STRATEGIC PRIORITY: Core
AGENDA DATE: March 26, 2025
COUNCIL DISTRICT(S): Citywide
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Donzell Gipson
______________________________________________________________________
SUBJECT
Title
Authorize a five-year master agreement, with two, one-year renewal options, for the purchase of unleaded and diesel motor fuels for the Department of Equipment and Fleet Management - Atlantic Petroleum & Mineral Resources, Inc., Offen Petroleum LLC, Campbell Oil Company, Indigo Energy Partners, LLC, Ports Petroleum Company, Inc., Ricochet Fuel Distributors, Inc., Sunoco, LLC, and TACenergy LLC, lowest responsible bidders of eight - Estimated amount of $80,483,118.70 - Financing: Equipment and Fleet Management Fund
Body
BACKGROUND
This action does not encumber funds; the purpose of a master agreement is to establish firm pricing for goods, for a specific term, which are ordered on an as needed basis according to annual budgetary appropriations. The estimated amount is intended as guidance rather than a cap on spending under the agreement, so that actual need combined with the amount budgeted will determine the amount spent under this agreement.
This master agreement will provide for the purchase of unleaded and diesel motor fuels for the Department of Equipment and Fleet Management. This agreement will allow for the City to purchase multiple types of fuels for the City’s fleet including unleaded, Texas low-emission diesel, bio-diesel, super unleaded 93 octane, and red dye diesel. All fuel under this agreement is priced utilizing a +/- adder to Platts’ indices.
Platts’ indices showing current fuel prices are generated and published for specific areas of the country on a daily basis. The pricing service is internationally recognized as an accurate and comprehensive index for establishing fuel prices.
This agreement will allow for the purchase of the following fuel types:
• Unleaded fuel used for cars, squad vehicles, pickup trucks
• Super unleaded fuel used for police motorcycles
• Diesel fuel used for fire equipment and some heavy-duty vehicles
• Bio-diesel fuel used for sanitation fleet and other heavy-duty vehicles
• Red dye diesel used for off-road vehicles used at the landfill
Departments will manage the vendor utilization according to specialization, demand, and capacity of each vendor for each service required through project specific work orders.
As part of the solicitation process and in an effort to increase competition, the Office of Procurement Services used its procurement system to send out email notifications to vendors registered under relevant commodity codes. To further increase competition, the Office of Procurement Services uses historical solicitation information, the Internet, and vendor contact information obtained from user departments to contact additional vendors.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On January 22, 2020, the City Council authorized a three-year master agreement with, two one-year renewal options, for the purchase of unleaded and diesel fuels based on Platts index rates for the Department of Equipment and Fleet Management with Truman Arnold Companies dba TAC Energy, World Fuel Services, Inc., Ports Petroleum Co., Inc., Martin Eagle Oil Company, Inc., and W. Douglass Distributing, LTD and an increase to the master agreement with Truman Arnold Companies dba TAC Energy and Martin Eagle Oil Company, Inc. for the purchase of unleaded and diesel fuels based on Platts index rates for the Department of Equipment and Fleet Management by Resolution No. 20-0213.
FISCAL INFORMATION
|
Fund |
FY 2025 |
FY 2026 |
Future Years |
|
Equipment and Fleet Management Fund |
$8,942,568.76 |
$26,827,706.28 |
$44,712,843.66 |
M/WBE INFORMATION
In accordance with the City’s Business Inclusion and Development Policy adopted on September 23, 2020, by Resolution No. 20-1430, as amended, the M/WBE participation on this contract is as follows:
|
Contract Amount |
Procurement Category |
M/WBE Goal |
|
$80,483,118.70 |
Goods |
32.00% |
|
M/WBE Subcontracting % |
M/WBE Overall % |
M/WBE Overall Participation $ |
|
28.95% |
28.95% |
$23,303,377.02 |
|
• The Request for Bid method of procurement resulted in the lowest responsive bidders being selected. |
|
• Atlantic Petroleum & Mineral Resources, Inc. - Local; Workforce - 25.00% Local • Offen Petroleum, LLC - Non-local; Workforce - 0.00% Local • Campbell Oil Company - Non-local; Workforce - 0.00% Local • Indigo Energy Partners, LLC - Non-local; Workforce - 0.00% Local • Ports Petroleum Company, Inc. - Non-local; Workforce - 0.00% Local • Richochet Fuel Distributors, Inc. - Non-local; Workforce - 0.00% Local • Sunoco, LLC - Local; Workforce - 23.00% Local • TACenergy, LLC - Non-local; Workforce - 8.00% Local |
PROCUREMENT INFORMATION
Method of Evaluation for Award Type:
|
Low Bid |
• Recommended vendor is based on the lowest competitive quoted price, who is also technically and financially capable of performing and completing the contract, and otherwise meets all material specification requirements |
|
|
• Negotiations are not allowed |
The Office of Procurement Services received the following bids from solicitation number BK25-00026407. We opened them on December 27, 2024. We recommend the City Council award this master agreement to the lowest responsive and responsible bidders by group. Information related to this solicitation is available upon request.
*Denotes successful bidders
Bidder Address Amount
*Atlantic Petroleum & 1445 North Loop West Frwy. Multiple groups
Mineral Resources, Inc. Houston, TX 7700
*Offen Petroleum, LLC 5100 East 78th Ave. Multiple groups
Commerce City, CO 80022
*Campbell Oil Company 418 Peanut Rd. Multiple groups
Elizabethtown, NC 28337
*Indigo Energy Partners, 222 Main St. Multiple groups
LLC Gainesville, GA 30501
*Ports Petroleum Company, 1337 Blachleyville Multiple groups
Inc. Wooster, OH 44691
*Ricochet Fuel Distributors, 1201 Royal Prkwy. Multiple groups
Inc. Suite 200
Euless, TX 76040
*Sunoco, LLC 8020 Park Ln. Multiple groups
Dallas, TX 75231
*TACenergy, LLC 100 Crescent Ct. Multiple groups
Suite 1600
Dallas, TX 75201
OWNERS/EXECUTIVES
Atlantic Petroleum & Mineral Resources, Inc.
Anthony Ndah, President
Offen Petroleum, LLC
William Gallagher, Chief Executive Officer
Campbell Oil Company
Brian Compbell, President
Indigo Energy Partners, LLC
John Mansfield, Chief Executive Officer
Ports Petroleum Company, Inc.
Michael D. Ports, Chief Executive Officer
Richochet Fuel Distributors, Inc.
Kelly Roberts, Chief Executive Officer
Sunoco, LLC
Joseph Kim, President
TACenergy, LLC
Greg Arnold, President