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CONSIDERATION AND AWARDING OF BID 1617-2 FOR UNLEADED GASOLINE AND #2 DIESEL FUEL FOR THE FLEET MANAGEMENT DIVISION.
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BACKGROUND: The City of Norman owns and operates a fleet of 475 on-road fueled vehicles and over 200 off-road fueled equipment. Approximately 600,000 gallons of unleaded and diesel fuel was used by the City in FYE 2016 at a cost of $1.6 million. In an effort to manage the annual cost of fuel, the City utilizes a competitive bidding process every four years, or as needed. The current contract with Red Rock Distributing Company approved by City Council on September 24, 2012 expires on September 24, 2016.
On July 11, 2016, bids were opened on Bid 1617-2 for the delivery of unleaded and diesel fuels to the City of Norman. The bid involves only the transportation costs for delivery of the fuel to the City's four (4) fueling facilities located at North Base, Fire Station No. 5, Fire Station No. 6 and Westwood Golf Course. All bidders are required to provide the fuel to the City at the lowest "rack price" or market rate on the day of each delivery, so this bid only includes the transportation fees to deliver the fuel to Norman.
DISCUSSION: The bid package was sent to ten (10) vendors, three (3) of whom responded: Mansfield Oil, Co. of Gainesville, GA; Petroleum Traders Corp. of Fort Wayne, IN; and Red Rock Distributing Company of Oklahoma City, OK.
If approved, the City has the option to renew this contract annually, for a period of four (4) years, provided that the services continue to be acceptable to the City. Pricing shall be reviewed at the beginning of each annual renewal period at which time the City will determine whether to renew or rebid.
The bid affirms the vendor's ability to supply the fuel within a twenty-four (24) hour notice to any City-owned location. The bid also establishes the overall transportation fee the vendor will charge in addition to the agreed upon rack price (market rate) of the fuel as well as mandat...
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