HomeMy WebLinkAboutStaff Report 1444City of Palo Alto (ID # 1444)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 3/21/2011
March 21, 2011 Page 1 of 2
(ID # 1444)
Summary Title: Award of Purchase Order for Fuel
Title: Approval of a Purchase Order with Western States Oil Company for a
Three Year Period in the Total Amount Not to Exceed $2,676,675 for the
Provision of Automotive Fuel
From:City Manager
Lead Department: Public Works
Recommendation
Staff recommends that Council approve and authorize the City Manager or his designee to
execute a purchase order with Western States Oil Company in the amount of $2,676,675 for
the provision of automotive fuel for a three year period from April 1, 2011 to March 31, 2014.
Discussion
City operations use approximately 350,000 of gasoline and diesel fuel annually. This purchase
order covers the provision and delivery of fuel to numerous locations throughout the City. The
purchase order provides for delivery of unleaded gasoline, diesel, and biodiesel fuel, in
accordance with City specifications, and at the Oil Price Information Service (OPIS) San Jose
“rack average” price in effect on the date of delivery. Fuel will be delivered into tanks located
at the Municipal Services Center, Landfill, Golf Course, Fire Stations One, Two, and Four, Water
Quality Control Plant, Foothills Park, Civic Center, and several standby generator sites.
As fuel pricing is determined by the Oil Price Information Service (OPIS) San Jose “Rack
Average,” and does not vary by vendor, lowest delivery pricing was used as the basis for bid
award (see Attachment “A”). A Request for Quotation (RFQ) was sent to six vendors on
January 27, 2011 with five vendors responding.
Bid Name/Number Automotive Fuel Services –RFQ #139841
Proposed Length of Purchase Order 12 months with option to renew
Number of Bids Mailed to
Contractors 6
Total Days to Respond to Bid 15
Pre-Bid Meeting?No
March 21, 2011 Page 2 of 2
(ID # 1444)
Number of Bids Received 5*
Bid Price Range $35,717 -$176,241*
*Bid summary provided in Attachment A.
Staff has reviewed all bids submitted and recommends that the bid submitted by Western
States Oil Company be accepted and that Western States Oil Company be declared the lowest
responsible bidder. The three year purchase order reflects an annual amount of $892,225 for
years one through three.
The purchase order amount is based on delivery pricing and an estimate of fuel costs taken
from the OPIS Index. Because the price of fuel changes daily, the actual cost may be higher or
lower than the estimate subject to fuel market trends. The annual purchase order value of
$892,225 was determined by multiplying the delivered cost of the fuel (based on the
February 7, 2011 OPIS index) by the estimated quantity required at each site and adding the
annual delivery charge.
Resource Impact
Funding has been budgeted for fuel costs in the FY 2010-11 Public Works Department
Equipment Management Fuel Operations Budget.
Policy Implications
Authorization of the contract does not represent any change to the existing policy.
Environmental Review
This contract is exempt from the California Environmental Quality Act under Section 15301 in
that the contract relates to ongoing operations. The Contractor is required to comply with all
federal, state and local environmental laws and regulations applicable to the transportation and
delivery of automotive fuels.
Attachments:
·RFQ139841 Bid Summary -Delivery Cost Only (PDF)
·This page intentionally left blank (PDF)
Prepared By:Keith LaHaie,
Department Head:J. Michael Sartor, Interim Director
City Manager Approval: James Keene, City Manager
Attachment A - Bid Summary - RFQ 139841
Western States Oil Co.
Item Del Yr1 Gal Total Yr1 Del Yr2 Total Yr2 Del Yr3 Total Yr3 Grand Total
1 0.00775 110,000 852.50 0.00775 852.50 0.00775 852.50 $2,557.50
2 0.00999 64,000 639.36 0.00999 639.36 0.00999 639.36 $1,918.08
3 0.05 60,000 3,000.00 0.05 3,000.00 0.05 3,000.00 $9,000.00
4 0.0875 3,000 262.50 0.0875 262.50 0.0875 262.50 $787.50
5 0.0875 4,000 350.00 0.0875 350.00 0.0875 350.00 $1,050.00
6 0.0875 1,000 87.50 0.0875 87.50 0.0875 87.50 $262.50
7 0.0875 1,000 87.50 0.0875 87.50 0.0875 87.50 $262.50
8 0.0875 33,000 2,887.50 0.0875 2,887.50 0.0875 2,887.50 $8,662.50
9 0.0875 11,000 962.50 0.0875 962.50 0.0875 962.50 $2,887.50
10 0.0875 6,500 568.75 0.0875 568.75 0.0875 568.75 $1,706.25
11 0.0875 16,500 1,443.75 0.0875 1,443.75 0.0875 1,443.75 $4,331.25
12 0.0875 1,500 131.25 0.0875 131.25 0.0875 131.25 $393.75
13 0.0875 3,000 262.50 0.0875 262.50 0.0875 262.50 $787.50
14 0.0875 500 43.75 0.0875 43.75 0.0875 43.75 $131.25
15 0.0875 1,600 140.00 0.0875 140.00 0.0875 140.00 $420.00
16 0.0875 500 43.75 0.0875 43.75 0.0875 43.75 $131.25
17 0.0475 3,000 142.50 0.0475 142.50 0.0475 142.50 $427.50
$11,905.61 $11,905.61 $11,905.61 $35,716.83
Attachment A - Bid Summary - RFQ 139841
Valley Oil Co.
Item Del Yr1 Gal Total Yr1 Del Yr2 Total Yr2 Del Yr3 Total Yr3 Grand Total
1 0.0049 110,000 539.00 0.004949 544.39 0.004998 549.83 $1,633.22
2 0.011 64,000 704.00 0.01111 711.04 0.011221 718.15 $2,133.19
3 0.08 60,000 4,800.00 0.0808 4,848.00 0.081608 4,896.48 $14,544.48
4 0.08 3,000 240.00 0.0808 242.40 0.081608 244.82 $727.22
5 0.08 4,000 320.00 0.0808 323.20 0.081608 326.43 $969.63
6 0.08 1,000 80.00 0.0808 80.80 0.081608 81.61 $242.41
7 0.08 1,000 80.00 0.0808 80.80 0.081608 81.61 $242.41
8 0.08 33,000 2,640.00 0.0808 2,666.40 0.081608 2,693.06 $7,999.46
9 0.08 11,000 880.00 0.0808 888.80 0.081608 897.69 $2,666.49
10 0.08 6,500 520.00 0.0808 525.20 0.081608 530.45 $1,575.65
11 0.08 16,500 1,320.00 0.0808 1,333.20 0.081608 1,346.53 $3,999.73
12 0.08 1,500 120.00 0.0808 121.20 0.081608 122.41 $363.61
13 0.08 3,000 240.00 0.0808 242.40 0.081608 244.82 $727.22
14 0.08 500 40.00 0.0808 40.40 0.081608 40.80 $121.20
15 0.08 1,600 128.00 0.0808 129.28 0.081608 130.57 $387.85
16 0.08 500 40.00 0.0808 40.40 0.081608 40.80 $121.20
17 0.08 3,000 240.00 0.0808 242.40 0.081608 244.82 $727.22
$12,931.00 $13,060.31 $13,190.91 $39,182.22
Attachment A - Bid Summary - RFQ 139841
Coast Oil Company
Item Del Yr1 Gal Total Yr1 Del Yr2 Total Yr2 Del Yr3 Total Yr3 Grand Total
1 0.0615 110,000 6,765.00 0.0615 6,765.00 0.0615 6,765.00 $20,295.00
2 0.0735 64,000 4,704.00 0.0735 4,704.00 0.0735 4,704.00 $14,112.00
3 -0.103 60,000 -6,180.00 -0.103 -6,180.00 -0.103 -6,180.00 -$18,540.00
4 0.1685 3,000 505.50 0.1685 505.50 0.1685 505.50 $1,516.50
5 0.1602 4,000 640.80 0.1602 640.80 0.1602 640.80 $1,922.40
6 0.1685 1,000 168.50 0.1685 168.50 0.1685 168.50 $505.50
7 0.1602 1,000 160.20 0.1602 160.20 0.1602 160.20 $480.60
8 0.1685 33,000 5,560.50 0.1685 5,560.50 0.1685 5,560.50 $16,681.50
9 0.1602 11,000 1,762.20 0.1602 1,762.20 0.1602 1,762.20 $5,286.60
10 0.1685 6,500 1,095.25 0.1685 1,095.25 0.1685 1,095.25 $3,285.75
11 0.1602 16,500 2,643.30 0.1602 2,643.30 0.1602 2,643.30 $7,929.90
12 0.1685 1,500 252.75 0.1685 252.75 0.1685 252.75 $758.25
13 0.1602 3,000 480.60 0.1602 480.60 0.1602 480.60 $1,441.80
14 0.1602 500 80.10 0.1602 80.10 0.1602 80.10 $240.30
15 0.1602 1,600 256.32 0.1602 256.32 0.1602 256.32 $768.96
16 0.1602 500 80.10 0.1602 80.10 0.1602 80.10 $240.30
17 0.1602 3,000 480.60 0.1602 480.60 0.1602 480.60 $1,441.80
$19,455.72 $19,455.72 $19,455.72 $58,367.16
Attachment A - Bid Summary - RFQ 139841
Nella Oil Co. LLC
Item Del Yr1 Gal Total Yr1 Del Yr2 Total Yr2 Del Yr3 Total Yr3 Grand Total
1 0.035 110,000 3,850.00 0.035 3,850.00 0.035 3,850.00 $11,550.00
2 0.035 64,000 2,240.00 0.035 2,240.00 0.035 2,240.00 $6,720.00
3 0.035 60,000 2,100.00 0.035 2,100.00 0.035 2,100.00 $6,300.00
4 0.2 3,000 600.00 0.2 600.00 0.2 600.00 $1,800.00
5 0.2 4,000 800.00 0.2 800.00 0.2 800.00 $2,400.00
6 0.2 1,000 200.00 0.2 200.00 0.2 200.00 $600.00
7 0.2 1,000 200.00 0.2 200.00 0.2 200.00 $600.00
8 0.2 33,000 6,600.00 0.2 6,600.00 0.2 6,600.00 $19,800.00
9 0.2 11,000 2,200.00 0.2 2,200.00 0.2 2,200.00 $6,600.00
10 0.2 6,500 1,300.00 0.2 1,300.00 0.2 1,300.00 $3,900.00
11 0.2 16,500 3,300.00 0.2 3,300.00 0.2 3,300.00 $9,900.00
12 0.2 1,500 300.00 0.2 300.00 0.2 300.00 $900.00
13 0.2 3,000 600.00 0.2 600.00 0.2 600.00 $1,800.00
14 0.2 500 100.00 0.2 100.00 0.2 100.00 $300.00
15 0.2 1,600 320.00 0.2 320.00 0.2 320.00 $960.00
16 0.2 500 100.00 0.2 100.00 0.2 100.00 $300.00
17 0.2 3,000 600.00 0.2 600.00 0.2 600.00 $1,800.00
$25,410.00 $25,410.00 $25,410.00 $76,230.00
Attachment A - Bid Summary - RFQ 139841
Falcon Fuels Inc
Item Del Yr1 Gal Total Yr1 Del Yr2 Total Yr2 Del Yr3 Total Yr3 Grand Total
1 0.04736 110,000 5,209.60 0.04736 5,209.60 0.04736 5,209.60 $15,628.80
2 0.05447 64,000 3,486.08 0.05447 3,486.08 0.05447 3,486.08 $10,458.24
3 0.49 60,000 29,400.00 0.49 29,400.00 0.49 29,400.00 $88,200.00
4 0.2376 3,000 712.80 0.2376 712.80 0.2376 712.80 $2,138.40
5 0.24117 4,000 964.68 0.24117 964.68 0.24117 964.68 $2,894.04
6 0.2376 1,000 237.60 0.2376 237.60 0.2376 237.60 $712.80
7 0.2417 1,000 241.70 0.2417 241.70 0.2417 241.70 $725.10
8 0.23726 33,000 7,829.58 0.23726 7,829.58 0.23726 7,829.58 $23,488.74
9 0.2417 11,000 2,658.70 0.2417 2,658.70 0.2417 2,658.70 $7,976.10
10 0.2376 6,500 1,544.40 0.2376 1,544.40 0.2376 1,544.40 $4,633.20
11 0.2417 16,500 3,988.05 0.2417 3,988.05 0.2417 3,988.05 $11,964.15
12 0.2376 1,500 356.40 0.2376 356.40 0.2376 356.40 $1,069.20
13 0.2462 3,000 738.60 0.2462 738.60 0.2462 738.60 $2,215.80
14 0.2462 500 123.10 0.2462 123.10 0.2462 123.10 $369.30
15 0.2462 1,600 393.92 0.2462 393.92 0.2462 393.92 $1,181.76
16 0.2462 500 123.10 0.2462 123.10 0.2462 123.10 $369.30
17 0.2462 3,000 738.60 0.2462 738.60 0.2462 738.60 $2,215.80
$58,746.91 $58,746.91 $58,746.91 $176,240.73
Attachment A - Bid Summary - RFQ 139841