STRATEGIC PRIORITY: Government Performance and Financial Management
AGENDA DATE: October 13, 2020
COUNCIL DISTRICT(S): All
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Elizabeth Reich
______________________________________________________________________
SUBJECT
Title
Authorize a five-year master agreement for Jet A fuel for the Police Department - Pinnacle Petroleum, Inc., lowest responsible bidder of eight - Estimated amount of $333,240 - Financing: General 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 Jet A fuel for the Police Department. This master agreement provides Jet A fuel for the operation of two helicopters for the Dallas Police Department. The fuel is stored underground in a City owned 10,000-gallon tank at the Dallas Executive Airport. Jet A fuel is the standard fuel for jet engines. This agreement provides jet fuel at an established markup which is added to the daily index price of the Platts price index report, a daily source of U.S. wholesale and retail petroleum prices. Platts is similar to Oil Price Information Service (OPIS) in providing prices in North America for energy products. The Helicopter Unit provides air support to patrol divisions and specialized units of the department. The unit is staffed 24 hours a day, 7 days a week to provide rapid response, tactical insight, and airborne assessments of incidents in a safe and professional manner. Through July of 2020 the helicopter unit has recorded the following operational results:
• Responded to 5,328 calls
• Assisted with 474 arrests
• Recovered 163 stolen cars
• First on scene to 3,337 calls
• Cleared 2,417 calls that no patrol car had to respond to
The Platts and OPIS pricing indices were both acceptable forms of establishing bid pricing for this solicitation, evaluated and awarded based on the lowest percent cost plus added to selected index. Use of either pricing indices by vendors was requested during the solicitation to maximize the possible cost savings and promote participation among vendors.
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. Additionally, in an effort to secure more competition, the Office of Economic Development Business Workforce and Inclusion Division sent notifications to chambers of commerce and advocacy groups to ensure maximum vendor outreach.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On December 12, 2012, City Council authorized a five-year master agreement for the purchase of Jet A fuel for the Police helicopter division with Eastern Aviation Fuels, Inc. by Resolution No. 12-2971.
FISCAL INFORMATION
|
Fund |
FY 2021 |
FY 2022 |
Future Years |
|
General Fund |
$66,648.00 |
$66,648.00 |
$199,944.00 |
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 |
Category |
M/WBE Goal |
M/WBE % |
M/WBE $ |
|
$333,240.00 |
Goods |
18.00% |
99.22% |
$330,626.84 |
|
• This contract exceeds the M/WBE goal. |
|
• Pinnacle Petroleum, Inc. - Non-Local; Workforce 0.00% |
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 BQ20-00013725. We opened them on July 10, 2020. We recommend the City Council award this master agreement in its entirety to the lowest responsive and responsible bidder.
*Denotes successful bidder
Bidders Address Amount
*Pinnacle Petroleum, Inc. 16651 Gemini Ln. 7.95%
Huntington Beach, CA 92647
Sun Coast Resources, Inc. 6405 Cavalcade St. 8.34%
Building 1
Houston, TX 77026
Associated Energy Group, LLC 8686 New Trails Dr. 17.03%
Suite 170
The Woodlands, TX 77381
Arrow Energy, Inc. 1404 Industrial Dr. 17.75%
Suite 3
Saline, MI 48176
Titan Aviation Fuels 601 McCarthy Blvd. 18.20%
New Bern, NC 28562
Merrimac Energy Group 3738 Bayer Ave. 20.66%
Suite 204
Long Beach, CA 90808
Campbell Oil 418 Peanut Rd. 31.56%
Elizabethtown, NC 28337
The Bargain Source 2516 Morningside Dr. 80.79%
Garland, TX 75041
OWNER
Pinnacle Petroleum, Inc.
Liz McKinley, President