SUBJECT
title
Consideration to award a six-month (6) supply contract FY25-026 to the low responsible bidder Safety-Kleen Systems Inc., Norwell, MA in an amount up to $175,000.00 for the purchase of lubricants for the Fleet Department. All lubricants will be secured on an as-needed basis. The term of this contract shall be for a period of six (6) months beginning as of the date of its execution and is contingent upon the availability of appropriate funds. This contract can be renewed six (6) additional one (1) six-month extension periods, upon mutual agreement of the parties. Funding is available in the Fleet Management Fund.
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PREVIOUS COUNCIL ACTION
None.
BACKGROUND
The City received two (2) bids through Cit-E-Bid for furnishing the Fleet Maintenance Department with lubricants for a six-month period. All items will be purchased on an as need basis throughout the contract period. During the period of this contract, prices may be increased and decreased. However, price changes will be governed by an index made up of the composite posted prices in the Laredo area of those companies published in the daily publication of Oil Price Information Service (OPIS). The base price shall be the OPIS average rack price for the Laredo area. The term of this contract shall be for a period of six (6) months beginning as of the date of its execution. The contract may be extended for six (6), additional one (1) six-month extension periods. This contract shall be the responsibility of and administered by the vendor and the City of Laredo Fleet Department.
Summary:
Vendor Section I Total
Safety-Kleen System Inc. $ 150,849.90
Arguindegui Oil Company $ 160,092.55
A complete bid tabulation is attached.
COMMITTEE RECOMMENDATION
None.
STAFF RECOMMENDATION
recommendation
It is recommended that this contract be approved.
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Fiscal Impact
Fiscal Year: 2025.
Budgeted Y/N?: Yes.
Source of Funds: Fleet Management Fund.
Account #: 593-2810-533-2073.
Change Order: Exceeds 25% Y/N: None.
FINANCIAL IMPACT:
The purpose of this contract is to establish prices for the commodities or services needed should the City need to purchase these commodities or services. The City's obligation for performance of an annual supply contract beyond the current fiscal year is contingent upon the availability of appropriated funds from which payments for the contract purchases can be made. If no funds are appropriated and budgeted during the next fiscal year, this contract becomes null and void.