The Equipment Services Department and other public agencies throughout the United States will use these agreements to obtain motor fuels to supply and operate equipment. No guarantee was made that a specific amount of these fuels would be purchased. The City previously awarded separate agreements for unleaded fuels on December 16, 2008 (M&C P-10898) and diesel fuels on March 4, 2008 (M&C P-10746). These agreements were competitively bid by several suppliers of these fuels. The estimated annual amount of unleaded fuels to be purchased under the previous agreement was $4,000,000.00 and the estimated annual amount of diesel fuels to be purchased under the previous agreement was $2,348,000.00. During the previous year, the City purchased approximately 3,000,000 gallons of motor fuels at a cost of $7,129,000.00. The additional estimated annual amount listed in this action is requested to cover potential increases in prices and volumes. Other public agencies participating in the previous agreements have purchased approximately 14,000,000 gallons of motor fuels. This represents an increase of about 11,000,000 gallons of motor fuel over the previous agreement. Based on the new motor fuel agreement the City of Fort Worth will save approximately $39,787.00 annually over previous motor fuel agreements as a direct result of the increased volume by participation of the other public agencies. Under the Rebate to Principal Procurement Agency Agreement, the City of Fort Worth will receive 8.333 percent of a one-cent administration fee to be paid to National IPA by the petroleum vendors for each gallon of motor fuel sold under this national cooperative contract. This rebate could generate approximately $92,000.00 annually in revenue to the City. The City will have no liability or responsibility for purchases by other public agencies.
This Motor Fuel Agreement combined the two existing fuel agreements' requirements and was bid as a national cooperative purchasing Request for Proposals (RFP) to develop and encourage cooperative purchasing efforts to reduce the cost of motor fuel to the City and other public agencies. The RFP included estimated annual quantities from 63 public entities around Texas and the US with a total estimated quantity of 110 million gallons. The RFP evaluation factors included responsiveness and clarity of proposal, ability to meet City of Fort Worth specifications, the national program, vendor qualifications and contract cost. Representatives of the City's Equipment Services, Fire, Police, Transportation and Public Works and Water Departments evaluated the proposals received and found TAC and MEOC to be the best evaluated firms for awards of the agreements. Participating Agencies within the state of Texas have the ability to elect to use either TAC or MEOC for their fuel needs to provide greater benefit to the participating agencies. Awarding to both vendors will ensure that the City and other agencies obtain the best value when ordering split loads or smaller than tank loads, to provide an uninterrupted supply of fuels during instances of fuel shortages and/or other curtailments, or if one vendor does not exercise a renewal option of the agreement.
The following agencies have purchased fuel utilizing the current agreements: The Cities of Arlington, Carrollton, Coppell, Duncanville, Flower Mound, Garland, Grand Prairie, Grapevine, Haltom, Keller, Kennedale, Lewisville, North Richland Hills, Plano, Richardson, Southlake, University Park and Watauga; Tarrant, Johnson and Hood Counties; Crowley and Ponder ISD; Tarrant County College and University of Texas at Dallas.
Prices will be based on the overall low proposal of the Dallas Metro Texas Oil Price Information Service Rack Average Petrostat net price sent at 10:00 a.m. Eastern time for the date the fuel is delivered. Payments are due ten days from receipt of invoices, the City takes ownership at the City's storage tank and freight is included. BID ADVERTISEMENT - This bid was advertised in the Fort Worth Star-Telegram on April 15, 2009 and April 22, 2009. Thirty-two vendors were solicited from the purchasing database system; seven proposals were received.
M/WBE - A waiver of the goal for M/WBE subcontracting requirements was requested by the Purchasing Division and approved by the M/WBE Office because the purchase of goods is from sources where subcontracting or supplier opportunities are negligible.
AGREEMENT TERM - The agreements will begin November 10, 2009 and expire November 9, 2010.
RENEWAL OPTIONS – These agreements may be renewed for up to four successive one-year terms at the City's option. This action does not require specific City Council approval, provided the City Council has appropriated sufficient funds to satisfy the City's obligation during the renewal term. |
