CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Approve the award of Option Year #2 to Contract 23-046, Fuel Delivery - Motor Fuel & Tank Wagon, to Luke Oil Company, Inc. and Al Warren Oil Company, Inc. for an amount not to exceed $1,500,000
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DEPARTMENT: Department of Public Works
SUBMITTED BY: Richard Dublinski Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City Council awarded Contract 23-046 to Luke Oil Company, Inc. and Al Warren Oil Company, Inc. on April 18, 2023, for a one-year term from April 1, 2023, to March 31, 2024, with four one-year options to extend.
The City Council awarded Option Year #1 on March 19, 2024, for a one-year term from April 1, 2024, to March 31, 2025.
The purpose of the contract is to procure bulk motor fuel and tank wagon fuel deliveries for the City’s fleet. Through an intergovernmental agreement, the City also supplies fuel to School Districts 203 and 204, the Naperville Public Library, and Naper Settlement.
DISCUSSION:
Both vendors have delivered fuel within the timeframe required by the City and adhered to the pricing terms of their contract through the original term and first option year of the contract. Both vendors have processed more than 30 fuel deliveries during this most recent term.
Based on vendor performance, Fleet Services recommends extending the contracts for the second option year. Both vendors have agreed to maintain the rates and terms provided under the contract.
The term of the second option year is April 1, 2025, to March 31, 2026, with two one-year options remaining.
FISCAL IMPACT:
CIP#: N/A
Motor fuel and tank wagon fuel deliveries are expensed to the Fuel account listed below. A total of $1,706,000 is budgeted for fuel in 2025. The award requested is within the amount budgeted for this expense.
|
Account Number |
Fund Description |
Total Budget Amount |
|
31351100-541403 |
General Fund |
$1,706,000 |