DATE: November 30, 2016
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Russell Truell, Assistant City Administrator / CFO
Brian Wilcox, Purchasing Manager
SUBJECT:
title
Acknowledge report of procurement award to and execution of Procurement Agreement with TriStar Energy, LLC of Nashville, Tennessee on a cost-plus basis in the estimated total amount of $19,500 per year for supply and delivery upon demand of winterized diesel fuel to multiple delivery sites during a term of service (Purchasing Office Procurement Solicitation No. 2017-002; Contract No. 2016-0318)
body
Purpose
The purpose of this procurement is to purchase the supply and delivery upon demand of winterized diesel fuel to multiple delivery sites during a term of service. The winterized diesel fuel is intended for the following uses: (a) small equipment housed at The Park at Harlinsdale Farm; (b) generators at multiple remote locations; and (c) other uses that may be identified by the City during the term of service, possibly including City fleet vehicles that operate on the road.
Background
The City posted on October 6, 2016, on the Business Opportunities page of the City’s website, a solicitation for bids for supply and delivery upon demand of an unknown quantity of winterized diesel fuel to multiple delivery sites during a term of service. (Publication in a newspaper was not necessary inasmuch as the value of purchases resulting from award of this procurement are anticipated to be less than the City’s $25,000 sealed bid / public notice threshold.) In addition, bid documents were sent on or about the same date directly to eight (8) potential bidders known or thought to be interested in this solicitation. Bids from three (3) vendors were publicly reviewed following the bid submittal deadline on October 13, 2016. A tabulation of the bids received for this solicitation is attached.
Financial Impact
The apparent lowest, most responsive and responsible bid, from TriStar Energy, LLC of Nashville, Tennessee, is in the amount of $0.5000 per gallon over cost (wholesale rack average for ultra-low-sulfur diesel fuel at the Nashville terminal) for the specified supply and delivery upon demand of winterized diesel fuel. This bid was identified because it is the lowest bid that meets or exceeds the City’s intention as expressed and implied by the City’s specifications as well as the instructions, terms and conditions pertaining to this procurement solicitation. For the estimated quantity of 9,000 gallons per year, and using the October 6, 2016 (which is the date the procurement solicitation was released) Nashville wholesale rack average of $1.6682 per gallon for ultra-low-sulfur diesel fuel, the estimated total value of this award is approximately $19,500 per year. The term of service commenced on November 22, 2016 and shall expire on December 31, 2017, without options to extend. (If the City wishes to outsource this or similar service thereafter, it will solicit new bids.)
Options
In accordance with the bid documents, the City reserves the right to reject any and all bids.
Recommendation
rec
Staff recommends that the Board of Mayor and Aldermen acknowledge receipt of this report of procurement award to and execution of Procurement Agreement (City Contract No. 2016-0318) with TriStar Energy, LLC of Nashville, Tennessee on a cost-plus basis in the estimated total amount of $19,500 per year for supply and delivery upon demand of winterized diesel fuel to multiple delivery sites during a term of service. Purchasing Manager Brian Wilcox is of the opinion that the prepared specifications as distributed allowed for competition among multiple vendors, and that the award appears to have been made in a fair and impartial manner based upon the bids received. Pursuant to authority previously granted by the Board of Mayor and Aldermen, Contract No. 2016-0318 has been executed by the City Administrator and is attached.