HomeMy WebLinkAboutA001 - Council Action Form dated May 27, 2025ITEM #:28
DATE:05-27-25
DEPT:TRANSIT
SUBJECT:CONTRACT FOR FY 2026 FUEL PURCHASES FOR CYRIDE
COUNCIL ACTION FORM
BACKGROUND:
Since 2015, CyRide has been purchasing fuel using a market rate plus markup or deduction
model under twelve-month contracts. This approach reduces the administrative burden and
allows CyRide to take advantage of competitive pricing. Fuel pricing is based on the published
Iowa DOT rack rate, which is updated daily. Bidders submit bids for #1 and #2 ULSD standard
diesel that add or subtract a fixed amount from the published Iowa DOT fuel prices.
Last year, CyRide revised its approach to biodiesel pricing by requesting bids as a percentage
above or below the cost of #2 diesel. This change resulted in more competitive pricing and
better alignment with market conditions.
For the upcoming fiscal year, CyRide partnered with the Fleet Services Department to
include City fleet biodiesel needs as a bid alternate. This goal was to evaluate whether
combining procurement efforts would lead to better overall pricing while keeping
CyRide’s base fuel requirements unchanged.
On May 12, 2025, CyRide and Fleet Services, with the assistance of the Purchasing Division,
released Invitation to Bid (No. 2025-175) for the purchase of diesel fuel from July 1, 2025,
through June 30, 2026. The procurement documents established a not-to-exceed amount
equal to CyRide’s fuel budget for FY 2026.
Bidders were asked to price CyRide’s annual fuel requirements, as well as two bid alternates:
Alternate 1 - Small-load deliveries of 100% biodiesel to support CyRide’s pilot project.
Alternate 2 - Transport load deliveries of biodiesel to Fleet Services.
Bids were due May 16, 2025, and five responses were received. One bidder submitted pricing
only for Alternate 2 and was deemed non-responsive. Among the remaining four bids, all
responses for Alternate 1 and Alternate 2 were found to be not competitive when
compared to existing contracts. However, the base bid pricing was determined to be
competitive and reflective of current market conditions. At this time, staff is
recommending to not pursue Alternate 1 (small load deliveries of B100) and Alternate 2
(B100 deliveries to Fleet Services).
While the inclusion of Fleet Services did not result in lower pricing for its fuel needs, it
allowed for coordinated procurement efforts without impacting CyRide’s base fuel
requirements. The updated approach to bidding biodiesel as a percentage of #2 diesel
continued to produce competitive pricing that aligns with current market conditions.
The base bids are summarized below:
1
Bid No. 2025-175
(7/1/2025-
6/30/2026)
#1 Dyed
ULSD Diesel
#2 Dyed
ULSD Diesel
Biodiesel
(% over/under #2
ULSD)
Magellan's Cold
Flow Improver
Agriland Fs Inc $0.0280 $0.0290 1.00%$0.0100
Harms Oil Company $0.0050 $0.0260 -1.00%$0.0100
Petroleum Traders
Corporation $0.0231 $0.0231 2.75%$0.0200
Mansfield Oil
Company
of Gainesville Inc.
$-0.0091 $0.0168 0.00%$0.0350
A bid analysis was performed using CyRide’s anticipated fuel usage to determine the lowest
overall bidder. Based on this analysis, Mansfield Oil Company of Gainesville Inc. of
Gainesville, Georgia, was determined to be the lowest responsive overall bidder. A copy of the
bid tabulation and bid analysis is attached for reference.
The Transit Board of Trustees approved award of contract and the not-to-exceed
amount of $1,260,000 at its meeting on May 22, 2025.
ALTERNATIVES:
1. Approve award of contract for the base bid to Mansfield Oil Company of Gainesville Inc.
of Gainesville, Georgia, for standard diesel with biodiesel blend fuel purchases from July
1, 2025, until June 30, 2026, at a not-to-exceed amount of $1,260,000.
2. Reject all bids and direct staff to re-issue the fuel bid.
CITY MANAGER'S RECOMMENDED ACTION:
The base bid reflects the lowest price for CyRide to purchase fuel for FY 2025/26,
supports administrative efficiency, and ensures a reliable fuel supply for CyRide
operations. Therefore, it is the recommendation of the City Manager that the City Council
adopt Alternative No. 1.
ATTACHMENT(S):
Cost Evaluation - Bid No. 2025-175.pdf
2
#1 ULSD #2 ULSD
Biodiesel - Cold Flow
$0.0280 $0.0290 1.00%$0.0100
$0.0050 $0.0260 -1.00%$0.0100
$0.0231 $0.0231 2.75%$0.0200
Mansfield Oil Company of Gainesville -$0.0091 $0.0168 0.00%$0.0350
#1 ULSD #2 ULSD Biodiesel
Biodiesel - Total Gallons Estimated
20,000 310,000 15,500 20,000 21,000 365,500
$2.57 $2.32 $4.55
$51,960 $728,190 $36,320 $210 $816,680
$51,500 $727,260 $35,600 $210 $814,570
$51,862 $726,361 $36,949 $420 $815,592
Bid No. 2025-175
Responses
Pro Forma Fuel Budget
Assumptions
3