SUBJECT
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Consideration to award contract FY24-061 to the bidder Arguindegui Oil, Laredo, Texas, in an annual amount up to $5,600,000.00 for the purchase of unleaded and diesel fuel for the City's automotive fleet. Contract unit price will be determined by the daily published Oil Price Information Service (OPIS) index made up of the composite posted prices in the Laredo area. The term of this contract shall be for a period of two years beginning as of the date of its execution and is contingent upon the availability of appropriated funds. The contract may be extended for three more, additional one-year periods, each 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 six (6) bids through Cit-E-Bid for the purchase of unleaded and diesel fuel for the City's automotive fleet. During the contract period, the unit prices will be determined by adding the unit price to the daily published Oil Price Information Service (OPIS) index made up of the composite posted prices in the Laredo area. The weekly price shall be the OPIS Low Rack price for the Laredo area, plus the fixed price differential rate. The OPIS index is an average of the delivered, terminal price in cents per gallon, excluding all taxes for the Laredo area. This format allows for price changes based on an independent industry publication. This contract is based on the estimated usage of 900,000 gallons of unleaded fuel and 920,000 gallons of diesel fuel, 55,000 gallons of red diesel fuel, and 45,000 gallons of diesel exhaust fuel. The term of this contract shall be for a period of two (2) years beginning as of the date of its execution. The contract may be extended for three, additional one (1) year periods. This contract shall be the responsibility of and managed between the vendor and City of Laredo Fleet Department.
In determining Best Value for the City of Laredo, the following factors were cons...
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