $3,200,000