Title
Contract Extension to Lewis Oil Company of Gainesville for Fuel Management Services (B)
This item involves exercising an option to extend the contract for one (1) year, the final of three (3) one-year extensions as allowed in the Agreement.
Explanation
In October 2001, the City Commission awarded a three-year contract to Lewis Oil Company of Gainesville to provide fuel and fuel management services for Fleet Management and the Gainesville Police Department (GPD). Advantages of the contract are: 1) the inclusion of GPD under one (1) contact; 2) price protection as the profit margin is fixed; and 3) preferential status in emergency situations, which proved quite beneficial during the 2004 hurricane season.
Fleet Management recommends taking advantage of the contract provisions to extend the contract for an additional one-year term October 1, 2006 through September 30, 2007. This will be the final extension available on the contract.
Fiscal Note
$1,429,260 is available in Fleet Management's Budget for FY06-07 for the contract extension.
Recommendation
The City Commission: 1) approve the extension of the current contract with Lewis Oil Company of Gainesville for a period of one-year; and 2) authorize the City Manager or his designee to execute the contact extension.
Alternative Recommendation A: The City Commission require re-bidding the contract, which may result in the City losing current advantages from a local supplier.
Alternative Recommendation B: The City Commission return to former procedures which require requesting quotations for each procurement, which may result in the City losing the advantages of current local supplier.