CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Approve the award of Bid 23-046, Fuel Delivery - Motor Fuel & Tank Wagon, to Luke Oil Company, Inc and Al Warren for an amount not to exceed $1,772,166.55 and for a one-year term
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DEPARTMENT: Department of Public Works
SUBMITTED BY: Richard Dublinski, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The Department of Public Works-Fleet Services Division manages the fuel supply for the City's fleet and generators. Through an intergovernmental agreement, the City also supplies fuel to School Districts 203 and 204, Nichols Library and Naper Settlement. These agencies are billed monthly for their usage plus an administrative fee for the use of the City's fueling equipment.
In the past, staff released two separate bids for bulk motor fuel and tank wagon delivery to the City's above ground and generator sites. To improve efficiency and increase the potential bidder pool, staff combined the two separate bids into one bid with two award categories.
Because fuel prices vary daily the contract pricing was based on the Oil Price Information Service (OPIS) daily Chicago market gross low rack rate price for fuel plus a bid mark-up. Prices will fluctuate with OPIS price, plus applicable taxes. The mark-up will remain constant throughout the contract period.
DISCUSSION:
Advertisement Date:
February 17, 2023
Notices Sent:
148
Opening Date:
March 3, 2023
Planholders:
14
Proposals Received:
7
Bids were received from the following vendors:
Vendor Name
Category 1 Proposed Cost
Category 2 Proposed Cost
Luke Oil Company, Inc
$1,517,393.25
N/A
Petroleum Traders Corporation
$1,533,829.50
N/A
Al Warren
$1,533,862
$254,771.30
Mansfield Oil Company of Gainsville, Inc
$1,539,578.25
N/A
Offen Petroleum
$1,545,905.75
$251,342.55
Arneson
$2,030,274.50
$424,224.30
Feece Oil Company
N/A
$256,873.80
Luke Oil was determined to be the lowest responsive and responsible bidder for Category 1: Bulk Motor Fu...
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