Title
Chief Administrative Office, Procurement and Contracts Division, recommending the Board:
1) Continue to waive formal bid requirements in accordance with Purchasing Ordinance 3.12.160, Exemptions from competitive process, Section D;
2) Authorize the Purchasing Agent to extend the term of the agreement if the Sacramento Area Council of Governments Regional Public Agency Fuel & Lubricants extends contract 1920029 for the provision of cardlock fueling services;
3) Authorize the Purchasing Agent to increase contract 4404 by $1,000,000, bringing the contract value to $4,000,000; and
4) Authorize the Purchasing Agent to increase the value of contract 4404 on an “as needed” basis during the awarded period as long as funding is available within the requesting departments budget.
FUNDING: General and Non-General Fund.
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DISCUSSION / BACKGROUND
On January 14, 2020 the Board authorized contract 4404 with Hunt and Sons, Inc. for the purchase of various types of fuel for County vehicles and equipment, and cardlock services. The County's contract piggyback's on SACOG contract 1920029. It was determined that SACOG's competitive process, based on a higher regional purchase volume, resulted in the most advantageous purchasing strategy for the County. The SACOG contract was competitively bid and met the County's fuel and service needs.
When the contract was executed, the anticipated contract amount of $3,000,000 was based on past fuel purchases. However, with surge in fuel prices, contract 4404 has run out of funds and needs to be increased in order to cover the anticipated funding requirements through the end of the current term. The term of contract 4404 expires on January, 23, 2023. We have reached out to SACOG and have been informed that they are in the process of extending this contract. The division is requesting authority to extend our contract based on the SACOG extension.
ALTERNATIVES
The Board could choose to not authorize the additional funding but a new agreement for cardlock fueling would need to be secured. The provision of fueling services are critical for departments and a delay in the availability of cardlock fueling services would result in increased costs as departments would have to purchase fuel at higher prices and create a large administrative burden related to tracking of individual receipts.
The Board could choose not to grant the authority to extend the contract term or to increase the contract value and the department would need to return to the Board for any changes to the contract term or not to exceed amount.
PRIOR BOARD ACTION
09-1476 4/29/14
15-0038 1/27/15
17-0040 1/24/17
19-0172 2/06/19
19-1847 1/14/20
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
Departments have included appropriations for these services in their budgets, and there is no increase in anticipated appropriations within the current budget year. Therefore, no budget amendment is needed. Sufficient appropriations will be included in future years' budget for the term of the agreement.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
Good Governance
CONTACT
Michele Weimer, Procurement and Contracts Manager