SUBJECT
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Consideration to renew the six-month supply contract FY21-094 with Arguindegui Oil Company, Laredo, Texas in an amount up to $100,000.00 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 months beginning as of the date of its execution. At the time contract renewal notices were received, there was no price increase during this extension period; 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. This is the sixth of seven extension periods. Funding is available in the Fleet Management Fund.
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PREVIOUS COUNCIL ACTION
Approved a six-month contract on 12/04/23.
BACKGROUND
There was no price increase during the last extension 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. All items will be purchased on an as needed basis. This is the sixth of seven extension periods. The term of this contract shall be for a period of six months beginning as of the date of its execution. This contract shall be the responsibility of and administered by the vendor and the City of Laredo Fleet Department.
A current pricing table is attached.
COMMITTEE RECOMMENDATION
None.
STAFF RECOMMENDATION
recommendation
It is recommended that this contract be renewed.
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Fiscal Impact
Fiscal Year: 2024.
Budgeted Y/N?: Yes.
Source of Funds: Fleet Management Fund.
Account #: 593-2810-533-2073.
Change Order: Exceeds 25% Y/N: No.
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.