Title
Bid Award for Low Sulfur - # 2 Diesel Fuel with Red Dye for the Regional Transit System (B)
This item involves a request for the City Commission to award the Bid in the amount of $69,750 and execute the one-year contract for RTS diesel fuel purchase to Mansfield Oil Company.
Explanation
The City of Gainesville recently participated in a cooperative bid for diesel fuel where several local entities shared their requirements to obtain the best price possible. The anticipated usage for RTS is 900,000 gallons annually. Approximately 4.7 million gallons of diesel fuel was bid by the following entities: Marion County Board of County Commissioners, City of Ocala, Citrus County, Marion County Sheriff, Marion County School Board, Alachua County School Board, University of Florida, Central Florida Community College, City of Belleview, and the City of Gainesville. Proposals were received from five (5) bidders. After review of the proposals, RTS recommends award of bid for diesel fuel to Mansfield Oil Company. The initial contract will be for one (1) year with the option of four (4) one-year extensions.
Fiscal Note
Funds for diesel fuel have been budgeted in the amount of $69,750 in the FY06 RTS operating budget.
Recommendation
The City Commission: 1) approve the bid award to Mansfield Oil Company; and 2) authorize the City Manager to execute a one-year contract with Mansfield Oil Company and any related documents.
Alternative Recommendation A: The City Commission deny the bid award to Mansfield Oil Company. This would require selecting another vendor or issuance of a new ITB. Fiscal impact cannot be determined due to the instability of the fuel market.
Alternative Recommendation B: The City Commission deny the bid award and provide staff direction in the procurement of Low Sulfur, #2 Diesel Fuel with Red Dye.