Title
Chief Administrative Office, Procurement and Contracts Division, is recommending the Board:
1) Dispense with competitive bidding in accordance with County Ordinance Section 3.12.160 (g); and
2) Authorize the Purchasing Agent to execute Agreement for Services #431-S1211 with EPIC Aviation, Inc. doing business as Air BP Aviation Services of Salem Oregon, for a one year term in an amount not to exceed $350,000.00, upon County Counsel and Risk Management review and approval.
FUNDING: Placerville and Georgetown Airports Enterprise Funds.
Body
BUDGET SUMMARY: |
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Total Estimated Cost |
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$350,000.00 |
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Funding |
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Budgeted |
$350,000.00 |
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New Funding |
$ |
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Savings |
$ |
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Other |
$ |
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Total Funding Available |
$350,000.00 |
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Change To Net County Cost |
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$ |
Fiscal Impact/Change to Net County Cost: No Change in Net County Costs
Reason for Recommendation: On January 8, 2008, item #29 the Board of Supervisors awarded bid #08-405-070 to EPIC Aviation, LLC doing business as Air BP Aviation Services and authorized the Chairman to sign an agreement for aviation fuel and related services. On February 8, 2011, item #13, the Board of Supervisors authorized a one year extension to the original agreement for a term to expire February 11, 2012.
Prior to the expiration of the then current contract, at the request of the Department of Transportation, the Procurement and Contracts Division requested proposals for aviation fuel and related services (RFP #12-405-035). The sole respondent to the subject RFP was World Fuel Services of Ontario, California. During the evaluation of the proposal response, the Department of Transportation determined that World Fuel Services is unable to meet the County's requirement for minimum orders of 6,000 100 LL Avgas and 4,000 Jet A fuel which was included as a requirement in the Request for Proposals. The minimum order World Fuel will accept is 8,000 100 LL Avgas and 7,600 Jet A fuel. The El Dorado County airports are small with a relatively low volume of traffic and fuel sales. Lower minimum order requirements are important in order for the airports to take advantage of price fluctuations that allow them to maintain the lowest cost fuel inventory. They are able to pass the lower pricing on to customers thereby remaining competitive with other airports for fuel sales. The fuel sales provide the primary source of funding for airport operations and matching funds for improvement projects. In addition, excess fuel that is retained in the storage tank for an extended period may become unusable resulting in costly disposal fees and the purchase of replacement fuel.
EPIC Aviation, dba Air BP Aviation Services is able to provide fuel to the County in the quantities required and provide the support services necessary for purchasing and dispensing aviation fuel. The contract with Air BP Aviation Services is for a one year term. The Department of Transportation will enter into the competitive process again in the coming year in order to ensure the best pricing and service is available to the El Dorado County airports.
In accordance with County Ordinance 3.12.160 (g), the Board is being asked to make findings that it is necessary to dispense with the competitive selection process for an interim period and authorize the Department of Transportation to enter into an Agreement with Air BP Aviation Services under the same terms and conditions as the previous award pending the conclusion of a reissued request for proposal.
Action to be taken following Board approval: The Department of Transportation will route a contract through County Counsel and Risk Management review and approval with Epic Aviation for a one year term, and work with the Procurement and Contracts Division to initiate a new competitive selection process for the purchase of aviation fuel and related services. Upon successful completion of the RFP process, the existing contract with Air PB may be terminated in the event of a recommended award to a new vendor.
Contact: Terri Daly, Purchasing Agent x5530
Concurrences: N/A/