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Chief Administrative Office, Procurement and Contracts Division, recommending the Board award Bid 08-405-044 for the purchase of diesel fuel for the Fleet Management Division and authorize a blanket purchase order to the sole respondent, Hunt & Sons, Inc. of Placerville, CA in the amount of $350,000 for a twelve (12) month period and authorize the Purchasing Agent to increase 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.
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BUDGET SUMMARY:
Total Estimated Cost: $350,000.00
Funding
Budgeted $350,000.00
New Funding $
Savings $
Other $
Total Funding $350,000.00
Change in Net County Cost $350,000.00
REASON FOR RECOMMENDATION: At the request of the General Services Department, Fleet Management Division, the Procurement and Contracts Division 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 web site. The bid price is set price per gallon over "OPIS" fuel price that corresponds with the date of delivery.
Eleven (11) invitations to bid were mailed, two (2) to local vendors; one (1) qualified response was received from a local vendor. The bid results are as follows:
The price differentials bid are as follows:
Tank Location Bid Price(Differential)
Fleet/Placerville Diesel $0.0649
DOT/Meyers Diesel $0.2099
DOT/Tahoma Diesel $0.3299
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. The Procurement and Contracts Division 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, Procurement and Contracts Division will issue a blanket purchase order in the amount of $350,000.00 to Hunt & Sons, Inc. of Placerville, CA.
Contact: Bonnie H. Rich, Purchasing Agent, x5940
Concurrences: Not applicable