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ARF- 3849 Regular Agenda Item     3. E.    
Regular BOS Meeting
Meeting Date: 07/05/2016  
Submitted For: Jeff Hessenius Submitted By: Betty Hurst, Buyer
Department: Finance  

Information
Request/Subject
Approval of Amendment No. 3 to Contract No. 041414 with Canyon State Oil for the purchase of bulk fuel and lubricants.
Background Information
On May 13, 2014, the Board of Supervisors (BOS) authorized the advertisement of Invitation for Bids (IFB) No. 041414-Bulk Fuel and Lubricants.

On May 19, 2014, Addendum No. 1 and Addendum No. 2 were added to the IFB and issued in response to questions which had been submitted by prospective bidders.  In response to one of the questions, Gila County stated that the award of the fuel and lubricants would not be split among bidders. All four vendors that submitted a sealed bid for Invitation for Bid (IFB) No. 041414 acknowledged receipt of both addenda that were issued on this IFB.

On June 24, 2014, the BOS awarded a contract to Canyon State Oil in response to IFB No. 041414-Bulk Fuel and Lubricants for the fuel portion for the period of June 26, 2014, through June 25, 2015.

On July 15, 2014, the BOS approved Amendment No. 1 to Contract No. 041414, which essentially added the award of the lubricant portion to the Contract No. 041414; thereby, awarding the entire contract Canyon State Oil.

On June 10, 2015, the County Manager approved Amendment No. 2 to renew the term of Contract No. 041414 for a one-year term, from June 24, 2015, to June 23, 2016.
Evaluation
The current term of Contract No. 041414 expired on June 23, 2016.  The contract allows for renewal for two additional one-year periods at an annual cost of $750,000; therefore, staff recommends that the contract be renewed for one additional year, from June 24, 2016, to June 23, 2017.
Conclusion
In order to renew Contract No. 041414 for one more year, the BOS will need to approve Amendment No. 3 to the contract, which will extend the contract through June 23, 2017.
Recommendation
The Finance Director and the Fuel Management Division Director recommend renewing the contract with Canyon State Oil for one additional year, whereby Canyon State Oil will continue to provide bulk fuel lubricants at various Gila County locations.  This amendment for the renewal of the contract for one remaining year will complete all terms of Contract No. 041414.
Suggested Motion
Information/Discussion/Action to approve Amendment No. 3 to Contract No. 041414 to extend the contract term with Canyon State Oil in the amount of $750,000 to provide bulk fuel and lubricants at various Gila County locations from June 24, 2016, to June 23, 2017.  (Jeff Hessenius)

Attachments
Amendment No. 3 to Contract No. 041414
Amendment No. 2 to Contract No. 041414
Amendment No. 1 to Contract No. 041414
Contract 041414 Bulk Fuel & Lubricants Signed on 6-24-14.
County Attorney's Comments
Approval as to Form

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