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HomeMy WebLinkAboutA013 - Resolution awarding contract to Petroleum Traders Corporation of Fort Wayne, IN, for FY 2026 CyRide Standard Diesel with Biodiesel Blend Fuel PurchasesITEM #:15 DATE:07-22-25 DEPT:Transit SUBJECT:FY 2026 FUEL PURCHASES FOR CYRIDE COUNCIL ACTION FORM BACKGROUND: At the Transit Board of Trustees meeting on May 22, 2025, the board approved award of contract for CyRide’s FY 2026 fuel purchases to Mansfield Oil Company of Gainesville Inc. of Gainesville, Georgia, for a not-to-exceed amount of $1,260,000. On May 27, 2025, City Council adopted Resolution No. 25-253 approving this award of contract. On June 16, 2025, CyRide and the Purchasing Division were notified by representatives of Mansfield Oil Company that there had been a misunderstanding regarding the blended biodiesel delivery quantities. As a result, Mansfield Oil Company requested to withdraw its bid and cancel the contract. After receiving Mansfield’s request to cancel the contract, staff reviewed the other bids submitted under the original Invitation to Bid. A summary of those bids is shown below. Bid No. 2025-175 (7/1/25 - 6/30/26) #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 -$0.0091 $0.0168 0.00%$0.0350 When evaluating the responses, the total cost difference between the lowest and highest bid was less than $4,500. The second-lowest bid was deemed unresponsive due to a vendor- imposed condition limiting control over biodiesel blend percentages. The next responsive bid was submitted by Petroleum Traders Corporation of Fort Wayne, Indiana. The Purchasing Division has confirmed that Petroleum Traders Corporation's pricing remains valid, and they are willing to proceed with the contract. At its meeting on July 17, 2025, the Transit Board of Trustees approved accepting Mansfield Oil Company's request to cancel the contract, and approved awarding the FY 2026 fuel contract to Petroleum Traders Corporation for a not-to-exceed amount of $1,260,000. 1 ALTERNATIVES: 1. Authorize the following actions: a. Accept Mansfield Oil Company of Gainesville’s request to cancel the contract for the purchase of 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. b. Approve award of contract for the base bid to Petroleum Traders Corporation of Fort Wayne, Indiana, for standard diesel with biodiesel blend fuel from July 1, 2025, until June 30, 2026, at a not-to-exceed amount of $1,260,000. 2. Award the contract to one of the other responsive bidders 3. Reject all bids. CITY MANAGER'S RECOMMENDED ACTION: The bid from Petroleum Traders was found to be fair, reasonable, 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, as described above. ATTACHMENT(S): Cost Evaluation - Bid No. 2025-175 - July Board Meeting.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 $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 Pro Forma Fuel Budget Assumptions Bid No. 2025-175 Responses 3