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Regular Agenda Item 3. K.

Regular BOS Meeting

Meeting Date:	07/23/2019
Submitted For:	Steve Sanders	Submitted By:	Betty Hurst, Contracts Administrator
Department:	Finance
Fiscal Year:	2019-2020	Budgeted?:	Yes
Contract Dates Begin & End:	07-23-19 to 07-22-20	Grant?:	No
Matching Requirement?:	No	Fund?:	Renewal

Information

Request/Subject

Contract for Request for Proposals (RFP) No. 050619-Bulk Fuel and Lubricants.

Background Information

Previous Contract No. 042417 was awarded to Canyon State Oil, a Division of SC Fuels. In December 2018, the company was purchased by West Direct Oil and Diesel Direct West, two different companies separating fuel and lubricants. This contract expired in June 2019.

Gila County Public Works General Services Division requested to advertise for bid at the June 4, 2019, Board of Supervisors' meeting. The bid advertised June 12 and June 19, 2019, in the Arizona Silver Belt newspaper. The bids were due on July 3, 2019.

Gila County has entered into contracts with specific suppliers in order to purchase petroleum products under stringent cost parameters. Built into the bid includes using a fuel depot with the Rack Price which is the same as O.P.I.S. (Oil Price Information Service) pulled from the system on Monday at 8:00 A.M. All of the fuel delivered Monday through Sunday of the same week will reflect the O.P.I.S. price plus the amount the contractor bid to cover the delivery. The company’s contract price will include a separate margin price added to commodities in cents, to a required four decimal place. This contract price per gallon will include all costs for delivering the commodity. With all of these items separated on the invoice, Gila County General Services personnel can monitor the costs and compare to the contract and the O.P.I.S. price.

Evaluation

RFP No. 050619 was emailed to thirteen vendors (see Plan Holders List) and posted on the County Website. Four bids were received from four suppliers at the July 3, 2019, bid opening. Bid responses were evaluated in accordance with A.R.S. § 41-2533, Competitive Sealed Bidding which states, "Awards shall be made to the lowest responsible and responsive bidder whose bid conforms in all material respects to the requirements and criteria set forth in the Invitation for Bid."

The delivery of fuel to the remote location of Young and the smaller fuel capacity of this depot and the Tonto Basin depot makes the bid more of a challenge to suppliers. Travel on the Young road is best by bobtail tankers and some suppliers don’t have them. Fuel delivery to the Young depot can be critical at times during less than perfect driving conditions.

After evaluating and checking the references, Gila County General Services personnel chose Fuelco Energy LLC to contract with the County for bulk fuel and lubricant products. This choice stems from price and knowing they are a full-service company delivering both fuel and lubricants. The physical inventories on Gila County fuel tanks will be monitored with Fuelco Energy LLC equipment that the General Services Division can also monitor on cell phone and computer.

Conclusion

General Services still insists on the best service from any vendor. It is important Gila County receive the products prior to or as soon as requested. With each annual renewal of the contract, an evaluation will be done to ensure the highest quality of products and that Gila County is receiving the best service.

Recommendation

The Public Works Director recommends that the Board of Supervisors award a contract to Fuelco Energy LLC in the amount of $707,000 for the purchase and delivery of bulk fuel and lubricants as specified in the Invitation for Bids number 050619, with the possibility of annual renewals for a period of five years.

Suggested Motion

Information/Discussion/Action to review all bids submitted for Request for Proposals No. 050619 for the purchase and delivery of bulk fuel and lubricants; award to the lowest, most responsible and qualified bidder; and authorize the Chairman’s signature on the award contract. (Steve Sanders)

Attachments
RFP 050619 BULK FUEL & LUBRICANTS
Bidder List Comparison
Contract No. 050619
Addendum 1
Addendum 2
Addendum 3
Plan Holder List (Bulk Fuel & Lubricants)
Fuelco-Sealed Bid
Pilot Thomas Logistics-Sealed Bid
Van De Pol-Sealed Bid
Western Petroleum-Sealed Bid