Title
Procurement and Contracts, a division of the Chief Administrative Office, recommending the Board take the following actions pertaining to commercial cardlock fueling services for County vehicles and equipment:
1) Waive formal bid requirements in accordance with procurement Policy C-17 section 3.4 (4) since the County is a participating agency under competitively bid Sacramento Area Council of Governments (SACOG) contract CT250004 with Hunt and Sons, LLC;
2) Authorize the Purchasing Agent to utilize SACOG Cooperative Purchasing Agreement for Fuels and Lubricants Request for Proposals (RFP) RFP-2023-24-10 and contract CT250004 for the provision of commercial cardlock fueling services;
3) Authorize the Purchasing Agent to sign contract 9057 with Hunt and Sons, LLC in an amount not to exceed $5,000,000, to cover the period of December 1, 2024 through November 30, 2027;
4) Authorize the Purchasing Agent to extend the term of the requested contract 9057 if SACOG extends their contract CT250004; and
5) Authorize the Purchasing Agent to increase the not to exceed amount of contract 9057 on an "as needed" basis during the awarded period as long as funding is available with the requesting departments budget.
FUNDING: Various.
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DISCUSSION / BACKGROUND
The County has an ongoing requirement to purchase various types of fuel for County vehicles and equipment. On January 25, 2005, the County issued a Request for Proposals (RFP) for the provision of off-site fuel services and awarded to the sole proposer, Hunt and Sons, Inc. who was then, and is currently, the only vendor that manages the majority of the local and greater Sacramento area commercial cardlock fueling sites. The County Purchasing Ordinance authorized an exemption from competitive bidding when the successful bidder from the last solicitation agrees to extend the contract at the same price and terms as the original bid when the extension makes good business sense. Following the RFP award in 2005, the County continued to enter into contracts with Hunt and Sons, Inc. for cardlock fueling services.
Hunt and Sons, Inc. continued to offer the same price and terms, however, due to the amount of time that had passed since the last competitive solicitation, prior to entering into the 2019 contract, the Procurement and Contracts Division reviewed the available purchase and solicitation options to ensure that the County was receiving the best value and all competitive vendors were considered. It was determined that the Sacramento Area Council of Governments (SACOG) cooperative purchase agreement with Hunt and Sons, Inc. represented the most advantageous purchasing strategy. The contract was competitively bid and met the County's fuel needs. It was determined that the County would receive a greater discount based on a higher regional purchase volume than the County would receive by issuing it's own RFP.
To continue to leverage regional purchasing and pricing competitiveness in the greater Sacramento Area, the County became a participating agency for the most recent SACOG competitive solicitation, RFP-2023-24-10 so the County's specifications were included in the RFP. In an ongoing effort to maximize cost savings and staff resources, many government agencies share contracting efforts through cooperative purchasing. This procurement method lowers costs through volume buying and decreases administrative costs. When comparing the administrative costs of procurements, staff considers product research, source selection, specifications, advertising, staff reports, awarding, protest, and contract administration.
ALTERNATIVES
N/A
PRIOR BOARD ACTION
Legistar file 19-1847 - January 14, 2020 - Authorized contract 4404 with Hunt and Sons
Legistar file 22-1566 - September 13, 2022 - Extended the term and increased the not-to-exceed amount of contract 4404
Legistar file 24-1464 - August 27, 2024 - Extended the term of contract 4404 by 90 days in anticipation of SAGOG's RFP process and new contract
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Approved by County Counsel, Human Resources, and Risk Management
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
Departments have included appropriations for the fuel purchases and cardlock services in their budgets, and there is no increase in anticipated appropriations within the current budget year.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Laura Schwartz, Assistant Chief Administrative Officer
Michele Weimer, Procurement and Contracts Manager/Purchasing Agent