SUBJECT
title
Consideration to award contract RFB 2026-074 to the bidder Arguindegui Oil CO. II, Ltd, Laredo, Texas in an annual amount not to exceed $130,000.00 for a total contract value of $520,000.00 for the purchase of engine oil and transmission fluid for the Laredo Transit Management, Inc., (El Metro). The term of this contract shall be for a period of one (1) year beginning as of the date of its execution and is contingent upon the availability of appropriated funds. The contract may be extended for three, additional one (1) year periods, each upon mutual agreement of the parties. Funding is available in the El Metro Operations Budget.
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PREVIOUS COUNCIL ACTION
none
BACKGROUND
The City received six (6) bids through Cit-E-Bid for furnishing the Laredo Transit Management Inc., El Metro with engine oil and transmission fluid for a one (1) year period. All items will be purchased on an as needed basis throughout the contract period. During the period of this contract, prices may be increased or decreased. Awarding to the second-lowest bidder due to “Southern Trenches Solutions” submitted an incomplete bid. 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.
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Arguindegui Oil Company |
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Unit Cost |
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Engine Motor Oil CNG Synthetic Blend |
$19.15 |
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400 Gallon Bulk |
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Automatic Transmission Fluid Drum |
$1,874.00 |
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55 Gallon Drum |
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COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
Staff recommends this contract be approved.
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Fiscal Impact
Fiscal Year: 2026
Budgeted Y/N?: Y
Source of Funds: El Metro Operations
Account #: 558 5811 582 6660
Change Order: Exceeds 25% Y/N: n/a
FINANCIAL IMPACT:
Funding is available at 558-5811-582-6660 & 558-5812-582-6660