CITY COUNCIL AGENDA ITEM
ACTIONREQUESTED:
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Approve the award of Bid 18-025, Motor Fuel, to Luke Oil for an amount not to exceed $1,960,840.50 and for an 18-month 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. Fleet vehicles are used by all departments and consume approximately 320,000 gallons of regular unleaded gasoline and 210,000 gallons of diesel motor fuel per year. It is noted that the consumption totals above include fuel provided to other governmental agencies such as 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 our fueling equipment.
The City currently has two contracts for fuel. The motor fuel tank wagon contract covers the supply of fuel for the city's above ground tanks. This contract was awarded to Heritage FS for an amount not to exceed $599,053.80 over a three-year term. This contract is for fuel received for underground storage tanks.
Because fuel prices vary on a daily basis, contract pricing is based on the Oil Price Information Service (OPIS) daily Chicago market gross low rack rate price for fuel plus a bid mark-up. Contract award is based on lowest overall mark-up. Prices paid will change with the OPIS price, plus applicable taxes. The mark-up will remain the same throughout the contract period. For purposes of bid comparison and award amount calculation, staff provided the OPIS price as reported on May 16, 2018.
DISCUSSION:
Advertisement Date: 05/17/18 Notices Sent: 52
Opening Date: 06/04/18 Planholders: 8
Bids Received: 5
The following bids were received:
Company Name
Total Base Bid
Luke Oil Co, Inc
$1,307,227
Gas Depot Oil Co.
$1,313,988
Petroleum Traders Corporati...
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