SR-6-P (6)
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Santa Monica, California
PURCH:EOB:klc
f2265cc
Council Meeting: February 13, 1990
TO: Mayor and City Council
FROM: city staff
SUBJECT: Recommendation to Award Bid to Furnish and Deliver vehicle
Fuels and LUbricants, Bid #2265
Introduction
This report concerns award of bid to furnish and deliver vehicle fuels
and lubricants at specified unit prices, plus sales tax, where
applicable, and two one-year renewal options at the same prices and
conditions.
Background
In response to published Notices Inviting Bids (published December 20
and 21, 1989) to furnish and deliver vehicle fuels and lubricants in
accordance with City specifications, bids were received and publicly
opened and read on January 9, 1990. proposal forms were mailed to
twenty-one vendors and notices were advertised in accordance with city
Charter and Municipal Code provisions. Nine proposals were received.
Fuels and lubricants for all locations were bid as per the attached
tabulation.
In accordance with past practice of the ci ty I S fuel
suppliers, bid fuel prices are based on the weekly publication
referred to as the "Oil Price Information services" (OPIS) because of
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price volatility. This means that bids for the premium unleaded
gasoline, unleaded gasoline, #1 diesel low sulfur, and #2 diesel low
sulfur are based on a "Fixed Adder or Discount II against this
referenced price exclusive of all taxes. The "OPIS" price published
on Monday of each week will be the basis for prices of product
delivered during the seven days period commencing on Monday and
running through the following Sunday. It is necessary to establish a
reference point by using the "0PIS" publication in a volatile market
that drastically moves up or down frequently.
The lubricants bid prices will remain firm for a six-month period of
time with a 30-day notification of any increase in prices subsequent
to the six-month period.
In keeping with the City'S commitment to utilize recycled materials,
staff has investigated re-refined oil manufacturers and found that
there is only one in California. The one re-refined manufacturer was
invited to bid but did not respond. After the bid opening, staff
phoned the company inquiring as to why they did not bid, but none of
the several phone calls were returned. Staff will continue to explore
the market for a vendor or vendors in the re-refined oil business.
staff has evaluated the low bids and find that they meet City
specifications.
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BUdget/Financial Impact
Fiscal year 1989/90 appropriation authority for this purchase is in
the maintenance accounts of various departments. As the items are
used, they will be expensed against available FY 1989/90 appropriation
authority. For the period July 1, 1990 through February 13, 1991,
appropriation authority will be as set forth in FY 1990/91 budget.
Recommendation
It is recommended that the award of Bid #2265 be split among four
vendors. Items #1, 2, 3 and 4 be award to Gasco Gasoline, Inc.: items
#5, 6 and 9 be awarded to Union oil Company; item #7 be awarded to
Chevron USA, Inc.: and item #8 be awarded to Sunbelt Oil Company,
including tax where applicable, and two one-year renewal options at
the same prices and conditions, as the lowest and best bidders.
Prepared By:
E. O. Barnes, Purchasing Agent
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