Title
Chief Administrative Office, Procurement and Contracts Division, recommending award of Bid 07-405-047 for the purchase of diesel fuel for the Fleet Management Division; and authorize blanket purchase order to Hunt and Sons of Placerville, CA in the amount of $300,000 for a twelve month period and authorize an increase to same on an "as-needed" basis during the awarded period if funding is available within the requesting department's budget.
RECOMMENDED ACTION: Approve.
FUNDING: General Fund and Non-General Fund
Body
BUDGET SUMMARY:
Total Estimated Cost: $300,000
Funding
Budgeted $300,000
New Funding $
Savings $
Other $
Total Funding $300,000
Change in Net County Cost $300,000
REASON FOR RECOMMENDATION: At the request of General Services, Fleet Management Division, the Procurement and Contracts office issued an Invitation to Bid for diesel fuel to fill County owned fuel tanks located on the East and West Slope.
Fuel prices are based on the "OPIS" (Oil Price information Service) Sacramento "Consolidated Weekly Fuel Posting" obtained via the State of California's web site. The bid price is a set price per gallon over the "OPIS" fuel price that corresponds with the date of delivery.
Eighteen (18) Invitations to Bid were mailed, four (4) to local vendors; one (1) qualified response was received from a local vendor. The bid results are as follows:
Fleet/Placerville/Diesel Price Per Gallon Over "OPIS" $0.0699 per gallon
2441 Headington Road
1 tank/6,000 gallons
D.O.T./Meyers/Diesel Price Per Gallon Over "OPIS" $0.1899 per gallon
1121 Shakori Drive
1 tank/14,000 gallons
D.O.T./Tahoma/Diesel Price Per Gallon Over "OPIS" $0.2899 per gallon
7101 Wilson Road
2 tanks/1,000 gallons each
Hunt & Sons, Inc. is offering a prompt payment discount of 1%/20 days.
FISCAL IMPACT/CHANGE TO NET COUNTY COST: Bulk fuel purchases are made from General Services' Fleet budget (Non-General Fund) and then subsequently charged back to user departments. The primary user department is the Department of Transportation (Road Fund); however, other departments (General Fund and Non-General Fund) may have the need to purchase diesel fuel. Procurement and Contracts has been advised that funding is available within the General Services Fleet Management budget for the initial bulk fuel purchases.
ACTION TO BE TAKEN FOLLOWING APPROVAL: Following Board approval, the Procurement and Contracts division will issue a blanket purchase order in the amount of $300,000.00 to Hunt and Sons, Inc. of Placerville, CA.
CONTACT: Bonnie H. Rich, Purchasing Agent, x5940
CONCURRENCES: Not applicable.